Link here to the Sidney Herald.
The city of Sidney will have its own oil
well after the Montana Board of Oil and Gas Conservation approved
temporary spacing of an oil well north of Sidney.
The oil well could generate some $14,000 a year for the city if
the well produces between 200-250 barrels a day based on $75 a barrel.
Residents themselves would see yearly checks of $50-100. The approved
oil well application docket contains dozens of pages with residents’
names who will receive an oil check. Smelser said he’ll donate his to
the city of Sidney and start a campaign for others who choose to do the
same.
Funds from the well, he said, will go toward employee salaries and
infrastructure expenses.
The oil well has been in the works since the 1980s, having been spurred on by Elliott Oil Corp. owners.
Smelser said XTO Energy, the company behind the oil well, has
invested more money in upfront costs than any other well, “so I want to
thank XTO for doing this project.”
Bruce - Doesn't 14k a year seem a little light for a 250bbl per day well. Wouldn't it seem more like 14k a day?
ReplyDeleteThat caught my eye also. The article also said $50 to $100/person in Sidney. If the population of Sidney is 5,000, then $75 x 5,000 --> $375,000. Another $14,000 and it's about $390,000/year.
DeleteWhich sounds about right. It just suggests that the city itself does not own much property; most of the property is owned by individuals.