Windfall profit tax.
When our well 1st came in it made a lot of oil but it slowed down and we r still getting some oil from it now. Actually it free flows even now. We just pay a bill when the money comes now. :-)).
I do wonder if the government still has that rule of windfall tax now!!?? That might be a good question to ask at this boom time. Everyone is so excited about making money off of their land again or for the 1st time no one seems to ask what the taxes might be on a new well drilled. No matter what, we all r looking forward to making $$$ so we can maybe kick back and not worry about our buying power.
We have 5 children and we would like to pass a little, ($$$), something on to them and their families. :-)). I guess we all have an agenda. Nice to talk with u. Good luck to u and yours with the drilling.
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Replies to This Discussion
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Permalink Reply by Oliver Perry on
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The windfall profit tax was repealed in 1988. Now I see what your "problem" leasing with Eclipse Resources is. A producing well under an existing lease?
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Permalink Reply by Billy Park Whyde on
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Windfall Profits Tax was one of the Biggest surprises to hit royalty owners in most cases landowners. It was promoted by the government as a way to tax the profits of Big Bad Oil as was promoted by its supporters.
It was not a tax on profits it was a well head production tax that taxed royalty owners at a higher tax rate than the producers had to pay.(In some cases 60% upon their 1/8th) It was not a tax upon the final production value profits of oil. Oil companies could increase the cost of petroleum products that would cover this tax through the consumer. Whereas the royalty owner could not.
I contacted the Ohio Farmer Magazine where they ran a story upon it and WOW it spurred a mixed reaction! Some landowner farmers said hey your lucky to have oil pay the tax and shut up! My response was if beef, or grain goes up due to drought, firewood goes up due to demand does that mean you support this form of tax upon yourself?
Motto of the post, we need to be aware of what our government is doing before we find our government is not a government but rather a dictator.
Oliver, Dorthy might be the owner of the well as some land owners bought these wells when production dropped off, many did to keep free gas over the years, possible but I do not know Dorthy's situation.
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Permalink Reply by Dorothy Adamik on
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I bet u raised some eyebrows when u told some farmers about a product they had been selling and ask how they would like to pay additional taxes on their products. Grass always looks greener in someone else's pasture. :-))
I didn't know of the government repealing the tax. Of course we wouldn't know that bc it didn't affect us. My husband probably knows but I don't keep up on that stuff. I just spend the money when it comes like most women do!! :-))
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Permalink Reply by Dorothy Adamik on
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We gave our permission to drill in the Clinton sand and no other formation. They do not have the right to hook up with other companies to drill with them in any more wells and the lease is only for them in the Clinton sand where they did drill. I probably am not explaining our lease to u very well but my husband seems to think there is not a problem with having the old well. There my be several things involved with a problem about drilling at this time. Marilou with the company we r with tells us they will get to the bottom of the leasing with us and we r hoping all will be ok. Our fingers r crossed so to say. :-))
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