What business would give up on sure revenue (and profit) and why? We have many theories, but we would like to hear yours.
Monday, June 13, 2011
Titan waives the white flag and gives up on $350,000 in top-line Revenue in Lewisville.
FMCAUD has been working with several other communities on gas drilling issues including Rule 37’s. In a recent case in Lewisville, a homeowner had filed a Rule 37 protest for the B & H (NE) Unit. Titan modified the permit with the RRC to shorten their well lateral by ~120’ (roughly equivalent to $350,000 in revenue at current market prices) in order to avoid a hearing with the RRC in Austin. In exchange for Titan not to drill directly under her property, this particular homeowner offered to negotiate for a waiver to forgo the hearing. Titan chose to not negotiate with this homeowner, citing FMCAUD’s likely action to contact other mineral owners in the area, even though a written agreement was subsequently offered not to take any additional action on this particular well.
What business would give up on sure revenue (and profit) and why? We have many theories, but we would like to hear yours.
What business would give up on sure revenue (and profit) and why? We have many theories, but we would like to hear yours.
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7 comments:
They are cash flow negative and need to generate cash fast.
Momma and Daddy Riverstone is about to cut the purse strings?
Revenue, what's that?
Math wasn't their strong subject?
Definitely about politics. Pulling back the curtain on property takings only makes more people aware of this dirty business practice.
They are running and hiding from the publicity about all of it because they don't want to compensate property owners AND they don't want people to understand how they are getting it done.
Just a sidebar: Cemetery plots in Texas have more stringent property rules than any of this. Try selling a plot purchased 70 or 80 years ago by a grandfather or other realtive who was buried elsewhere. Good luck with that.
Sure sign your management is sub-par when they start making "business decisions" like that.
Who needs 350k, when you own the state legislators?
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