1. Drill Rig Financing Options

    March 10, 2017

    There are plenty of ways to go about financing your drill rigs, but which option is going to help you best achieve your overall business goals? To answer this question, it is pertinent that you first understand the ins and outs of the various financing options offered from lenders. From there, you will be able to make an educated decision that not only fits your budget but aligns with your company’s strategic plan.

    Jake Rockafellow, Rig Source’s Controller outlines below two of the most common finance options typically offered for drill rig purchases. Take a minute to review each lease option for a better understanding of the terms, pro’s and con’s.

    Option 1: Full Payout Leases (Capital Lease)

    This lease allows buyers to finance 100% of the drill rig purchase price including freight, taxes and extended warranties. The buyer owns the drill rig at the conclusion the lease.

    • Pro’s:
      • Buyer has full ownership of the drill rig upon maturity of the lease
      • Tax advantages:
        • Monthly interest payments are tax deductible
        • Depreciation expense is tax deductible
    • Con’s:
      • Higher monthly payments compared to a fair market value lease (outlined below)
    Option 2: Fair Market Value Lease (Operating Lease)

    This lease allows the end user to finance less than 100% of the total purchase price including freight, taxes and extended warranties. The end user DOES NOT own the drill rig at the conclusion of the lease.

    • Pro’s:
      • Lower monthly payments compared to full payout leases
      • Payments are “moldable” to meet the end user needs
      • Improved profitability and cashflow
      • Monthly payment is tax deductible
    • Con’s:
      • Early termination fees could apply if the lease is terminated prior to its original maturity
      • Additional costs could apply upon return of the drill rig to the leasing company if more than normal wear and tear is present

    Still not sure which route to take? Try looking at the sample drill rig purchases to see a side by side comparison.

    Rig Source Finance Infographic

    As a final note, “keep in mind that drilling is a fairly niche industry, and not all finance companies are familiar with drill rig sales. Be sure to take your time, search and even ask your drill rig supplier for finance recommendations,” states Rockafellow. Reputable drill rig suppliers typically have excellent partnerships with lenders, who are educated in drilling equipment, and are more likely to extend a financing offer to your company. For more drill rig financing information, please give Rig Source a call at 630.365.1649. We have over a decade of experience getting new and returning customers alike into the drill rigs of their dreams.



  2. End of Year Savings

    November 15, 2016
    Section 179 and Bonus Depreciation Available for 2016 Purchases

    Do not let the year slip by without taking advantage of special tax benefits on new and used equipment purchases. Both Section 179 and Bonus Depreciation have been approved for a limited time through December 31, 2016. In order to qualify for these tax breaks, you must purchase or finance your equipment by December 31, 2016.

    Rig Source has a complete inventory of drill rigs and crawler carriers ready to start working on your next jobsite project. We offer sales on both new and used equipment in order to meet the needs and budget of every customer. Within our own shop, we specialize in servicing the industry leading, brand name equipment you’ve come to rely on, and even work direct with manufactures on customizations. Our dedicated sales team is knowledgeable in every type of drilling and can work with you to build a rig to suit.

    Understanding The Benefits

    2016 Deduction Limit = $500,000

    • This deduction is good on new and used drill rigs or crawler carriers, parts and other business assets.


    2016 Spending Cap on Equipment Purchases = $2,000,000

    • This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.

    2016 Bonus Depreciation = 50%

    • Bonus Depreciation is only available on new equipment, and is generally taken after the Section 179 Spending Cap is reached.

    Section 179 and Bonus Depreciation Chart

    At a 35% tax rate, tax savings would be $206,500.00 ($590,000 x 35% tax rate)

    For more information on equipment eligible for Section 179 or Bonus Depreciation tax credits, give Rig Source a call at 630.365.1649.

    *For more information regarding the details of Section 179 and Bonus Depreciation, please contact your local government agency and tax advisers.



  3. 2016 NDA Convention

    September 8, 2016

    Come network with Rig Source at the National Drilling Association’s annual convention being held in Pittsburgh, Pennsylvania on September 15-16, 2016.

    Rig-Source-NDA-Convention-Reminder

    The National Drilling Association is a non-profit trade association dedicated to the geotechnical, environmental and mineral exploration drilling industries. Each year the NDA hosts their annual convention which brings contractors, manufacturers and affiliated members of the drilling industry together to network, educate and promote the use of professional drilling contractors and their methods. As a long time member and dedicated supplier of geotechnical and environmental drill rigs, we are excited to extend an invitation to this annual convention to you.  Attending doesn’t require membership so whether you are already familiar or new to the drilling industry, you’re sure to benefit.

    This year’s agenda offers a full list of influential speakers from a variety of drilling backgrounds. Topics include everything from drilling safety and best practices to educational seminars on how to drill with various tooling and equipment. Depending on the state in which you work, the NDA Convention also qualifies for Continuing Education Credits. Adding to the excitement, the NDA has announced they’ll be unveiling their new association logo during Thursday night awards presentation. Rig Source will also be available throughout the convention to discuss your drilling equipment needs. We offer a diverse selection of drill rigs for sale and rent and go above and beyond to provide drillers exceptional service and support.

    For more information on Rig Source’s drilling equipment and services, give us a call at 630.365.1649 or get registered for the 2016 NDA Convention and stop by our booth to discuss.



  4. Drill Rig Trade-In’s

    August 24, 2016

    Drill Rig Trade InDid you know Rig Source offers trade-in options for most used geotechnical and environmental drilling rigs?

    Here at Rig Source we understand that drilling equipment needs change over time which is why we offer flexible options and equipment solutions for every unique situation. Whether your rig quit running, you simply want an upgrade or jobsite challenges require the use of a different rig; we make getting into a new drill rig easier than ever with trade-in options.

    How It Works

    Rig Source accepts trade-in’s on drill rigs in a variety of brands such as CME, Diedrich, Geoprobe and Mobile. All rig conditions will be considered, and units can be skid, truck or track mounted. To begin, our team will thoroughly discuss your equipment goals with you, review and analyze your existing rig, and work to find a new or new-to-you drill rig that best suits your needs. We offer competitive pricing on all geotechnical and environmental drill rigs and provide fair market value for all incoming equipment. While we cannot guarantee acceptance of every drill rig for trade, we will do our very best to accommodate your needs in order to reach your specified equipment goals.

    Benefits of Trade-In’s

    Choosing to trade-in your drill rig when purchasing a new rig has a number of advantages. Trading in equipment is the ultimate hassle free way to unload your used drill because it eliminates having to hunt for a buyer and reduces the amount of time and money spent getting your older unit to a sellable condition. Similarly, trade-in equipment can be a great way to lower the cost of a new drill purchase by reducing the amount you need to finance. Many of our customers also take advantage of additional tax benefits available for trade-in equipment purchases. For specific trade-in tax benefits and laws, please consult with your tax advisor.

    Learn the value of your rig and take advantage of our trade-in options today by calling Rig Source at 630.365.1649.



  5. Protecting Our Ground Water

    March 11, 2016

    NGWA Ground Water Awareness

    Rig Source is a proud supporter of National Ground Water Awareness Week and is sponsored by the National Ground Water Association (NGWA). As a longtime member of the NGWA, Rig Source plays an active role in protecting the Earth’s ground water by providing superior drill rig sales, rentals, service and support to geotechnical and environmental drilling contractors responsible for installing monitoring wells and product recovery wells. Water is one of the world’s most precious resources so it is imperative we have the proper tools and resources to monitor our ground water supply, prevent contamination and clean up potential hazards.

    Monitoring Well Drill Rigs

    Rig Source provides a great selection of drill rigs used for monitoring well work which includes brands such as Diedrich and Geoprobe. Diedrich drills are full size rigs which accommodate larger drilling diameters and deeper depths, and are available in four sizes – D25, D50, D90 and D120. The full size Diedrich rigs can be truck or track mounted to reach just about any jobsite regardless of the terrain. The use of Geoprobe drills is another option for monitoring wells or product recovery wells due to their ability to fit into limited access areas with ease. The most popular models for this type of work are the 7822DT’s and 6620DT’s.

    Drilling Support

    What sets Rig Source apart from various other suppliers is their ability to work hands on with their customers. Rig Source doesn’t just make a sale to geotechnical and environmental companies, but rather they take an active lead in supporting their endeavors. They offer a large fleet of rental drill rigs with flexible rental terms so contractors have equipment readily available, and a full service shop to keep drillers up and running at all times. For more information on Rig Source or how we support geotechnical and environmental contractors with drilling equipment for ground water protection, give us a call at 630.365.1649.



  6. Understanding CME Drill Rig Model Numbers

    February 25, 2016

    CME Drill Rig ModelsCME drill rigs are popular brand name drills used by numerous geotechnical and environmental drillers. For those looking to get started in the industry, selecting the appropriate model for your drilling business may appear to be a daunting task due to the variety of model numbers, but it doesn’t have to be. Manufacturers strive to maintain consistency when selecting model names and their ultimate goal in doing so is to help decipher differences between drill rigs. Having been a drill rig manufacturer since 1962, CME has developed a handful of models that reflect size, power and undercarriage type. Once you learn CME’s naming structure the variances between model numbers become extremely helpful in understanding the exact type of drill rig you are purchasing.

    Original CME Drill Rig Models

    To begin to really understand the various CME drill rig models on the market today, it is imperative to start with some of the original CME model s – CME 45, CME 55 and CME 75. From there the easiest way to recognize the different drill rigs is to understand their numerical value increases in accordance with the size of the drill. Therefore, the CME 45 is the smallest drill, the CME 55 is the mid-sized drill, and the CME 75 is the larger drill in the CME family. CME also makes a CME 85 and CME 95 which are the grandiose models. Due to their size, these are not as common but still worth mentioning. Depending on buyer’s needs all of these original units are available in truck, track or skid mount.

    Rubber Tired CME ATV Drills

    CME also develops drill rigs with ATV rubber tires to accommodate customers seeking both speed and traction.  To distinguish these ATV drills from the original models, CME adds a trailing “0” to their model number. Examples include the CME 550 and CME 750. Furthermore, adding an “X” to the model indicates the unit has been updated and modernized. Modernized CME ATV drills like the CME 550X have enhanced drive systems which accommodates larger dual rear tires which reduces wearing.

    High Torque Drills from CME

    Customers in search of more rotation and power want to be on the lookout for CME drills with the two letter abbreviation “HT” which represents high torque.  High torque drills from CME have an enhanced drive line allowing operators to drill deeper and utilize larger augers. One of the most common drills to include this feature is the CME 75HT.

    Feed Systems on CME Drills Explained

    Another difference between CME drill rig model numbers is the use of “B” and “C” on CME 45 drill rigs which indicates the style of feed system. The CME 45B model features a feed system that is fixed in its vertical position. This can be viewed as a constraint since the height restricts the units overall clearance. The CME 45C was designed with a pivoting feed system allowing the entire system to decline to a horizontal position which many find beneficial for ease of transportation. One other benefit of the pivoting feed system is the capability to drill on an angle up to 45-degrees. Regardless of which feed system you choose you will have the ability to handle tools in and out, directly from the tower. Neither feed system is “better” than the other, but each has different uses and purposes to accommodate the variety of drilling obstacles encountered.

    Next time you’re browsing for a new or used CME drill rig for sale or rent you will be able to understand exactly what model, size and style drill rig you are looking for. As your trusted drill rig supplier, please give us a call at 630.365.1649 for more information on CME drill rigs. We are happy to discuss the models and help determine which drill rig is best suited for your needs.



  7. Changes to Pay Attention to in 2016

    February 5, 2016

    2016 Laws Expected to Affect Customers2016 marks a big year of change for laws that have potential to affect many of our drill rig and crawler carrier customers. New laws have gone into effect, and some previous laws are set to be enforced by the end of the year. As your trusted equipment supplier we analyzed these changes to determine how they could affect you. We want our customers to be fully informed so they can continue to make the best decisions and equipment purchases for their growing business.

    Section 179 – Bonus Depreciation

    First and foremost, are you aware of the latest changes to Section 179 tax deductions for equipment purchases? While Section 179 has been available in the past, the rules have changed. This year both the House and Senate passed “Protecting Americans from Tax Hikes Act of 2015” which permanently increased Section 179 tax deduction limits to $500,000, and extended 50% bonus depreciation through 2019. Prior to this law taking place, Section 179 was temporarily approved on an annual basis. The temporary re-approvals were nice, but they didn’t provide equipment buyers adequate time to complete equipment purchase transactions in time to qualify for the deduction. Therefore, the permanency of Section 179 is ideal for our drill rig and crawler carrier customers seeking to purchase equipment now and in the years to come. The new law gives buyers the time they need to plan and forecast equipment needs, shop for the right equipment, and feel confident the Section 179 tax deduction is going to be there for them.

    Oil Export Ban Lifted

    Forty years later, the US ban on oil exports has been lifted! This is exciting for our customers within the oil and gas and pipeline industries.  It is expected that this lifted ban will expedite a higher demand for the US to grow our oil transport infrastructure, and in return open up thousands of new job opportunities for industry members. Keep in mind environmental protection is still of utmost importance while we grow the US infrastructure so it is imperative for contractors to remain conscious of environmentally friendly practices while on jobsites. Taking action by utilizing heavy equipment like crawler carriers which are known for leaving behind some of the smallest environmental footprint is one way you can help protect the ecosystem.

    Tier 4 Emissions Standards

    The Environmental Protection Agency (EPA) introduced Tier 4 engine emission standards back in 2004, and has allowed a phase-in period for manufacturer compliance which is largely coming to an end in 2016. The purpose of the Tier 4 engine standards by the EPA is to reduce engine emissions in an effort to comply with stricter Clean Air Act guidelines. What you need to know as an equipment consumer is equipment already utilizing Tier 4 engines also comes with a heftier price tag. Additionally, Tier 4 engines may use different fuel which increases the amount of maintenance required to uphold the equipment. To date, many equipment manufacturers have already conformed to the new Tier 4 engine standards leaving it very difficult to come across Tier 3 equipment still in production.  However, there are some manufacturers like Terramac® who are still offer offering Tier 3 models through the remainder of 2016. Therefore, if you are looking to add to your equipment fleet, 2016 may be good year to do so in order to take advantage of Tier 3 options that will soon be no longer be available.

    *This is a brief overview of the laws that have potential to affect our customers this year. For more information regarding the details of these laws, please contact your local government agency and tax advisers.

    Sources:

    1. The Section 179 Deduction. (2016, January 1). Retrieved from http://www.section179.org/
    2. Speaker Ryan Press Office. (2015, December 15). Lifting the Oil Export Ban: By the Numbers. [Blog Post]. Retrieved from http://www.speaker.gov/general/lifting-oil-export-ban-numbers
    3. Associated Equipment Distributors. (n.d). Clean Diesel Technology For Off-Road Engines and Equipment: Tier 4 and More. Retrieved from http://www.aem.org/PDF/DTF_Tier4WP_FIN.pdf


  8. Auger Drills & Direct Push Inventory on the Move

    December 9, 2015

    Change is in motion for our geotechnical and environmental drilling equipment inventory so be sure to stay in the loop by following us on social media, and take advantage of equipment opportunities as they are presented.

    In the last few weeks Rig Source has purchased a variety of auger drilling rigs as well as direct push units to support customers looking for inexpensive drilling rig options or start up rigs. Our talented buyers have years of experience finding quality used drill rigs to fit our customers varying budgets. We can easily spot the value in these used drills, and provide maintenance options with reasonable costs to bring used drills to “like new” condition. Rig Source values our customer’s time, and are honored that so many around the world have trusted us for over a decade to buy, restore and rebuild their auger drilling rigs and direct push units.

    With the current geotechnical and environmental market in full swing, our inventory of Geoprobe’s, CME’s and Diedrich drills have been moving at a rapid pace. For your convenience, we’ve begun posting equipment notifications on Facebook, Twitter, Linkedin and Google +, but always recommend giving our team a call to discuss the type of drilling rigs you’re in search of.

    Sample Auger Drill Rig & Direct Push Projects
    CME 45 Drill Rig for Sale

    CME 45 Drill Rig

    Geoprobe 66DT for Sale by Rig Source

    Geoprobe 66DT


    Auger Drill Rig & Direct Push Drills Available NOW

    Diedrich D-50 Drill Rigs for Sale

    Diedrich D-50 Drill Rig

    CME 550X Drilling Rig for Sale

    CME 550X Drill Rig

    Geoprobe 6610DT for Sale by Rig Source

    Geoprobe 6610DT

    Geoprobe 6620DT for Sale by Rig Source

    Geoprobe 6620DT

     

    To view our complete listings or peruse additional auger drills and direct push units, please visit our geotechnical and environmental drill rig showroom. Need a price? Call 630.365.1649 and ask to speak with the sales representative in your area.



  9. Crawler Carrier Uses Broken Down by Region & State Continued – Part 3

    October 30, 2015

    Welcome back to part three of our series covering the use of crawler carriers across various regions of the US. Click on the links provided to catch up on the Western Regions or Mid Regions of the US. Otherwise, read on and enjoy learning about crawler carrier usage along the Eastern regions of the US.

    Travel the Eastern Regions of the US on Tracks

    New England Region – Encompassing the states of Connecticut, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island & Vermont.

    • New England is one of the most historic regions of United States, and with that comes an older infrastructure requiring a great deal of maintenance and repair. Crawler carriers benefit the New England region by providing the local industries with reliable equipment capable of adapting to the various seasons and infrastructure needs such as pipeline repair, environmental restoration, and utility maintenance. The most commonly sought after crawler carrier attachments for this region are standard dump beds, tac welders, water tanks, pipe heating units and more.

    Mid-Atlantic Region – Encompassing the states of Ohio, Pennsylvania, West Virginia, New Jersey & New York.

    • The Mid-Atlantic Region is truly the heart of pipeline work for the Unites States because it contains the Marcellus and Bakken Shales. The Marcellus Shale is the largest source of natural gas in the United States so it is no wonder that crawler carrier usage is at its highest rate for the country in this region. Crawler carriers are used in every step of the pipeline process; beginning with utility locating and finishing up with land restoration. Top attachments used for crawler carriers across the entire Mid-Atlantic Region include, vacuum excavators, water tanks, cranes, tac welders, personnel carriers, compressors, hydroseeders, bark blowers and straw blowers.

    South-Atlantic Region – Encompassing the states of Delaware, Virginia, North Carolina & South Carolina.

    • The South-Atlantic Region is a hot spot for a multitude of industries, and crawler carriers are used routinely due to their versatility across a wide variety of terrain conditions. This region includes the Appalachian Mountains and is also home of the Coastal Plaines. The Proximity to the Mid-Atlantic Region means pipelines are still among the top local industries to depend on crawler carriers, but the units are also being used for earth moving and excavation projects which require attachments such as hydroseeders, bark blowers, straw blowers and rock beds. As you travel into Virginia, the use of crawler carriers is also increasing for the utility market.

    Southeast Region – Encompassing the states of Georgia & Florida.

    • Surrounded largely by water from both the Gulf of Mexico and the Atlantic Ocean, the Southeast Region has found crawler carrier use a key tool for shoreline restoration as well as land reclamation. This is a tourist region so using low impact equipment like carriers that have low ground pressure assist both Georgia and Florida in preserving their environments for visitors. Pipeline projects such as the Sabal Trail Transmission are also expected to increased crawler carrier usage once the project commences in 2016. The last prominent use of crawler carriers for mention in the Southeast Region has been in utilities. Digger derricks and boom lift attachments are being mounted to the rear of crawler carriers more and more which is allowing easier accessibility to utility pole installation sites.
    Regional Wrap Up

    Crawler carrier usage among all regions in the United States has been on a tremendous upward growth pattern in recent years as more and more as technological advancements to crawler carriers have been introduced. Each new advancement has made work in these trade industries that much easier and safer than ever before. The adaptability of crawler carriers to hold various specialty attachments, and interchange them with ease also enhances productivity for employers by providing their workers with all the tools necessary, even in remote locations to continue working. There isn’t an industry out there that couldn’t benefit from crawler carriers, and as future uses come about and new attachments are developed – you can count on Rig Source to keep you informed and your fleet stocked!

    *Common Crawler Carrier Attachments Mentioned Throughout the Series: Standard Dump/Flat Bed, Dust Suppression Spray Boom, Fuel Tank, Rock Bed, Tac Welder, Personnel Carrier, Pipe Heating Unit, Compressor, Bark Blower, Hydroseeder, Water Tank, Knuckle Boom Crane, Geotechnical Drills and Straw Blowers.



  10. Gear Up Drillers – The 2015 NDA Convention Is Here

    September 10, 2015

    Pack your bags for this year’s NDA Convention, and stay on the forefront of geotechnical, environmental & mineral exploration drilling methodology and technology.

    2015 NDA Convention

    2015 NDA Convention – September 17-18

    The National Drilling Association Convention is an annual event hosted by the NDA and sponsored by its members and affiliates of the drilling industry. This convention has been noted for providing excellent networking opportunities within the industry, and provides ample educational opportunities for businesses to learn how to best service their customers. As long time members of the NDA, Rig Source continues to support their annual convention, and highly recommends those in the industry take part. Location: Turf Valley, Ellicott City, MD.

    Rig Source’s Contribution

    As a drill rig sales, rental and service center for the geotechnical and environmental drilling industries, Rig Source will be exhibiting at the NDA Convention, and would love to see you at our booth. If you’re an existing customer, stop by and share your latest drilling story with us. We enjoy hearing about the work our drilling rigs have mastered since leaving our shop, and how they have benefitted you as a driller. Additionally, if you’re new to the industry, be sure to drop in and introduce yourself. We welcome all new industry members and look forward to sharing our services with you. During the convention, owners, Mike & Lisa Crimaldi will be available to discuss drilling rig options with you, and offer creative equipment solutions for your specific drilling projects.

    Special Recognition

    Rig Source would also like to make special mention that two of our long time customers, Chuck Valenta of Terracon and Dan Dunn of Major Drilling America, Inc. will be conducting a transformative safety panel discussion during the convention. Topics will include accidents, safety and solutions to help prevent drilling related accidents from occurring. These two gentlemen are experts in the geotechnical and environmental drilling industry so you won’t want to miss out on the opportunity to gather some of their tricks of the trade.

    For more information on Rig Source or our NDA Convention Sponsorship, please give us a call at 630.365.1649.