That's a good trick. That ought to be one of the better lubed threads on the tractor. (Sorry, I couldn't resist) ;8^)
I'd be careful about using a chisel. The beating would warp the pan or, worse, if it slips you could have a brand new shiny hole in the bottom.
An EZOut might do it, but I prefer DrillOuts. They usually come in sets to handle up to 5/8" threads. Center section is a threaded mandrel with a left-twist drill tip (resembles a self-tapping screw). Riding the thread around the mandrel is a sort of conical affair, with sharp, high-pitch threads (again, left-hand threads) that engage the hole that the tip makes. When that cone grabs the sides of the whole they apply left-hand torgue to the remnant of the bolt. They work well and quicklly for things that aren't stuck TOO hard, and aren't prone to breaking off like EZOuts.
Depending how agile you are, it might be easier to tackle this with the pan off. If your ultimate fix requires flame heat, that's a MUST. In any event, any drilling you do should be done with left-twist bits (pretty readily available at a good Ace/True Value or even the big box stores). Sometimes the heat from drilling and the torque in that direction will be enough to pop the bolt loose.
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Today's Featured Article - Tractor Traction - by Chris Pratt. Our first bout with traction problems came when cultivatin with our Massey-Harris Pony. Up till then, this tractor had been running a corn grinder and pulling a trailer. It had new unfilled rear tires and no wheel weights. The garden was already sprouting when we hooked up the mid-mount shovel cultivators to the Pony. The seed bed was soft enough that the rear end would spin and slowly work its way to the downhill side of the gardens slight incline. From this, we learned our lesson sinc
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