The Barnett Shale is a natural gas source bedrock stretching over 16 to 21 counties in North Texas. Even though the actual boundaries of the bedrock is still being discovered, the 6,000+ square-mile reservoir is already the second largest producer of on-shore domestic natural gas in the United States. It is second only to the San Juan Basin in New Mexico and Colorado.
Experts are claiming that the Barnett Shale may ultimately be the single largest onshore natural gas field in the US. As an aside, oil has also been found in this bedrock. Although it is of lesser quantity, there is a sufficient amount, given the recent high prices of oil, to be commercially viable. The Barnett Shale is known as a “tight” natural gas reservoir, meaning that the gas isn’t easily extracted. The process by which the gas is extracted is called hydraulic fracturing. This is coupled with horizontal drilling, which means fewer unsightly structures above ground. Interestingly, most homes in Tarrant and Johnson Counties are on the Barnett Schale. The person who holds the mineral rights for a property typically enters into a lease with a company that will "develop" the minerals - in this case, natural gas. The developer pays the owner of the mineral rights in the form of rental fees and/or a royalty based on the amount of the property's mineral production. So, when you are buying or selling property in this area, you will want to know about the mineral rights associated with the property. Sometimes the mineral rights pass to the new owner of a property, and sometimes a previous property owner already owns the mineral rights. Over the years, many property owners have retained the mineral license on the properties they have sold, so that license (or right of ownership) may not be available for your property. If you’re not sure who owns the mineral rights associated with your particular piece of real estate, a landman can be hired to research the property in old courthouse records and railroad records to determine the rightful ownership of the mineral license. If you are selling your property and you own the mineral rights, you can choose to retain the mineral rights on the property. Selling the rights along with the property might bring a higher price, but leasing the mineral rights might be a better deal for you. For specific questions, you'll need to consult with an attorney. If you have questions or want assistance in obtaining legal advice, please call us at 817-909-7197, or use the form below to send an email. |