Comment

Comment by joe arnold on August 26, 2009 at 10:01am

Thanks for the info.
I'm just a bit burnt on what's "fair" to the people. I know too many land owners who have been ripped off and lied to. First hand. $400 an acre. bah! I am also tired of the "land theives" trying to get me to sign. What a bunch of Used Car Salesman. Makes the Oil and Gas Industry look bad. I work in this industry and I am discussted for them.
It is now 300%. The law has been changed. I just wanted the number on the bill.
Who do you work for Mr. Gandolfo?

Comment by Land Rover on August 24, 2009 at 3:59pm

No, Joe... ya got that wrong. The "non-participation drilling expense penalty" applies only to an oil company or other entity that leases the mineral rights from the mineral owner, doesn't assign the lease to a participating interest, and then refuses to participate in the drilling expenses by joining in the A.F.E. Also, last I heard, the penalty was 200%, which is more than fair for this kind of skullduggery. Actually it really should be 300%. So, you see Joe, it has nothing to do with "the people". A mineral owner is allowed to not particiapte in the drilling costs, and then, if the well is good, is required to pay only his fair share of those costs, including, of course, completion costs and any other justifiable expenses. After all, that's only fair, isn't it? In fact, the mineral owner isn't even required to pony up the costs "up front"... it can be deducted from his share of the revenues. So,... fair enough, Joe? Just remember the old adage... "believe none of what you hear, and only half of what you see".