Marcellus Shale and Natural Gas

Explore Penn State Extension’s educational resources on the economic, business, and environmental impacts of the Marcellus Shale and natural gas industry. Discover how the industry affects landowners, businesses, and municipalities.

What Is Marcellus Shale

Marcellus Shale, or Marcellus formation, is shale that spreads across parts of Pennsylvania, New York, West Virginia, Ohio, Maryland, and Virginia. Lying under the Appalachian Basin, the Marcellus Shale is an important resource of natural gas. In PA, the exploration, development, and recovery of the Marcellus Shale are strictly regulated by the Department of Environmental Protection (DEP).

Within the Marcellus Shale, natural gas can occur as deep as 9,000 feet below the ground surface. While the gas can be extracted via a traditional vertical well, a horizontal well with hydraulic fracturing may have higher production rates.

From the well, gas is transported to interstate pipelines and consumers via gathering pipelines. Adequate pressure is needed to move the natural gas to larger lines. To help maintain the pressure and gas flow, compressor stations are strategically placed within the gathering and transportation pipelines. Access Penn State Extension’s Natural Gas Production Analysis webinar for more insights and trends in natural gas productions.

The Impact of PA Natural Gas Extraction

The long-term impacts of natural gas production in the Marcellus Shale can be difficult to predict. Experience in other regions of the US, however, suggests that these impacts can be profound for communities. It is therefore important that citizens and local authorities consider both the positive and negative consequences of natural gas development. Learn more about the municipality and government impacts of natural gas with Penn State Extension.

It is further worth noting that the exploration, drilling, and extraction processes can also have various impacts on the environment. The majority of these activities are regulated and monitored by various local authorities. In addition, to obtain a natural gas exploration permit in PA, gas companies must account for any environmental impacts they have on the state's forest system, surface and groundwater, forests, and wildlife.

The rapid development of the Shale brings significant opportunities and challenges to Pennsylvania businesses, as well. Detailed information – including trends in crop and dairy production in relation to drilling activity – can be found in the Marcellus Shale Economic and Business Impacts section.

Penn State resources are available for citizens, business owners, and community leaders. Access information on topics such as handling community conflicts to achieve a positive outcome, understanding fracking policy issues, and learning about Marcellus Shale drilling water withdrawals.

Landowners and Natural Gas Leases

In Pennsylvania, landowners generally have the right to extract natural gas under their property. Property owners can also choose to lease the right to explore for gas to a qualified company with the proper equipment and technical ability to extract and transport natural gas.

If considering natural gas leasing in PA, remember that leases are negotiable, but they are legal and binding documents. When extracting natural gas from a leased property, the owner receives payment for the lease and royalty for the value of the gas.

In the Gas Leasing and Royalties section, find additional information and advice, including specific natural gas laws in PA. Access the Landowners Guide to Financial Management and learn how to manage income from natural gas leasing.