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Permalink Reply by sesport on September 12, 2010 at 10:41

DrWAVe - I've thought about this and am wondering whether accounting to the mineral/royalty owners wouldn't be the same as the miller who supplies flour to Southern Maid Donuts expecting SM to open their books to them? If SM is ordering flour, picking it up, turning it into a product for consumers, is SM required by law to open their books to the flour supplier?

IMHO, the companies are accountable to shareholders and shareholders are entitled to some privileges. Perhaps we should explore that option. Buy low, go looonnnnnggggg!!!

ha, ha, ha Can you imagine if all of the mineral owners in the HS owned majority interest in our unit operators, provided that they are publicly traded? Just one of my quirk(ier) thoughts.

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Permalink Reply by DrWAVeSport Cd1 on September 12, 2010 at 11:36

Sesport - Not the right analogy. We are pretty much JV partners when a lease is signed. And, when one party to this joint venture decides to sell product at a discount to "themselves" (be it at arms length) in an effort to increase that party's profit by letting the "at-arms-length" entity (themselves) get a higher price...then pocketing those moneys back into the same JV partner's pocket...without the other JV partners' knowledge, approval, or right to share in those additional moneys...is IMHO... illegal..

Albeit we are talking one JV partner being the lessee (O&Gs) and one JV partner being the lessor (Mineral Owners), Mineral Owners "own" the minerals (aka "donuts" here). The lease and the legalities of said lease are to be upheld per the leasing agreement.

IMHO the "seller" (O&Gs) of the "owners" (Royalty Owners) "donut" cannot "discount" and then sell to themselves (O&Gs) the "owners" (Royalty Owners) share of said "donut" at a rock-bottom basement price...then turn around and market said "donut" at a higher price...pocket that difference...and then show (per royalty statement) "owners" (Royalty Owners) that BOTH parties received payment only on the "discounted" price...while the "seller" (O&Gs) becomes their own purchaser and "middleman" and JV Partner (lessor) of said "donut"... thereby, recouping additional moneys beyond the JV (lease agreement). In theory...said "donut" (owned by the Lessor) was sold two times!

(Excedrin Time)

LOL...A good Southern Maid Donut sounds really good right now no matter what the cost!

Just my old opine.

DrWAVeSport Cd1 9/12/2010

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Permalink Reply by DrWAVeSport Cd1 on September 12, 2010 at 12:02

Edit last post: ...while the "seller"(O&Gs) becomes their own purchaser and "middleman" and JV Partner (lessee) of said "donut"...thereby, recouping additional moneys beyond the JV (lease agreement).

In theory...said "donut" (owned by the Lessor) was sold two times!

Enough said!

Permalink Reply by sesport on September 12, 2010 at 12:26

lol, Thank you for humoring me with the "dollars to donuts" explanation. My apologies (and sympathies) for the headache. I guess a pain in the derriere would be preferable?

Next on my "hmmmm" list would be how this manages to fly by the "powers that be," that being those who approve filings for such affiliates? I see details written in such filings that describe accountability & fiduciary responsibility to shareholders, but nobody else is described. Perhaps the law is written as such that there is a loophole allowing for excluding the lessor as a JVP? Could it be because the particular JVP between lessor & lessee does not involve the exchange of shares? Just a guess, though.

"Sam" is still waiting for an answer to his/her first question, though.

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Permalink Reply by ledlights on September 12, 2010 at 9:36

I doubt the % of such ones is anywhere near the % of crooks in the general population. Internal whistleblowers risk their jobs, their future employability, the stigma of being a snitch or traitor, legal retribution, the possibility of being involved in endless litigation, major stress for their health and their marriages, and the potential for their families of being outcasts in their community. And for what reward? - Usually nothing. I would be more than happy to bet that their integrity and courage is usually higher than average.

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Permalink Reply by Two Dogs, Pirate on September 12, 2010 at 9:58

You are correct but some of the whistleblowers listed in the article above don't fall into that class. Some need the whistle blown on them.

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Permalink Reply by ledlights on September 12, 2010 at 10:16

Yeah,

Just as there are laws to protect legitimate whistleblowers we might benefit from laws that penalize their opposites. Maybe a different label like "stinkmakers" or some such?

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Permalink Reply by Two Dogs, Pirate on September 12, 2010 at 10:37

May all the crooks be fried under 5000 watts of ledlights.

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Permalink Reply by ledlights on September 12, 2010 at 10:43

Well 2D,P, that may be one application where ledlights ain't gonna cut it. Not enough waste heat. It might sure as heck blind them. I'm willing to make an exception and call for halogen here.

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Permalink Reply by Two Dogs, Pirate on September 12, 2010 at 10:50

A slow death and that amount of the right led spectrum using the tighter pattern of or more consentrated beam of light would surely do the job. LED lights are becoming the highest of tech in indoor grow rooms. You can make it the sun X 10 if you want.

Permalink Reply by The_Baron on September 13, 2010 at 3:05

indoor grow rooms huh..... I assume this is for your tomatos?

Permalink Reply by Two Dogs, Pirate on September 13, 2010 at 3:17

What I read was out of California and they were legally growing pot.

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