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Politics : Politics of Energy

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To: Road Walker who wrote (328)	6/15/2008 11:56:01 AM
From: Brumar89	Read Replies (1) of 86355

They don't pay for the leases unless they drill and get production. Wrong! The amounts in those articles are lease bonus payments. In addition to the lease bonus, there are annual rental payments and royalties on future production. 1/5 of the bonus is due the next day. The remaing 4/5 and first year rental payment is due on the 11th day. Since the mid-1950s, the Federal Government has received bonus bid payments to acquire leases offered at OCS lease sales. Prospective bidders submit the required 1/5 bonus payment in the form of a check or bank draft, which accompanies a sealed bid on a specific offshore tract of submerged land. ...... Concerning timing of the 1/5 bonus payment, prefer payment by the apparent high bidder on the day following the sale (as currently done) rather than a prepayment on or before the day of the sale. gomr.mms.gov Payment of the 4/5 bonus and first year rental must be by EFT, payable to the MMS. You must use either the Fedwire Deposit System (same day payments) or the Automated Clearing House(overnight payments). The Regional Director of the OCS Regional Office conducting the lease offering will advise you of bid acceptance. After notification, you must instruct your bank to EFT the 4/5 bonus and first year rental payment to the appropriate United States Treasury account. Attachments 1 and 2 provide the specific account information. Please note that the Receiving FI number (FedWire Deposit System) and the Receiving ABA number (Automated Clearing House) are not printed in this document. These numbers required for the 4/5 bonus and first year rental payment have not changed recently. You may continue to use the numbers used in recent years for your upcoming transactions until further notified. (1) Your EFT payment must be received in the appropriate United States Treasury account no later than 11 a.m. Eastern Time, on the 11th business day after receipt of the lease forms by the successful bidder. gomr.mms.gov. Since 1984, all lessees have been required to use EFT to pay the remaining 4/5 balance of their bonus payment and their first year rental payment after acquiring a lease. gomr.mms.gov Now do you get it? The sources telling you and others that leases aren't going to be drilled are lying to you. I've shown you that a list of oil companies (you can read their names at the sites i posted) paid the federal govt $3.7M in the March 2008 round of bidding. Can you imagine them doing that if they don't intend to do something with those leases? ----------------------------- You think that part isn't done BEFORE they bid on the leases? You are not thinking... every inch of the GOM has been studied to death. A lot of seismic data is available on the GOM, but there is still an awful lot of study that goes into deciding where to target the drill well. Even the existing publicly available data is not free. There are companies whose business is selling that info. Bidders do not have drill targets designated before leasing. Why spend the money doing that work when they may not get the bid? Leases go to the high bidders - no one knows they will be the high bidder till the MMS announces them. ---------------------------- You keep talking about efficiency as if its something the government needs to and should enforce on everyone. And no one is "focusing" on efficiency now. Efficiency is already being focused on by every consumer and the higher prices go the more they will focus on it. ----------------------------- I am way over my opposition to ANWR and drilling in the Gulf. Then why do keep posting silly anti-leasing propaganda? I suggest you 'get over' your support of stupid, inefficient SUVs. PEople don't buy SUV's because I or anyone else "supports" them. They make a decision an SUV meets their needs and wants. I do see nothing wrong with people being allowed to make decisions like that. Guess that means I support SUV's. I think its a matter of freedom. Every vehicle that gets less than 25-30 MPG should be off the road (or paying a huge tax to represent their true cost to US society) in 10 years. AND the oil companies should be FORCED to drill those leases. Give me a break. That propaganda that company's get leases for free and sit on them intending never to drill them is a lie. If a company spends millions to get a lease and I've shown you they have done so, they will drill it unless they conclude there's no economically recoverable reserve there.

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