PA leasing state forest for natural gas

**Dredly** · July 14th, 2008, 01:23 PM

http://www.poconorecord.com/apps/pbc.../NEWS/80714006

Pa. to lease 74,000 forest acres for gas drilling

July 14, 2008

HARRISBURG, Pa. (AP) — State forestry officials say they will take bids from oil and gas companies interested in drilling on 74,000 acres in three state forests in northcentral Pennsylvania.

The state Department of Conservation and Natural Resources announced the lease sale Monday after it ended a five-year moratorium on new drilling earlier this year.

Eighteen different tracts are involved.

To win, a bidder must submit the highest money offer on the first year’s land rental.

Successful bidders will be able to take a shot at a deep gas reservoir, the Marcellus Shale formation, some 6,000 to 8,000 feet underground.

The Marcellus formation is thought to contain large quantities of natural gas and is drawing the interest of exploration companies from Texas to Canada.

**JP8** · July 17th, 2008, 08:24 AM

I've seen a fair amount of this in the Allegheny National Forest.

**TonyF** · July 17th, 2008, 09:04 AM

Originally Posted by Dredly

The Marcellus formation is thought to contain large quantities of natural gas and is drawing the interest of exploration companies from Texas to Canada.

Isn't this the gas field that has the potential to be the largest in the country?

**Damage control** · July 17th, 2008, 09:10 AM

Originally Posted by TonyF

Isn't this the gas field that has the potential to be the largest in the country?

I believe I read some where it is the biggest in the world.

DC

**Damage control** · July 17th, 2008, 09:14 AM

Good read on it here.

DC

**rev214** · July 17th, 2008, 09:26 AM

i don't have all the details, but a friend of mine bought 100 acres west of the Poconos, and he agreed to have a portion of the property drilled for natural gas...i think its a 5-year deal, because he plans to retire to the property in 5 years...part of the agreement will be to return the drilled area to its "original state" before the agreement is completed...if they find gas, he will get a percentage of the profits and free natural gas...the profits could literally pay for the acreage he purchased (and probably more)...

**marinakorp** · July 17th, 2008, 09:47 AM

Originally Posted by rev214

i don't have all the details, but a friend of mine bought 100 acres west of the Poconos, and he agreed to have a portion of the property drilled for natural gas...i think its a 5-year deal, because he plans to retire to the property in 5 years...part of the agreement will be to return the drilled area to its "original state" before the agreement is completed...if they find gas, he will get a percentage of the profits and free natural gas...the profits could literally pay for the acreage he purchased (and probably more)...

gotta watch that... in the contract, while it may say it expires in 5 years... the company has the right to renew after 5 years... From what I have "heard" there is an "evergreen" portion of the contract that allows the companies to renew the contract for another 5... then another 5...

Might want to take a GOOD look at the contract and whtat it means... if he looks to retire there in 5.

I believe that there is a thread on this forum about it...

**Brick** · July 17th, 2008, 07:13 PM

Good! The State should sell gas leases on all its' property within the gas bearing region.

At roughly $2000 an acre and 5% royalty for the gas (if discovered) it could go a long way towards improving the solvency of the state, as long as the politicians don't piss it away.