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Cashing in on the shale boom



Published: Mon, May 28, 2012 @ 12:00 a.m.

Fowler residents get their bonuses for leasing with Texas company

By Burton Speakman

bspeakman@vindy.com

fowler

Residents coming to pick up checks Wednesday night for leasing their oil and gas rights expect fracking to bring big changes to Fowler.

“This is the biggest thing to hit this community in a long time,” said Richard Faber, who was presented with a check for more than $700,000.

Faber and other residents received cashier’s checks at the Fowler Community Center from Shale Investment Fund LLC, which represented Halcon Resources Corp., a Houston-based energy company.

It is good for a lot of the people in this area to get some money, Faber said. He leased 240 acres to Halcon.

Halcon needs to lease at least 640 acres to drill a horizontal well in the Fowler area. If the well is drilled, the royalty money generated will be much larger than the lease bonus payments, he said.

“A lot of people get caught up in the bonuses because that can be big money, but the royalties are the real money,” Faber said.

Frank Donjancic received a check for more than $70,000, but the 95-year-old plans to continue working. Donjancic keeps himself busy by growing a large garden.

The lease payments are going to help a lot of people. Many within the Fowler community have been struggling to get by, Donjancic said.

Hopefully these leases and the resulting drilling will bring jobs, said Anita Goodhart.

“I would like my children to be able to get jobs here and stay here,” she said.

For her family, the check will be a way to pay bills, Goodhart said.

“We’ll be able to pay off some of the things we would have had to borrow to pay,” she said.

Jim Brumbaugh, president and CEO of Shale Investment Fund, said his company wanted to have its check presentation done in public because they want to remove some of the mystery of the process. In addition the company wants to show its commitment to the community.

There’s a lot of “cloak and dagger” actions taken by the oil and gas industry. Halcon wants to keep everything out in the open. Halcon also differs in how much of the land it leases that is actually drilled, he said.

“A company like Chesapeake will only drill on about 6 to 8 percent of the land it has leased. Meanwhile Halcon intends to drill on nearly all the land it invests in,” Brumbaugh said.

Any time steel goes into the ground, the people who signed leases will receive royalties. Those checks will come annually, he said.

The checks that these people are receiving now and royalty payments have the chance to change lives, Brumbaugh said.

“We’ve had meetings like this where ladies have left crying [tears of joy] because they’re two or three years delinquent on their taxes, they might be a couple months behind on their mortgage payments and a few months behind on their credit-card bills,” he said.

The deep-well drillers are doing things companies in the 1970s and 1980s could not dream about, said Troy Mollohan, whose company, Eastern Petroleum, drilled a number of shallow gas wells in the Fowler area in the 1980s.

He is planning to sign deep-drilling leases with Halcon for at least 40 acres and possibly more, he said.

“I haven’t heard anything bad from anyone in the community about this drilling,” Mollohan said. “Everyone I’ve talked to is happy about it.”


Comments

1webad(156 comments)posted 2 years, 2 months ago

Valley people continue their rush to mass suicide. Money money money ... it's the American way.

Fracking On Known Fault Lines in Los Angeles
Wednesday May 16, 2012
|
v
http://bit.ly/IXVzdT

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2UticaShale(850 comments)posted 2 years, 2 months ago

@Hella, you are a typical non landowner obviously entitled and living in the third world City of Youngstown. Look at a map of Mahoning county, Trumbull, even all of Ohio. You see all the farmland wherein YukTown and Warrent is a fraction of the lands? This is what is called rural farmlands, the silent majority. These landowners never had a handout, they are the makers and not the takers. They know how to make a living, money and product. Don't worry about them, they always survive and know what to do with all this money. Most likely they will build bigger fences to keep the entitled takers away.

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3UsuallyBlunt(105 comments)posted 2 years, 2 months ago

UticaShale...I'm thinking...MOAT...same as a big fence, but, I can fish in it...

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4sue(169 comments)posted 2 years, 2 months ago

UticaShale: you are right on point. These people who are leasing their farms are conservative by nature. They don't do casinos and will probably splurge on better farm equipment. They are not the type of people who look to the welfare state for a government handout. Those that are complaining about the oil & gas boom are just jealous that they don't have land to lease.

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5juanita1944(33 comments)posted 2 years, 2 months ago

I don't care what they do with that money.....I care what their doing to the land......come on people what are you getting? What kind of land are you giving your children when you die........? Who are you kidding?what land can they plant.......Utica is an ass hole company that sends all the profit over seas ... after they kill our farming lands they will leave........open you eyes.....god in heaven.....they are drilling on faults in California.....faults here in Ohio......in every state they drilled in they destroyed our ground and towns......they are hunting fools gold..........it's not worth the drilling and killing our children and our land in the future.......what will you give your children?/ death I see.....water will not be usable.......land won't be...animals on your land you won't be able to hunt......fish in the old water holes of the past......is this your kids future.......boy we are fools in America....that would believe in so much hurt and distruction......go on the web.....read about the towns these companies ruined........grow up...think of the future.....quit being fools.....my opinion counts to........stop the madness.....only fools go into a dark place to kill our world....stop now please......I have cracks in my outside concrete from the quake they caused here in girard...come on grow up and see what we are giving away......for the oil companies..to destroy us....our pride and our children's future....sad look.....glad I'll be not here one day to see it...but my kids will...god bless you all.....but not your decisions......

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6Freeatlast(1991 comments)posted 2 years, 2 months ago

DRILL DRILL DRILL
You can buy bottled water

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7UticaShale(850 comments)posted 2 years, 2 months ago

HellaB and Juanita, Youngstown's finest examples of entitled takers, not even smart enough to KNOW they do not Know.

So they speak as educated authority on energy. All the geologist, petro-engineers and scientist are unqualified, HellaB and Juanita are.

No wonder why Youngstown is the armpit of Ohio, here are two examples. Thank God oil was discovered here , the local entitles can't produce a product. When all of us energy workers really get going up here, I will smile when we put the entitled takers in the pipe ditches experiencing work for once in their lives:')

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8webad(156 comments)posted 2 years, 2 months ago

.... Find the Frack wells near you:
....... v
http://www.hydraulicfracturingdisclos...

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9Ytown20(118 comments)posted 2 years, 2 months ago

UticaShale,

And you are an educated authority on energy? Anyone still touting fossil fuels as the next best thing is clearly washed up like the dirty energy they promote. You are more of the same, not on the cutting edge that you seem to think you are.

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10VINDYAK(1799 comments)posted 2 years, 2 months ago

Fossil fuels are still providing the energy to drive our cars, trucks, buses, trains, motorcycles, lawn mowers, tractors, weed eaters, chainsaws, rototillers, boats, airplanes, heating our houses, fueling our factories, generating electricity so "Green Energy" people can re-charge their electric cars...and so you can turn on your computer and make comments on articles you read.

It would be wonderful if we could wean ourselves off fossil fuels, but it won't happen anytime soon. With the lifestyle we have, we are too embedded in consuming energy at warp speed while new technology is just not convenient or economically feasible yet.

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