1 to drill a straight hole and haul it all, then, you know, it might be 



2 worth their while if they think it's an important enough prospect to 



3 look at. They'll say, "Fine, no discharge. We'll haul it." 



4 If they were going into a development scenario, then there may be 



5 a different choice they'd have to make. Then, in the development 



6 scenario, then they've got much more flexibility as far as the offset. 



7 As I mentioned yesterday, they can kick out up to a couple of 



8 miles now with these offset wells. They have the option of not having 



9 to be directly over their target in order still to develop the 



10 formation. 



11 DR. AURAND: I think the important point for you all to discuss in 



12 terms of the impacts is whether or not the loss of a circle 600 meters 



13 in diameter at the head of a canyon is something that you are concerned 



14 about. 



15 If the answer is you are concerned about it, then there are two 



16 possible solutions. 



17 DR. GRASSLE: Of course, there is another way of thinking about 



18 it. If what you are saying that there is no compelling reason for the 



19 industry to actually put a platform on the head of the canyon, and there 



20 is a potential for concern, then there is no reason to do it. 



21 DR. RAY: That's what I said. In the development stage, you 



22 know-- 



23 DR. GRASSLE: It seems to me that that should decide the issue. 



24 DR. RAY: On the development stage, as I say, they have a lot more 



25 flexibility as to where they actually drill the hole. In some of the 



26 exploration phase, there are certain constraints on them as far as 



27 drilling a straight hole. 



28 DR. GRASSLE: In other words, we could adopt what John said. 



29 DR. VALENTINE: What I want to know is: Is MMS saying that no 



30 blocks that are totally within what we call a canyon will be leased? Is 



31 that what you said? 



32 DR. AURAND: I don't have any control over those kinds of 



33 statements at all . 



34 DR. VALENTINE: We are assuming that-- 



280 



