Posted on 05/16/2012 5:23:43 AM PDT by thackney
Barky knows that the only way wind and solar will be accepted is to drive the cost of hydrocarbons off the chart.
Right, because five seconds after they do, dear leader’s going to jump in and suddenly cancel the leases. He’s done it before and he’s fooling himself if we think he won’t do it again.
Yeah: Put his money where his mouth is.
That is EXACTLY why the economy “refuses” to recover,
and why businesses aren’t hiring, expanding, or investing,
even though they have cash.
They don’t trust this fascist not to make their expenditures worthless by fiat.
If only there were “gay” leases available, Obama would be drilling them tomorrow because his position on “gay” leases has evolved.
Say for example you have a 10,000 acre lease.
You drill a well on the lease which comes in mainly a gas well with some condensate.
You need a pipeline access in order to produce the well, but you can't get pipeline access because of inviro regs.
You then shut the well in, but you cannot keep your lease unless you are actually producing from the well or you pay a shut in fee. So you pay a shut in fee.
Then you have what's refereed to as a performance clause in the lease. That means in order to keep the entire lease and not just the area where the one well is, you have to continue drilling operations.
Every new well you drill that can produce is then shut in and you pay a shut in fee.
You pay out but get nothing back.
If you abandon the lease you have to plug all the wells.
They need leases they can get their product out of and to market.
Say for example you have a 10,000 acre lease.
You drill a well on the lease which comes in mainly a gas well with some condensate.
You need a pipeline access in order to produce the well, but you can't get pipeline access because of inviro regs.
You then shut the well in, but you cannot keep your lease unless you are actually producing from the well or you pay a shut in fee. So you pay a shut in fee.
Then you have what's refereed to as a performance clause in the lease. That means in order to keep the entire lease and not just the area where the one well is, you have to continue drilling operations.
Every new well you drill that can produce is then shut in and you pay a shut in fee.
You pay out but get nothing back.
If you abandon the lease you have to plug all the wells.
They need leases they can get their product out of and to market.
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