Oil Producing Algae A proposed $120 million buyout of the Collier family's oil and gas rights beneath federal preserve land in rural Collier County is getting renewed attention from the Interior Department.
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Algae Oil Production Assistant Interior Secretary Bennett Raley met this week in Naples with Collier family representatives to talk about conducting a new appraisal of the value of the oil and gas rights amid questions about whether an earlier appraisal put the price too high.
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Algae Bio Fuel The Interior Department's inspector general's office has undertaken an inquiry into the earlier appraisal process, frustrating attempts to get Congress to approve the first $40 million payment. The results of the inquiry have yet to be made public.
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Algae Fuel Cell A 2002 buyout agreement expired in November 2003, and the Collier family is again pushing permits to explore for oil beneath the Big Cypress National Preserve, the Florida Panther National Wildlife Refuge and the Ten Thousand Islands National Wildlife Refuge.
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Algae Based Fuels Raley, speaking to reporters and preserve advocates Wednesday at the Big Cypress National Preserve visitors center, said he wants to find a way to get the buyout "back on track."
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Diesel From Algae "This is a very high priority for the president and the secretary," Raley said. "We made a commitment to purchase these rights, and we're going to persevere until it's done."
Green Fuel Algae He said the Interior Department isn't rushing a new appraisal in advance of this fall's presidential election, in which Florida is expected to play a pivotal electoral role.
Algae Fuel Production "The goal is to have an appraisal that's viewed as objective and fair and comes to the right valuation of these interests," Raley said.
Bio Diesel From Algae He said he welcomes the inspector general's oversight but suggested a new appraisal would resolve any concerns about the first appraisal.
Biodiesel Fuel From Algae "I don't see any reason why the inspector general's investigation would be relevant," Raley said.
Algae Into Fuel The earlier appraisal by the Interior Department's Minerals Management Service, which does similar work for offshore oil and gas leases, put the Collier holdings at between $140 million and $230 million.
Algae Fuel Source Before that, an internal National Park Service report had estimated the value of the family's oil and gas rights at between $5 million and $20 million.
Algae Gas The Colliers have put the value closer to $500 million. The 2002 deal would have allowed the family to get federal tax breaks by counting the additional value as a charitable donation.
Fuel From Algae Collier Resources general manager Bob Duncan said Wednesday that the Colliers have delivered a draft of a new buyout agreement to the Interior Department for review.
Algae Diesel The agreement retains the $120 million figure but makes it subject to obtaining a new appraisal, he said.
Bacteria Fuel In his 2005 budget request to Congress, President Bush put the same condition on a $40 million first installment on the buyout.
Algae In Diesel Duncan said the Collier family appreciates the Interior Department's continued interest in a buyout.
Extract Oil From Algae "If it's going to occur, we'd like it to occur as quickly and as reasonably as possible," Duncan said.
Diesel Fuel Algae Not everyone is sold on the buyout idea at any price.
Algae In Diesel Fuel A spokeswoman for an organization of South Florida sportsmen's groups told Raley during Wednesday's session that a buyout isn't necessary because environmental regulations governing oil drilling already do a good job protecting the preserve.
Algae Bio Diesel "There is a perception that this is a matter of convenience for the Colliers rather than a resource protection issue," said Barbara Jean Powell, a spokeswoman for the Everglades Coordinating Council.
Algae For Oil The proposed buyout would allow oil extraction to continue in the preserve from existing Collier wells.
Algae To Oil The wells produce about 2,000 barrels of oil each day. A 17-mile buried pipeline delivers oil to a truck-loading terminal. The oil is trucked to a port in Fort Lauderdale and then shipped to Gulf Coast refineries.
Algae Oil Raley agreed that oil extraction already is strictly controlled and pointed instead to the benefit of avoiding short-term impacts from oil exploration.
Diesel Fuel Bacteria Proposed exploration involves building a road deep into the preserve, digging thousands of holes, detonating explosives in them and measuring seismic activity. The heavy machinery and crews are disruptive to wildlife and to preserve users, Raley said.
Algae Fuel Polishing "We prefer that we not even have the exploration," he said.
Algae Oil Biodiesel By Eric Staata
Naples Daily News - 4/29/2004
Topic: Wetlands
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