Replies to This Discussion

Permalink Reply by Dan on November 30, 2012 at 10:38am

The Severance tax the Governor is trying to ram down the landowners throats  is not all that great either. Trying to make it hard every step of the way.

Permalink Reply by Joseph-Ohio on November 30, 2012 at 11:06am

More and more hurdles and delays.

500' has been good enough of an industry standard since the beginning - why change it now on the cusp of recovery.

1280 acres ?  Its tough enough with 640 considering 1) existing wells HBP and 2) that they've developed (down south) at least (2)  two (that I've read about) sweet wells with much less - they were single lateral wells that used the 500' setback (from property lines) and under 140 acres (unitized).

It took since March for the Committee to even begin discussions.  Let's hope the industry isn't waiting for new laws before continuing with development. That could take forever !

They need to stop sitting on their hands and getting to work on developing more wells and infrastructure - stop wasting time and put people to work.

Permalink Reply by Joseph-Ohio on November 30, 2012 at 3:06pm

Governor Kasich is presenting the Severance Tax on Gas & Oil as a tax to be paid by the Drillers / Developers.

The way I see it, the problems with that philosophy are that it ultimately will mean less of a Signing Bonus and Royalty Payment to Landowners along with an increase in product cost to the consumers.

The Drillers / Developers will use the Severance Tax that they will have to pay as an excuse to drive down the deal with the Landowners. 

Then they will use it as an excuse to raise the prices that the consumers will have to pay for Oil, Diesel, Gasoline and Natural Gas.  The prices for product in this market are set by the sellers of the commodity - not the consumers.

They may even stall / stop development which will do nothing to help the recovery and perhaps even throw everything back into another or continued recession.

No to the Severance Tax.

Government takes enough tax as it is - let them (the government) garner more revenue by supporting / nurturing the recovery.

Permalink Reply by Joseph-Ohio on December 6, 2012 at 2:24am

If the State wants some of our Landowner Mineral Rights have them pay us for them.

How about $50,000.00 per acre U.S. ?