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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: John Carragher who wrote (44595)	6/3/2005 6:20:07 PM
From: Keith J	Read Replies (1) \| Respond to of 206323

What rights do the states actually have for offshore drilling leases? I would assume most jurisdiction would be federal. Not a subject I'm well versed in. TIA. KJ

To: John Carragher who wrote (44595)	6/3/2005 6:28:36 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 206323

The Bush administration "trying to protect the environment" by invalidating or buying back the offshore leases from Chevron, which doesn't want to sell, simply doesn't pass the smell test. ChevronTexaco does not want their money back on the California offshore leases. Chevron is content to hold onto to this asset which they acquired very cheaply, (I recall we paid $115 million total for all of them) because they were the only company that did the exploratory work. The tracts might produce $150 billion or more of oil and the Bush admin wants these tract backs - for part of what Chevron has paid out. These tracts are not within the jurisdiction of the state of California. The only prohibition against drilling these tracts is federal. Chevron knows that some day down the road, oil will be needed badly enough that these tracts will be produced. Drilling technology will be better then as well, so it will be cheaper, safer and more acceptable to drill there. Chevron owns a very valuable appreciating asset that they want to keep for a long time, all to themselves. I don't believe the Bush admin's "altruistic" explanations. .