Throughout the United States, Oil and Gas companies are testing new technologies and drilling methods to extract the trillions of dollars worth of oil, coal and natural gas that resides nearly 1 -2 miles below the earth's surface. Many of you know of the Barnett Shale located in Texas and the Gulf Coast. Many property owners are realizing early retirement because they capitalized on resources that are below the surface of the land they own. Those on the eastern half of the country are beginning to recognize the benefits of the Marcellus Shale. This "play" (as the drillers will tell you) has enough natural gas to heat the United States for about 15 years. The exploration of these resources are in their infancy. If you Google "Marcellus Shale", hundreds of posts, groups and blogs will show up in the search.
While gas companies prefer to drill undeveloped land, drilling for gas on developed land is not uncommon. There are several active gas wells on commercial property in northeast Ohio alone. Oil and Gas leasing is a relative unknown in the commercial real estate world, which is why negotiations should be handled by a qualified attorney. However, the benefits of the resources below the surface can equate to millions in found revenue from royalty shares or gas savings from the free gas offered by the company. In some cases, the land owner can get into the gas business by reselling their free gas to their tenants at a discount to what their utility company would charge.
My suggestion to landowners of commercial property is to ask around. My guess is that your neighbor has been approached before about leasing the Oil and Gas resources below the surface. In the great words of Sarah Palin "Drill baby Drill". While I'm not a registered republican, exploring the resources below our surface is something all property owners should consider.
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