coastal caribbean (cco@) Message Board

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Gold/Mining/Energy : coastal caribbean (cco@)

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To: Rob Skaff who wrote (1102)	11/6/1999 11:15:00 PM
From: Edwin S. Fujinaka	Read Replies (1) of 4686

Rob,...Actually, I don't have any idea whether there is some law on the books in Florida that prohibit any long term activities to be started during one legislative period that would have to be continued into another legislative period. It might be hard to build any State highways or even a house with a mortgage under these circumstances. I don't know of any such laws that would preclude a long term settlement such as the one I suggested, but they can always structure any deal to end when it has to (with a lump sum cash payout) and then be renewed in the next period if everyone agrees <G>. The problem is the total amount of cash that might be required for the State to "buy" the Coastal Petroleum Leases if there are indeed "tens of billions of barrels of oil" located there. Half jokingly I threw out a number like $100 Billion that was actually published in one tiny newspaper, The Panama City News Herald. That Phil Ware actually had to scramble to distance himself from that number (or any number) is puzzling to me. There has never been one word mentioned by anyone connected to CCO about how much money they would take to sell their lease rights. There is no official published estimate of value from the State (for just compensation). Anyway, suppose "just compensation" or "fair market value" turns out to be around what the State of Florida is going to pay their tobacco attorneys, $4.3 Billion. I suppose I would take that in a lump sum if it were offered right now <G>. I would probably prefer a "deal" as I've suggested where CCO retains the oil and gas and mineral rights into the future, but there would have to be substantial cash up front. Financially, the $4.3 Billion cash would undoubtedly be better short term. Who knows what figure Phil and his boys have in mind. I'm hearing rumors of $500 Million to $2 Billion floating around, but this is wild speculation. Anyway, I doubt that any technicality in the law would really preclude a deal. How would you like to get $250 Million as a total payment from the State today and then see that the State resells the leases to some Bush affiliated oil company in five years and they produce $100 Billion worth of oil? Even the early estimate from CCO suggests that they think there is over 500 Million Barrels of recoverable oil at the St George Island site alone. Is that $10 Billion? Is it $5 Billion? We'll probably be the last to know. <G>.

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