Oilfield​

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Re: Oilfield​

Postby jedstivers » Sat May 20, 2017 12:32 am

Been through Ponca City OK one time. Was at night, all of a sudden my eyes started watering and burning so bad could hardly drive. Soon as I got through there I was fine.
Isn't that a refinery town? What would cause that?
Oh, made my throat sore too.
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Re: Oilfield​

Postby TennesseeTuxedo » Sat May 20, 2017 6:05 am

jedstivers wrote:Been through Ponca City OK one time. Was at night, all of a sudden my eyes started watering and burning so bad could hardly drive. Soon as I got through there I was fine.
Isn't that a refinery town? What would cause that?
Oh, made my throat sore too.


Tequila?
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Re: Oilfield​

Postby jedstivers » Sat May 20, 2017 6:48 am

TennesseeTuxedo wrote:
jedstivers wrote:Been through Ponca City OK one time. Was at night, all of a sudden my eyes started watering and burning so bad could hardly drive. Soon as I got through there I was fine.
Isn't that a refinery town? What would cause that?
Oh, made my throat sore too.


Tequila?


No, whatever it was hit faster than Tequila.
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Re: Oilfield​

Postby TCRanch » Sat May 20, 2017 6:54 am

Caustic Burno wrote:
Brute 23 wrote:
M-5 wrote:Your right Craig I don't know anything about it and I find it strange that an oil company can just set up on property without any input from land owners. Seems to me if they didn't do what they should you can just shut them down but I guess the money is the root of the problem.


The mineral owners make a contract with the o&g company basically on the terms of their partnership. There are also environmental rules set by local, state, and federal agencies. All that only works if some one is willing to enforce the terms of the contact or the regulations.



Mineral rights trump surface rights every time.

All true! We do have the mineral rights, own the land and have a very detailed contract about when/where they can drill, damages, etc. We just haven't enforced it. Yet!!
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Re: Oilfield​

Postby Caustic Burno » Sat May 20, 2017 6:56 am

I would imagine it was one of the sulfur oxides. Safe levels are still an irritating.
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Re: Oilfield​

Postby greybeard » Sat May 20, 2017 7:19 am

Jupiter Sulphur plant is in Ponca City, a carbon black plant, and ConocoPhillips too.

(I had the misfortune of going thru Evadale Tx recently--didn't smell as bad as it used to, but I still knew where I was before I got there.. )
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Re: Oilfield​

Postby TCRanch » Sat May 20, 2017 7:20 am

Interesting turn of events (the condensed version):

Over the past couple months we received 3 additional tax statements for oil royalties. I paid them (that's what I do when I receive a bill/statement) but my husband questioned the production. Turns out we were charged for literally 10,000 barrels more than we received; their reasoning was "projected production", based on the prior year and assuming some of the wells would be re-fracked. What the what?!? Hubby spent quality time on the phone with the county Treasurer and Thursday we received a refund check for a little over $4K. I was gone all day yesterday but Hubby got a call from the CFO of the Oil Co, thanking him because they also received a refund. So now they're grateful and have more incentive plus extra $$$ to fix/clean up the one well, fix one of the electrical lines and install the roads. We'll see how this plays out.

And on a side note (shameless self promotion), the oil company names all their wells after a song. I have no idea why. Evidently they like me and named one of the wells Lil' Red Kevette. Woo-hoo, I'm being immortalized by a combo of fracking and Prince :). Unfortunately that well is currently out of production - but at least I can occasionally look at the sign and get a cheap thrill.



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Re: Oilfield​

Postby Brute 23 » Sat May 20, 2017 7:28 am

That's funny. Some of them get pretty creative with the names.

That is total bs on the taxing deal. Most wells have a 60-80% decline curve.... and they don't get to tax you on some thing that may or may not happen. That's like them taxing you on a pool that hasn't been put in yet.
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Re: Oilfield​

Postby Bright Raven » Sat May 20, 2017 8:03 am

Brute 23 wrote:That's funny. Some of them get pretty creative with the names.

That is total bs on the taxing deal. Most wells have a 60-80% decline curve.... and they don't get to tax you on some thing that may or may not happen. That's like them taxing you on a pool that hasn't been put in yet.


Their county tax assessor's office is operating off the grid!!! Its like taxing a beef producer on next year's feeder calf sales!
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Re: Oilfield​

Postby greybeard » Sat May 20, 2017 8:06 am

Govt; local, state, or federal, has never seen a fee, penalty, or tax they didn't like.
The worst part? There are govt employees that know this behavior is wrong, unjust and illegal, but they process it anyway.
Every entity has it's lackeys.
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Re: Oilfield​

Postby Caustic Burno » Sat May 20, 2017 8:37 am

TCRanch wrote:Interesting turn of events (the condensed version):

Over the past couple months we received 3 additional tax statements for oil royalties. I paid them (that's what I do when I receive a bill/statement) but my husband questioned the production. Turns out we were charged for literally 10,000 barrels more than we received; their reasoning was "projected production", based on the prior year and assuming some of the wells would be re-fracked. What the what?!? Hubby spent quality time on the phone with the county Treasurer and Thursday we received a refund check for a little over $4K. I was gone all day yesterday but Hubby got a call from the CFO of the Oil Co, thanking him because they also received a refund. So now they're grateful and have more incentive plus extra $$$ to fix/clean up the one well, fix one of the electrical lines and install the roads. We'll see how this plays out.

And on a side note (shameless self promotion), the oil company names all their wells after a song. I have no idea why. Evidently they like me and named one of the wells Lil' Red Kevette. Woo-hoo, I'm being immortalized by a combo of fracking and Prince :). Unfortunately that well is currently out of production - but at least I can occasionally look at the sign and get a cheap thrill.



Image



That is a scheme of the tax district.
They know on a gas well 50% of the production is in the first year with diminishing returns over the next 9 years. The average oil well in this country produces 16 barrels per day as well. The well may produce over the next couple of decades very few will equal the production of the first
year even on an accumulation basis.
Seems like I have to fight the idiots every year.
The biggest PITA is an old well on my grandpas place that been producing since the 40's. lucky if you get a 250 dollar royalty check a year.
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Re: Oilfield​

Postby Brute 23 » Sat May 20, 2017 8:58 am

TexasBred wrote:
Brute 23 wrote:
M-5 wrote:Your right Craig I don't know anything about it and I find it strange that an oil company can just set up on property without any input from land owners. Seems to me if they didn't do what they should you can just shut them down but I guess the money is the root of the problem.


The mineral owners make a contract with the o&g company basically on the terms of their partnership. There are also environmental rules set by local, state, and federal agencies. All that only works if some one is willing to enforce the terms of the contact or the regulations.

The dicey part is mineral ownership usually trumps surface ownership so the owner of the surface doesn't always get to make the rules.

Everything is negotiable so even though he knows he will end up doing what the mineral rights owner and the OG company wants to do he can negotiate compensation. I own some minerals in Robertson County and surface owner sued O&G company and actually did get them to relocate a drill site by a couple hundred yards.


That is why I said "usually". There are some things like houses, existing structures, existing processes, etc that you can't mess with. Yes surface owners can sue if they feel they are not receiving a fair price for damages. For example we built a pad fairly close to a land owners cattle pens one time. He came back and said he was having trouble working his cattle and getting them penned because of all the new commotion. It was borderline but for the sake of getting along we relocated and rebuilt his pens further away.

The only thing a surface owner can control is water, which has always been funny to me but it makes sense. Only exception is they can't stop a mineral owner from using it to harvest the minerals.

My family turned down a lease during the gas boom on a place that we own the minerals but not the surface. My dad would not go for it because he said he did not feel they were being fair to the surface owner.
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Re: Oilfield​

Postby TexasBred » Sat May 20, 2017 9:35 am

greybeard wrote:Jupiter Sulphur plant is in Ponca City, a carbon black plant, and ConocoPhillips too.

(I had the misfortune of going thru Evadale Tx recently--didn't smell as bad as it used to, but I still knew where I was before I got there.. )

GB first job I ever had was building a bride in Evadale. It was definitely a funky place but most of it was from a paper mill. Sour Lake also had quite a funk. Both had huge mosquitoes...must have been something in the water. :lol2: :lol2:
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Re: Oilfield​

Postby TexasBred » Sat May 20, 2017 9:38 am

Bright Raven wrote:
Brute 23 wrote:That's funny. Some of them get pretty creative with the names.

That is total bs on the taxing deal. Most wells have a 60-80% decline curve.... and they don't get to tax you on some thing that may or may not happen. That's like them taxing you on a pool that hasn't been put in yet.


Their county tax assessor's office is operating off the grid!!! Its like taxing a beef producer on next year's feeder calf sales!

Around here they tax based on the previous year's production.
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Re: Oilfield​

Postby Caustic Burno » Sat May 20, 2017 9:47 am

TexasBred wrote:
greybeard wrote:Jupiter Sulphur plant is in Ponca City, a carbon black plant, and ConocoPhillips too.

(I had the misfortune of going thru Evadale Tx recently--didn't smell as bad as it used to, but I still knew where I was before I got there.. )

GB first job I ever had was building a bride in Evadale. It was definitely a funky place but most of it was from a paper mill. Sour Lake also had quite a funk. Both had huge mosquitoes...must have been something in the water. :lol2: :lol2:


Be sure to get a cool glass of water if you stop in Sour Lake unforgettable experience.
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