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To: muggs; SunkenCiv; All

I learned about the 12% royalties for oil around 2000 when we were deciding whether to buy out my brother-in-law’s share of farm land in southern Illinois. As we drove around the countryside we saw a lot of the “grasshopper” type pumps along with a storage tank on people’s land. It seems the pump fills the storage tank and then someone comes by and empties the tank into a tank truck. Not much labor involved once the well is drilled. A lot of the rigs were pumping 4 to 20 barrels a day/week? I don’t remember now which. The farmers were not getting rich, but it was a nice, if small, steady income. We finally decided to sell, doing a Starker exchange for a piece of rural land much closer to home. The link below explains and shows some pumps in action. The ones I saw were mostly smaller than shown here.

https://en.wikipedia.org/wiki/Pumpjack


66 posted on 01/29/2018 6:58:23 AM PST by gleeaikin
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To: gleeaikin

My g-pa used to lease the oil rights in seven year intervals, a trickle of income that helped him make ends meet (this showed up in the abstract of title). Based on the geology, anyone living over the oil-bearing strata has to agree to drilling, even if the drilling isn’t on their own property.


70 posted on 01/29/2018 2:55:39 PM PST by SunkenCiv (www.tapatalk.com/groups/godsgravesglyphs/, forum.darwincentral.org, www.gopbriefingroom.com)
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