Incredulous - Amazed - Gobsmacked

Okay, I'm going to make this Philosopher's Stone Oil & Gas project idea refined down to two paragraphs.

PSOG is going to buy sweet, shallow gas properties from existing oil and gas corporations, produce the wells and then abandon them, farm out the same lands to other junior oil and gas companies to drill for other zones of interest on the properties, use about 60% of the revenue from production for OPEX, CAPEX, G&A & abandonment program, 30% for debt repayment and 10% for distribution to charities.  Once debt is repaid, it will be 60% OPEX, CAPEX, G&A and 40% for distribution to charities.

Wow, did it in one paragraph.

The title of the blog today is a result of the challenges that keep popping up in front of us.  This week I found out that we can't be deemed a charity for tax purposes, we can only be a public foundation.  That might mean we can't give tax deductible receipts for a portion of the asset purchase price.  Apparently the government doesn't want companies to be self sustaining charitable organizations.  Therefor, we would have to beg for money from corporations and individuals to then distribute to other charities.

First of all, we're not interested in begging for money.  That is exactly what we are adamantly against.  The point of a self sustaining charity is to make money with dignity and not beg for it.  What is the difference between some poor guy or gal on the street corner or an executive from United Way.  I guess the executive is better educated and better dressed; the person on the street corner makes us feel more uncomfortable (for the blessings we have) by their appearance.  I guess that's why the United Way makes millions and the corner person only makes enough for a meal and unfortunately some money that might be used for alcohol and/or drugs.

Second, we're not interested in begging for money.  The point of self sustaining charities is to demand that municipal, provincial and federal governments quit giving away tax dollars.  To prevent them from using that tax money where it best gets them votes. To prevent them from using that tax money to reward party supporters.  Using that tax payor money to get a politician's picture taken with a big cheque, next to the successfully dressed executive beggar from the government recognized charity, standing next to the most pathetic, story book person they can find - in order to tug at your heart strings.

Just so you don't think I am a total hard ass, let me tell you a pathetic story.  My oldest brother was mentally handicapped.  When I was growing up, the world wasn't so politically correct.  At that time; he was "retarded".  Worse than that, "retard" was used as a negative and a put down.  It would be the same disgusting put downs as "faggot" or "nigger" is used to put down those that are different or "less than" -  by the cool or established persons of today's society.  I always wanted to be cool, so I was embarrassed by my brother's disability.  I never brought my friends home,  I hid my brother from my world.

Joe was a courier in Calgary for 15 years, employed by an oil and gas company.  The man who ran this oil and gas company treated Joe with respect and gave value to his life by providing a job.  That job gave Joe a decent life with my parents.  Gave Joe the opportunity to compete at the Special Olympics.  Gave Joe the opportunity to go to Calgary Flames games and was befriended by that organization.  When both my parents passed on, it was up to my second brother and I to look after Joe.

My second brother being the more responsible and compassionate of the two of us at the time, looked after Joe's finances and medical issues.  I did very little other than lunches, dinners or the odd ride to some function.  Joe had a nice life, good friends (both disabled and "normal") and went to work daily.  Unfortunately it was time for Joe to retire.  By this time my second brother had moved away and it was up to me to be more "responsible".

After returning from a work posting in South America, I now had more contact with Joe.  I had grown up, become more understanding of his disability and more understanding of my failings as a brother.  Just when I was able to embrace Joe into my life, he died of a heart attack.  The people at his funeral were many, because he had touched the lives of many.  This person with many challenges, this person called a "retard", this person I had been embarrassed to be seen with - in the end had lived a life of independence and achievement.

Now you may ask why this is a pathetic story.  Joe's life wasn't pathetic.   What was pathetic,  was that I had lost out by having minimal contact with him.  What was pathetic,  was that I put others before my brother.  What was pathetic, was that I was too soon to material wealth and too late to have compassion for the disabled and those less fortunate than myself.  What is pathetic, is that I am now more embarrassed by not embracing my brother, than I was embarrassed by my brother when I was growing up.           Now that is pathetic.

Wow, that took longer than two paragraphs.

Where was I ? Oh yeah, finally we're not interested in begging for money.  We want to be self sustainable (like my brother Joe was).  We want to make money to distribute to charities and touch others lives in a positive way (like my brother Joe did).  And in the end, PSOG will be remembered not for having challenges, but meeting them with dignity and independence (like my brother Joe did).

I am incredulous, amazed and gobsmackedquo.  That over $ 2 billion dollars may be spent on an election in 2012 in the USA and the main political point will be unnecessary and unsustainable spending by the government.

I am incredulous, amazed and gobsmacked that many billions of dollars have been raised for expensive oil and gas projects that have a 1 in 10 chance of being commercially viable.  And yet no group is currently financing business models for the day when production revenues are close to zero and abandonment liabilities will be  the responsibility of shuttered and bankrupt companies - some in other countries.  Will our provincial governments outsource call centres for the debt collection of environmental liabilities.  They have enough problems and expense collecting unpaid parking and traffic tickets - how successful will they be collecting millions for the orphan well project.  Albertans may end up with an environmental sales tax. Why not let sustainable charities have the last share of production to clean up this mess and do some good for the communities that the operations are in.

I am incredulous, amazed and gobsmacked that more money is spent on inventing and developing methods of how to taser, kill, maim and destroy others; than is allowed for developing new and sustainable means of giving to those in need in our local communities.

I am incredulous, amazed and gobsmacked that PSOG is asked the question "why" rather than "why not" .  so to paraphrase a line from John F. Kennedy "others may ask why, I ask why not".  Philosopher's Stone Oil & Gas - quit asking why. Ask why not.

Thank you Mr. Chomsky

Recently Noam Chomsky (Institute Professor emeritus in the MIT Department of Linguistics and Philosophy) wrote "As long as the general population is passive, apathetic, diverted to consumerism or hatred of the vulnerable, then the powerful can do as they please, and those who survive will be left to contemplate the outcome."

This quote is taken from a more in depth writing regarding greater world policy issues than the Philosopher Stone Oil & Gas project.  It made me think more regarding the motivation behind PSOG.  The point he makes is directly related to the reason and purpose of PSOG.  We will no longer be passive and apathetic, we will effect change in the oil and gas industry.  We will no longer be absorbed in consumerism; working for less money, but with more purpose.  No longer shall bad behaviour towards those vulnerable within our community be acceptable, we will contribute to our employees and those charities that lift up those more vulnerable than ourselves.  This will be accomplished not through confrontation, but by example and action.

I recently had lunch with a successful oil and gas executive that is on his second "start up".  Having made millions of dollars through his efforts and those efforts of the employees around him - he was kind enough to listen to me regarding the PSOG project.  This person has helped raise over $ 16,000,000 for charities and I valued his view of our idea.  He struggled with the "numbers" for profitability of minor non-operating interests, potential liabilities associated with "legacy" properties and the overall benefit to large corporations for disposing of any production in this business environment.  All valid and well thought out opinions.

Finally, he gave his opinion that all corporations would rather give money directly to their charities of choice, rather than flow a benefit through Philosopher's Stone Oil & Gas.  The reasoning was - "to get PR or credit for their charitable donation".  He may be right, many people and corporations donate for the status and publicity given in the media for their "good deeds".  This is not bad - the charities and the persons that benefit from those charities are receiving much needed funds.  The reasons and motivations are therefor irrelevant.

I appreciated this person's advice and counsel and thanked him for his time.  After our lunch I started to have doubts about the viability of Philosopher's Stone Oil & Gas.  One question he asked was the spark for this blog.  He asked "why are you doing this".  He was curious as to my motivation.  I being a somewhat defensive person when my motives are question; quickly, and with maybe too much enthusiasm, gave him some facts of my life and viewpoints of why I wanted to succeed with this project.  I'm fairly intuitive and I sensed that my explanation did not register with him.  After that lunch I had a workout and had time to reflect on our conversation.

I determined that my defensive response was my own "ego" getting in the way of "something greater than myself".  On further reflection, I remembered how my parents had given charity while they were alive.  Their giving was always with anonymity and with gratitude that they were fortunate enough to share their modest wealth with others in need.  They gave of their time in the community.  They even sponsored a family from the former Soviet Union to live in Canada.  The sponsored couple's two children flourished; one became a lawyer ( I forgive him  : ) and the other an architect.  Never did my parents ask for a memorial or press release for their charity to others.  So when my lunch appointment made clear that corporations wanted the credit for their giving - it was a light bulb moment for me.

So after 1 hour on the elliptical and sweat pouring off my body.  I committed to the following:

•  First and foremost - I have to keep getting in better shape.  Much hard work is ahead of us to make Philosopher's Stone Oil & Gas an example of what can be and not what is expected.
• Second, the message of Philosopher's Stone has to be more clear and articulated so that those that are open to the possibilities, can "feel" the motivation of our actions
• The financial support for this project is the greatest challenge and we will continue to discuss the vision of PSOG with those investors that are "really smart" and have ideas for creative (stop it - it will be legal and ethical) financing.
• Finally, I will continue to refine the message and talk to as many people as I can to make this dream a reality

In subsequent posts, I will refine the message and keep the readers informed as to the step by step march to success for Philosopher's Stone Oil & Gas and our sustainable contributions to our communities.

For those of us optically challenged, I had to IMAGINE I could actually read what was sent out

Imagine a corporation committed to the benefit of the community.

Imagine a corporation that limits “executive” base compensation to 3 X the median family income of the community in which they work.

Imagine bonuses limited to 25% of base compensation to all employees (including “executives”).  Bonuses that are granted based solely on our contribution to the designated charities.

Imagine a corporation that will only compensate its employees with a “livable” wage, not the minimum.

Imagine that all types of employees; no matter race, creed, disability or sexual orientation can strive to learn, work and prosper in a corporation that is dedicated to something greater than ourselves.

Imagine leaving all that you are part of, in better condition than what it was found in.  The community, its people and its environment.

Imagine a corporation that fills a niche in an industry that will benefit other corporations in the industry, our government, our community and our charities (that are struggling for funds to do the good work that they do).

Imagine a corporation that is truly sustainable, that is more concerned with the next quarter century than the next fiscal quarter.

IMAGINE

Met with our attorney this week and we are preparing an application to the federal government for charitable status.  This application may need revisions before it is accepted and may lengthen the timing of “startup” closer to 8-12 months from this date.

Please comment on this idea and give whatever thoughts you may have.  Without your input, the idea that is Philosopher’s Stone is limited – the goal is to make this greater than ourselves.  Keep in mind that this must run as a business that makes money (it is not a charity for any one group).  It is our dream that this corporation makes lots of money and the goal is $10,000,000 to be distributed annually to our designated charities.  This won’t happen overnight – might take some time, might never happen.  But, that is the goal – we all need goals.

IMAGINE

Philosopher’s Stone Oil & Gas - IMAGINE

Imagine a corporation committed to the benefit of the community.

Imagine a corporation that limits “executive” base compensation to 3 X the median family income of the community in which they work.

Imagine bonuses limited to 25% of base compensation to all employees (including “executives”).  Bonuses that are granted based solely on our contribution to the designated charities.

Imagine a corporation that will only compensate its employees with a “livable” wage, not the minimum.

Imagine that all types of employees; no matter race, creed, disability or sexual orientation can strive to learn, work and prosper in a corporation that is dedicated to something greater than ourselves.

Imagine leaving all that you are part of, in better condition than what it was found in.  The community, its people and its environment.

Imagine a corporation that fills a niche in an industry that will benefit other corporations in the industry, our government, our community and our charities (that are struggling for funds to do the good work that they do).

Imagine a corporation that is truly sustainable, that is more concerned with the next quarter century than the next fiscal quarter.

IMAGINE

Met with our attorney this week and we are preparing an application to the federal government for charitable status.  This application may need revisions before it is accepted and may lengthen the timing of “startup” closer to 8-12 months from this date.

Please comment on this idea and give whatever thoughts you may have.  Without your input, the idea that is Philosopher’s Stone is limited – the goal is to make this greater than ourselves.  Keep in mind that this must run as a business that makes money (it is not a charity for any one group).  It is our dream that this corporation makes lots of money and the goal is $10,000,000 to be distributed annually to our designated charities.  This won’t happen overnight – might take some time, might never happen.  But, that is the goal – we all need goals.

IMAGINE

Philosopher's Stone Oil & Gas - Cynics and Integrity

Just a quick update on the setting up of Philosopher's Stone Oil & Gas.  Meeting with our lawyer and accountant (always hire people way smarter than yourself !!) to discuss timing of the application for charity status.  I hope to have the applications into the authorities on or before June 1 of this year.  It will the take 6-12 months to get approval as a charity status corporation or trust from the Canadian government.  This will allow for scoping out of  oil and gas properties, secure financing/credit arrangements and setting up policy/procedures for acquiring and maintaining the targeted properties.

Today's title was prompted by one of the most outrageous stories that I have seen regarding an oil and gas related corporation.  Transocean (you know; Gulf of Mexico, BP, oil spill, 11 souls lost) granted "safety" bonuses to their "executives" for a job well done this past year.  Seriously ?  Why not just send birthday cards to the 11 people that lost their lives in that unfortunate and preventable event.

Transocean's lack of "humanism" in the face of their cynical explanations of "targets" and "responsibilities" showed a lack of integrity that was steeped in cynicism.  Further, Transocean's lack of awareness as to how the victim's families and society in general would view this grab for cash by individuals complicit in this "accident" - exposes a prevailing attitude in the oil and gas industry.   An attitude of "what can I get and how fast".  There is nothing wrong with making a profit, there is nothing wrong with giving bonuses and rewarding people; I do question when companies push "productivity" and "bottom line" at the expense of safety and integrity in an effort to get those profits and bonuses.  Bonuses that are divided up disproportionately between highly paid "executives".  Why not set a percentage of each person's base salary not to exceed 25 %.  And let's say that 25 % is the same for each employee.  I mean - you only get bonuses if the "corporation" hits their targets.  That's not socialism or communism - it's just good and ethical capitalism (I would like to say "humanism").

I've had people ask why I am leading the charge to start Philosopher's Stone Oil & Gas.  Questions like "what's the angle", "how do you make money at that", "why the f*#k would you do that".  They've asked if I've "got religion".  Therefor, I owe an explanation to those reading this blog and those supporting this idea.

I"M SELFISH.  YES, THAT'S RIGHT - I'M SELFISH.

I no longer want to work in a cynical environment and fight to retain my integrity in the face of "leaders" who have questionable values.  I no longer wish to dedicate my knowledge and energy to a corporation that is more like a psychopath being served by sociopaths.  I want to spend my remaining work years doing something that my children and grand children can be proud of.  Instead of leaving them a big inheritance, I want to leave a legacy of service to my family and my community.

SO THAT'S IT.  I'M EXPOSED. I'M SELFISH AND I'M WILLING TO ADMIT IT.

Oh, by the way.  Transocean's executives made an announcement that they were donating their bonuses to the 11 families of the terrible accident.  Only after the media and others put the absurdity of "safety bonuses" in Transocean's face did they give up this money.

Cynicism and integrity.  Transocean is not the oil and gas corporation with an abundance of one and a deficit in the other.

First Blog - Philospher's Stone Oil & Gas

This blog is to be a running chronicle of the challenges of starting a Not-For-Profit Oil and Gas Corporation  (yeah, yeah ; not for profit - on purpose).

As we go through the process of application for status as a charity from the tax authorities, identifying a Board of Directors, rallying support from the oil and gas industry, financing this venture and finally - putting this plan into action and operation; the reader will share our experiences and be asked to give their opinions and advice as we progress.

The name Philosopher's Stone Oil & Gas is a reflection of our challenge to take the industry's sh*t (minor working interests, declining oil & gas fields, etc.) and turn it into gold for our designated charities.

This will take accurate property evaluation, efficient work processes and a lot of luck.

Unfortunately, Philosopher's Stone will benefit from oil and gas corporations wanting to reduce their costs by increasing their productivity and efficiences (i.e. layoffs or worse - one person doing a two person job), increase their profit per barrel of oil equivilent (sometimes at the risk of the environment and safety) and the growing unrest in the Middle East.

Fortunately, Philosopher's Stone will be there to hire staff.  We will train those new to the industry, provide a place for semi retired workers to continue earning money - and still provide flexibility in time and the work environment.  We will not descriminate based on gender, sexual orientation, disabilities or race - however, we will descriminate against those whiny, no ambition, me first types that permeate the industry and its offices.

In subsequent posts I will try not to sound like I have a stick up my ......... 

Please comment as you see fit, be patient with my initial blogs and see that we are trying to create something bigger than ourselves for the benefit of our community.


Blackheart