The Initiative would prohibit land uses related to fracking, cyclic steam injection and other high-intensity petroleum operations within unincorporated sections of the Santa Barbara County. It aims to protect the County's air, water, and health in light of a planned expansion of these practices by oil companies. If the initiative becomes law, existing oil operations and traditional oil drilling practices, including well maintenance, would be allowed to continue in the County.
Based on the stock price the market presumes that the initiative would affect existing operation which is not true. There were numerous oil companies that wanted to drill new wells which overwhelmed the public and the initiative started.
The problem for us at ROYT is the fact of our wanting to put 96-new wells on stream for our ROYT revenue protected future to our investors...if we are dis-allowed from having the opportunity to put those 'new' wells on stream it rather breaks the backbone of the opportunity for the trust to have a more constant and expected revenue and income stream well into the foreseeable future...so the impact is HUGE! Sorry to say!