Replies to This Discussion

Permalink Reply by BirdDawg, plain ole' idiot on August 10, 2008 at 12:26

Uhuuu,
Maybe because the shale is good there, and they know it.

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Permalink Reply by Landowner on August 10, 2008 at 12:31

I understand it is good there, but how do they know it so much more valuable than land that is not made up of neighborhoods? They must think it is greater than land that is East/West or South of Shreveport to go to what they have to to lease in these neighborhoods?

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Permalink Reply by Landowner on August 10, 2008 at 13:58

You know KB, you could be right. I had not looked at it from that angle. I just thought maybe, they had old seismic data and have always known that Shreveport was so much more valuable than its outside areas. There has to be some reason for starting in Shreveport.

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Permalink Reply by P.G. on August 10, 2008 at 14:21

Maybe it's easier to get the water they need?

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Permalink Reply by po boy on August 10, 2008 at 14:30

I am sure that gas from under rooftop land is just as valuable. A good working relationship with the entities who issue the permits, build the roads,sell the water, enforce the standards is a neccesary cost of doing business. Not to mention the huge direct PR cost of ads,direct mailings, public meetings, and the famous primetime informercials.

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Permalink Reply by Randy on August 10, 2008 at 15:09

Don't forget that to show people an amount of money that is WORTH leasing for they have to offer more money in these areas. A bonus is an incentive to lease, and to give people enough incentive they need to show them enough money to make it worthwhile.

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Permalink Reply by sesport on August 10, 2008 at 19:33

Adjudicated properties ... the city & parish is losing money on these properties. If these are some of the first leased & drilled, the city & parish begin making money on them. Roadways ... a lot easier to move equipment & supplies around on I 49, I 20, I 220, 3132. Housing available for employees. Gas prices ... costs less to move around in smaller area. Availability of transportation ... railroads, airports for equipment, supplies & employees. Casinos. (Just threw that one in for the fun of it.)

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Permalink Reply by Landowner on August 11, 2008 at 1:56

So, the reason for starting in Shreveport is because the O&G companies need Shreveport. The gas outside this area is just as great, maybe greater, but Shreveport/Bossier City is the only large city around to take care of their enorumus needs. In other words this is a little your scratch my back and I will scratch yours..

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Permalink Reply by Rick on August 11, 2008 at 5:02

I think it would be interesting to know more of what went on when the city signed the foolish lease deal that was reported in the Shreveport Times a month or so ago. What would lead city managers to sign for $1.00 per acre even then, I mean the least going rate for several years has been $100.00 per acre! It would be interesting to know if certain strings were pulled and heads were turned and eyes were winked in making this "uninformed" deal. Seems like somebody somewhere might have had some inside insight and wheeled a deal with the previous administration and it would be interesting to know if any of them are benefiting from what is going on now. You would think the city counsel would be crying foul instead of sitting down there running 5-6 hour unorganized "soap box" ramblings and if they would get the focus off themselves and onto this issue, a good investigator might find the source of the smell.
Maybe part of the interest in drilling inside Shreveport is because it was given to them and they want to get started on it to make sure they don't have to pay any renewal money before any of the leases start running out.

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Permalink Reply by Rick on August 11, 2008 at 6:10

Yep, at 2600 acres (I think that's what the Times reported) when you compare to DeSoto Parish and Caddo Parish land deals or even at $20,000 an acre, you're looking at $52 MILLION to $78 MILLION and that is nothing to sweep under the rug and ignore. Even at $100.00 per acre it would have been $260,000.00. I can't believe that someone isn't pursuing this and checking for possible insider activities. You could pave alot of road and build alot of houses in the rundown areas with $50 million! That was either the stupidest deal in city history or one of the most criminal deals in city history, and based on area and state politics, I'd have to lean toward the latter until someone proves otherwise.

I applaud the homeowner organizations who have had much more intelligence and determination than their elected city officials, some of them have held strong and signed for $20,000 an acre and 25% and that's not easy after city officials set the bar SO LOW to begin with.

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Permalink Reply by John Clifford on August 11, 2008 at 6:17

I agree. That deal stinks to high heaven. If there isn't an investigation by state or federal authorities into how that deal came to be, we'll know the graft goes all the way up the chain.

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