The shale industry’s money-making component: Methane
Sunday, October 12, 2014
Methane, one of the main parts of natural gas, commonly leaks out of oil and gas wells.
The Houston Chronicle reports that methane can be burned as fuel, but it has to be captured. When it isn’t captured, it leaks into the atmosphere and is wasted, at the environment’s expense.
Environmentalists are concerned about methane leaks since methane is worse for the climate than carbon dioxide, and landowners feel that they should receive royalty payments for the methane that is lost when a well is burned off.
From The Houston Chronicle:
“The amount of methane leaking out of oil and gas wells is growing every day, with leaks on federal lands rising 135 percent between 2008 and 2013, according to a study completed by Stratus Consulting for the Wilderness Society and the Center for American Progress.”
Via: The Houston Chronicle > Methane leaks give opportunity to entrepreneurs
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.