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I'm curious. Does Julian Castro hold a dictatorship over the contract process, or are their lowest bit considerations in place he must legally abide by?
Costs for moving it are energy dependent. (energy to freeze and transport frozen)
If energy costs go up cost to transport goes up.
I'm curious. Does Julian Castro hold a dictatorship over the contract process, or are their lowest bit considerations in place he must legally abide by?
When are the CPS solar rebates expiring anyway?
27 bucks a month is a great deal, except I'm moving soon!
Yes, WC. He lives in a castle behind and moat and doesn't have to worry about any laws regarding a contracts by the government.
Long live King Castro.
He admits they did not take the lowest bid (9 cents and change was lowest bid) but the trade off was allegedly that they would bring more jobs to the city.
Soon. they only have a million or so left to spend and CPS is already making noise that they are going to move those residential solar commitments to large scale solar commitments.
.
I"m going to end up getting ed then probably.
sure as aint putting them up on this piece of I'm in now!
Curious? The answer doesn't jump up and bite you on the ass?
OK, lets accept your premise that natural gas prices will rise. There are proven completed dry gas wells in the deep part of the Eagle Ford shale that are being capped as they are being completed (gas is too cheap to activate the wells) and there are some highly leveraged small exploration companies starving for cash. CPS is much better off buying up these completed wells/reserves now on the cheap as a hedge against future natural gas price increases.
Thats actually a good point.
"buying up these completed wells/reserves"
are they for sale?
This is actually a very good point, especially as we retire coal plants and bring new NG plants online. Does the charter allow CPS to manage fuel source assets?
there may be no "for sale" sign hanging off of them, but you do understand what starved for cash means, right?
I read where many of these leases are required to keep selling NG and paying royalties even if selling NG is unprofitable. Is CPS willing to take on that kind of lease?
Now you may have a point that some base level of royalties must be paid, and I don't have an answer to that, but they are obviously not required to keep selling NG.
They would have to pay on the lease regardless of whether or not the well is producing. They would not have to pay royalties if the well is not producing.
no, the type of leases I read about required not only lease payments, but royalty payments.
First, there is an upfront fee for drilling rights for a certain amount of time. This would have already been paid by the exploration company. Royalties only come into play when the well is producing.
WTF does thinkprogress know about oil leases?
If their charter allows them to buy PV energy at the source from a foreign company for 2 cents more than they deliver it to their customers for then apparently their charter allows them to do any ing thing they want to...
I dont know of any oil and gas lease that provides for a lease payment and a royalty payment both concurrently.
Generally the standard is to pay for the lease (lease bonus) and then the royalty as you bring it to the ground (royalty payment)
They may be talking about delay rentals or extension payments but once you have production, in that production zone you dont have lease payments anymore.
Furthermore, CC makes a great point, one I had thought about yesterday.
CPS needs to work out a deal with various companies to buy said dry gas today, possibly work out a sale agreement where so much will be bought for such a long period of time at some set price. Perhaps higher than today but as prices rise you then come out ahead.
The gas company wins as they can actually sell their product TODAY at a higher price. CPS wins because they lock in that price for whatever period of time.
Royalty payments are tied to production. Period.
Now in the case of royalty trust companies, there is a chance that payments can be made for a non producing well. Royalty trust companies purchase rights to nat gas deposits but don't work/produce these deposits themselves. Instead, they auction off leases to production companies and pay out the profit to shareholders...ergo a non producing well can produce some payments. But, not in a classical periodic royalty model.
I found this
Also, CC. Buying electricity is different than owning a natural gas well.Getting in on the boom starts when a landman comes knocking. Landmen (who may be women) represent oil-and-gas companies in lease negotiations with landowners. They’ll offer an upfront payment, called a bonus, for the right to drill on a parcel of land, and royalties for gas extracted from the property, calculated as a percentage of the revenues for any gas sold. Pennsylvania, for example, mandates a minimum royalty of 12.5%. Gas companies may assemble many properties into a gas-producing unit, with landowners’ royalties based on their proportional share in the unit.
Negotiations quickly get complicated, and tales of unscrupulous landmen and naïve landowners are legion. Suffice it to say that when offered a “standard” lease and handed a pen, the worst thing to do is sign right away. Better to wait, talk to several gas companies, confer with neighbors and consult an attorney.
Timing is key. Some of the land in the Marcellus region has been leased for generations, with the leases renewed every five or ten years for a few dollars an acre. Extracting the gas didn’t become commercially viable until 2005 and later, as techniques improved. Acreage that might have been leased at $2 an acre in 2000 and $30 an acre in 2005 commanded $2,400 an acre in 2008. Some signing bonuses have reached $7,000 an acre in red-hot Bradford County, with royalties as high as 20%. “We entertained offers for five years,” says Jackie Root, a Tioga County farmer who has become a homegrown gas guru.
Read more at http://www.kiplinger.com/magazine/ar...65UijC9e4WG.99
Read more: http://www.kiplinger.com/magazine/ar...#ixzz2AE77DUd2
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You realize CPS also buys/sells/runs NG pipelines, right?
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