[How do I?] How do I remove this?

I would make a 5/16" pin long enough to stick out about 1/2 " and use a 3 jaw gear puller. tighten it up put a little heat with a propane torch whack the screw a few times. and tighten some more. If that don't work out comes the grinder.
 
Well, I really appreciate all the help! One thing I forgot to tell everyone is that I don't need to salvage the collet holder as long the motor shaft remains intact. That, of course, has a huge effect on my options. After breaking my first puller pictured below I rebuilt it stronger and twisted off screw. I know, It's ugly! What can I say? I do wood, not so much metal.

Finally, I took the advice of kd4gij and others above.......success! My homemade cue lathe is back in action!

Again, thanks for all the help! If anyone needs help with their pool game or maintenance of their cue, I'll be glad to help.

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Ah, the ole grinder trick, good on you Vin.
 
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