The Marcellus Shale, located in New York, is a large natural gas field in the form of shale rock. This shale is located deep below the earth's surface and when fractured, can produce a large amount of Natural Gas. As of early 2009, drilling has been put on hold due the the NY DEC review of regulations.

New York is one of several states that is home to the Marcellus Shale. Natural gas drilling can be found along the southern border of the state of NY. As some of you might know, drilling for natural gas in the Marcellus Formation of New York comes with risks. Over one billion gallons of water are used from this area to serve New York City and other portions of New York each day. The Department of Environment Conservation ( DEC ) has issued strict drilling guidlines for companies involved in the Marcellus Shale. Some people are even calling for a ban on drilling in New York ( or atleast the watershed portion ) due to the potential hazards it could have on the states water supply.

How is a Marcellus Shale well drilled? Drillers buy mineral rights leases from landowners. The driller then begins to drill a well after a permit is approved. Some new shale gas drilling techniques involve slick water fracturing. A nice cocktail of water, sand, and harmful chemicals are sprayed at the shale rock at high pressures in order to fracture the shale. The natural gas is then released and the toxic water is then pumped out of the ground. What residents and state officials fear is that these harmful chemicals will find their way into the aquifer, causing serious water contamination. Not all companies use this slick water fracturing method. Some companies are actually testing air fracturing simulation. This type of drilling would be a great fit for the New York section of the Marcellus Shale!

Effect of Federal Safe Drinking Water Act, Clean Water Act and Emergency Planning and Community Right-to-Know Act:

Questions have been raised about whether certain specific exemptions or exclusions in federal law prevent the Department from regulating Marcellus Shale well drilling and hydraulic fracturing. They do not. As explained below, the Department retains full authority to regulate these activities to prevent pollution and to protect the environment and public health and safety. Full Article Here

Final Scope for Draft Supplemental Generic Environmental Impact Statement on the Oil, Gas and Solution Mining Regulatory Program

Well Permit Issuance for Horizontal Drilling and High-Volume Hydraulic Fracturing to Develop the Marcellus Shale and Other Low-Permeability Gas Reservoirs

The Department of Environmental Conservation is responsible for regulating the development and production of oil and gas resources in New York State. Natural gas exploration and production companies, and mineral rights owners, are interested in developing a potentially significant gas resource in the Marcellus Shale through the use of horizontal drilling and a hydraulic fracturing technique known as "slick water fracturing." This technique requires large volumes of water. The Department has identified the action of well permit issuance when high-volume hydraulic fracturing is proposed as one which requires further review under the State Environmental Quality Review Act ("SEQRA") Full Article Here

The Marcellus Shale has been a hot spot for landowners living in southern New York. Some homeowners who own their land have been approached by oil & gas companies and asked to lease their mineral rights. Owners not only receive a mineral rights bonus, they also receive royalty payments from natural gas extracted from the Marcellus Shale. Although natural gas prices have fallen in 2009, mineral rights activity is still happening but at a lower amount. There seems to be less landbrokers from a year ago.

Mineral Rights Leasing: In New York, prices are going for $150-$300 per acre ( up to $4000 ) depending on where you live. Bradford, PA is a sweet spot and could extend up into the Chemung, Tioga County area in NY.