Marcellus Shale and Real Estate
For those of you who know what Marcellus Shale is, you probably are already know that you are sitting on a land of huge financial potential. For those who are new to this topic, let us explain what Marcellus Shale is? What is its relation with real estate? And what do you need to know about it, so that you can utilize its earning potential. Marcellus Shale is the formation of shale rock that starts from New York and reaches out to Pennsylvania, Ohio and West Virginia. These rocks were formed due to geological process and they happen to have natural gas trapped between the rock’s pores. It is said that these rocks contain enough gas to meet the 14 years energy demands of America. Through the entire area, many people are currently residing and as a real estate agent you need to let them know of what they are sitting on. You need to help them understand gas rights, royalties, rules and regulations. A long time ago, many people were unaware of the potential this land has. But now, it has become valuable for not only oil and gas companies but for the real estate industry as well.
Here are some important things you need to know about the Marcellus Shale and its connection with real estate
Water is safe:
With many people drinking tap water in New York, one might consider it unsafe for drinking as there is gas underneath the area. This is not the case as these gases are trapped 1 or 2 miles below the surface and water can be found below 500 meters. So, you can inform your clients that their water is safe for drinking..
Gas companies are to stay away:
The gas companies have their eyes on the land but they have no eminent domain over this area. If your client possess land it this area it cannot be taken from them, as long as they don’t want to sell it. They can also keep their lands and sell their gas rights to companies for money and royalty payments.
Old wells in Marcellus shale area:
Old wells are never to be considered a lost cause as there are certain scientific ways to make them go live again and start producing gas. You need to make sure you don’t let you client sell their old wells for cheap.
Royalty payments:
Because your client lives in an area where there is gas, he/she is entitled to royalty payments. Why? Because extraction from one area can take out gas from other area as well, so as a result, royally must be paid by the companies.
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The Investment potential of Marcellus shale:
The discovery of gas in the Marcellus shale has resulted in development in that area. There are many high paying jobs, more roads and industry being developed in that area, this calls for a huge investment potential in the entire area. Be sure to recommend your client to invest in some real estate in this area.
Stay up-to-date:
As a Real estate agent you need to stay up-to-date with almost everything reacted to this area. You need to keep an eye on the laws being passed for the people living in this area. You need to learn the language of oil and gas companies so that you can defend your clients better. Keeping up-to-date with the prices is also a must.
If you are not aware of how the entire process of gas laws and royalty payments work, you can always get help from a professional for the good of your clients.