[MyOldTDiIsStillGoing]

June 21 (Bloomberg) -- Exxon Mobil Corp. and other oil companies should be forced to give up any offshore leases they aren't using and not be awarded new leases, House Natural Resources Committee Chairman Nick Rahall said today.

The Democratic congressman, whose district includes coal- mining areas of West Virginia, accused the oil companies of ``stockpiling'' 68 million acres of federal oil and gas leases, about the size of Colorado, even as Republicans seek additional leases. He is sponsoring legislation that would force the oil companies to drill on lands already leased.

``Simply put, we are telling Big Oil to use it, or lose it,'' Rahall said in the Democratic Party's weekly radio address. ``They would either have to produce from these lands, show they are being diligent in their development, or give up the right to control even more federal energy resources.''

IN THE ARTICLE ABOVE, THERE ARE THOSE SAYING USE IT OR LOSS IT. BUT THE QUESTION IS, IS THE LOCATION WORTH DRILLING INTO IF THE COST IS SO PROHIBITIVE THAT THERE IS NO VALUE FOR THE COMPANIES TO INVEST. It is like the federal government offering land in the west when the rail lines were laid down back in the 1800's. Many came, many tried, but many died.

Instead, should new lands be offered that do have known potential to get the resources out.

Food for thought as we hold our forked stick and hope it starts moving.

[Plantagenet]

``Simply put, we are telling Big Oil to use it, or lose it,'' Rahall said in the Democratic Party's weekly radio address. ``They would either have to produce from these lands, show they are being diligent in their development, or give up the right to control even more federal energy resources.''

The dems are either lying or incredibly ignorant.

Its as though they don't know what the word "lease" means. The feds can already take these lands back if the oil companies don't develop them.

Federal oil leases are for a limited amount of time....if the oil companies or mining companies don't do "due diligence" then they lose the lease, and the feds can hold another lease sale and find someone else who will do the work.

The feds can already take back leases if there is non-compliance with the terms of the lease. If the dems block those companies who currently hold federal leases from bidding on future leases, then they are just shooting themselves in the foot, because they will be fewer companies bidding and the lease sales will take in less revenue.

[Plantagenet]

THe democrats also don't realize that in any lease sale there are probably only a few parcels that have really high potential for oil development.

These parcels can get bids of hundreds of millions of dollars from oil majors who want to lease them.

The remainder of lease sales are often leased by individuals or very small companies for just a few bucks an acre. These folks lease the land in hopes that the oil majors missed something, and will come to them later and release the land. These "little guys" have no resources to develop their lease holdings (and there is nothing there anyway, or the majors would've leased them).

[Plantagenet]

Its pretty clear by now that the dems have little or no understanding of energy issues or the problems that peak oil present.

The dems aren't looking for solutions. They are looking for a scapegoat to put the blame on.

[MyOldTDiIsStillGoing]

Ah Plantagenet, you has great insight from the Great Snowy State of the north that your neighbor to the west gave to all of us. You helped explained the "lease" system and its complexities.

When I read the article post, I was so confused on what this politician was saying. Of course, this poli is from WV so coal is in his pocket, but again, are they down in DC really concern for us (the US) as a whole? You are fortunate that you reside in a state furtherest from the Washington Business Corporation (WBC)running these lands and playing games with their held up lands.

So in your point, the land that an oil company leases may or may not be of any value and without a good preliminary geological study, the big oil companies are playing Russian Rullette (sp?) with the DC folks. Sorry, your neighbor next door mentioned again.

It is a game that DC is playing with the big oil companies, telling them to go find oil, pay a big price for the lease, and oh BTW, no guarantee for that they will succeed in finding any. In a time of PO and the need for urgency and efficiency, we can't play games.

I am glad you see this as well and joined in my inquiry. this is what others should be outraged about and see the incompetency at the WBC and I hope others will start voicing their anger at them. Until then, I can see why reagan left that town to go back to the ranch and never looked back.

This issue has slipped under the radar.