Since this natural gas story is not being told by the local media ..

I've been trying to look around and see what else I could find on the subject and attempt to come up with a better idea of what this all means. In my searches I found this piece on the Marcellus Shale from Seeking Alpha which I have previously alluded to as a great source of information for the individual investor. The author notes a number of big and small players in the natural gas sector, but there is no mention of or reference to "Lodge Energy" which was mentioned in the piece from the Baltimore Sun. Maybe they are a division of one of the larger players or simply a smaller, under-the-radar firm. Either way I would like to know their story, so I will continue to look for more answers.

Much like the price of a barrel of oil, the well head price for natural gas tends to fluctuate quite a bit based on a number of different factors. Recently, these natural gas prices have generally ranged from about $5 to $10 per 1000 cubic feet. According to the Seeking Alpha article it may be possible that each vertical well spaced on 40 acres in the Marcellus shale contains 1 billion cubic feet of natural gas reserves and each horizontal well spaced on 80 acres contains 2.5 billion cubic feet of natural gas reserves. Do the math on the more conservative reserves number (even though as I understand it horizontal drilling is the preferred technology) and that is 1 million times roughly $10 which times 15% is $1.5 million over time on top of the initial land lease payment. Even at $5 per cubic foot that is another potential $750,000 per 40 acres. Needless to say these numbers could really start to add up IF there is as much natural gas under Garrett County as some believe and IF I am understanding what the Baltimore Sun is reporting.

As I learn more I will be sure to share it here on the blog so stay tuned. Eventually you might even see something about this in the Cumberland Times-News or the Republican. From what I am hearing secondhand from some land owners involved in the consortium it's a done deal and lease agreements are in fact in place.

Don't forget to check back to Dan's Deep Creek Blog for future updates.