Review of mineral estate of the United States at Naval Petroleum Reserve No. 2, Buena Vista Hills Field, Kern County, California

The purpose of this report is to present this Consultant`s findings regarding the nature and extent of the mineral estate of the United States at National Petroleum Reserve No. 2 (NPR-2), Buena Vista Hills Field, Kern County, California. Determination of the mineral estate is a necessary prerequisite to this Consultant`s calculation of estimated future cash flows attributable to said estate, which calculations are presented in the accompanying report entitled ``Phase II Final Report, Study of Alternatives for Future Operations of the Naval Petroleum and Oil Shale Reserves, NPR-2, California.`` This Report contains a discussion of the leases in effect at NPR-2 and subsequent contracts affecting such leases. This Report also summarizes discrepancies found between the current royalty calculation procedures utilized at NPR-2 and those procedures required under applicable agreements and regulations. Recommendations for maximizing the government`s income stream at NPR-2 are discussed in the concluding section of this Report