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Background



More than a mile beneath parts of Pennsylvania lies a mostly untapped reservoir of natural gas.

Geologists and energy companies have known for decades about the gas in the Marcellus Shale, but only recently have figured out a way to extract it from the thick black rock about 6,000 feet underground.

Now gas drillers are leasing local land - more than 25,000 acres in Luzerne County alone - in an attempt to find and remove the gas, the value of which increases as energy prices soar.

In January 2008 leases were being signed for values near $100 per acre. By May that value had increased to over $2000 per acre.

With lease values changing so rapidly, landowners are unsure at what price to accept a lease offer.

Kenneth L. Balliet, a forestry and business management educator with the Penn State Cooperative Extension, recently took a trip to Fort Worth to see the economic impacts of those deposits. He said leases are being signed for $18,000 per acre in areas where production has proven strong.

There were 195 Marcellus Shale wells drilled in Pennsylvania in 2008 and another 768 in 2009, according to the state Department of Environmental Protection. Another 364 have been drilled this year as of May 5. There were only about 20 wells in Pennsylvania when Balliet was first interviewed, and he expects local production to eventually rival Texas’ Barnett Shale. He said a gas company confided it planned to spend $1 billion in 2008 in leasing agreements in Pennsylvania.

That kind of investment could mean a big boost to the area's economy as a whole. But many people are concerned that the state doesn't have adequate safeguards in place to properly regulate the natural gas industry.

Finding a good balance between economic prosperity and environmental safety appears to be the state's greatest challenge in the Marcellus Shale play.



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Natural Gas Leases - Marcellus Shale

Latest Headlines

August 25, 2010

Testing the pre-drilling waters Several photos included in this story

A licensed geologist from Tunkhannock says people living near natural gas drilling operations should have their well water tested prior to drilling activities, but he warns that not everyone who offers testing services is qualified to take water samples.

August 24, 2010

In Boback’s bill, local oversight would return to drilling process

State Rep. Karen Boback wants to see authority over erosion and sediment control...

August 22, 2010

Governor candidates visit festival Several photos included in this story

PITTSTON – Gubernatorial candidates Tom Corbett and Dan Onorato are...

August 22, 2010

Singing the blues about shale at Gas Stock concert

LEHMAN TWP. – The Northeast Pennsylvania Citizens in Action Group got a little help from their friends Saturday at their first ever Gas Stock concert and rally.

August 22, 2010

PSU to start natural gas education, research center

Penn State will create the Marcellus Center for Outreach and Research, an education and research center to focus on the growing natural gas industry.

August 20, 2010

Officials explain Marcellus challenges, opportunities

SCRANTON – U.S. Sen. Robert Casey returned to his hometown Thursday to extol...

August 18, 2010

Low flow limits gas industry withdrawals, says river basin head

As the flow of the Susquehanna River and its tributaries...

August 18, 2010

Gas driller ban in Pittsburgh proposed; legality questioned

PITTSBURGH — City Councilman Doug Shields will introduce a bill next month that would ban corporations from drilling for natural gas in the city.

August 18, 2010

Wilkes to analyze drilling impact

With natural gas drilling beginning in Luzerne County...

August 18, 2010

Pa. fines driller $97K for frack spill

HARRISBURG — The state’s Department of Environmental Protection has fined a natural gas drilling company nearly $100,000 for a wastewater spill that contaminated a southwestern Pennsylvania watershed.

August 17, 2010

Lehman Twp. supervisors say they back gas drillers

LEHMAN TWP. -- Despite negative feedback in recent months from...

August 17, 2010

Hess the likely first Wayne County driller

An energy company is on track...

August 16, 2010

Legal point could open state park land to gas drills

SCRANTON — State conservation officials in Pennsylvania have...

August 13, 2010

Mundy urges tough drilling rules

State Rep. Phyllis Mundy is seeking support from House members for more stringent ....

August 13, 2010

Methane found in wells after lid blow-off


August 13, 2010

Casey, drilling association chief headline forum

SCRANTON – Two of the biggest names in the debate over regulation of gas drilling in the Marcellus Shale region are headlining an educational public forum at Marywood University next week.

August 12, 2010

Activists pitching a message Video clip included

Jerry Reisinger said his Iroquois ancestors were commissioned by the creator to protect...

August 10, 2010

Emergency crews set for Pa. wells

Experts trained to deal with catastrophic events at natural gas wells now will be stationed 24 hours a day, seven days a week in Pennsylvania.

August 7, 2010

Johnson hopes to build gas drilling workforce

SCRANTON – In order for Johnson College to keep up with the future of Pennsylvania’s industries, the technical school has gone back to its past.

August 7, 2010

Getting at the gas below

August 4, 2010

WVSA wants treatment partner

August 2, 2010

Report: Firms commit 1,500 infractions in Pa. in 30 months

July 31, 2010

Baker voices opposition to ‘forced pooling’

July 30, 2010

Medico taps into gas boom

July 30, 2010

Countryside Conservancy branch hosting Marcellus Shale seminar

July 28, 2010

2 meetings to be held on shale

July 27, 2010

Casey seeks input on shale bill

July 23, 2010

2 killed in gas well explosion in western Pa.

July 22, 2010

Encana drill first to dig in

July 20, 2010

Gas drilling moratorium requested in Harveys Lake

July 20, 2010

EPA to again review drilling, fracking issues

July 20, 2010

Drill rig set to go at first gas well

July 20, 2010

Drilling spurs plans for 2 hotels

July 14, 2010

Natural gas fire in Susquehanna County probed

July 14, 2010

Pa. blowout report cites mistakes

July 14, 2010

Gas firm looks to hearing on 10 new well permits

July 13, 2010

DEP: Clearfield gas well blowout fault of operator

July 9, 2010

Gas driller eyes site in Plains Twp.

July 6, 2010

Gov. Rendell reaffirms shale tax commitment

July 1, 2010

Cattle may have drunk drill water

July 1, 2010

Onorato wants drilling to go on, but with care

June 30, 2010

Drilling hits the county next week

June 29, 2010

State releases list of drilling chemicals

June 26, 2010

Education is goal of energy expo

June 24, 2010

Mundy sees drilling moratorium unlikely

June 24, 2010

State police crack down on gas-drilling vehicles

June 21, 2010

Mundy proposes pause

June 18, 2010

Drilling wastewater rule gets vital Pa. approval

June 18, 2010

Forum set to discuss drilling opportunities

June 18, 2010

‘Gasland’ movie critical of drilling

June 18, 2010

Drilling benefits rec site

June 17, 2010

Severance-tax issue a big hurdle for drill laws

June 17, 2010

Panel to hold forum on drilling preparedness

June 16, 2010

Drillers told not to take shortcuts

June 16, 2010

Gas firm asks to lay pipeline in Dallas Twp.

June 16, 2010

Resident asks council to slow gas drilling activity

June 16, 2010

Proposed Lehman Twp. gas drill site contested

June 14, 2010

Gas well permit issuance contested

June 14, 2010

Some legislators think natural gas tax is best answer

June 14, 2010

Drilling in shale bringing little tax

June 13, 2010

For love of the land

June 13, 2010

Some urge suspension at forum on drilling

June 10, 2010

Sestak hosts shale meeting

June 9, 2010

Water co. requests say in permits

June 7, 2010

Pa. stops company’s drilling after accident

June 7, 2010

Gas-leased land borders dam

June 6, 2010

Pa. inspectors looking into gas well emergency

June 6, 2010

Drill results could hike land values

June 6, 2010

Experts urge caution with lease deal offers

June 5, 2010

PennDOT will discuss Marcellus Shale plans

June 4, 2010

Penfield well blowout under control

May 31, 2010

Extra protection in place for water amid drilling

May 31, 2010

Response to gas disaster in the works

May 26, 2010

Study boosts Shale’s fiscal pluses for Pa.

May 25, 2010

Baker proposes bills on gas drilling, drinking water

May 25, 2010

Natural-gas severance tax mulled

May 23, 2010

State has no active drill leases here

May 23, 2010

Drilling industry concerns anglers, hunters

May 21, 2010

Shale coalition president promotes drilling’s economic benefits

May 17, 2010

Lehman Twp. fields shale, road question

May 14, 2010

State tells how to protect water quality

May 14, 2010

State tells drillers to follow the rules

May 14, 2010

Area races seeing little gas money

May 13, 2010

Lake Twp. receives emergency update

May 13, 2010

Gas exploration of state forest land has some concerned

May 12, 2010

Drilling safety steps detailed

May 12, 2010

Rendell backs halt to gas leasing of Pa. forests

May 12, 2010

Worker dies after accident at drill site

May 12, 2010

Chesapeake aims to raise $5 billion

May 11, 2010

Worker killed in Dimock gas drilling incident

May 11, 2010

Rendell OKs leasing 32,896 acres of state forest for gas drilling

May 11, 2010

Drilling’s effect on ‘Clean and Green’ land uncertain

May 9, 2010

Company defends its environmental record

May 9, 2010

New gas entry alters picture

May 8, 2010

Boback introduces bill to study laws of gas drilling

May 8, 2010

Rally targets Moon Lake drilling

May 7, 2010

$299K grant to help with gas drilling training

May 7, 2010

Water to be tested because of drilling

May 7, 2010

Drilling under river is OK’d in Bradford Co.

May 6, 2010

Bill may halt gas leasing on forest land

May 6, 2010

Much of Back Mt. leased

May 5, 2010

Zoners OK gas drilling in Lake Township

May 5, 2010

Shale town mayor tells drilling woes

April 29, 2010

Gas firm seeking special land uses

April 27, 2010

Casey wants EPA to probe well contamination linked to gas drilling

April 25, 2010

Members told to pass ordinances regarding drilling

April 23, 2010

PUC foresees energy cost cut

April 23, 2010

Activists express fears on gas drilling

April 21, 2010

Residents worry about gas drillers contaminating water

April 21, 2010

Gas drillers called to Harrisburg

April 19, 2010

Debate rages over Delaware River watershed

April 16, 2010

Towns get legal advice on gas issues

April 15, 2010

Lake Twp. has drilling concerns

April 14, 2010

Lehman Township says yes to gas drilling

April 13, 2010

Sanitary Authority won’t treat Shale water

April 12, 2010

Energy co. says no to natural gas drilling at Moon Lake

April 12, 2010

Lawmaker delivers rebuttal

April 11, 2010

Shale compromise is goal of Sestak

April 9, 2010

State: Energy firm contaminated well, spring

April 8, 2010

Lawmakers dig in to drilling concerns

April 6, 2010

Pa. House panel to hear gas-drilling concerns

April 5, 2010

Test well water before Marcellus Shale gas drilling begins, experts advise

April 1, 2010

Forum airs citizens’ drilling concerns

March 30, 2010

Cleaner shale technology is being sought

March 26, 2010

Old Duryea railroad yard taking on new life

March 25, 2010

Potential leak at gas drilling site probed

March 24, 2010

Oil/natural gas rep touts environmental record

March 24, 2010

Shale's financial impact on area unknown

March 23, 2010

Some colleges add programs to train workers

March 22, 2010

Drilling likely to generate variety of labor positions

March 21, 2010

Law, engineering firms will be the first for jobs

March 18, 2010

Back Mt. group will work for gas drilling law

March 18, 2010

EPA set to study fracking impact

March 17, 2010

Pa. to disclose gas production results

March 16, 2010

Lehman Twp. postpones gas drill vote

March 13, 2010

Area gas drilling a danger, activist says

March 12, 2010

Marcellus shale drilling topic of meeting

March 10, 2010

Lake Twp. antsy about gas drilling

March 5, 2010

Landowners urged to seek deal

February 26, 2010

Shale interest paying off, firm says

February 11, 2010

Shale group thinks governor’s tax in proposed budget unfair

February 5, 2010

Gas drilling meeting draws lots of interest

February 5, 2010

Lease will pay for township drilling

February 4, 2010

Drilling prompts DEP to get Scranton office

February 1, 2010

Rep. backs state control of drilling

January 30, 2010

WVSA sees profit in treating drill water

January 29, 2010

Law on gas drilling still in flux, public told

January 28, 2010

Lawmakers seeking public input on gas drilling

January 27, 2010

Reps withdraw drill bill support over ‘forced pooling’

January 14, 2010

Drilling for gas raising issues

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