By analyzing financial reports for publicly traded oil and gas companies from 2006 through 2017, the author determined that changes in Securities and Exchange Commission (SEC) reporting policies have allowed oil and gas companies to increase their booked reserves over time. This report explores these possible financial motivations for oil and gas companies to acquire and hold undeveloped federal leases as a means to bolster their bottom line and improve their financial health. Meanwhile, these undeveloped leases tie up land that the federal government would otherwise manage for conservation, recreation, or other beneficial uses as required under the BLM’s multiple-use mandate. taxpayer loses out on revenue that could-and should-be generated from wells actually producing oil and gas products. Because of this, companies have the potential to directly benefit from amassing these undeveloped reserves through federal land leases, while the U.S. While industry leaders have suggested it was “absurd” to think companies would continue to shell out millions of dollars in rental fees and lease acquisitions solely to pad their balance sheets, 6 the relatively low cost of federal land nonetheless provides a strong incentive for companies to do just that. By doing this, a company can immediately improve its overall financial health, boost its attractiveness to shareholders and investors, and even increase its ability to borrow on favorable terms. 5 Once a company acquires a lease, it then carries those subsurface reserves as assets on its balance sheet. Courtesy of the University of Kentucky.But some public land advocates and lawmakers have suggested there might exist a more perverse incentive for companies to sit on undeveloped federal land. Courtesy of the University of Kentucky Distillation: Along with coal, Robert Triplett tried his hand at a variety of industries including whiskey distillation. The first railway to transport coal was built by Robert Triplett in Daviess County. Coal Miner: Coal has been a vital Kentucky resource for decades. The wealthiest man in the county, Robert Triplett was responsible for building the first railway to transport coal. Owensboro, Kentucky: Located along the Ohio River, Daviess County became a major coal developer in the nineteenth century.
Media Images The Ohio River: Coal from the mine at Bon Harbor near Owensboro was transported on the Ohio River, and used as fuel for the some of the river boats. Triplett and his family moved to Philadelphia in 1853, where he died as a man of independent means thanks to his many land-holdings throughout Kentucky. While he was a very successful coal producer for a time, Triplett's other business ventures in Daviess County proved to be largely unsuccessful. Triplett wasn’t alone in his optimism for the Daviess County area to grow into an industrial power, as the 1830s were considered "boom times" for Kentucky and the rest of the Ohio Valley. He branched out into a variety of enterprises, including a small woolen factory and cotton mill and a whiskey distillery. New Orleans was a popular final destination for the coal, powering their tug boats and used for the sugar industry, though this market was short-lived.Ĭoal was not Triplett's only business venture in Bon Harbor. Coal was also shipped south by boat and sold by the barrel. Triplett became the first coal operator to attempt to substitute coal for wood as fuel on the river boats below the falls at Louisville. The track, built in 1826, was used to transport coal from a mine at Bon Harbor the three-quarters of a mile to the Ohio River. The wealthiest man in Daviess County, Triplett was responsible for the construction of Kentucky's first railway, powered by gravity and animals. Triplett began stockpiling the coal on the riverbanks and selling it to steamboat men, becoming western Kentucky's first coal magnate. He began digging in a thin vein near the banks of the Ohio River at Bon Harbor, but a hunter showed him a more prosperous seam further inland. He was employed to survey land claims, but soon became interested in the industrial potential presented by coal in the area. Triplett was a Virginian who arrived in the Owensboro area around 1817. Historical Marker #743 in Daviess County commemorates Robert Triplett, a coal magnate who constructed the first railway in the state. Tour navigation: Previous | Tour Info | Next Text
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