 By Alvin Engelke
alvinengelke@hotmail.com
Euell Russell was consulting a retina specialist down at the Mouth of the Elk. It had been thought that, perhaps, he had a tumor on an optic nerve but it was determined that such was not the case at all.
Mr. & Mrs. Carl Ferrell & family had a big New Year's Eve Party.
There was another fire at the house at the top of the Leason Hill across from the Hiram Headley residence formerly stood.
Magnum Hunter, a consequential player in the Marcellus & Utica fields is now in bankruptcy. Those who receive royalty payments from Triad Hunter, a subsidiary, have received notices from the bankruptcy court stating that filings need to be made. This is different from previous bankruptcy situations and those impacted should consult with their legal and accounting experts as to the need to file answers.
Last week's article caused some discussion as to whether the Saudi's attack on the shale oil fields in America was done with or without the blessing of the so called BIG oil firms, the seven sisters, the Rothschilds, Rockefellers, etc. The Saudi royal family has always been "in tight" with America's ruling elite, G. H. W. Bush was head of the CIA and a member of the east coast ruling class and the Arabs have given hundreds of millions to the Clinton family. So some felt that any action led by the Saudi oilmen would have to have been tacitly a greed to by the likes of Exxon/Mobil, Royal Dutch Shell, etc. However, such might not be the case for while the Big Eared One bowed to the Saudi king, giving obesience to the family that guards the Islamic holy sites, our dear leader double crossed the Saudis by taking advice from his grand vizier Valerie Jarrett, a Tehran born Muslim, and determined that the Iranians would be the #1 Power in the middle east. To add insult to injury he gave them an OK to built nuclear bombs, obtain long range missiles and "gave" them $150 billion in cash as well as allowing them to export 1/2 billion bbl. of oil/day to the world market. It well could be that they have reason to be upset.
Energy Chairman Woody has called a meeting of the "Stakeholder Group" for 1:30 P. M. on January 7 in the Capitol building to go over "Dr. Patterson's Magic Exiler Bill" which is said to kill warbles, cure heaves, spavin, gleet, dyspepsia, gout, hives, boils, carbuncles, toothache, insomnia, incontinence, etc. The proposed forced pooling bill defines royalty as 1/8th. Back in 1982, in dealing with the flat rate gas well problem, the legislature determined that 1/8th would be the minimum royalty and even then those who knew were obtaining 1/4 royalties without deductions.
The big company forced pooling bill has no provision to let mineral owners and the state know the actual amounts of products produced nor the actual prices received for the sale of same. On the big new wells the gas is NOT sold at the wellhead but is sold after the "goodies" have been removed at the fractionation plant so thus there are several points for real arm's length transactions which should be used to calculate royalty, county taxes and state severance taxes. Obviously the big boys do not want that. They know that the coal boys cheated on the coal severance for years so why should they be up front? The stakeholders include WVONGA, the big out of state oil boys who usually buy what they want, IOGA, the independent oil and gas association which presently is controlled by WVONGA and a mineral owner group that appears to be run by retired Columbia Gas men. Those who feel that they do not have anyone there representing their interests should go down to attend the meeting. There is lots of free parking at the football stadium and there is free bus service from there to the capitol building. For those who think that a 1/8th royalty would be better than 1/4th royalty and those who are happy just getting whatever someone somewhere decides is "your pittance" then leave it to those plan to pull off one of the biggest heists since Mr. Rockefeller Sr. & friends decided that the rubes in W. Va. would be happy with flat rate gas wells.
The price of local Pennsylvania grade crude dropped to $35.60/bbl. with condensate falling to $16.50/bbl. Marcellus & Utica light fell to $29.60 with medium fetching $35.60 bbl. Those who have been out and about report that there is a 40 cent spread in the price of gasoline.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of the Hur Herald. |
