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# Since 1995, Congress has exempted oil companies that have

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Verbal Forum Moderator
Joined: 23 Oct 2011
Posts: 282
Followers: 37

Kudos [?]: 849 [1] , given: 23

Since 1995, Congress has exempted oil companies that have [#permalink]

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28 Apr 2012, 19:55
1
KUDOS
00:00

Difficulty:

5% (low)

Question Stats:

81% (02:24) correct 19% (01:35) wrong based on 364 sessions

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Since 1995, Congress has exempted oil companies that have leases issued by the federal
government allowing them to drill for deep-water oil off the Gulf of Mexico from royalty
payments as an incentive to spur development in times of low oil and gas prices. These
leases were supposed to have included a provision that reinstates the royalties should the
market prices of oil and gas exceed a certain level. Because of an error by the federal
government, however, the language that reinstates the royalties is missing from the more
than 1,100 leases issued by the U.S. government in 1998 and 1999. Since the market price of
oil and gas has recently risen far above the threshold levels, this error could allow the oil
companies to reap a windfall of more than $10 billion through the life of the leases. In response, the government is pressuring the oil companies to renegotiate the leases. The executives of the oil companies strongly oppose renegotiation; all have issued statements stating that they expect the government to honor the terms of the contracts and that renegotiating a duly signed agreement would set a bad precedent. Which of the following statements best reflects the position of the oil company executives? A) Opportunity seldom knocks twice. b) Do unto others as you would have done unto you. c) One man’s loss is another man’s gain. d) You don’t change the rules in the middle of the game. e) Revenge is so sweet. Main CR Qs link - Main link - cr-qs-600-700-level-131508.html [Reveal] Spoiler: OA _________________ ******************** Push +1 kudos button please, if you like my post. If you have any questions you can ask an expert New! VP Status: Been a long time guys... Joined: 03 Feb 2011 Posts: 1382 Location: United States (NY) Concentration: Finance, Marketing GPA: 3.75 Followers: 178 Kudos [?]: 1462 [2] , given: 62 Re: Since 1995, Congress has exempted oil companies that have [#permalink] ### Show Tags 29 Oct 2012, 03:21 2 This post received KUDOS Though I am still trying to find out the head and tail of this question, I am pretty sure that such questions are not asked in the test. _________________ Senior Manager Joined: 03 Dec 2012 Posts: 344 Followers: 1 Kudos [?]: 141 [0], given: 291 Re: Since 1995, Congress has exempted oil companies that have [#permalink] ### Show Tags 05 Nov 2013, 02:33 It was a fun question for a change. Lol. Such question should be incorporated to make the test more fun, :p Manager Status: folding sleeves up Joined: 26 Apr 2013 Posts: 156 Location: India Concentration: Finance, Strategy GMAT 1: 530 Q39 V23 GMAT 2: 560 Q42 V26 GPA: 3.5 WE: Consulting (Computer Hardware) Followers: 1 Kudos [?]: 101 [0], given: 39 Re: Since 1995, Congress has exempted oil companies that have [#permalink] ### Show Tags 27 Dec 2013, 21:39 Answer should be D. So long was the question, i started to believe that it was from RC. Director Joined: 07 Aug 2011 Posts: 579 Concentration: International Business, Technology GMAT 1: 630 Q49 V27 Followers: 3 Kudos [?]: 449 [0], given: 75 Re: Since 1995, Congress has exempted oil companies that have [#permalink] ### Show Tags 31 Mar 2015, 04:25 GetThisDone wrote: Since 1995, Congress has exempted oil companies that have leases issued by the federal government allowing them to drill for deep-water oil off the Gulf of Mexico from royalty payments as an incentive to spur development in times of low oil and gas prices. These leases were supposed to have included a provision that reinstates the royalties should the market prices of oil and gas exceed a certain level. Because of an error by the federal government, however, the language that reinstates the royalties is missing from the more than 1,100 leases issued by the U.S. government in 1998 and 1999. Since the market price of oil and gas has recently risen far above the threshold levels, this error could allow the oil companies to reap a windfall of more than$10 billion through the life of the leases. In
response, the government is pressuring the oil companies to renegotiate the leases. The
executives of the oil companies strongly oppose renegotiation; all have issued statements
stating that they expect the government to honor the terms of the contracts and that
renegotiating a duly signed agreement would set a bad precedent. Which of the following
statements best reflects the position of the oil company executives?
A) Opportunity seldom knocks twice.
b) Do unto others as you would have done unto you.
c) One man’s loss is another man’s gain.
d) You don’t change the rules in the middle of the game.
e) Revenge is so sweet.

Main CR Qs link - Main link - cr-qs-600-700-level-131508.html

isnt it a reading comprehension question instead?
such a long passage i have not seen so far for a CR question .
however , after reading the passage it was an easy D.
_________________

Thanks,
Lucky

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Kindly press the to appreciate my post !!

Re: Since 1995, Congress has exempted oil companies that have   [#permalink] 31 Mar 2015, 04:25
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# Since 1995, Congress has exempted oil companies that have

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