Shale royalties workshop in Greene aims to help demystify process for landowners
As natural gas development has intensified in Pennsylvania over the last few years, many landowners in Fayette, Washington, and Greene counties have benefitted financially from Marcellus shale exploration and drilling.
However, there is still much about the industry that can be confusing to those receiving shale royalties, including how current trends and production figures impact payments, how to interpret information provided on royalty stubs and how to manage resources and invest the income wisely.
Penn State Extension is hosting a Shale Royalties Management workshop on May 23 at Carmichaels & Cumberland Township Volunteer Fire Company, 420 W. George St., Carmichaels, to help address some of those questions. Two sessions will be held — one from 1 to 4 p.m. and the other from 6 to 9 p.m.
“Royalty owners may sometimes feel like they are living in confusion – product codes, deduction codes, a deluge of numbers and letters – additionally there is some uncertainty about prices, taxes, and the future – what can they expect next month and next year,” said Daniel Brockett, Penn State Extension educator on the Shale Energy Education Team. “We hope to provide some answers to questions like ‘why are prices different for me than what I read in the news?’ and “will new ethane cracker plants affect me?'”
Brockett, along with Andrew Gans from Rockcliff Capital LLC, and Steve Feldbauer from Urish Popeck & Co. LLC will present a comprehensive program at the workshop to help royalty owners understand how current drilling production and utilization trends can affect their royalties.
“Decline curves on gas wells are important to understand if you are projecting future income because it can change so rapidly – a lot of production occurs in the first several month and drops sharply in the first two years…,” said Brockett.
The team will also provide insight for how landowners on the trends specific to Greene County.
“In addition, there are a lot of production, market, and public policy issues that could affect landowners – new technologies, tighter gas markets, and proposed legislation could all have significant impacts,” added Brockett.
The information provided at the workshop is for educational purposes only and is not a substitute for legal advice. Anyone with a specific issue is encouraged to consult an attorney for information on their situation.
The program is free of charge, but seating is limited so pre-registration is required. To register, visit https://extension.psu.edu/shale-royalties-management-workshop-for-landowners or call 1-877-345-0691.
If special accommodations are required, call Carol Loveland at 570-320-4429 to make arrangements or to ask questions about physical access to the workshop.