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Friday, May 6, 2016

City continues to receive royalties from oil wells

Thursday, April 14, 2011

Spencer-based Adler Energy, LC, currently has six wells along North Murphy Avenue pumping oil. Two of the pumps, including the one pictured here, are located on the Brazil Water Treatment Plant property, while the others are on property owned by Joseph C. Thomas Enterprises. [Order this photo]
Oil continues to flow through the veins of Brazil.

Adler Energy, LC (Spencer) Operations Supervisor John Johnson recently spoke to The Brazil Times about the pumping of oil on city property.

"There are a total of six oil wells in operation," Johnson said. "Four are on the property of Joseph C. Thomas Enterprises, while the other two are on the same property as the Brazil Wastewater Treatment Plant (6538 N. Murphy Road), and all are along Murphy Road."

Johnson added an average of approximately 100 barrels of oil are pumped from the wells each day, and the city shares a one-eighth royalty with Thomas Enterprises.

"The city gets a little less than Thomas because there is less acreage being utilized," he said. "Right now, we are currently pumping from 40 acres of city property and 80 acres on the Thomas property."

Once the oil is pumped, it is sold to Country Mark Cooperative, LLP, which is a broker, who then distributes the product.

"We have trucks come in four times a week and take out about 170 barrels worth of oil on each run," Johnson said. "This essentially takes the city and the Thomas' out of the liability and HazMat loop."

Brazil Water Office Manager Sheryl Hill told The Brazil Times the city made $52,768 off the oil royalties in 2010, all of which goes into the Sewer Fund.

"With the oil being pumped off of a utility property, it has to go into a fund for the utilities," Hill said.

Mayor Ann Bradshaw added, "The utility funds and the General Fund are financed separately. So funding that comes in from pumping the oil goes into the Sewer Fund and cannot be used on roads."

Johnson told The Brazil Times the city had originally allowed the lease of land to be used for the possible tapping of natural gas, but an anomaly led to the discovery of oil.

"Another company leased the surrounding areas to search for natural gas, but during seismic tests oil was found and we started drilling in about February 2008," he said. "Since then, we have had a steady production."

He added water that is brought up with the oil is separated out and pumped approximately two-and-a-half miles east of the property in order to help push the oil, which is a high-grade, back toward the wells.

"What is pumping here is one of the highest grade oils around," Johnson said. "It is graded at about a 41 gravity, which means there is not a lot of impurities."

According to the American Petroleum Institute, oils with a gravity between 40 and 45 are the highest grades, considered a "sweet light crude," and require no deduction adjustments in the price per barrel.

Johnson added he does not foresee a reduction in production in the near future.

"The field in Staunton is still producing and I don't really see this one drying up anytime soon either," he said.

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I drive by these wells on Murphy twice daily. Noticed that there were a couple of them near the water plant. Glad to see that Brazil Govt. is doing this productively! Now, do you think there is oil under some of our roads? Then the money from that could go for repairing our roads? Good job Brazil! Let's looks for more innovative ways to pump money into our economy!

-- Posted by EYN1962 on Thu, Apr 14, 2011, at 9:10 PM

Block off a couple roads and drill.....Clay County road funds need it badly! Drill...Drill...Drill!

-- Posted by hoosier01 on Thu, Apr 14, 2011, at 10:01 PM

Its a shame when the oil is being drained under neath peoples land and they are not getting anything for it. I have been by there several times to take my children to school and the smell is awful! Somebody is getting rich? I wished it was me!

-- Posted by Sportfans.04 on Fri, Apr 15, 2011, at 9:05 AM

Its a shame that oil is being drained underneath people's land and they are not getting a dime!

I have drove by there several times and the smell is awful!

-- Posted by Sportfans.04 on Fri, Apr 15, 2011, at 9:08 AM

The property value of the homes around the wells is damaged, would you buy a house near a well? The truth is the smell is awful and those families can't even have their windows open. They will pay more out of their pockets for electricity because they have to run their air conditioners, even on nice days.

Those who own the wells and are making money off of them need to use some of that money and go the extra mile to stop the smell. We are not drilling in Alaska because we are worried about animals and landscapes, but there is little concern given to those people living around these wells.

Obviously more wells are going to be put in. The county needs to make sure the owners of those wells protect their neighbors right to fresh air.

-- Posted by localgal on Fri, Apr 15, 2011, at 10:52 AM

Interesting, the city finds a way to bring in some money without taxing and people complain about the smell, no less. And the odor that the complaints are about is the smell of oil? Near the water treatment facility which, I do believe, treats sewage? Just what is to be done about an odor, pray tell?

As the hog farmer told his new neighbor when the neighbor complained about the smell, "that's the sweet smell of making money!"

-- Posted by Leo L. Southworth on Fri, Apr 15, 2011, at 12:02 PM

No kidding, LEO! Doesn't matter what good comes out of this town, someone always has to b*tch about it.

Plenty of houses in town you can get for next to nothing, thanks to the economy. If the oil smell overpowers the sewer smell and invades your delicate nasal passages, move.

Those who took advantage of buying land when it was affordable and have owned it for YEARS aren't obligated to tap into their retirement (or any income) to appease those who like to have their NOSE in everything (pun intended). Get real! It's their land, let them have their 1/8 cut, for Heaven sake!

I, for one, am very happy to hear we are utilizing our local resources for the betterment of the city!

-- Posted by Emmes on Fri, Apr 15, 2011, at 12:33 PM

It's obvious that Emmes or Mr Expertoneverything do not live near the wells.

-- Posted by BWare on Fri, Apr 15, 2011, at 12:43 PM


AMEN!!! The lack of concern is amazing and if it effected them they would not feel the same way. To assume that the homeowners can afford to sell their homes and move is extremely arrogant especially if they can't sell their current home.

All that is being asked it to also control the smell and it can be done. It just costs money. So be as rude as you want to be, just let me know how you feel when one is placed next door to you and it COSTS you money, not makes you money!!

-- Posted by localgal on Fri, Apr 15, 2011, at 1:39 PM

Tell you what...if would help this city grow and get financially stable...throw one of those stinky bad boy's in my yard!! I won't complain..I promise! Community involvement and responsibility...my opinion...feel free to flame (troll store open).

-- Posted by RickS on Fri, Apr 15, 2011, at 4:30 PM


I also forgot to say the treatment plant does not smell. There are very nice, new homes being built in the area. Maybe you should go drive around the area and see how things really are, instead of deciding in your mind how it must be and basing your opinion solely on your own view.

I am not against people making profit, just not making profit with no responsibility. I think that responsibility falls squarely on the people who are drilling. Oil has been found, and more wells will be drilled - and property owners have rights too.

There is a vast difference between a person moving by an established hog farm and a hog farm starting up in the center of established homes. But regardless of the situation, when you run a business you have responsibilities, it's not all about you making money.

When one person has all the rights, it's only fun if you are that person. You do not come across as a person who lets anyone tread on you, so maybe you should not so easily dismiss others who feel that they are being tread on.

-- Posted by localgal on Fri, Apr 15, 2011, at 4:35 PM

Lets not talk about the oil wells anymore...they're making money for Brazil. Why can't we fight about the road conditions...the infrastructure of Brazil is SAD! I pray that the state will help reconstruct HWY.40/Main St in a couple years through the city. But what about the side streets? They are pathetic...Brazil is not a nice beautiful midwest town ...these roads are an eye sore! And the reputation of the town and it's roads are talked about throughout the Indiana region. I'm ashamed of my home town. Improve the roads!

-- Posted by hoosier01 on Fri, Apr 15, 2011, at 8:22 PM

ARROGANCE is expecting those who own the land to pay for the smell of the wells.

Hey, if we can live with unclean city water, you can live with the smell. Fair trade, I'd say.

-- Posted by Emmes on Mon, Apr 18, 2011, at 11:41 AM

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