Vild: Jim Ray, what are the prospects of direct industry-to-industry 

 talks... that address topics like space restriction and gear loss? Can the two 

 industries come to a consensus? 



Ray: There has been progress along this line in Alaska and California, 

 for example. There is a liaison office in California that provides a good 

 model to build on. 



Teal: I suggest that exploration be decoupled completely from 

 development and production. Then, exploration could assess the resource, 

 without an automatic follow on. Decisions on production and development could 

 be made with the knowledge of the value of the resource present. 



Vild: That wouldn't work unless the government was willing to subsidize 

 exploration. 



Ray: Industry would object to the government getting into the 

 exploration business. Competition and sharing of information would be 

 factors. 



■ Teal: I'm not saying that it's easy or even possible, but to decouple 

 the process would allow the public to know the value of the resource prior to 

 leasing for development. 



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