Royalties were to be suspended (on up to 87.5 million barrels). There have been a lot of things published. This (rule) is spelled out in the act.

We'll have a cut of 2 million (barrels) on the 1st of January, I don't have any doubt.

Iran exports about 2.2 million barrels a day.

Kerr-McGee accepted the risks and government is seeking royalty on leases during the five years, before minimum volumes were reached.

We have a long-standing professional relationship with the Minerals Management Service. There's no animosity but we do disagree on owing on certain leases. If we are unable to resolve it, we'll see judicial review. To sum it up, we upheld our end. Now we expect the government to do the same.

This could be almost worse than Katrina because there are 4 million barrels of refining in Texas areas, much more than there was in New Orleans. (Texas) is the other major refining heart.