Homer Alaska - Letters

Story last updated at 6:53 PM on Wednesday, September 19, 2012

You paid for it

When oil washes over the sands of the Spit, dont blame me and dont blame Buccaneer you paid for it.

Heres the math: (All numbers in millions, rounded, except for price per share.)

Buccaneer bought a rig off Transocean. With modifications the total price: $78 million.

Buccaneer paid $7 million.

The state of Alaska Industrial Development and Export Authority (AIDEA) paid $27 million. Thats $37 each man, woman and child in Alaska paid to have them drill here; $72 each if you include the incentives by the state spurring them on.

Chinese Overseas Bank Corp. in Singapore put up a loan of $44 million.

This bank receives its money before Alaska gets paid.

Homer is 16 miles from the Cosmopolitan field where it will drill this winter ice-free. It takes one tide change for water in Anchor Point to reach the Spit.

Buccaneer stock currently sells for 6 cents a share.

Would you trust an Australian oil company that has been in existence six years, that has invested $7 million (9 percent) for a drill rig, whose stock price has only broke the 15 cent high-water mark once in the last thousand days to clean up an inlet with 40-foot tides, massive ice floes, wild salmon runs and half the states population living close to its shores?

Dont blame Buccaneer when they smuggle away from an oiled Spit that was paradise.

Seventy-two dollars per person for a 6-cent stock. And we let them drill in the Cosmo field before they drifted off the financial cosmos. You should ask: Is this the corporation to entrust our cosmic hamlet to?

Were paying for it.

Gordy Vernon