The Colorado Independent - Latest Comments in Energy Companies Could Owe “Billions” in Unpaid Gas Royalties

Re: Energy Companies Could Owe “Billions” in Unpaid Gas Royalties

Leslie Robinson — Tue, 25 Jul 2006 17:04:44 -0000

Chinese Drillers The Chinese have been in the Parachute area for a year. From a report by "Explorer" last year.

"....Faced with a continuing shortage of drilling rigs in the Rocky Mountain region, Presco Inc., a small oil company based in Houston, imported a well from HongHua Ltd. in China.....Chinese engineers set up the rig near Parachute, Colo. It is scheduled to drill up to four wells this year.

"We had been searching for rigs since last fall and had trouble lining them up," Bennetts said. "The big companies had them all tied up...."

Just yesterday, an oil and gas official told me he had heard the Chinese drillers didn't work out so well. Perhaps labor and drilling rigs are in such short supply that EnCana will hire them anyway. The hard part--getting the Chinese workers and equipment into the US--is already done.

Re: Energy Companies Could Owe “Billions” in Unpaid Gas Royalties

Wendy Norris — Tue, 25 Jul 2006 15:51:00 -0000

true It's hard to get those low-wage Chinese drill workers onto the Western Slope if Tancredo's stomping his feet about undocumented workers hither and yon.

From the OilDrum.com: Another Shot Across the Bow?...EnCana in Colorado with Chinese Drillers?

Re: Energy Companies Could Owe “Billions” in Unpaid Gas Royalties

Andrew Oh-Willeke — Tue, 25 Jul 2006 14:48:22 -0000

You know the saying: "Keep your friends close and your enemies closer."

If you are going to face public scrutiny, you may as well have a friend in the lynch mob, to keep things from getting out a hand.

Also, it is worth remembering that while Tancredo is absolutely a conservative, in some senses of the word, he has made a mark for himself as anti-business in a lot of respects. Declining contributions from the oil and gas industry may indicate that someone who was initially perceived to be a Republican, and hence a friend, has quickly worn out his welcome with his actions while in Congress.

Re: Energy Companies Could Owe “Billions” in Unpaid Gas Royalties

Wendy Norris — Tue, 25 Jul 2006 14:20:16 -0000

nice pick up Tom Tancredo and Jack Grynberg seem like very unlikely partners in this issue.

A recent NPR profile on Mr. Grynberg sheds some light on his motives to fight the gas companies and pipeline distributors-there's potentially $120 million in "finders fees" at stake for winning this FCA case.

Evidentally, Mr. Grynberg is suing on behalf of the Colorado Consumers Legal Foundation, which is a registered tax-exempt organization with the Colorado Secretary of State but not the IRS. In the NPR report, he states that less his litigation costs, all of the FCA recovered money will be directed to charities.

Which brings me back to Tancredo's interest in this other than being contacted by a constituent? According to Open Secrets, his re-election campaign has collected:

<ul><li>2006 - $11,250, so far, from the oil & gas industry</li>

<li>2004 - $15,250 </li>

<li>2002 - $26,500</li>

<li>2000 - $67,517</li>
</ul>

It sure looks like there was a falling out between Rep. Tancredo and the fossil fuel-based energy sector. Is his support for Grynberg's suit, a payback of some sort?