Webinar focuses on property values near shale gas sites

UNIVERSITY PARK, Pa. -- The findings of studies on how the values of residential property near shale gas/oil extraction sites have changed will be the topic of a web-based seminar to be presented by Penn State Extension

The presentation, from 1 to 2 p.m. on March 16, will feature Charles Abdalla, professor of agricultural and environmental economics, and Darrah Peklak, a Penn State economics and geography student. They will examine the results of peer-reviewed research that has employed property-value-analysis methods to estimate negative impacts to residential property values near shale development.

“We’ll review two studies that were conducted in Pennsylvania in recent years,” Abdalla said. “Estimates between 2 and 21 percent reduction in value of homes near well pads were found, depending on the property’s characteristics, such as water source and neighboring land use. But it is worth noting some nearby homes did experience increased property values.”

The use of unconventional methods -- hydraulic fracturing and horizontal drilling -- to extract natural gas from the Marcellus and Utica shales has produced both positive and negative impacts for Pennsylvanian citizens, businesses, communities and governments, Abdalla pointed out. During the early development of shale gas in Pennsylvania, decisions about shale gas development on one’s land were made based on positive economic impacts and information available at the time. 

The webinar will look at how those past decisions play a role on property values today.

Peklak will highlight other key findings. “Properties with private water wells located within 1.5 kilometers of a shale-gas well-drilling pad experienced significant negative property value impacts,” he said. “Properties in close proximity to major roadways can experience continuing negative impacts past the drilling stage.” 

Abdalla noted that, as a result of these published studies, homeowners and others have a more complete and richer picture of the expected economic impacts of shale-gas extraction. “With improved, comprehensive information from this type of research, homeowners and other stakeholders are likely to make better decisions than in the past,” he said.

The webinar is free, but registration is necessary. To register, visit the Penn State Extension Natural Gas Events webpage. More information is available by contacting Carol Loveland at 570-320-4429 or at cal24@psu.edu.

Penn State Extension's Marcellus Education Team provides monthly webinars on a variety of topics. Upcoming webinars include:

--April 13: “Hydraulic Fracturing and Induced Seismicity,” David Eaton, professor in the Department of Geoscience, University of Calgary and NSERC/Chevron Industrial Research Chair in Microseismic System Dynamics. 

--May 18: To be determined.

--June 15: “Shale Legislative Updates,” Ross Pifer, clinical professor at Penn State’s Law School, director of the Rural Economic Development Clinic and director of the Center for Agricultural and Shale Law.

Previous webinars, publications and information also are available on the Penn State Extension natural-gas website (http://extension.psu.edu/naturalgas), covering a variety of topics such as liquid natural gas, seismic testing, methane emissions; water use and quality; Marcellus and Utica basins; natural gas reserves; gas-leasing considerations for landowners; legal issues surrounding gas development; and the impact of Marcellus gas development on forestland.

 

 

 

 

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Last Updated March 07, 2017