The economic evolution of petroleum property rights in the United States.

We examine Harold Demsetz's (1967) prediction that property rights emerge and are refined as the benefits of doing so exceed the costs in the context of oil and gas resources in the U.S. Familiar influences on the development of petroleum property rights, technology, market demand, and politics, provide support for the hypothesis, and those issues are examined. Our primary contribution is to demonstrate the important role of a less familiar factor, the presence in the reservoir of both oil and gas with differentially volatile prices. This factor has affected the nature of the property rights assigned with unitization, an institutional arrangement to internalize the common pool externality. Information asymmetries and conflicting price expectations have resulted in unit agreements that would not have been predicted in a strict neo-classical sense. Our analysis provides new insights regarding the nature of voluntary unitization contracts, inherent limits to producers' ability to internalize externalities, and the welfare implications of compulsory unitization.

The Self-Enforcing Provisions of Oil and Gas Unit Operating Agreements: Theory and Evidence

This paper extends the existing theory and empirical investigation of unitization contracts. It highlights the importance of incentive-compatibility and self-enforcement and the bargaining problems faced in achieving viable, long-term contracts. We argue that only if the parties to a unitization contract have unit production shares that are the same as their cost shares will the contract be incentive compatible. Using a data base of sixty unit operating agreements, we measure the industry's actual behavior against the principles of production from a common pool. Our survey of units that have only one production phase and that are relatively homogeneous reveals that such equal sharing rules are always found and they appear to encourage the parties to behave optimally. In more complex units with multiple production phases and/or separate concentrations of oil and gas (gas caps) we find deviations from the theoretical ideal. In the case of multi-phase units, we find equal cost and production shares within phases, but not across phases. A pre-set trigger for shifting from one production phase to the next helps to maintain optimal behavior. For gas cap units, however, we generally do not find the equal sharing rule. Conflicts and rent dissipation follow as illustrated by the case of the Prudhoe Bay Unit. The paper describes the desirable contract rules for avoiding moral hazard. It also shows how the effects of those rules can be replicated in difficult situations.

The Hidden Nuclear Spectrum of the Luminous IRAS Source FSC10214++4724

Optical spectropolarimetry of the luminous IRAS source FSC10214$+$4724 (z$=2.286$) reveals that the strong (\twid17\%) linear polarization detected by Lawrence \etal\/ is shared by both the narrow UV emission lines and the underlying continuum. This observation and the brightness of the source rule out synchrotron emission and dichroic extinction by dust as the polarizing mechanism, leaving scattering as the only plausible cause of the polarized emission. The narrowness of the lines requires that the scatterers be dust grains or cool ($<1.6\times$10$^4$~K) electrons. We can recover the spectrum that is incident on the scattering medium provided we make some reasonable assumptions regarding the source geometry. The scattered UV spectrum has a power law index $\alpha$~ of $-1.2 \pm 0.6$ ($F_\nu\propto\nu^\alpha$), steeper than what would be expected from a young burst of star formation, but similar to many AGN.Comment: 10 pages, with figure, uuencoded postscript Institute for Advanced Study number AST 94/1

Interactions with Projected Augmented Relief Models (PARM)

Techniques for enhancing physical landscape models with dynamic maps and imagery, termed Projected Augmented Relief Models (PARM), are part of a revival of interest in the power of relief models as tools for geographic visualization. This method enables the creation of dynamic and engaging public displays, which appear attractive but also promote discussion and interaction as revealed through direct observation and video. This paper explores the capabilities of physical relief models as tangible displays for geographic information, and considers the role of interaction using the Kinect sensor for finger detection. The focus of interaction is on making solid landscape models of real geographic areas reactive to touch

Manual for Asphalt Pavement Repair and Resurfacing Preparation

Timely repairs of pavement defects are essential in protecting an important investment and asset that public agencies have. These repairs may be made as durable “stand-alone” repairs of isolated problems, or as part of preparations for a total resurfacing. This manual provides basic information on the planning, materials and construction aspects of common pavement repairs such as crack sealing, crack filling, and patching, as well as a broader look at other preparations needed for total resurfacing a pavement, whether the resurfacing is a surface treatment or a thin hot mix asphalt (HMA) overlay