1 DR. AURAND: You should probably write a sentence or two as to why 



2 you came to that conclusion, but I don't think there is anything wrong 



3 with that as a way to deal with this, rather than having to argue 



4 over--if you remove whatever the radius of that circle would be, in the 



5 event of production, what is the impact? Just say: We don't want to 



6 deal with that; we think it is important. 



7 DR. GRASSLE: I think part of it could be that there is no 



8 compelling interest in doing that. 



9 DR. AURAND: I'm not sure you should say interest. I think you 



10 should say there seems to be no compelling reason to get any closer to 



11 the edge than that. All indications are that industry can stay at least 



12 that far away without a real adverse impact. 



13 MR. LANE: The way the stipulation was prepared way back in 1984 



14 was that all of the blocks directly in the canyons were not leasable and 



15 the set-back was 200 meters. The assumption was that if they stayed 200 



16 meters away, they could still produce from a prospect directly 



17 underneath the canyon, if need be, as long as they stayed 200 meters 



18 away from the outer rim. 



19 DR. GRASSLE: I think we should write that down. 



20 DR. AURAND: You guys have got to give me the words. I'm not 



21 going to make up the words for you. 



22 DR. TEAL: The conclusion is that no rig should be closer than 500 



23 meters from the rim of the canyon. 



24 DR. GRASSLE: Part of the reason for that is that the industry 



25 doesn't see any particular advantage--there is no compelling reason to 



26 do it. 



27 DR. COOPER: You are going to have to define what you mean by 



28 "rim," because some of these canyons have got very gradually sloping 



29 rims. 



30 A PARTICIPANT: You could say 500 meters from the boundary, which 



31 is at the rim. 



32 DR. TEAL: Which is at the 200 meter point. 



33 MS. HUGHES: The language in the stipulation now came in as 



34 defined by NOAA. 



283 



