High energy prices around the world are impacting many people in a negative way. We are reminded each time we fill up our vehicles with $4 plus a gallon gas, but for some there is an up side. Many landowners have valuable energy that the market now wants.
Just a few years ago gas leases were running around $100 per acre, today most are in the $300 to $400 per acre range for the first 3-years with a bump to $1,700 per acre in the fourth year. Once the well starts producing the land owner will typically be able to negotiate between a 1/8th royalty on the low side and a 1/4th on the high side.
Wind farms are also providing a positive economic impact for landowners. Some are paid $5,000 per year per wind generator, while others opt for a $3,000 per unit lease with a percentage profit from the electricity generated.
Even if you are not a land owner you will see a positive impact in the local economy. Each dollar pumped into the area will act as three dollars to the local economy. The facts are people tend to spend extra money they get. After all that was why the Federal Government sent out the economic stimulus checks. They knew most people would spend them pumping money into the economy.
Most of the people receiving royalty and lease checks from the gas and wind companies will do the same thing. They will buy the boat they always wanted, build a garage they always wanted, start a business the didn't have the extra money to risk on, etc. Somebody will have to sell that boat, someone will have to build that garage, somebody will have to work at that new business. All of those people benefit indirectly from the increased wealth in the area.
Rising energy prices can benefit the local economy when you are in an energy producing region and the Potomac Highlands has the ability to be a major playing in the current energy market.
