Albin news July 19, 2010

Albin News Readers,

Once again, we have big news in the small town of Albin. News about the oil play in the Niobrara shale is making headlines in the Cheyenne paper as well as taking up space in little periodicals such as the Wall Street Journal. Also, one of the Albin community members, John Eklund, is running for a seat in the Wyoming House of Representatives. Because of this, I apologize for being skimpy on the social news items. Rest assured that the Sorensons, Andersons, Malms, Lerwicks, Petersons, and others are carrying on as usual. More details to follow!

Also, for whatever political clout it's worth, I am announcing my official endorsement of Mr. John Eklund for our representative in the Wyoming legislature. I've known John all of my life and consider him a knowledgeable, kind, and selfless person. The only reason that I mention that here is that I feel it takes quite a bit of courage to run for public office and represent a district. If we want our representatives to stand up for us, the least we can do is voice our support for them. Too often the most qualified candidates don't run for office because they can become targets of ridicule. I say good luck to all candidates and may the best one win.

There has been more action on the part of larger mineral extraction companies buying up leases in the area. Rex Energy announced to it's shareholders that it leased another 18,700 net acres of mineral rights near the Silo Field (about 15 miles east of Cheyenne) for $1,000/ac. Also, a state auction of state owned minerals in Laramie and Goshen counties grossed $42 million. Lease rates per acres ranged from nothing to $3200/ac for some ground in Goshen county. This seems to suggest that a lot of research has been done and mineral companies are confident in their predictions about where the best spots to drill are. Many are comparing this oil play to the Bakken formation in North Dakota where horizontal drilling and hydraulic fracture technologies have been very effective in increasing the production capacity of a similar shale formation. Most of the area's mineral rights have been leased at this point and many many companies are moving towards getting drilling permits and actually drilling. There are currently 47 horizontal drill permits in Laramie county and 12 in Goshen county. This is up from 33 in Laramie county and nine in Goshen county when I reported on this subject over a month ago. Most of the 47 horizontal drilling permits currently in place are concentrated in a rectangular area West of Albin running approximately from Carpenter to Midway to Cheyenne (includes the Silo Field). This number will likely keep increasing as landmen in the county courthouses are able to finish their research. According to the Wyoming Oil and Gas Conservation Commission (WOGCC) website, the companies who have drilling permits for horizontal wells in Laramie County include EOG Resources, Jonah Gas Company, Noble Energy, Duncan Oil, Anadarko E and P, MBI Oil and Gas, Rex Energy, and SM Energy. The company with the most permits so far is Jonah Gas Company. Many companies have drilled or are in the the process of drilling horizontal wells in the Niobrara shale formation. For more detailed information on the current drilling status on many of these companies, you can go to oilshalegas.com/niobrarashale.html. Once the production records become public, you can find all of the Wyoming information at WOGCC website wogcc.state.wy.us. This is a great website for finding more official information about everything from permitting to oil production records. Mineral extraction is the largest part of Wyoming's economy and has a big effect on our future and quality of life here. Now that it's a little closer to home, it would do us all some good to become somewhat aquainted with how this extraction takes place.

Speaking of extraction, that's exactly what needs to happen to the John Deere 400E excavator that was demolishing the old Albin High School this week. Apparrently, the operator was unaware of the underlying floor plan and nearly lost his machine to the old boiler room and bathrooms. The back of the excavator sunk completely below the ground level and the cab was crunched in bad enough that the operator had to exit via the escape hatch on the top of the cab. It looks like it was a hairy ride for a few seconds. The excavator will need to be excavated before work can continue.

Also in community news, you are invited to attend the 50th Wedding Anniversary Celebration for Curt & Darlene Kenzy on July 24, 2010 at the Albin Community Center, Albin, WY. Come and celebrate with them from 2 pm to 5 pm.

A chuck wagon benefit dinner and silent auction for Malm family will be from 5-10 pm on August 28 at the Albin Community Center. Everyone is invited to attend and give their support to the Malm family.

John Eklund of the Albin community has announced his candidacy for Representative of House District 10. This seat is currently held by Rodney “Pete” Anderson and covers Eastern Laramie County and some areas along the eastern and southern sides of Cheyenne. Pete is retiring from public service this year. Other candidates currently in the race are Donn Edmunds, a Republican of Cheyenne and Gary Roadifer, Democrat of Cheyenne. Voters are encouraged to vote in the primary August 17^th. By doing this, voters will be automatically registered to vote in the final election on Tuesday, November 2nd.

When asked why he is running, John said that he had unexpectedly gained an appreciation for shaping policy on local issues while serving on the Laramie County Conservation District board. He found the experience enjoyable and rewarding and since has become interested in serving in other public positions. John has lived, worked, and raised a family in eastern Laramie County. He currently owns and operates a farming and ranching business near the intersection of Hwy 85 and Hwy 216. Recently, his daughter and son-in-law expressed an interest in moving back to the operation. This development has afforded John the opportunity to bring his lifelong experience and knowledge of living and working in eastern Laramie County to the Wyoming legislature while helping pass his operation down to the next generation.

When asked what issues were most important to him, John said he would like to introduce new ideas about education. John feels the current public education system is extremely expensive and stuck in a rut of accepting mediocrity. Without new legislation to allow different forms of public education, John feels the current trend will only continue.

When asked what he feels his role is as a representative with an agricultural backgroud, John responded that he feels a strong connection to most people, urban and rural. He sees a trend in the United States of people wanting to re-connect with their agricultural roots and that is evidence that the gap between ag people and non-ag people is not as large as some may think. John's wife, Suzie, was raised in coastal California and has adapted well to this area. John said they have learned a lot from each other, but their thinking on most matters was not that different.

When asked if he felt he had Pete Anderson's support, John said Pete has been a great help to him so far and had spent quite a bit of time mentoring John through the election process.

To show your support for John Eklund, call John and Suzie at 307-246-3251 and ask about obtaining a yard or vehicle sign.

In ag news, a jump in wheat prices came just as wheat harvest has began. Many farmers have been holding 2009 wheat all year waiting for a break in dismal prices while knowing a big 2010 crop was on the way. When wheat took an unexpected $1.00/bu jump last week, a lot of local wheat farmers took the opportunity to clean out bins.

The Jessen Wheat Company (JWC) was combining south of Albin and reported yields to be good, bad, and ugly. The best wheat (60-70 bu) was grown on ground just out of the CRP program. The worst was completely hailed out. Jessen Wheat Company is 100% organic and uses no fungicides for control of stripe rust or insecticides for grasshopper control. Clint Jessen, manager of JWC, said despite the stripe rust, test weights have been good (above 60 pounds/bu). Excepting the fields that have been hailed on, wheat yields have been well above average.

Grasshoppers in the area are reaching maturity. As Ann Sanchez mentioned a few weeks ago, farmers and gardeners can keep the pests out of their crops by keeping grass mowed down and spraying insecticides around the perimeter of the production area.

The jump in wheat prices was based on droughts in France, China, and Russia, and lower than expected in-stocks. Some of the drop in wheat stocks was due to 2009 wheat being used for animal feed. Many farmers simply had to make room for the next crop. The moral of the story is fear of a food shortage can quickly spike commodity prices even in the middle of a wheat glut.

Corn prices also rallied about $0.40 - $0.50 per bushel in sympathy with the wheat price.

The GDUs for May 15 – July 19, baseline 50 deg F, 2009 and 2010 are 878.0 and 994.5. This puts us 116.5 GDUs ahead of last year!