My family has leased our mineral rights in SW Wyoming and we only got $4/acre because it's out in the "goat pasture." I realize it's right on top of the Green River Formation, but that we may be many years out from unlocking oil shale (kerogen) so that aspect looks bleak right now for royalties.
If they decide to drill for gas there, will that affect the oil shale that may be there so that if and when they do figure out how to get it out economically, we will no longer have oil shale? I believe they're found on different layers of the earth but I'm not sure I understand completely.
Juliet, two things come to mind. First don't worry, the production of shallow gas today shouldn't harm the potential to develop the oil shale in the future (whenever that day comes). As you suspected, these two should be production from completely separate formations or strata.
However the second thing to consider, the successful completion of gas wells today may bind your minerals to that $4 lease on the goat pasture for decades to come. Typical lease terms provide that production of any hydrocarbons (gas or oil) will perpetuate that lease as long thereafter as production continues. So theoretically a shallow producing gas well today could continue to hold your minerals on into, and beyond, that future day when they finally figure out how to economically produce the oil shales. Hope this answers your question.
Thank you, I was hoping to hear that it wouldn't take the oil shale. Maybe they won't know how to extract it in my lifetime, but maybe my daughter will get royalties someday.