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Re: [hreg] Drilling in the National Parks

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  • ChasMauch@aol.com
    Andy, ... companies will be drilling on?  Yes. Both state and federal governments have periodic public auctions on lands that they own that oil companies have
    Message 1 of 6 , May 15, 2001
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      Andy,

      I will try to respond very briefly to your questions as follows:

      >>First, does the government charge anything for use of the land that the
      companies will be drilling on? 

      Yes. Both state and federal governments have periodic public auctions on
      lands that they own that oil companies have expressed an interest in, and the
      lease goes to the highest bidder. The price varies greatly depending on the
      area.

      >>Do the oil companies pay any royalty to the government for the oil they
      pull out?

      Yes. A portion of all production goes to the government. This is clear
      profit, since the company has to pay all expenses (except taxes, of course).
      We have all heard horror stories about mining companies getting valuable
      mining rights to gold mines and so on for practically nothing but that is a
      whole different problem which I don't know much about.

      >>Are there any laws that would ensure that the companies clean up after
      themselves if they drill on government land?

      Most standard lease forms contain provisions for the company to fill pits,
      take up pipelines, remove equipment, and "restore the land as nearly as
      possible to its original condition." Also they usually must pay for any
      damage to crops or other things of value on the land.

      >>If oil is found on private property, how are most landowners compensated
      and by how much?

      In Texas the law says the companies must pay a royalty of at least 1/8 of all
      production, but some landowners get more, maybe 1/6 or even up to 1/4
      depending on how hot the company is to lease the land and how well you can
      negotiate. Most royalty owners have the company sell their share of
      production to the same market the company sell theirs to, and for the same
      price, then send them a check. It's a great way for some lucky landowners to
      make a lot of money. Good work if you can get it.

      I don't think we have much (if any) federal land in Texas, but in many of the
      Rocky Mountain and other western states the feds own up to half of the land
      in the entire state. Grazing, mining, timber, and other such rights are
      controlled by the Bureau of Land Management and the Bureau of Mines of the
      Dept of the Interior and have been grossly mismangaged in many cases in the
      past, but that's another story. So far as I know the oil and gas rights have
      been operated pretty well.

      Charlie
    • Claude Foster
      Nice Summary of Oil Leasing. It is part of the public record but this summary may answer some of our questions. Claude
      Message 2 of 6 , May 16, 2001
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        Nice Summary of Oil Leasing. It is part of the public record but this
        summary may answer some of our questions.

        Claude

        > -----Original Message-----
        > From: ChasMauch@... [SMTP:ChasMauch@...]
        > Sent: Tuesday, May 15, 2001 6:25 PM
        > To: hreg@yahoogroups.com
        > Subject: Re: [hreg] Drilling in the National Parks
        >
        > Andy,
        >
        > I will try to respond very briefly to your questions as follows:
        >
        > >>First, does the government charge anything for use of the land that the
        > companies will be drilling on?
        >
        > Yes. Both state and federal governments have periodic public auctions on
        > lands that they own that oil companies have expressed an interest in, and
        > the
        > lease goes to the highest bidder. The price varies greatly depending on
        > the
        > area.
        >
        > >>Do the oil companies pay any royalty to the government for the oil they
        > pull out?
        >
        > Yes. A portion of all production goes to the government. This is clear
        > profit, since the company has to pay all expenses (except taxes, of
        > course).
        > We have all heard horror stories about mining companies getting valuable
        > mining rights to gold mines and so on for practically nothing but that is
        > a
        > whole different problem which I don't know much about.
        >
        > >>Are there any laws that would ensure that the companies clean up after
        > themselves if they drill on government land?
        >
        > Most standard lease forms contain provisions for the company to fill pits,
        >
        > take up pipelines, remove equipment, and "restore the land as nearly as
        > possible to its original condition." Also they usually must pay for any
        > damage to crops or other things of value on the land.
        >
        > >>If oil is found on private property, how are most landowners compensated
        >
        > and by how much?
        >
        > In Texas the law says the companies must pay a royalty of at least 1/8 of
        > all
        > production, but some landowners get more, maybe 1/6 or even up to 1/4
        > depending on how hot the company is to lease the land and how well you can
        >
        > negotiate. Most royalty owners have the company sell their share of
        > production to the same market the company sell theirs to, and for the same
        >
        > price, then send them a check. It's a great way for some lucky landowners
        > to
        > make a lot of money. Good work if you can get it.
        >
        > I don't think we have much (if any) federal land in Texas, but in many of
        > the
        > Rocky Mountain and other western states the feds own up to half of the
        > land
        > in the entire state. Grazing, mining, timber, and other such rights are
        > controlled by the Bureau of Land Management and the Bureau of Mines of the
        >
        > Dept of the Interior and have been grossly mismangaged in many cases in
        > the
        > past, but that's another story. So far as I know the oil and gas rights
        > have
        > been operated pretty well.
        >
        > Charlie
        >
        > Yahoo! Groups Sponsor
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      • mike
        Ian Thomas was fired from his job as a cartographer for the US Geological Survey. His offense? He posted a scientific map, the result of months of project
        Message 3 of 6 , May 17, 2001
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          Ian Thomas was fired from his job as a cartographer for the US Geological
          Survey. His offense? He posted a scientific map, the result of months of
          project reasearch, on the USGS website. The map showed the primary calving
          areas of the porcupine caribou within Ian's area of research. The problem?
          The area in question is a part of the Arctic National Wildlife Refuge, long
          a target for oil company exploitation and drilling. Our new president and
          his big oil advisors don't plan to tolerate being balked on this issue, not
          even by science. Ian Thomas is one of the first casualties of the War on the
          Environment sponsored by the new Bush administration. Read his story at
          www.maptricks.com .
          "I strongly believe that the termination of my position by the United States
          Geological Survey (USGS) was a gross over-reaction due to the political
          considerations USGS is currently operating under with regard to caribou and
          development for oil within Area 1002 in the Arctic National Wildlife
          Refuge."
          Ian Thomas
          ian_thomas@...

          -----Original Message-----
          From: Claude Foster <ccfoster@...>
          To: 'hreg@yahoogroups.com' <hreg@yahoogroups.com>
          Date: Wednesday, May 16, 2001 10:06 AM
          Subject: RE: [hreg] Drilling in the National Parks


          >Nice Summary of Oil Leasing. It is part of the public record but this
          >summary may answer some of our questions.
          >
          >Claude
          >
          >> -----Original Message-----
          >> From: ChasMauch@... [SMTP:ChasMauch@...]
          >> Sent: Tuesday, May 15, 2001 6:25 PM
          >> To: hreg@yahoogroups.com
          >> Subject: Re: [hreg] Drilling in the National Parks
          >>
          >> Andy,
          >>
          >> I will try to respond very briefly to your questions as follows:
          >>
          >> >>First, does the government charge anything for use of the land that the
          >> companies will be drilling on?
          >>
          >> Yes. Both state and federal governments have periodic public auctions on
          >> lands that they own that oil companies have expressed an interest in, and
          >> the
          >> lease goes to the highest bidder. The price varies greatly depending on
          >> the
          >> area.
          >>
          >> >>Do the oil companies pay any royalty to the government for the oil they
          >> pull out?
          >>
          >> Yes. A portion of all production goes to the government. This is clear
          >> profit, since the company has to pay all expenses (except taxes, of
          >> course).
          >> We have all heard horror stories about mining companies getting valuable
          >> mining rights to gold mines and so on for practically nothing but that is
          >> a
          >> whole different problem which I don't know much about.
          >>
          >> >>Are there any laws that would ensure that the companies clean up after
          >> themselves if they drill on government land?
          >>
          >> Most standard lease forms contain provisions for the company to fill
          pits,
          >>
          >> take up pipelines, remove equipment, and "restore the land as nearly as
          >> possible to its original condition." Also they usually must pay for any
          >> damage to crops or other things of value on the land.
          >>
          >> >>If oil is found on private property, how are most landowners
          compensated
          >>
          >> and by how much?
          >>
          >> In Texas the law says the companies must pay a royalty of at least 1/8 of
          >> all
          >> production, but some landowners get more, maybe 1/6 or even up to 1/4
          >> depending on how hot the company is to lease the land and how well you
          can
          >>
          >> negotiate. Most royalty owners have the company sell their share of
          >> production to the same market the company sell theirs to, and for the
          same
          >>
          >> price, then send them a check. It's a great way for some lucky landowners
          >> to
          >> make a lot of money. Good work if you can get it.
          >>
          >> I don't think we have much (if any) federal land in Texas, but in many of
          >> the
          >> Rocky Mountain and other western states the feds own up to half of the
          >> land
          >> in the entire state. Grazing, mining, timber, and other such rights are
          >> controlled by the Bureau of Land Management and the Bureau of Mines of
          the
          >>
          >> Dept of the Interior and have been grossly mismangaged in many cases in
          >> the
          >> past, but that's another story. So far as I know the oil and gas rights
          >> have
          >> been operated pretty well.
          >>
          >> Charlie
          >>
          >> Yahoo! Groups Sponsor
          >> E*TRADE. It's your money
          >>
          <http://rd.yahoo.com/M=172061.1388559.2974438.2/D=egroupmail/S=1700064177:
          >>
          N/A=595351/*http://www.etrade.com/cgi-bin/gx.cgi/applogic+Home?SOURCE=HYHA
          >> CP0007>
          >>
          >>
          <http://us.adserver.yahoo.com/l?M=172061.1388559.2974438.2/D=egroupmail/S=
          >> 1700064177:N/A=595351/rand=945021374>
          >>
          >> Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
          >> <http://docs.yahoo.com/info/terms/>.
          >
          >
          >
          >Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
          >
          >
          >
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