1 the head at the time whatever this is comes along, it will be more 



2 dispersed than it would have been if the rig were closer. 



3 DR. RAY: Just for the record, I want to throw in a word on the 



4 industry comment about the set-back, because I know what will come. We 



5 are in the same position that you are. We are here kind of as semi- 



6 official industry representatives, but we know better than to presume to 



7 speak for our own companies, more or less for the whole industry. 



8 Obviously, there are going to be people who will say, "Hey, those 



9 guys can't say that for us." So, I'll say our comments that generally, 



10 my opinion is--without having asked my company or any of the other 



11 companies--that I don't think it is unreasonable to make a 



12 recommendation of that 500 meter set-back. 



13 I guess the other general comment as to whether or not to even 



14 lease canyon blocks, just as a general principle, you know, the industry 



15 likes to say you should, for the most part, consider leasing entire 



16 areas, but then come in with your biological stipulations or exclusions, 



17 you know, where necessary. 



18 There may be a case where the canyon would cover the whole block 



19 and you might decide to exclude something like that. But where it is a 



20 partial thing, they say it ought to be considered and then you come in 



21 with special restrictions to do that. 



22 But, that is the general thrust of the industry. They like to 



23 come back to the stipulations afterwards and at least have them 



24 considered, then they should not be totally excluded. 



25 DR. GRASSLE: We could add another word, "little" instead of "no," 



26 and that might help. 



27 DR. RAY: Yes. 



28 DR. AURAND: I've added a note here that says that all companies 



29 may or may not agree with that. 



30 DR. RAY: I just wanted to add that. 



31 DR. TEAL: Add another little note that we have heard them boast 



32 that they can off-set drilling. 



33 DR. RAY: That's no problem, John, and what I told you about the 



34 difference between exploration and development and what we can and can't 



286 



