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View Diary: Evo Morales Wins and Bush's New Bird Shit War (91 comments)

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  •  Isn't a royalty of 18% fairly standard? (none)
    Isn't a royalty of 18% fairly standard for natural gas extraction?  

    I honestly don't know, but it seems to me that percentage would be typical of any royalty deal, even in the US.  If that is the case, I would not say that the natural gas is being unfairly exploited, but maybe someone can confirm a typical royalty percentage.

    This is not to say I don't agree with the article - it is interesting and points out that there is a risk here of having more run-amok militarism.  Hopefully the probability is low, because we would have knocked off Chavez in this fashion if we were going to intervene in South America in this fashion.

    -1.88, -6.62 I'm only a lib'rul in Oklahoma.

    by Prof Dave on Mon Dec 19, 2005 at 06:03:15 AM PST

    •  You may be correct (none)
      But I think the point here is that the Bolivians no longer actually own the rights to the gas, and despite a possibly fair royalty payment, they lost power over their indigenous resource by the hand of upper class US sympathizing presidents and legislatures. The people want control of their resources back!

      OOOOOMMMMM . . . . .

      by MarkosNYC on Mon Dec 19, 2005 at 06:12:00 AM PST

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      •  Do they have the ability to exploit it? (none)
        I know little about Bolivia so I don't know the answer to this - but it's something to keep in mind. Not all of the foreign investement in LatAm is just the US imperialism taking advantage of others.

        Sure, one can never discard that (especially given past experiences) - I do have to say that I read "Enron" and I cringe .

    •  lowish (4.00)
      Chavez moved it to 30% for light and heavy crude, 16% for extra heavy.

      More important is where that royalty money goes.

    •  Securing Leases (4.00)
      Once a likely area has been selected, the right to drill must be secured before drilling can begin. Securing the right to drill usually involves leasing the mineral rights of the desired property from the owner. The owner may be the owner of all interest in the land, or just the mineral rights. As payment for the right to drill for and extract the oil and gas, the owner will usually be paid a sum call a "lease bonus" or a "hole bonus" for every well drilled on the leased land. He will also retain a royalty on the production, if any, of the leased property. The royalty is the right to receive a certain portion of the production of property, without sharing in the costs incurred in producing the oil, such as drilling, completion, equipping and operating or production costs. The costs are borne by the holder of the right to drill and extract the mineral, which right is usually referred to as the working interest.In many cases the procurement of the lease from the land owner is accomplished by a lease broker who will, in turn, offer and then assign the lease to an operator such as Maverick Energy, Inc. Maverick Energy is very selective in choosing leases for drilling. The lease broker usually retains an overriding royalty on the working interest as compensation for his services. In the case of Maverick's leases, there generally is a retained land owner's royalty of 1/8 of all production and a 1/16 overriding royalty on the working interest, retained or granted to one or more persons who may have acted as lease brokers.

      1-Who enforces payment

      2-There is also the matter of State Taxes over and above the land owner.

      3-Is Bolivia a sovereign entity or just another land owner

    •  water (4.00)
      Bolivia came up in The Corporation as a topic.  I think the final straw for the people of Bolivia was more about charging for the water.  I don't know if the average Bolivian knows as much about or is as concerned about the gas as much as they see foreign intervention, as imposed upon them by the IMF/WTO, as an outside force inherently meant to steal from them and their country.  Irrespective of whether it's a fair deal, you can't get over being billed for collecting rain water...  

      "Never separate the words you speak from the life you live" - Paul Wellstone

      by vome minnesota on Mon Dec 19, 2005 at 09:56:12 AM PST

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      •  great post, by the way (none)
        fills in all the holes from the story from NPR this morning.  They didn't mention the airbases at all...

        "Never separate the words you speak from the life you live" - Paul Wellstone

        by vome minnesota on Mon Dec 19, 2005 at 09:57:04 AM PST

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