What Is Fracking?

Hydraulic fracturing is a drilling process that allows mineral production companies to access vast reserves of oil and natural gas in a single surface site. This process makes it possible to accommodate multiple wells to maximize output without disturbing the land on the surface. This type of drilling is used on tight-rock formations, particularly for shale gas extraction. 

If you suspect your land has oil and gas underneath the surface, learning about hydraulic fracturing for natural gas production can help you understand how natural gas companies extract these resources and what it means for your mineral rights.

Key Takeaways

• Hydraulic fracturing operations are an oil and gas drilling method that uses hydraulic fracturing fluids pumped at high pressure to break apart shale rock formations and release natural gas and oil. 
• Gas wells created through fracking can impact your mineral estate through increased production and improved value. 
• Environmental concerns around fracking include water usage, drinking water quality, air pollution, and minor earth tremors. 
• The Mineral Auction can help you understand the value of your mineral rights and connect you with qualified buyers if you decide to sell mineral rights for gas production.

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The Hydraulic Fracking Process: How Fracking Works

Hydraulic fracturing is a type of horizontal drilling in which tight-rock formations, such as shale, are accessed from the surface with a drill that descends at least a mile. Once the optimal depth is reached, the drill is slowly turned to a horizontal position from which it can continue for several thousand feet. 

Once these offshoots of the main well have been drilled, they can be cased and cemented, and a mixture of water, sand, and additional elements called fracking fluid can be pumped through perforations in the well pipe. These oil and gas operations are complex, but they can significantly increase production.

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Why Is Fracking Controversial?

Fracking has raised environmental concerns that property owners should understand. The process uses large amounts of water and involves chemical additives that can potentially affect drinking water and air quality. Isolated incidents have occurred where well casings failed, or injected fluid spills have happened and led to groundwater contamination. However, comprehensive Environmental Protection Agency (EPA) assessments have found that fracking has not caused widespread drinking water contamination.

Some studies have linked proximity to shale gas wells with respiratory issues in nearby communities, though the exact health impacts are still being studied. Although the hydraulic fracturing process can also cause minor earth tremors, these seismic events are typically small in magnitude and are rarely felt by people. Together, these factors make hydraulic fracturing sites among the most controversial forms of natural gas extraction.

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How Fracking Operations Impact Your Mineral Estate

Hydraulic fracturing has allowed mineral production companies to access vast reserves of oil and natural gas that they were previously unable to reach. Besides the national benefits for natural gas extraction, fracking can affect you personally by:

• Increasing Your Income Tied to Production Volume – When you lease your mineral rights for gas production, you can potentially receive higher royalty payments over time as more natural gas is produced from horizontal wells that can reach gas deposits across a wider area underground.‍
• Increasing the Value of Your Mineral Rights – Hydraulic fracturing makes it economically viable for buyers to access minerals and oil on your property that would otherwise remain trapped in tight-rock formations. 

Oil and gas wells can represent a significant income opportunity for mineral estate owners, either in the form of royalty payments or a mineral rights sale. The Mineral Auction can help you find qualified buyers in the oil and gas industry to make the most of the fracking potential for your land.

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Should You Sell Mineral Rights for Gas Production?

Many mineral rights owners wonder whether they should sell their mineral rights or hold them for potential future income through oil and gas development. There are several valid reasons for both decisions, and the right choice depends on your personal situation and the current market:

• Immediate Cash Access – Selling mineral rights provides a lump sum payment now rather than waiting for potential future royalty payments that may or may not come. This immediate cash can be used for major purchases, paying off debts, investing in other opportunities, or addressing urgent financial needs.
• Reduce Assets for Estate Planning or Divorce –Mineral rights are complex to value, difficult to divide, and create ongoing management responsibilities. Selling mineral rights makes estate planning simpler by converting a complex asset into cash that can be easily divided among heirs or between divorcing parties. 
• Stop Receiving Different Royalty Payments – Royalty payments from gas production can fluctuate, making it difficult for you to budget and plan financially. In some months, you might receive huge royalty checks, while other months bring little or nothing. 
• Diversify Your Assets – Holding mineral rights can concentrate your wealth in a single commodity. This concentration is risky because gas prices fall, production declines, and local market conditions can change. Selling allows you to diversify into other investments such as stocks, bonds, real estate, or business ventures.‍
• Reduce Portfolio Risk – Future oil and gas production is never guaranteed. Wells may produce less than the expected amounts, gas prices may drop, drilling technology may change, and natural gas companies may choose not to develop your minerals at all. Selling takes away this uncertainty.

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The Mineral Auction Can Help You Make Informed Decisions

Whether fracking operations are currently happening on your property or you own rights in an area where gas development may happen in the future, knowing your options is important. The decision to sell, lease, or hold mineral rights for gas production depends on your needs and goals.

The Mineral Auction specializes in helping mineral rights owners understand their options and maximize the value of their mineral estate. Our auction process connects you with thousands of qualified buyers who offer fair market rates if you decide to sell your mineral rights.

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Ready to get the best value for your mineral rights? Get in touch with The Mineral Auction today. 

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