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China Considering purchasing US Gas Reserves

 

China National Petroleum, that nation's top state-owned oil company, is considering a bid for minority ownership in natural gas fields being explored by Chesapeake Energy, a newspaper in China is reporting.

Chesapeake is a top producer of the Haynesville Shale in Northwest Louisiana.

Chesapeake is looking to raise as much as $5 billion this year from selling minority stakes in its Arkansas and Pennsylvania shale gas properties, the South China Morning Post reported today.

Chesapeake is aggressively working to sign leases to lock in drilling rights for the natural gas fields that are contained in layers of rock below this area.

 

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Ramos and Compean Song

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Understanding Obama Followers (video)

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Sick About Ramos and Compean

 

I was shocked when I saw the post on Cajun Maverick. Ramos and Compean upheld. The 5th Circuit usually makes their ruling within 60 days and it's been 6 months of waiting for a ticket out of jail for the Border Patrol Agents convicted of shooting a drug smuggler in the butt.

This whole matter has changed my opinion of George Bush. I believe he must have made deals with Mexican Devils to protect us from some worse unknown fate.  I admit I'm not sure anymore. Ramos and Compean should be free, if the American people only knew the facts.

Here's where we are.

Our borders are wide open. Drug smugglers are freely using the Interstate Highway system as the drug super highway. The 5th Circuit had every reason to overturn the conviction and didn't. Cops can be charged with gun crimes in the line of duty. We're getting a new President to the left of George Bush. Two innocent men are in federal prison in fear of their lives.

 
I remind myself freedom isn't free and our elected officials aren't always brave.
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Haynesville Shale Boom and Taxes

The biggest topic dominating financial talk in our area is the impact of gas reserves in the Haynesville Shale, and that a lot of people are receiving very large checks. Millions of dollars of lease bonus payments, which are treated as ordinary income for income tax purposes, are flowing into people's pockets.

This means that a $1 million check will produce approximately $410,000 in taxes to be paid to the federal and state governments. That is 35 percent to the IRS and 6 percent to the state. Depending on the future political debate of estate taxes, your family may have even more to pay later. Hopefully, royalty checks will dwarf these lease bonus payments in the future — but you do not know that yet. Right now, you know you only get to keep 59 percent of the lease bonus payment. That's right; you get to keep $590,000.

It doesn't have to be that way. Here is an idea you should consider. Complete your negotiation and arrive at an agreed price with the oil and gas company. But before they write you a check, ask them to give you a little time to put together your family's charitable remainder trust (You must have an attorney experienced with trust documents to handle this). Then have your attorney re-register the "Executive Rights" to your minerals to the name of your trust. Now, you are in a position to negotiate as a trustee. Your tax-exempt Charitable Remainder Trust does not have to pay the 41 percent in taxes in a lump sum up front. A professional engineer can provide a "valuation" of your charitable gift (It may include future lease bonus payments as your lease expires and you re-lease.), so that you can determine how much of a tax deduction you will receive for your generosity.

Now, you are in a position to receive income on the entire $1 million rather than $590,000. That is a lot of extra income for the rest of your life. It is so much additional income that you might take a small portion of it and purchase a survivorship (or 2nd to die) life insurance policy. This policy can provide a tax-free lump sum for the children upon the passing of the parents — free of income and estate taxes if properly structured.

Upon your death, the remaining assets in the trust go to your favorite charity, the tax-free insurance goes to the kids, and you have received a significantly higher level of income for the rest of your life.

Who loses in this deal? That is right, the IRS and the state. Who wins? You, your family and your favorite nonprofit organization all win.

In the limited space of this article I have significantly over simplified this concept. So please, do not try this at home! There are a multitude of variables — your age, your health, your long-term financial objectives, the size of your bonus check, legal and accounting fees, investment management of assets in the trust, etc. — which must be considered. However, if I thought I could save 41 percent of a large sum of money and provide these benefits — I would want to know more about it. Ask a Certified Financial Planner with experience using Charitable Trusts before you sign a lease or agree to receive payment of any kind. It may well be the most important financial consultation you ever sat in on!

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Media Going All the WAY with Obama (very funny video)

Tags: funny  
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Obama's German Spectacle w/ spelling correction

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Obama's German Specticle

Tags: obama   Germany  
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Hear Green , See Red

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Call Congress Back To Vote On Drilling By INVESTOR'S BUSINESS DAILY | Posted Friday, July 25, 2008 4:20 PM PT

 

 When it comes to giving relief at the pump by drilling for more oil, this is truly a "do-nothing" Democratic Congress. President Bush should give 'em hell like Harry Truman did.

 

Article II, Section 3 of the Constitution states that the president "may, on extraordinary occasions, convene both houses" of Congress. On more than two dozen occasions in our history, presidents have done just that, forcing the Senate and House of Representatives to meet on extraordinary matters of defense or economic peril.

Sixty years ago this month, President Truman called such a special session to shame into action what he labeled a "do nothing" Republican Congress. He dubbed it the Turnip Day Session, because of the day on which it began. According to folklore in Truman's native Missouri, "On the 25th of July, sow your turnips, wet or dry."

Congress refused to do Truman's bidding in the session, but the bold move saved the president's political skin. He defied the odds that November and was re-elected — largely because the public came to view the 80th Congress as in the grip of a cowardly paralysis.

Today's Democratic-controlled 110th Congress is just as paralyzed, but the stakes are far higher. Our irrational dependence on oil from foreign nations is squeezing American consumers and businesses with sky-high fuel prices. And it makes us vulnerable to blackmail by hostile, oil-rich regimes.

Americans use nearly 21 million barrels of oil a day. The U.S. Geological Survey has just identified 90 billion barrels of recoverable oil in the Arctic — nearly 30 billion barrels of it in Alaska. Yet House Speaker Nancy Pelosi refuses to allow a floor vote on drilling because the idea it would make a difference is "frivolous," she said last week.

Suffering consumers disagree. This month, an IBD/TIPP Poll of 920 adults found that by more than 3-to-1 Americans believe gas prices to be a bigger problem than global warming. A broad-based 64% of respondents favor offshore drilling, and 65% want oil shale development in the Western states.

A Rasmussen survey in June found 67% of voters in favor of drilling off the coasts of California, Florida and other states, and 64% believing gas prices would drop as a result. A Zogby poll last month found that 74% want offshore drilling in U.S. waters.

This is a potential political gusher, if only Republicans would fully tap into it. Bush has the opportunity to do so before this hot, cash-guzzling summer ends. Like Truman, he can use his constitutional authority to call this negligent Congress back once it embarks on its long August recess to campaign for re-election.

In so doing, he can demand that instead of nonsolutions like its failed attempt to release more oil from the Strategic Petroleum Reserve [SPR], Congress carry out the will of the vast majority of Americans by passing laws that authorize drilling.

In one fell swoop, a presidential recall of Congress would strengthen national security, boost our economy and maybe even turn things around for Republicans and avoid the losses being predicted for them this election year.

If giving 'em hell worked for Harry, you bet it can work for Dubya.

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Everyones Becomming MSNBC

Heir Obama's speech to the Berlin Wall has created a whole new world of MSNBC types.  All the networks are now campaigning for Obama or O2, O1 is still Oprah. Poor racist Fox is still not yet wall to wall with the wonderful world of O2, but I sure Rupert is getting presure to join in.
 
How wonderful it is to have the old media pick the best canidate for us.
 
It was nice to see Katy ask a real question.
 
If Obama was a tree, what tree would he be?
 
He's an oak, not because he is strong or wise. Because he came from Acorn.
 
Sorry, its hard to be a racist in todays world and try to be pc.
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Lease Prices in Haynesville Shale Boom

Just a couple of months ago ArkLaTex residents began signing mineral leases for less than $300 an acre. Now, folks are getting more than $5,000 per acre. That means someone who leases 200 acres would get a signing bonus of $1,000,000. No matter how big your bonus is, financial experts say, be sure to save some for Uncle Sam.
 
http://arklatexhomepage.com/content/fulltext/?cid=25141
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Goodby Dolly, Goodby Photo Op of Drilling Rig

Just when you were beginning to think the McCain wasn't totally tone deaf to the energy worries of fly over country and the scheduled a trip to an offshore drilling rig , the trip has been postponed. Would have made great pictures but maybe Obama German photo-op will be fun if he tries to take credit for WWII.
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Dr. Roy Spencer vs. Barbara Boxer

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