Unconvensional Shale Gas Development and Real Estate Valuation Issues

This article provides an overview of the real estate valuation issues related to unconventional shale gas activities, particularly those related to hydraulic fracturing or “fracking.” With the research on this topic in its infancy, we focus more on the valuation issues that can arise as opposed to those that have arisen. Central to this discussion are the factors associated with fracking activities that could alter the existing risk context of real estate valuation in communities and the role that information plays in developing risk perceptions. As current examples of these issues, we discuss some specific legal and regulatory changes that have arisen in Pennsylvania.