Valuing the Potential of Land for Oil and Gas Development

7/29/2019 Valuing the Potential of Land for Oil and Gas Development

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8

]HE^DB@ VJN [OVNBVDHE OM EHBF

MO\ ODE HBF @HW FN]NEO[CNBV

LT FH]DF HCCOBW HBF AHCNW WJN[[H\F!

FDHCOBF CGGH\VJT EE[

D" Dbtrofugtdob

Dbvnstcnbt fngdsdobs db tjn ode hbf `hs dbfustry hrn chfn db h ubdqun nbvdrobcnbt

tjht ds gjhrhgtnrdznf ly tjn moeeowdb`1

Vjn dbfustry ds vnry ghsj dbtnbsdvn" Vjn nxpnbfdturn om cdeedobshbf socntdcns ldeedobs om foeehrs ds rnqudrnf mor h sdbèn proangt%

wdtj bo ùhrhbtnns om suggnss"

Vjnrn ds mrnqunbtey h eob` enhf tdcn lntwnnb dbdtdhe nxpnbfdturnhbf rnsuetdb` rnvnbun hbf promdthldedty"

Fngdsdobs hrn omtnb chfn db hb nbvdrobcnbt om jd`j envnes omubgnrthdbty hbfgobsnqunbteyrdsi" Goccob ubgnrthdbtdns

dbgeufn1 fo jyfroghrlobs nxdst lnbnhtj tjn thr`nt prospngt? Pdee

frdeedb` enhf to h leow#out? Dm wn mdbf ode or bhturhe `hs rnsnrvns

wdee tjny ln scheenr tjhb nxpngtnf or fngedbn mhstnr tjhb `noeo`dg

gobfdtdobs su``nst? Pdee grufn ode hbf/or bhturhe hs prdgns rnchdb

strob` or bosn#fdvn?8

Pdee tjn hppedghlen rnùehtory nbvdrobcnbt

gjhb`n?

Vjn gocpntdtdob mor mubfs mor hetnrbhtdvn proangts ghb lnsulsthbtdhe"

@dvnb tjds ubdqun nbvdrobcnbt% dt ds grdtdghe mor ode hbf `hs gocphbdns to

nmmngtdvney% nmmdgdnbtey% hbf hggurhtney nvheuhtn proangts lnmorn dbvnstdb` sulsthbtdhe sucs"

Gocphbdns ncpeoy socnwjht fdmmnrnbt nvheuhtdob cntjofs mor proangts eoghtnf ob ehbf

wdtj nxdstdb` jyfroghrlob profugtdob tjhb tjny fo mor proangts eoghtnf ob ehbf wdtj bo

! Vjn hutjors wdsj to tjhbi \ussnee [" Cnfubh% [rnsdfnbt om [nbbob \nsourgns% EEG% mor jdshssdsthbgns wdtj tjn tngjbdghe fdsgussdobs gobthdbnf db tjds phpnr"

8 Wjhen proangts ghb jhvn h edmn om 7; to >; ynhrs" Dt ds gnrthdbey h thee orfnr mor hbyobn to try tomornghst prdgns tjht mhr out"


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pnr Cde"

LV^s": Mor tjn phst ynhr hbf h jhem% prdgns jhvn ehb`udsjnf ht hlout &< to &7 pnr Cde"

LV^s"4

Om phrtdguehr dbtnrnst ds tjn rngnbt sjhrp fdvnr`nbgn om ode hbf bhturhe `hs prdgns

mroc tjndr trhfdtdobhe rnehtdobsjdps% hffdb` murtjnr ubgnrthdbty to muturn prdgn nxpngthtdobs

mor bhturhe `hs" Jdstordgheey% tjn rnehtdobsjdp jhs lnnb stnhfy% wdtj h grufn ode trhfdb`

hlout 88 tdcns tjn prdgn om bhturhe `hs sdbgn 844;% wjnb `hs sthrtnf trhfdb` ht tjn Bnw

Tori Cnrghbtden Nxgjhb`n"8;

Vjn ode#to#`hs rhtdo sthrtnf to gedcl db


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6

ob tjn sdzn hbf bhturn om tjn gocphby"86 H corn h``rnssdvn hpprohgj ds to usn tjn

BTCNZ Wtrdp mor tjn bnhr#tnrc *bnxt 7 to > ynhrs$% wdtj jnf`db`% hbf h gobsthbt prdgn

tjnrnhmtnr"8> H cdffen om tjn rohf hpprohgj ds to usn h wnd`jtnf tjrnn ynhr hvnrh`n om

ehtnst prdgns% nsghehtnf mor dbmehtdob"8= Hbf h corn gobsnrvhtdvn hpprohgj ds to usn tjn

eownst prdgn vheun mroc tjn phst tjrnn ynhrs om prdgns% nsghehtnf mor dbmehtdob"80

Dcporthbtey% nbnr`y enbfnrs typdgheey rnqudrn tjht tjndr lorrownrs usn tjn enbfnrs prdgn

proangtdobs"

7" [rdgn ]oehtdedty Chtnrdheey Dcphgts Dbvnstcnbt Fngdsdobs

[rdgn voehtdedty chtnrdheey dcphgts ode hbf `hs gocphbdns dbvnstcnbt fngdsdobs"

Vjn rngnbt prngdpdtous fngedbn db bhturhe `hs prdgns hbf tjn gorrnspobfdb` dbgrnhsn db

grufn ode prdgns deeustrhtn tjds podbt pnrmngtey" Db ehtn hvhdehlen ht jttp1//www"ln`"utnxhs"nfu/nbnr`yngob/tjdbigorbnr/Vjdbi.


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>

Ode hbf `hs gocphbdns typdgheey gobsdfnr h vhrdnty om mhgtors wjnb nvheuhtdb`

ehbf wdtj nxdstdb` jyfroghrlob profugtdob% dbgeufdb`1

8" Hbtdgdphtnf ghsj meows mroc jyfroghrlob fnvneopcnbt% lotjposdtdvn db tjn morc om rnvnbun hbf bn`htdvn db tjn morc om

nxpnbfdturns hbf thxns"

" Hldedty to lorrow cobny lhsnf ob tjn rnsnrvns"8" Hbtdgdphtnf Ghsj Meows

Gocphbdns typdgheey snni to nstdchtn tjn ghsj meows tjht cd`jt ln `nbnrhtnf mroc

jyfroghrlob fnvneopcnbt% lotj posdtdvn db tjn morc om rnvnbun hbf bn`htdvn db tjn morc

om nxpnbfdturns hbf thxns" Vjds ngobocdg hbheysds heeows tjn rnenvhbt fngdsdob#chinr*s$

to% hcob` otjnr tjdb`s1

nstdchtn tjn promdt *or eoss$ hbf rnturb ob dbvnstcnbt om h proangt9 rhbi h proangt db gocphrdsob wdtj hetnrbhtdvn dbvnstcnbt optdobs9 nstdchtn tjn rdsis% lotj mdbhbgdhe hbf tngjbdghe% db ubfnrthidb` tjn

proangt9 hbf

mornghst tjn nmmngt om tjn proangt ob tjn ovnrhee gocphby posdtdob"H iny tooe to nvheuhtn hbf gocphrn ode hbf `hs dbtnrnsts or muturn proangts ds tjn

Fdsgoubtnf Ghsj Meow *FGM$ cntjof" Vjn hbheysds thins dbto gobsdfnrhtdob% hcob`

otjnr tjdb`s1 *8$ tjn nxpngtnf jyfroghrlob profugtdob promden om tjn propnrtyd"n"% tjn

voeucn om nxpngtnf profugtdob ovnr tdcn hbf tjn nxpngtnf edmn om tjn wnee*s$9 hbf

*


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=

rhtn to hby vheuhtdob lnghusn dt hggoubts mor tjn tdcn mor tjn rnsnrvns to ln profugnf"


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0

L" FGM Cntjof Hggoubts mor \nehtdvn \dsi om [roangt

Vjnrn hrn chby cntjofs to fntnrcdbn h fdsgoubt rhtn mor hb dbvnstcnbt% lut db

cost ghsns% tjnsn gheguehtdobs rnsnclen hrt corn tjhb sgdnbgn" @nbnrheey% tjn sdzn om tjn

fdsgoubt rhtn ds dbvnrsney rnehtnf to tjn sdzn om tjn rdsi" Vjn jd`jnr tjn rdsi% tjn jd`jnr tjn

fdsgoubt rhtn bngnsshry to hfaust mor tjn edinedjoof tjht tjn proangtnf rnvnbun ds bnvnr

rnhedznf"


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:

profugtdob% gocphbdns typdgheey nstdchtn tjn voeucn om rngovnrhlen rnsnrvns" Vjn Cobtn

Ghreo Cntjof ds h popuehr cntjof mor gheguehtdb` h rhb`n om vheuns mor jyfroghrlob

voeucns"76 Fdstrdlutdobs om porosdty% whtnr shturhtdob% rnsnrvodr tjdgibnss% hbf hnrdhe

nxtnbt om tjn rnsnrvodr hrn dbputtnf dbto tjn Cobtn Ghreo sdcuehtor"7> Vjosn fdstrdlutdobs

om tjn dbput vhrdhlens hrn nstdchtnf ly olthdbdb` h summdgdnbt buclnr om cnhsurncnbts om

rnsnrvodr hbf meudf propnrtdns"7=

Vjn Cobtn Ghreo sdcuehtor tjnb `nbnrhtns shcpens ht rhbfoc mroc tjn dbput

prolhldedty fdstrdlutdobs"70

Cobtn Ghreo sdcuehtdob fons tjds jubfrnfs or tjoushbfs om

tdcns% hbf tjn rnsuet ds h prolhldedty fdstrdlutdob om possdlen outgocns"7: Db tjds why%

Cobtn Ghreo sdcuehtdob provdfns h cugj corn gocprnjnbsdvn vdnw om wjht chy jhppnb"

Dt tnees ode hbf `hs gocphbdns bot obey wjht gouef jhppnb% lut jow ediney dt ds to jhppnb"

Db tjds why% Cobtn Ghreo Wdcuehtdob heeows gocphbdns to lrhgint ubgnrthdbty74ly

provdfdb` tjnc wdtj h edst om possdlen outgocnshbf fntnrcdbn wjntjnr tjn rdsis om

nxtrhgtdob outwnd`j tjn hssogdhtnf rnwhrfs"

H rnsnrvodr nb`dbnnr wdee heso nstdchtn tjn pnrgnbth`n om jyfroghrlobs tjht hrn

ediney to ln rngovnrhlen" Vjht rngovnry pnrgnbth`n wdee ln lhsnf ob% hcob` otjnr tjdb`s%

fhth fnrdvnf mroc otjnr wnees frdeenf db tjn hrnh hbf tjn rnsnrvodr nb`dbnnrs owb

nxpnrdnbgn" Vjn rngovnry pnrgnbth`n ds cuetdpednf h`hdbst tjn voeucn om jyfroghrlobs db

pehgn to `dvn tjn voeucn om rngovnrhlen rnsnrvns"

7" Ghtn`ordns om \nsnrvns

Db `nbnrhe% rnsnrvns ghb ln lroinb fowb dbto tjn moeeowdb` ghtn`ordns1 *8$ [rovnf

\nsnrvns9 *


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4

gehssdmdnf hs ndtjnr Fnvneopnf or ^bfnvneopnf" \dsi ds tjn chdb fdmmnrnbtdhtdb`

mhgtor lntwnnb tjn typns om rnsnrvn ghtn`ordns hbf tjndr hssogdhtnf vheuns" Wdbgn tjn

vheun om hb hssnt ds h mubgtdob om dts proangtnf muturn ghsj meow% tjn eownr tjn gjhbgn om

oggurrnbgn *hgtuhe profugtdob$% tjn enss vheuhlen tjn cdbnrhe dbtnrnst"

H" Fnvneopnf or ^bfnvneopnf \nsnrvns

Fnvneopnf rnsnrvns hrn nxpngtnf to ln rngovnrnf mroc nxdstdb` wnees lhsnf upob

wjntjnr tjn wnees hrn profugdb` or bot"6; ^bfnvneopnf rnsnrvns hrn nxpngtnf to ln

rngovnrnf1 *8$ mroc bnw wnees ob ubfrdeenf hgrnh`n9 *


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8;

[rolhlen rnsnrvns hrn ubprovnf% ynt `noeo`dghe hbf nb`dbnnrdb` fhth su``nsts

tjht tjny hrn corn ediney tjhb bot to ln rngovnrhlen" Mor nxhcpen% h prolhlen rnsnrvn

gouef ln provnf ly borche stnp#out frdeedb` hbf dbmdee frdeedb` wjnrn fhth ds dbhfnquhtn to

gehssdmy tjnc hs provnf"6>

[ossdlen rnsnrvns hrn tjosn ubprovnf rnsnrvns tjht hbheysds om `noeo`dghe hbf

nb`dbnnrdb` fhth su``nsts hrn enss ediney to ln rngovnrhlen tjhb prolhlen rnsnrvns"6=

Mor

nxhcpen% possdlen rnsnrvns wouef ehgi hby hfnquhtn fnmdbdtdvn fhth hbf ln rnmnrrnf to hs

nxpeorhtory"

G" Iny Gehssdmdghtdobs om \nsnrvns*8$ [F[ or [rovnf Fnvneopnf [rofugdb`

[rovnf fnvneopnf rnsnrvns hrn quhbtdtdns om provnf rnsnrvns tjht ghb ln nxpngtnf

to ln rngovnrnf tjrou`j nxdstdb` wnees wdtj nxdstdb` nqudpcnbt hbf opnrhtdb` cntjofs" 60

[F[ rnsnrvns hrn tjosn rnsnrvns tjht hrn gurrnbtey lndb` profugnf% tjht ds% jyfroghrlobs

hrn gurrnbtey lndb` nxtrhgtnf" Vjnsn hrn tjn cost vheuhlen *hbf gnrthdb$ ghtn`ory om

rnsnrvns lnghusn fhth mor voeucn% prnssurn% hbf profugtdob ds rnhfdey hvhdehlen hbf

gjhrhgtnrdstdgs om tjn rnsnrvns lngocn corn hpphrnbt obgn h wnee ds hgtuheey frdeenf% hbf

jyfroghrlobs hrn nxtrhgtnf"6:

*; Cost omtnb% [FB[ rnsnrvns chy ln

6> \nsnrvn \nports Ovnrvdnw%ht p" >7"

6= Df"

60 Wnn Wogdnty om [ntroenuc Nb`dbnnrs% @eosshry om Vnrcs ^snf db [ntroenuc \nsnrvns/\nsourgns% ht

p" 8;% hvhdehlen htjttp1//www"spn"or`/dbfustry/fogs/@eosshry[ntroenuc\nsnrvns#\nsourgnsFnmdbdtdobs_"pfm *ehst vdsdtnf Hu`" 87% #="


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88

whdtdb` mor h muturn nvnbt to oggur lnmorn sthrtdb` profugtdob" Vjn cost goccob

nxhcpen ds wjnb h wnee ds sjut#db whdtdb` ob gobstrugtdob om h pdpnedbn or `htjnrdb`

systnc"

*7$ [^F or [rovnf ^bfnvneopnf

[rovnf ubfnvneopnf rnsnrvns hrn tjn eownst ghtnòry om provnf rnsnrvns" [^F

rnsnrvns hrn tjosn wjnrn h bnw wneelorn ds stdee rnqudrnf to ln frdeenf hbf gocpentnf *wdtj

hggocphbydb` rdsi$% lut mor wjdgj tjnrn ds stdee rnehtdvn gnrthdbty surroubfdb` tjn hcoubt

om jyfroghrlobs tjny gobthdb">8

[^F rnsnrvns hrn tjn enhst vheuhlen om tjn provnf

ghtnòry to hb dbvnstor lnghusn tjds ghtnòry rnqudrns tjn cost sd`bdmdghbt ghpdthe

dbvnstcnbt hbf dbvoevns tjn `rnhtnst rdsi">7 Vjnrn

hrn two goccob typns om rnsnrvn rnports1 *8$ tjn [ntroenuc Nb`dbnnr \nsnrvn \nport9

hbf *#="

>7 \nsnrvn \nports Ovnrvdnw% suprh botn 8;"


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8> H fnpentdob gurvn rnmnrs to h pnrdof om

mhdedb` rnsnrvns hbf suppey hbf ds usnf to prnfdgt tjn gost om profugdb` gobvnbtdobhe hbf

ubgobvnbtdobhe jyfroghrlobs db h phrtdguehr rn`dob hs h mubgtdob om tjn mrhgtdob om tjht

rn`dobs rnsourgns tjht jhvn hernhfy lnnb gobsucnf">=

Db nmmngt% tjn fnpentdob gurvn

nstdchtns tjn eob`#rub chr`dbhe gost om fdsgovnrdb`% profugdb`% hbf fnedvnrdb`

jyfroghrlobs to tjn chrint lhsnf upob tjn rn`dobs rnsourgns tjht jhvn hernhfy lnnb

profugnf">0

Vypdgheey% tjn nb`dbnnr hppedns hb hssucptdob om muturn prdgns to cobntdzn tjosn

rnsnrvns db h ghsj meow thlen" Lut sugj rnports fo bot% jownvnr% provdfn h gocpentn

vheuhtdob hbheysds" Vypdgheey% tjny hrn lut h pdngn om tjn dbmorchtdob usnf db vheuhtdob

hbheysds"

Vjn [ntroenuc Nb`dbnnr \nsnrvn \nport sjows ghtn`ordns om rnsnrvns tjht fo bot

hppnhr ob hb WNG \nsnrvn \nport% d"n"% ubprovnf rnsnrvns" Lnghusn om tjht mhgt% tjn

[ntroenuc Nb`dbnnr \nsnrvn \nport omtnb pehys hb dcporthbt roen db purgjhsn hbf shen

hgtdvdty" [otnbtdhe sneenrs whbt to ln phdf socn vheun mor tjndr ubprovnf rnsnrvns sjowb

db tjn [ntroenuc Nb`dbnnr \nsnrvn \nport" Hbf potnbtdhe luynrs whbt to ibow hlout h

sneenrs ubprovnf rnsnrvns hs tjny rnprnsnbt sd`bdmdghbt potnbtdhe upsdfn db hby hgqudsdtdob

or snrnbfdpdty% hs dt ds rnmnrrnf to db tjn dbfustry"

*%> Df"

>= Wnn Fhvdf E" @rnnbn nt he"% \ubbdb` Out om Hbf Dbto Ode1 Hbheyzdb` @eolhe Ode Fnpentdob hbfVrhbsdtdob Vjrou`j ; *


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87

puledgey rnportdb` gocphbdns to utdedzn tjn ghsj meow cntjof om rnportdb` tjn vheun om

provnf rnsnrvns% usdb` h fdsgoubt om 8;. *[]8;$ wdtj gurrnbt prdgns% lut wdtjout

nsghehtdob om prdgns"

Vjn WNG hcnbfnf dts ode hbf `hs rnportdb` rnqudrncnbts db Fngnclnr 4

Db Ogtolnr : Wnn Cofnrbdzhtdob om Ode hbf @hs \nportdb`% Wngurdtdns Hgt \nenhsn Bo" 77#:44>9 Nxgjhb`n Hgt\nenhsn Bo" 76#>4844 Df"

=; Wnn W"N"G" Fdvdsdob om Gorporhtdob Mdbhbgn% Ode hbf @hs \uens Gocpedhbgn hbf FdsgeosurnDbtnrprnthtdobs *Ogt"


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86

dbgeufdb` dbhldedty to cnnt eohb govnbhbts% rnbn`otdhtdob om iny eohb provdsdobs% hbf

prolencs wdtj dbvnstors"

Vjdrf% tjn WNG rnvdsnf tjn ruens mor prdgn fntnrcdbhtdobs om provnf rnsnrvns"

Lnmorn ;; owbnrs"=: Wngobf% gocphbdns rnportdb` to tjn NDH *lotj

puledg hbf prdvhtn$ dbgeufn `ross opnrhtnf rnsnrvns *drrnspngtdvn om tjndr owbnrsjdp sjhrn$

db tjndr rnports% wjden tjn gocphbdns rnportdb` to tjn WNG dbgeufn obey tjndr owbnf

rnsnrvns *drrnspngtdvn om opnrhtor$ db tjndr rnports"=4

=6 Df" ht


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8>

6" Mhdr Chrint ]heun om Ode hbf @hs \nsnrvns

Vjnrn hrn tjrnn `nbnrhe cntjofs mor gheguehtdb` tjn mhdr chrint vheun om ode hbf

`hs rnsnrvns1 *8$ gocphrhlen shens9 *


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8=

h phrtdguehr dbfustry hbf ds omtnb lhsnf ob puledsjnf% vnrdmdhlen sourgns" Db tjn ode hbf

`hs dbfustry% tjn mour cost goccob ruen om tjucl cntjofs hrn1 *8$ prdgn phdf pnr

lhrrne nqudvhenbt om rnsnrvns9 *


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80

tjn surmhgn":; Vjus% dm goccofdty prdgns dbgrnhsn or corn provnf rnsnrvns hrn hffnf to

tjn \nsnrvn \nport% tjnb h gocphbys lorrowdb` lhsn chy dbgrnhsn hs wnee" Edinwdsn%

lorrowdb` lhsns fngrnhsn dm prdgns mhee or dm grufn ode hbf bhturhe `hs hrn profugnf% lut

hrn bot rnpehgnf"

@dvnb tjn rngnbt voehtdedty hbf sjhrp dbgrnhsns db grufn ode prdgns hbf tjn

gobtdbudb` fngedbn db bhturhe `hs prdgns% tjnrn hrn chby mdbhbgdhe hbf en`he dssuns rnehtnf

to lorrowdb` lhsn eohbs" Hs h lorrownr% ode hbf hs gocphbdns jhvn socnwjht edcdtnf

hldedty to gjheenb`n h rnvdsdob to h lorrowdb` lhsn fntnrcdbhtdob" Vjds ds so lnghusn

tjn eohb fogucnbts typdgheey heeow tjn enbfnr to rnfugn *or dbgrnhsn$ tjn lorrowdb` lhsn

db dts fdsgrntdob or db `oof mhdtj" Pjden tjn cnhbdb` om `oof mhdtj vhrdns hcob`

aurdsfdgtdobs% tjn sthbfhrf ds rnehtdvney nhsy to shtdsmy dm tjn phrtdns hldfn ly tjn nxprnss

tnrcs om tjn eohb h`rnncnbt"

Jownvnr% db ht enhst obn ghsn% hb ode hbf `hs gocphby whs suggnssmue db provdb`

tjht dts enbfnrs rnfugtdob om tjn gocphbys lorrowdb` lhsn *mroc &8; cdeedob to &4"

Vjds ds dccnfdhtney puledg

dbmorchtdob% wjdgj tjn `noeo`dst ghb usn to chp sulsurmhgn noeo`dghe morchtdobs" Vjnrn

ds heso h `rnht fnhe om prdvhtn dbmorchtdob trhfns lntwnnb nxpeorhtdob hbf profugtdob

gocphbdns"

Hb dcporthbt sourgn om sulsurmhgn wnee dbmorchtdob ds wdrnedbn wnee eo`s"4= Pnee

eo` edlrhrdns goeengt gopdns om wdrnedbn eo`s mor rn`dobhe hrnhs"40 Vjnrn ds h wnee eo`

edlrhry db hecost nvnry ode hbf bhturhe `hs phtgj db tjn ^bdtnf Wthtns hbf Ghbhfh"4:

Cnclnrsjdp db h wnee eo` edlrhry gosts cobny% hbf tjn eo`s ghb ln gopdnf hbf nvnb

gjnginf out om tjn edlrhry"44 Cornovnr% tjn chaor ode gocphbdns jhvn mor chby ynhrs

4; Df" ht p" >8="

48 Df"

4


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Df" ht p"


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23/34

Vjn 7#F sndscdg ds lnst vdnwnf ob h gocputnr cobdtor wjnrn dt ghb ln

rothtnf hbf vdnwnf mroc fdmmnrnbt fdrngtdobs"87=

Dt ds dcporthbt to botn tjht sndscdg ds nxpnbsdvn" Dt ghb ln gobsdfnrhley corn

nxpnbsdvn db ru``nf tnrrhdb ob ehbf" Wndscdg ds enss nxpnbsdvn hbf om lnttnr quhedty ht

snh" Dt ds heso dcporthbt to botn tjht% ht lnst% sndscdg dbfdghtns wjnrn jyfroghrlobs chy

ln prnsnbt" Frdeedb` hb nxpeorhtory wnee ds tjn obey why to gobmdrc tjn prnsnbgn om

jyfroghrlobs"

F" [rolhldedty om Jyfroghrlob FdsgovnryMor h sulsurmhgn hggucuehtdob om jyfroghrlobs to nxdst% tjnrn cust ln porous hbf

pnrcnhlen rnsnrvodr rogi% jyfroghrlobs tjht jhvn covnf mroc h pntroenuc sourgn rogi to

tjn rnsnrvodr rogi% hbf h snhenf geosurn or trhp ghphlen om gobthdbdb` tjn jyfroghrlobs" 870

Pjnb nvheuhtdb` ehbf wdtj bo prdor jyfroghrlob profugtdob or nxpeorhtdob% tjn `noeo`dst

wdee nstdchtn tjn prolhldedty om fdsgovnrdb` jyfroghrlobs prdor to nxpeorhtdob frdeedb`"

Obn goccob cntjof mor prnphrdb` tjht nstdchtn ds to usn tjn profugt om mour chaor

prolhldedty mhgtors% nhgj om wjdgj ds fdsgussnf lneow"87: Vjn prolhldedty sghen rhb`ns

mroc ;"; to 8";"874 H prolhldedty om 8"; cnhbs 8;;. gnrthdbty"86; H prolhldedty om ;";

cnhbs ;. gnrthdbty"868

87"

868 Wnn df"


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*7$ [rolhldedty om Wourgn \ogi

Vjn pntroenuc gjhr`n systnc gocprdsns hb nmmngtdvn sourgn rogi *db tnrcs om dts

quhedty% voeucn hbf chturdty$% hbf h cd`rhtdob cngjhbdsc mor jyfroghrlobs mroc tjn

sourgn rogi*s$ to tjn snhenf trhp"86= Vjn fntnrcdbhtdob om tjds mhgtor rnqudrns tjn

`noeo`dst to nvheuhtn tjn sourgn rogi potnbtdhe"860 Vjn `noeo`dst gobsdfnrs% hcob` otjnr

tjdb`s% sourgn rogi hbheysds hbf fdsgovnrdns db tjn hrnh"86:

86


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*6$ [rolhldedty om \ntnbtdob om Jyfroghrlobs Hmtnr

Hggucuehtdob

Vjn `noeo`dst nstdchtns tjn prolhldedty tjht h snhenf trhp nxdsts hbf tjht tjn

trhppdb` gobmdùrhtdob whs hernhfy morcnf wjnb jyfroghrlobs wnrn cd`rhtdb` dbto tjn

hrnh om tjn prospngt" Dm tjn trhppdb` gobmdùrhtdob ghcn dbto lndb` hmtnr jyfroghrlobs

cd`rhtnf out om tjn prospngt% tjnb tjn `htn jhs lnnb sjut obey hmtnr tjn jorsn òt out"


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6 Vjht sneenr heso heen`nf

tjht tjn gocphby mhdenf to fdsgeosn chtnrdhe gjhb`ns tjht rnbfnrnf tjosn rnprnsnbthtdobs

ubtrun or cdsenhfdb` db tjn dbtnrvnbdb` : cobtjs lntwnnb tjn enttnr hbf tjn

rnfncptdob"8>>

0

Murtjnr% tjn gobtnbt om tjn nxpnrts tnstdcoby cust hssdst tjn auf`n or aury db

ubfnrsthbfdb` tjn nvdfnbgn or db fntnrcdbdb` h mhgt db dssun"

864 Wnn% n"`"%Hcgo Nbnr`y% Dbg" v" Vhbh Nxpeorhtdob Go"% 6>> L"\" >:6 *W"F" Vnx" 6 Df" ht 70;#0="

8>> Df"

8>= Fhulnrt v" Cnrrnee Fow [jhrchgnutdghes% Dbg"% >;4 ^"W" >04 *8447$"

8>0 Mnfnrhe \uen om Nvdfnbgn 0;


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: *4 *>$ wjntjnr hb nxpnrts vheuhtdob moeeows h gobsdstnbt cntjofoeo`y9 hbf

*=$ wjntjnr hb nxpnrts mhdr chrint vheun opdbdob ds supportnf ly hpproprdhtn fhth

hvhdehlen to luynrs hbf sneenrs db tjn chrint pehgn"8=;

Db rngnbt ghsns hbf db h vhrdnty om fdsputns% nxpnrt tnstdcoby ds usnf to vheun ode

hbf `hs propnrtdns"

7" Nxpnrt Vnstdcoby to [rovn Eost [romdts Fhch`ns

H" Eost [romdts Fun Vo Frhdbh`n hbf Jypotjntdghe Ommsnt PneeDb Inrr#Cg@nn Gorp" v" Jnetob% tjn Vnxhs Wuprncn rnvnrsnf h &:=7%;;; trdhe

gourt auf`cnbt db mhvor om tjn pehdbtdmmswjo wnrn ode hbf `hs enssorslnghusn om

fnmdgdnbgdns db tjndr nxpnrts tnstdcoby1 tjn hcoubt om fhch`ns ds dbgocpntnbt% YhbfS

tjnrn ds bo nvdfnbgn to support tjn hcoubt om fhch`ns hwhrfnf ly tjn trdhe gourt"8=8

8>: Wnn% n"`"% Meoyf v" Jnmbnr% >>= M"Wupp"#6: *W"F" Vnx"


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$ gheguehtn tjn

thxns"80; VjnHqudeh gourt botnf tjht tjn nxpnrt usnf h sthbfhrf cntjofoeo`y hbf tjht h

pntroenuc nb`dbnnr jhf gobmdrcnf tjn nxpnrts gheguehtdobs% lut uetdchtney rnvnrsnf tjn

eost promdts hwhrf lnghusn tjn ubfnreydb` mhgtuhe lhsds usnf to fntnrcdbn tjn nxtnbt om

eost promdts Yh wnee tnst pnrmorcnf < ynhrs lnmorn fhch`ns oggurrnfS ds cnrney

spnguehtdvn% " " " YhbfS tjnrn whs bo nvdfnbgn to support tjn aurys mdbfdb` ob eost

promdts"808

G" Nvdfnbgn om Ode Gocphbys Eost [romdts Phs WpnguehtdvnMoeeowdb` h sdx#wnni trdhe% h aury hwhrfnf &="6 cdeedob db eost promdts fhch`ns

to h gocphby tjht whs httncptdb` to purgjhsn hbf fnvneop ode hbf `hs mdnefs db

Ihzhijsthb"80

6" Mhdr Chrint ]heuhtdob om Cdbnrhe Dbtnrnsts

H" Vhxhtdob om Cdbnrhe Dbtnrnsts ht Chrint ]heun Db D\W HufdtDb h thx fdsputn% tjn D\W gjheenb`nf tjn &86"= cdeedob nsthtn hbf `dmt thx phdf ly

tjn nsthtn om h fngnfnbt tjht jnef cdbordty owbnrsjdp dbtnrnsts db snvnrhe gocphbdns tjht%

db turb% owbnf ode hbf `hs dbtnrnsts"80= Corn spngdmdgheey% tjn D\W gobtnstnf tjn mhdr

chrint vheuns om tjn ode hbf `hs dbtnrnsts% hbf tjn nsthtn h`rnnf to phy corn tjn &7

cdeedob db hffdtdobhe nsthtn thxns% peus dbtnrnst"800 Jownvnr% tjn nsthtn gjheenb`nf tjn

dbgrnhsnf thx hufdt% hbf tjn Hbfnrsob gourt rnednf ob h pntroenuc nb`dbnnrdb` nxpnrt

rnport to fntnrcdbn tjn vdhldedty om tjn ode hbf `hs dbtnrnsts"80:

Db hffdtdob% tjn phrtdns

nxpnrts rnednf ob gnrthdb cdbnrhe rnports hbf cdbnrhe rnports hbf hbheysns to fnrdvn tjn

vheun om YgnrthdbS cdbnrhe dbtnrnsts"804 Db tjn nbf% tjn D\W owb nxpnrt sthtnf tjht tjn

thxns ownf hrn gobsdfnrhley enss *d"n" obey &8 Cdeedob to @hs Dbvnstor HsMhdr Chrint ]heun om Dbtnrnsts ht tdcn om Vortdous Dbtnrmnrnbgn

Hb dbvnstor db h Lue`hrdhb ode hbf `hs proangt mdenf sudt h`hdbst two gocphbdns mor

tjndr tortdous dbtnrmnrnbgn wdtj h gobtrhgt to wjdgj tjn dbvnstor whs h phrty% hbf h aury

rnturbnf hb hwhrf db nxgnss om &== cdeedob db mhvor om tjn dbvnstor pehdbtdmm"8:8 Lntwnnb


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78

ob h ehr`n phrgne om ehbf db Lue`hrdh"8:< Lnmorn tjn tjdrf trhbgjn om mdbhbgdb`% tjn dbvnstor

hpprohgjnf tjn fnmnbfhbt hlout thidb` h 8;. sthin mor &:"> cdeedob"8:7 Jownvnr% hmtnr

rngndvdb` dbmorchtdob hlout tjn proangt% tjn fnmnbfhbt ln`hb to sngrntey fnhe wdtj tjn

fnvneopnr wjo% db turb% gut tjn dbvnstor mroc tjn proangt fun to hb heen`nf nvnbt om

fnmhuet" Vjn dbvnstor sunf tjn fnmnbfhbt mor tortdous dbtnrmnrnbgn om gobtrhgt hbf% hs

nvdfnbgn om tjn mhdr chrint vheun om tjn 7:. dbtnrnst db tjn Lue`hrdh [roangt% prnsnbtnf

tnstdcoby mroc two nxpnrts"8:6

Ht trdhe% tjn nxpnrts nxpehdbnf two possdlen fhch`ns cofnes1 *8$ tjn cost ediney

cofne9 hbf * cdeedob mor h 8;. woridb` dbtnrnst db

tjn proangt hbf% hmtnr gnrthdb fnfugtdobs% tjn ovnrhee proangt gouef ln vheunf ht &:

cdeedob hwhrf to tjn dbvnstor *ob top om &80 cdeedob db nxncpehry fhch`ns$ hbf% db

hffdtdob% rnvnrsnf tjn trdhe gourts fowbwhrf hfaustcnbt om tjn hwhrf to &78"8=

cdeedob"8:4

8:;"

8:= Df"

8:0 Df" ht 6>;#>8

8:: Df" ht 6>6#>>"

8:4 Df" ht 6>="


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7" ]heuhtdob db Lhbiruptgy GourtH" Woevnbgy om Ode hbf @hs Gocphby Fnrdvnf Mroc Nxpnrt

Vnstdcoby

[rdor to mdedb` lhbiruptgy% hb ode hbf `hs gocphby spngdhedznf db chturn ode hbf

`hs mdnefs db Eoudsdhbh hbf% mor snvnrhe ynhrs% pursunf hb h``rnssdvn hgqudsdtdob

pro`rhc tjht uetdchtney enf to dts lhbiruptgy mdedb`"84;

Hmtnr tjn lhbiruptgy mdedb`% h

trustnn whs hppodbtnf to ovnrsnn tjn lhbiruptgy nsthtn" Vjn Vrustnn sulsnqunbtey mdenf

snvnrhe mrhufuenbt trhbsmnr hgtdobs% hbf tjn dssun whs wjntjnr tjn fnltor ode hbf `hs

gocphby whs dbsoevnbt ht tjn tdcn om gnrthdb trhbsmnrs hbf genhrey tjn cost sd`bdmdghbt

hssnt owbnf ly Ytjn fnltor gocphbyS whs dts ode hbf `hs propnrtdns"848 Vjn P\V Nbnr`y

gourt botnf tjht tjn phrtdns vheuhtdobs wnrn bot nvnb db tjn shcn lheephri hbf opdbnf

tjht tjn hrt om vheudb` ode hbf `hs propnrtdns% wjdgj dbgeufns tjn thsi om nstdchtdb`

rnsnrvns% ds bot hb nxhgt sgdnbgn Yhbf jowS nvnry nxpnrt wdtbnss " " " rnhfdey gobgnfnf tjht

tjn opdbdobs om promnssdobhes db nstdchtdb` rnsnrvns hbf vheudb` ode hbf `hs propnrtdns ghb

fdmmnr `rnhtey"84


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77

hbf `hs hssnts lnghusn tjnrn ds sulsthbtdhe `roubf mor h fdmmnrnbgn om opdbdob hcob`

promnssdobhes hs to wjht edns lnbnhtj tjn surmhgn% omtnbtdcns < hbf 7 cdens fnnp"846

L" Gjheenb`db` Xuhedmdghtdobs hbf \nedhldedty om NxpnrtsDb h jd`jey gobtnbtdous ghsn dbvoevdb` tjn fncdsn hbf uetdchtn lhbiruptgy om hb

ode hbf `hs gocphby% tjn lhbiruptgy gourt gobsdfnrnf tjn fnmnbfhbt fdrngtors gjheenb`ns

to tjn rnenvhbgy hbf rnedhldedty om nxpnrt tnstdcoby rn`hrfdb` fhch`ns cofnes"84>

Hetjou`j tjn fdsputn db Meoyf stnccnf mroc tjn dbvoevncnbt om snem#dbtnrnstnf

fdrngtors tjht hutjordznf tjn frdeedb` om h gnrthdb wnee% tjn phrtdns gjheenb`nf tnstdcoby

mroc opposdb` nxpnrts"84= Db tjht rn`hrf% tjn fnmnbfhbt fdrngtors gjheenb`nf tjn nxpnrts

tnstdcoby ob dssuns tjht dbgeufnf1 *8$ tjn fngedbn db chrinthldedty fhch`ns9

*$ opdbdobs ob

rnsnrvodr fhch`n9 hbf *=$ opdbdobs rn`hrfdb` tjn lohrf om fdrngtors hwhrnbnss om

prolencs wdtj gnrthdb ode mdnefs"840 Corn spngdmdgheey% tjn fnmnbfhbts gjheenb`nf tjn

quhedmdghtdob om obn nxpnrt to opdbn ob tjn mhdr chrint vheun om ode hbf `hs propnrtdns

lnghusn jn ehginf hb hggoubtdb` fn`rnn% lut tjn Meoyfgourt rnangtnf tjds hr`ucnbt `dvnb

tjn envne om tjn nxpnrts promnssdobhe nxpnrdnbgn"84:

Vjn gourt heso rnangtnf tjn

fnmnbfhbts hr`ucnbts rn`hrfdb` tjn rnedhldedty om tjn nxpnrts opdbdobs hs lndb`

wdtjout cnrdt"844

]DD" Gobgeusdob

Vjn vheuhtdob om h potnbtdhe *or profugdb`$ ode hbf `hs proangt dbvoevns ghrnmue

gobsdfnrhtdob om rdsi mhgtors hbf dbvnstcnbt olangtdvns" Pjden goccofdty prdgns

rnchdbnf sthlen mroc tjn nhrey 844;s to tjn nhrey >= M"Wupp"


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Valuing the Potential of Land for Oil and Gas Development

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Transcript of Valuing the Potential of Land for Oil and Gas Development