Shrinking royalty payments threaten drilling in Pa. township
Monday, September 26, 2016
Sitting in the heart of heavily drilled Bradford County, Pennsylvania, Wilmot Township wants to end shale drilling for natural gas because of shrinking royalty payments.
Township officials want drilling to be cutoff at wells where landowners are receiving royalty checks for a fraction of their original value, according to National Public Radio’s State Impact Pennsylvania.
The township is home to about 70 wells in the Marcellus Shale play, according to Kallanish Energy.
Pennsylvania law gives landowners at least a 12.5 percent royalty on production. However, different lease terms may hold both drillers and landowners responsible for post-production costs from moving and processing natural gas. The additional expenses could reduce royalty payments.
Learn more: Kallanish Energy > PA township wants to halt drilling due to shrinking royalty payments
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.