I think its a great idea, should, could, would, but what are the details.

Of concern should be the cost of buying the equipment to farm the land, as that does not come cheep. Also clearing the land of stumps and debris. New farmers can not afford these things.

Usually when you buy land you use the money from the trees to pay for the preperation of the land. If its already logged who is going to clear the land of stumps and make it ready for farming?

I think its a great idea, but lets hope some of these details have been thought of....

When it comes to the market, the land quality, the transportation infrastructure.... no problem IMO.

OH NO!! Not again!!! Now we are going to become Saskatchewan farmers on logged land-just have to get it cleared and levelled first. We will be accomplishing this while we are drilling for gas and oil, and of course we will be involved heavily in the mining industry at the same time.
We have to leave time out to herd the cattle over the border to the U S, and after 17 appeals we appear to be no closer to solving and settling the Softwood Lumber agreement with the U S.
We have to get busy and solve this ages old Treaty business with the Natives before that major pipeline can come into fruition. Of course we must realize this Treaty business has been an ongoing thorn in the Governments side for so many years I have certainly lost count. Are we going to allow Kemess to totally destry a lake with pollution, (and it will also harm wildlife), just to have one of Bell's predictions come true??
The Pine Beetle problem will possibly be destroyed by fire, along with a few towns which consist of many residences. Really should have looked at the problem sooner, but just too darn busy with these mines and drilling rigs!!!!!! Have to put off that "off shore" drilling--just too pre occupied on other important issues, and now this darn cereal grain is on the table and the wealth to be reckoned with from this venture is just too massive to be ignored. Oh, sorry, the grain is to produce gas??? So will not be edible-or will it???
By the way, we can be assured now that C N is making really "good" profits. Did acquiring B C Rail have anything to do with that?? NAH!!!Stupid thought!!!
Giving Canfor millions of our dollars to build that plant in Richmond is ingenious??? I wish they could get that ONE BILLION held of theirs in the U S and then we could put our tax dollars to better use?? Maybe??? We could use a couple of plants in Prince George-kind of bring in some type of industry? Oh well, that is probably too much to ask for.
That Port in Prince Rupert will be a blessing for that area. About time they had a blessing.


I have a terrible time keeping up with this politician!!!!!
Am I really getting too old, or is this fella' just too "far out" for me?? I am not one to B S too much, but after awhile you get to paying attention, if not appreciating, a real professional at it!!!
Oh my, I did ramble on-but such an interesting gentleman is deserving of attention, and recognition.
Did anybody notice the "tongue in cheek" touch of sarcasm in that last statement? Gosh, I hope not!!!!! No pun intended.

I don't believe a word this man has to say. He's the one that was quoted in the Citizen of May 13, 2005 (just before the election) as saying "I think the fact that the BCTF is planning a strike vote on May 19th should give all parents reason for concern." Mind you, this was not not an original thought, he was just repeating what Lieberal leader Gordon Campbell had said. No, Chicken Little, the sky did not fall. Keep up the verbal diahrea Pat, it sure lightens the day with your idiotic ideas. Perhaps we could use this land devistated by the pine beatles as a dumping ground for mine tailings and other toxic materials.

Gee, someone was right in another thread... I can read this stuff in The Free Press any given week.

The NDP lost the election folks, time to move on.

Don't look at me MrPG. I did not vote NDP and I wonder how you got them into the mix on this one!!!! Go read your Free Press-at no charge!!
Confusion reigns!!!
I wonder if I should not be the recipient of 20 lashes for voting Liberal??? Thought they could be the "lesser of the evils." Yessir-confusion reigns-I probably should have stayed home!!!!

The drilling fields: Wells are going in at a fevered pace

By EMILY TARAVELLA, The Daily Sentinel

Sunday, July 24, 2005

Nacogdoches County isn't actually part of that famous East Texas oil field that has produced more than six billion barrels of oil since "Dad" Joiner discovered the Daisy Bradford No. 3 in 1930, but it is the place where the first producing oil well was drilled in Texas.

In 1866, Lyne Taliaferro Barret leased land at Oil Springs on Farm Road 226, 13 miles southeast of Nacogdoches. He struck oil at a depth of 106 feet, according to the Texas State Historical Association. His well had a flow of about 10 barrels a day.

Barret was unable to find financial support for his venture, and he was forced to give up.

That was 139 years ago. Today, there is no shortage of support for oil and gas exploration here. As of February, the Railroad Commission recorded 531 regularly producing gas wells here, and 93 regularly producing oil wells.

Eighty nine drilling permits have been issued in Nacogdoches since January.

Chesapeake is one of the largest companies with a strong presence in Nacogdoches. The company has been drilling here since Feb. 1, after closing on the acquisition of BRG Petroleum.

Chesapeake has concentrated its exploration in an area just north of the city limits, extending north into Rusk County.

Tom Price Jr., senior vice president for corporate development at Chesapeake, said the company's production in Nacogdoches County is primarily gas with very little oil or gas condensate.

The creation of jobs

Natural gas drilling creates jobs for the county from both the drilling and completion phases of the process. Some work directly for the operator, and some for the various service companies that perform drilling, completion and operating duties on a contract basis.

"It is estimated that for every well drilled to the depths anticipated in this area (9,000 feet), 40 to 50 people are employed for one month," Price said. "These jobs create economic growth through the expenditures, including hotels, meals, et cetera."

About 40 independent field brokers are currently working for Chesapeake in the Nacogdoches County courthouse checking records, settling surface damages, buying oil and gas leases, buying right-of-way, curing tiles, et cetera, Price said.

Other brokers represent other companies.

"We have five to six personnel working in our field office," Price said. "These are locals who live in the surrounding area."

Historically, the production from wells in Nacogdoches County has had a productive life of 15 to 20 years, Price said.

"We expect our production from the wells we drill will be in this same 15-to-18 year time frame," he said. "The volumes on these wells vary from well to well, but generally we hope to begin producing an average of approximately 1 million cubic feet of natural gas per day."

That level of production is consistent with what other companies are doing in the area, as well.

The effect on the tax rolls

and economic development

Companies pay gross production taxes – 4.6 percent of the market value of oil produced, currently more than $55 per barrel, and 7.5 percent of the market value of natural gas produced, Price said.

Companies also pay ad valorem taxes based on the projected value of gas discovered in the wells, Price said. For most wells, this usually amounts to many thousands of dollars in taxes paid per year.

"In addition, each well generates royalty payments to the owners of the mineral interests," he said. "Typically, these payments are approximately 20 percent of the sales proceeds from the wells and are made to people who live in the county. They in turn will also pay income taxes and property taxes, and, of course, with the monies received will purchase goods and services in the community, thus generating more economic activity."

Price said a significant part of the taxes paid goes back into the county for better education, improved roads, etc.

Gary Woods, chief appraiser for the Nacogdoches County Central Appraisal District, said increased oil and gas activity can be viewed from two perspectives.

"One thing to consider, is that existing unit values have increased, which adds value to the tax rolls and brings in more revenue," he said. "When we raise the value of units that are already in production, because oil and gas prices are up, it affects the county in a different way than it does the school district."

Counties must use increased values in existing properties to lower the previous year's tax rate, Woods said. Counties may not generate more tax revenue through increased values on existing properties.

School districts, however, do not calculate effective tax rates.

"When values are up on existing units, it's a straight revenue gain for a school district," Woods said.

The other thing to consider, about increased oil and gas activity is that any new property on the tax rolls for the first time is a straight revenue increase for all taxing entities.

"We've had quite a bit of value added this year," he said. "There are no final numbers yet, but we're going to start running them next week so we can give them to the entities.Production numbers are up compared to last year, countywide."

The increase in oil and gas activity is also a boost to local economic development.

"Every gas well that is drilled here costs about $1.2 million," according to Judy McDonald, president and CEO of the Nacogdoches Economic Development Corporation. "All of that money isn't spent here, but is does generate that much activity."

Those who come to Nacogdoches to work in the oil field are eating, renting rooms and buying gasoline and groceries, McDonald said.

"This generates additional sales tax and hotel/motel tax," she said. "The economic impact is significant."

Although county roads may experience some wear and tear from the trucks laden with heavy machinery, McDonald said the benefits of the economic activity far outweigh any inconvenience.

Local property owners

Price said that when a production company wants to drill on a particular tract of land, the surface owner is contacted and advised of the plans.

"We give them a time frame when we would like to start drilling activity, and we come to an agreement on the location and amount of surface damage compensation to cover the road, pad site and reserve pits," he said. "This usually covers no more than about 3 acres, total."

If there are surface obstructions, such as barns, houses, water wells or other obstructions, Price said the company works with property owners to minimize damages caused by drilling and completion operations.

"Sometimes we can move a location a few feet to avoid being too near a creek or stream, or move to minimize the number of trees that have to be cleared," Price said. "We can move to avoid being too close to an existing house, barn or structure. If there are cattle or farm animals we can fence locations or set cattle guards to avoid contact with our drilling operations."

Price said Chesapeake works with property owners to minimize damages and to locate roads, pipelines, etc. to minimize the footprint of the activity.

"Once we are finished with our drilling and completion operations, we 'shrink' or reduce the size of our surface location and restore all of the surface except about 1-acre around the wellhead. We restore the location as closely as possible to its original condition."

Price said Chesapeake discusses with the property owner where flow lines and pipelines will be located to minimize damages and reduce obstruction on the land.

Federal and state EPA guidelines are adhered to, and storm runoff materials are installed to avoid erosion, he said.

"If we need water for our drilling operations, we come to an agreement on drilling a water well," he said. "We leave the cased hole water well for the property owner after our operations are complete."

In most cases in Nacogdoches County, the local property owner owns not only the surface rights but also the mineral rights, and is eager to get a well drilling on his or her land so as to receive a royalty check, Price said.

Surface rights relate to what is above the surface and mineral rights relate to what is below the surface.

"Surface rights can be owned by one or more parties, and mineral rights can be owned by the same or a different set of individuals," Price said. "In the Nacogdoches County area where we work, the surface owner typically owns all or some of the mineral rights."

How Nacogdoches compares

Price said Chesapeake has drilling operations all over the state, including South Texas, Permian, Texas Panhandle and Barnett Shale.

"We have 29 active rigs running in the state," he said. "We have three rigs running in Nacogdoches County, with a fourth rig to start in the next few weeks, and plans to add a fifth in the next 90 days."

Price said Nacogdoches County is as important to Chesapeake as other areas of Texas where the company is drilling.

"It is an area that has a lot of upside to invest capital and have a successful drilling and completion program," he said. "We plan on drilling and completing wells in Nacogdoches County and acquiring oil and gas leases and leasehold interest in this area of Texas."

Price said more than 12 wells have been drilled locally by Chesapeake since Feb. 1, and the company plans to drill 60 to 70 more before the end of 2005.

By Golly, Chad, we sure needed that item on Texas oil wells.
Please no more.
Thanks!!!