Allegheny Pennsylvania Use of Produced Oil Or Gas by Lessor

State:
Multi-State
County:
Allegheny
Control #:
US-OG-839
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Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

Allegheny County, Pennsylvania, located in the southwestern region of the state, is known for its rich history and abundant natural resources. Within the county lies the Allegheny Plateau, a geologic formation that has been a significant source of oil and gas production for decades. The use of produced oil or gas by a lessor in Allegheny County refers to the activities and benefits enjoyed by the owner of a property from the extraction and utilization of oil or gas reserves located on their land. Many landowners in the county have entered into lease agreements with oil and gas companies, allowing them to explore, drill, and extract natural resources on their property. One of the primary uses of the produced oil and gas by lessors is electricity generation. The extracted natural gas is often utilized in power plants to produce electricity, ensuring a reliable and affordable energy source for the region. This use contributes to reducing dependency on traditional fossil fuels and moving towards a more sustainable energy future. Additionally, a lessor may use the produced oil or gas for heating purposes. Natural gas is widely used to heat homes, commercial buildings, and industrial facilities due to its efficiency and cost-effectiveness. It provides a clean and convenient alternative to other heating fuels such as coal or oil, thereby reducing emissions and environmental impact. There are various types of Allegheny Pennsylvania use of produced oil or gas by lessors that can be observed: 1. Residential use: Lessors can benefit from the produced oil or gas by using it for heating and cooking in their residential properties. This ensures a reliable energy source for homeowners and promotes energy independence. 2. Commercial and industrial use: Many businesses and industries in Allegheny County rely on the produced oil or gas for their operations. This includes manufacturing facilities, restaurants, hotels, and other commercial establishments that utilize natural gas for heating, cooking, and power production. 3. Agricultural use: Farms in the county often utilize produced oil or gas for various agricultural operations. This can involve powering machinery, irrigation systems, and heating greenhouses, contributing to increased productivity and efficiency. 4. Export and distribution: Some lessors may choose to sell the produced oil or gas to other regions or states, contributing to the broader energy market and economic growth of the county. Overall, the use of produced oil or gas by lessors in Allegheny County plays a crucial role in powering homes, businesses, and industries while simultaneously supporting economic development and reducing environmental impacts.

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FAQ

In 2017, operators drilled 913 oil and gas wells. Of that total, 810 were in unconventional shale formations such as the Marcellus, while 103 were drilled in shallower conventional formations.

Natural gas has been extracted from underground sources in Pennsylvania since the early 1800s, with the state currently hosting about 40,000 active gas wells and approximately 4,000 new wells drilled each year.

Statewide, there are more than 8,700 abandoned wells in Pennsylvania, but it is estimated that there are an additional 200,000 abandoned wells across the state.

Altogether, there are 22,862 wells in this inventory, of which 12,285 currently have an active status.

Pennsylvania State Energy Profile Pennsylvania's marketed natural gas production, primarily from the Marcellus Shale, reached a record 7.1 trillion cubic feet in 2020, and the state is the nation's second-largest natural gas producer after Texas.

Shale gas or unconventional gas is extracted from the impermeable shale through a process called hydraulic fracturing (also known as hydrofracking or fracking). A crude form of this technique, involving nitroglycerine, was used for the first time around the 1860s to explore for oil and gas.

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.

Sitting atop the prolific Marcellus and Utica shale plays, Pennsylvania is a natural gas production powerhouse thanks to responsible production using modern hydraulic fracturing and horizontal drilling.

Crude oil. Pennsylvania oil producers operated more than 7,100 oil wells in 2017 to produce over approximately 6.5 million barrels of Pennsylvania Grade crude oil.

There are roughly 185,000 conventional wells in the Pennsylvania DEP's database. With that many wells, it's not uncommon to come across conventional wells on farms, in forests, or in people's backyards.

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Allegheny Pennsylvania Use of Produced Oil Or Gas by Lessor