FINALLY a Millionaire!
 

Gas leasing is BIG Business hereabouts and many folks are getting big money for 5-year leases.

A neighbor stopped by yesterday and we had a chat on the front porch. He is a farmer with about 130 acres he bought in the 1970s for about $50,000. He got his check and went to the bank and put it into CDs for the time being. He stopped by his tax accountant to settle up for the federal and state taxes. After all the deductions for taxes he has just over One Million Dollars! His dilema: He does not feel like a rich man.

We had a good chat and went turkey hunting this morning. We will hunt chucks on his place tomorrow as he settles into his new status. Windfalls do bring culture shock to folks who recall when they had less cash on hand.

Adam

Good for him and his,

Glad to see it happen to someone, even with the way things are today.

Bulletpusher

bulletpusher,

I know a guy who has two gas wells on his farm and his monthly check is about $330,000.00 and he is worried about being kidnapped or his wife being taken hostage. I told him to OBTAIN "New Think" and hire a few bodyguards, seeing as how he can afford them, NOW!

See, culture shock "locks" folks into their old ways of thinking. I have several friends that need to "jump over the old bar" and get in step with current conditions.

Adam

you guys down there are very lucky. Here in Canada the government owns all of the rights to any oil and or gas- the landowners get a paltry tresspass fee and that is it.

scalerman,

The governor of PA wants to pass a law that landowners ONLY own mineral rights down 5,000 feet an the state owns the rest!

Adam

That would just be more socialism now wouldn't it. I might be alright with it if they used a grandfather clause wherein everybody that owned land before the law was passed, would be entitled to the mineral rights. Anybody that purchases after the law is passed, would be screwed. However, at least they would know they are getting the shaft before they buy.

my wifes parents own 33 acres in the powder river basin of wyoming and the only reason they get oil/methane royalties is becasue their parents were there as land owners prior to 1916.

Adam,

Sorry I haven't dropped by to say hello in a while..I've been around, just a couple miles south. Turned on another good well in Bloosburg on Friday and still drilling like crazy in your neck of the woods. Next time I get a few extra minutes, I'll make sure I stop by. Seems like we're nothing but go go go in this business and a few extra minutes is a hard item to find.

It's nice to see companies like mine can literally turn peoples live's around. One of the big rewards I enjoy in this industry actually. One cool thing is that I was approached by another company where I live. THey just drilled a Marcellus within a mile of my house and more are coming. Looks like my property may be in one of the units. THe sad part was I leased at $5 an acre 7 yrs ago, now it's going anywhere between $3500-$5000 an acre. I have one upper devionian (shallow well about 2700') on my property that's provided minimal royalties and free gas....but now we're talking! Unfortunately Clarion county isn't providing as good as wells as Tioga, but I'm not looking any gift horse in the mouth. Hopefully I'll start seeing some mailbox money in the upcoming year.

Thanks
Petey

Petey,

It is good to hear from you. Stop by anytime. I hope your gas checks come soon and often.

Adam

Not to pee on your campfire.

That coin has a flip side and it ain't pretty.

Yesterday I was informed that the oil slick is 7 miles from my house and the winds that have kept the oil out in the Gulf have switched around and are now blowing out of the SW. So it looks like the only white quartz beaches in the US, 90 miles long, are going to get re-decorated and destroyed by BP. The fishing, shrimping and oystering business is going to take a very hard hit.

Just about everyone that was in favor of drilling in the gulf has had a total change of heart.

Just watch that drilling stuff around you. Congress limited the liability of a drilling company to 75 million after the Exxon fiasco in Alaska. At this point BP is so far past 75 million that they no doubt will write a check to a fund and walk away, leaving billions in damages.
Ed