
After living here a few years, we have realized that the oil and gas operations were shockingly disorganized and the infrastructure was in tatters. The family tried to meet with various operators and pipeline companies, to no avail. The family filed a gross negligence lawsuit. Still things continue to decline and get more dangerous. I believe ExxonMobil and Chevron have no intention of properly developing these leases. The old leases allow for them to hold the entire lease with one well. The SEC permits oil and gas companies, to book proved reserves as capital assets. The SEC defines proved reserves as estimated quantities that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic conditions. As long as ExxonMobil and Chevron keep these fields undeveloped, they can use the balance on their books to offset debt. I am of the opinion that the bean counters that came up with the idea of keeping the proven reserves on the books, did not take into account what happens 10 years down the road when the infrastructure is left unused and un-maintained. Things will continue to leak, explode, fall over and catch on fire. People should be concerned because this ranch contains some of the most critical infrastructure in Texas -- all concentrated in one place. This page is about what I personally feel to be the truth. These are my conclusions -- no one else’s. I would like to see ExxonMobil, Chevron and their various partners walk away from this lease so the family can get some decent companies to come in, drain the oil and gas from the ground, plug the well bores, and leave so we can live in peace and quiet. |
|