Goin' to Beverly Hills

By -


We have an interesting development on our ranch here in Arlington. There's natural gas under our house and Chesapeake Energy wants it out. I have a contract on my desk that I can sign that will pay us $16,500 per acre and 25% of the profits for the life of the well. We have 4/10th of an acre. There is another neighborhood group negotiating with a different gas company. They are asking $25,000 per acre. I will need to look into this proposal before I pull the trigger on the one I have now.

The monthly royalties are estimated to be about $50.00. We can bank on a cool mil. in about 1600 years. No "cement pond" for the Kennisons yet.

Comments

Brian said…
How big is the equipment that would have to sit in the yard? Does it make noise?

Might be worth $50.00 of "Texas Cache" to say "excuse me, I've got to go check on the well"!
March 3, 2008 at 6:09 AM
Kristin said…
I didn't know that you wanted a "cement pond." I guess that the boat and the lake are not enough fun for all of those kids? Where would you put it- on the roof? lol
March 3, 2008 at 12:21 PM
Carey said…
oops put it in the wrong place.

Is there a "there will be blood" transition coming?
March 3, 2008 at 4:14 PM
Kevin Kennison said…
I knew when I made the post I would give the impression that we would have a well in our backyard, but that is not the case. The reason that we are even in the gas extraction equation at this time is some major improvements in drilling technology in the last few years. The well can go down as far away as 7000' from our house. When they reach the shale, 7000' down in our case, they drill a number of lateral wells to reach all the area. They started a well across the lake from us. We can hear the rumble of the drill very faintly. The drill rig comes down in a few months and site just goes back to meadow. Greg already signed his lease. Now we know who has the big money.
March 3, 2008 at 10:55 PM
Post a Comment

Popular posts from this blog

Family Contacts

By -
Image
 Carey called me and asked if I could find the listing of contacts for our family that he created years ago.  I did have a file copy and Carey and I updated it.  I have attached this here in Word and Pages that can be edited for new entries and updates.  There is also a PDF copy.  I added sections for Aunts & Uncles and Cousins.  These sections are missing people and dates, but perhaps I can work with Kristin to fill in some of this. Kennison Contacts - Word   Kennison Contact - PDF - Goggle Docs  
Read more
By -
Image
 When watching the evening news today, I saw an image of coal barges lined up at the docks at the USS Mon Valley Steel Plant.  Of course the news segment was about the White House blocking the sale of USS to Nippon Steel.  My mind wandered to to dad's career at the Robena Prep Plant.  I didn't think that it was still in operation but I searched for more information.  I found that the Robena deep mines closed in 1983, but plant continued to operate until 2017 processing coal from surface mining for Consol Mining.  It seems that reclamation of the site began many years before 2017, most likely mandated by local concerns about environmental damage from seepage from the three large slurry ponds and other surface contamination.  Dad took me out one Sunday afternoon to inspect the dikes and berms around the ponds.  We had to hop into one of the big company trucks to traverse the dirt roads around the site. I read a couple of articles about the ongoing l...
Read more