Mineral Rights Explained

Mineral rights refer to the legal rights to extract and produce minerals from a piece of land in the United States. These rights can be owned separately from the surface rights to the land, and can be bought, sold, or leased independently. Mineral rights can include rights to extract resources such as oil, natural gas, coal, and other valuable minerals. In the United States, mineral rights are governed by state laws, and the specifics of ownership, leasing, and regulation can vary from state to state.

There’s an interesting phenomena unfolding every day with respect to America’s minerals. They’re becoming divided into smaller and smaller ownership pieces – a process called fragmentation (aka fractionalization). As each successive generation comes and goes, mineral rights tend to get split, and split, and split again. For example: Great-grandfather owned 100% of the minerals underneath the farm. He left 25% to each of the four kids, who in turn leave their respective 25% to each of their children, who in turn do the same. Get the picture? It is commonplace today for individuals to own small (and very small) fractions of mineral interests.

Proving ownership of mineral rights can be a complex and potentially expensive process. It typically involves researching and reviewing legal documents and historical records to establish the chain of title, or the sequence of transfers of ownership for the rights in question. This can involve searching for deeds, leases, and other legal documents that demonstrate ownership and may involve hiring a title abstractor or attorney to assist with the process. Additionally, if there are disputes over ownership or any questions about the validity of the documents, it may involve going to court and incurring legal fees. The cost of proving ownership can vary widely depending on the specific circumstances and the amount of research and legal work required.

Marcellus Shale

The Marcellus shale is a rock formation that lies beneath much of the Appalachian region of the eastern United States. It is a black, organic-rich shale that was formed from the accumulation of sediment and organic matter in a shallow marine environment during the Middle Devonian period, about 385-360 million years ago.

The Marcellus shale is rich in natural gas, and it has become an important source of natural gas production in the United States in recent years. The shale is typically found at depths of about 3,000 to 8,000 feet below the surface, and it can be up to 200 feet thick in some places.

The Marcellus shale is considered to be one of the most productive natural gas fields in the world and has been the subject of hydraulic fracturing, also known as fracking, which is a method of extracting natural gas and oil from shale rock by injecting a mixture of water, sand, and chemicals into the rock at high pressure to create fractures that release the trapped gas and oil.

It is estimated that the Marcellus Shale contains about 84 trillion cubic feet of natural gas, with around 15 trillion cubic feet of that being recoverable. The natural gas production from the Marcellus Shale has been rapidly increasing in recent years, with production reaching a peak of around 18 billion cubic feet per day in 2020.

The Marcellus shale natural gas extraction industry supports a significant number of jobs and generates a significant amount of revenue for the economy. According to the Marcellus Shale Coalition, an industry trade group, the Marcellus shale industry supported over 250,000 jobs in Pennsylvania alone in 2018. Additionally, the industry generated over $44 billion in economic activity and $1 billion in state and local tax revenue in Pennsylvania in 2018.