Everyone of those slow pumpers churn out about two barrels a day Deuce and all of them are owned by a specific company but the landowner leases the property and have zero accountability for anything environmentally. That oil that is collected typically monthly and sent straight to the refinery.Was driving to St. Louis the other day. Once you hit the Illinois state line on 64 West you start to see a bunch of oil or gas pumps scattered about the large farms. These are prevalent all over Illinois. Most of them we’re actively pumping. Some had the flame vent for the gas. (Bizarrely close to the ground I might add, seemed like a recipe for a field fire).
How much are these people getting for that oil or gas? What kind of regulations are they under?
landowners typically receive what is called a “double” meaning they get a monthly royalty from the oil then a bonus for sale at fair market price. It’s a good problem to have when the oil prices are as high as they are now . Don’t forget the lease value that’s thrown in and if it’s a really good well, end of year they will get a nice Christmas gift from the company to stay in good standing 🍺