Oil flow is understated

if the Feds really do get involved in measuring the flow, they'll just extrapolate it back to 4/20 when the well sank so i don't see how it would make a difference in the end

Pay royalties to who? They own the oil, it's their lease and they drill it and sell the oil.

No individuals get royalties or such.

They pay royalties to the feds and the individual states they produce in. LA does not get its fair share FWIW.

the water bottom beneath the GOM extended out beyond Louisiana territorial seas is owned by the US government, and therefore the government owns the oil beneath it as well.

the gov't is paid the royalty for this.

just because this well does not have a Lease Accounting Custody Transfer meter, does not mean you are exempt from royalties. you have to pay royalties on oil and gas produced as part of a well test, even though it is a temporary flow to a temporary facility, the gas is flared and the oil is shipped to the beach in a barge.

A little more: the gulf of mexico is divided in 3 mi x 3 mi blocks. these blocks are auctioned off periodically, w/ the high bidder receiving the right to explore and produce oil and gas. you have set timelimits on when activities must begin in order to maintain your rights to the lease; or else it reverts back to the pool to be auctioned again.

quote:

---

Big companies have less incentive to cheat than anyone else, there's too much to lose and they're watched a lot more.

---

correct.

they are generally powerful to legally cheat on the front end with more favorable taxation laws and royalty %'s.

quote:

---

there is a ton of stupid in this thread

---

quote:

---

you guys need to try to have a little common sense

---

The posters that have migrated over to this board in the last few days are dropping the over all IQ of the board down to rant level.

quote:

---

you guys need to try to have a little common sense

---

You could do the same also. I gaurantee you that this will cahnge everything. And IF the figure 1,000,000 barrels were spilled, BP will have to pay royalties of some sort. If you want to call it fines, go right fricking ahead. But the fines will be tabulated according to the size of the spill (how much oil lost) and will therefore be the royalty since the fine goes up with the size of the spill.

BP wishes it only had to pay the royalties on the oil, the fines are heavier!

So call it what you want, BP is paying heavy royalties on the spilled oil.

Why do you think every one of their projections was lower than the actual flow, except for one, the one that shows what teh are siphoning, they "accidently" overstated that one.

Shocker!

quote:

---

therefore the government owns the oil beneath it as well.

---

They own the rights to explore - not as important a point offshore as onshore, but that is what the government owns and it leases that right to the oil companies.

BP can be sued by the US for lost royalties and production due to the blowout....I think - I know this is the case onshore.

You shouldn't be calling anyone an idiot.

quote:

---

Big companies have less incentive to cheat than anyone else

---

there have been large companies caught screwing the public at record numbers. What the hell are you talking about?