Karnes Co. TX - NEWS - February 2008 This file was contributed for use in the USGenWeb Archives by: Kimm Antell Copyright. All rights reserved. http://files.usgwarchives.net/copyright.htm Copyright 2008 Victoria Advocate Online (http://victoriaadvocate.com) unless otherwise notated. ************************************************ From click2houston.com February 1, 2008 Drug Company Defends Product Under FDA Investigation By Stephen Dean HOUSTON -- The president of a Texas drug firm defended his products Friday after Local 2 Investigates reported they were being tested on patients without Food and Drug Administration approval. The FDA said it had no records on file for the drug "Providex," which Local 2 Investigates found being used on patients throughout south Texas as part of a study. Cuero Community Hospital physician Dr. Daniel Dugi refers to himself as the drug's "primary investigator" and a sales packet for the drug displays photos of patients that Dr. Dugi admits are his. HOUSTON -- The president of a Texas drug firm defended his products Friday after Local 2 Investigates reported they were being tested on patients without Food and Drug Administration approval. The FDA said it had no records on file for the drug "Providex," which Local 2 Investigates found being used on patients throughout south Texas as part of a study. Cuero Community Hospital physician Dr. Daniel Dugi refers to himself as the drug's "primary investigator" and a sales packet for the drug displays photos of patients that Dr. Dugi admits are his. ************************************************ From caller.com February 2, 2008 Many schools shift districts, will face new competition By Javier Becerra CORPUS CHRISTI - Local high school coaches knew there would be changes when the University Interscholastic League released its biennial realignment Friday. There were changes, but not the ones they expected. Only three area schools dropped in classification, the most notable being Ray High School's move from Class 5A to 4A. Robstown High School went from Class 4A to 3A, while San Diego High School dropped from Class 3A to 2A. Two schools predicted to drop didn't, with Rockport-Fulton and Tuloso-Midway both coming in just over the 4A cutoff of 980 students enrolled. The UIL adjusts its districts, regions and classes for about 1,200 schools every two years based on enrollment figures collected from the Texas Education Agency. Although not many local schools dropped in classifications, their new district alignments left some coaches befuddled. Carroll and King high schools remained in District 27-5A along with San Antonio East Central, San Antonio Highlands and Victoria Memorial. Joining the district were six-time football state champion Converse Judson, Converse Wagner and South San Antonio, an unlikely combination according to Carroll football coach and athletic coordinator Terry Morris. "We were a little surprised that our district changed that dramatically, but that's the nature of the beast," Morris said. "It's one of those mysteries in life that you have no control over. The UIL has the ability to always interject some surprise. Hopefully our kids will respond to the -- I guess you could say -- upgrade in competition." Of the numerous scenarios envisioned by King coach Jim Elam, this wasn't one of them. "It's way out there," Elam said. "You just never know, but I certainly didn't anticipate this. I don't think anybody else did either. It's not a great deal, but it's not a horrible deal. We just have to go out and play." Ray ended up in 30-4A with the same six teams that made up the district last year -- Beeville, Gregory-Portland, Miller, Moody, Port Lavaca Calhoun and Rockport-Fulton. The changes in 31-4A were more significant. Alice, Calallen, Flour Bluff, Kingsville and Tuloso-Midway are still together, but the district now includes the Laredo trio of high schools -- Cigarroa, LBJ and Nixon. The three Laredo schools played at the 5A level last year and were not expected to drop to 4A. That means five local schools will make several trips to Laredo throughout the year during UIL activities. "That was a surprise to me," new Tuloso-Midway football coach and athletic director Joe Sendejar said. "I knew that there was a chance that (Laredo) might have some 4A schools. When I spoke with their athletic director, he was under the impression that everybody had turned in 5A numbers so I'm sure it was somewhat of a surprise to him. My feeling was they'd probably get tied in with some of the (Rio Grande) Valley 4A schools. Those three schools dropping to 4A was a surprise, especially coming to our district." The local 3A scene went from two districts to one eight-team 31-3A district composed of Aransas Pass, Falfurrias, Ingleside, Mathis, Orange Grove, Robstown, Sinton and West Oso. For the past two years, Aransas Pass, Ingleside, Mathis, Orange Grove, Sinton and West Oso competed in 30-3A. Falfurrias, meanwhile, was part of 31-3A with Lyford, Raymondville, San Diego and Zapata. Had Rockport-Fulton and Tuloso-Midway dropped to 3A, it likely would have forced the UIL to go with a different configuration. "It was better than what we expected," Aransas Pass football coach and athletic director Russell Lee said. "We thought there were going to be some more 4A teams drop down and be in our district. As it turns out Robstown is the only one that came in. It's going to be a little less travel, so we're excited about that." Not all those involved were pleased with the alignment. "It was a total surprise," Orange Grove football coach and athletic director Brent Kornegay said. "I figured it would be a six-team district. You just have to go with what they give you. There's not much you can do." The 13 local schools in 2A were spread out between three districts, with Banquete Bloomington, Odem, Refugio, Skidmore-Tynan and Taft making up 30-2A. Cotulla, Dilley, Freer, George West, Jourdanton, Natalia and Three Rivers form 31-2A, while 32-2A consists of Bishop, Donna Idea Academy, Hebbronville, Premont, Riviera, San Diego, Santa Maria and Santa Rosa. There was little change among the Class A ranks, with Woodsboro remaining in 31-A with Charlotte, Falls City and Pettus. Runge and Yorktown were added to the district to make up for the loss of Flatonia and Shiner. Agua Dulce, Ben Bolt, Benavides, Bruni and La Villa are still in 32- A, the only change being the addition of Kingsville Academy and move of Santa Maria to 2A. Schools that don't agree with their district assignments have until Feb. 14 to file an appeal with the UIL. The UIL will conduct hearings in Austin on Feb. 21. UIL Changes Three local high schools changed classification in Fridays University Interscholastic Realignment: Ray Dropped from Class 5A to 4A Robstown Dropped from Class 4A to 3A San Diego Dropped from Class 3A to 2A Hello, Laredo A handful of Class 4A schools were lumped into a district with three Laredo schools. Heres how long the bus ride will be for those schools when they have to play in Laredo: Flour Bluff: 152 miles Tuloso-Midway: 132 miles Calallen: 129 miles Kingsville: 123 miles Alice: 97 miles Contact Javier Becerra at 886-3734 or becerraj@caller.com ************************************************ From seguingazette.com February 1, 2008 Seguin moving down *BREAKING NEWS* From staff reports The Gazette-Enterprise The UIL handed down its football/basketball athletic realignment plan on Friday morning which takes the Seguin Matadors out of 5A and down to 4A. The Matadors will find themselves in 27-4A and out of the Austin district where they have spent the last few years. Instead Seguin will play with Boerne, Steele, Kerrville Tivy, New Braunfels Canyon, Alamo Heights, San Marcos, Schertz Clemens. Marion will play in District 27-3A and the Bulldogs will face off against La Vernia, Luling, Poteet, San Antonio Houston and Somerset in football while adding San Antonio Hawkins in basketball as well. Navarro will remain 2A, playing in District 28-2A. They will draw Karnes City, Kenedy, Nixon Smiley, Poth and Stockdale. Look for more coverage in Sunday's paper. ************************************************ From postbulletin.com 2/5/2008 Antonio M. 'Tony' Sanchez -- Blooming Prairie BLOOMING PRAIRIE -- The Mass of Christian Burial for Antonio M. "Tony" Sanchez will be at 10:30 a.m. Thursday at St. Columbanus Catholic Church in Blooming Prairie, with the Rev. Richard Dernek officiating. Interment will be in St. Columbanus Cemetery. Mr. Sanchez, 86, a longtime Blooming Prairie resident, died Saturday (Feb. 2, 2008) at Saint Marys Hospital in Rochester. Antonio Mierelez Sanchez was born Jan. 17, 1922, in Golial, Texas. He married Teresa Herrera in Runge, Texas, on Feb. 27, 1943. The family moved to Blooming Prairie in 1965. Mr. Sanchez worked at many places in the Blooming Prairie area and recently worked for the state of Minnesota in construction. He enjoyed fishing and gardening, and loved spending time with his family. Survivors include his wife; three daughters, Maria "Mary" Perez (Domingo Flores) and Guadelupe "Lupe" (Glen) Hoheisel, both of Blooming Prairie, and Dominga "Sandy" (Robert) Coughlin of Dodge Center; three sons, Jose "Tony" (Sue) and Juan Sr. (Celia), both of Owatonna, and Glenn of Rochester; 18 grandchildren; 33 great- grandchildren; a great-great-grandchild; three brothers, Juan Bryan and Enedino Bryan, both of Runge, Texas, and Delfino Bryan of Round Rock, Texas; and four sisters, Paula Rios of Big Springs, Texas, Estropia Perez of LaMesa, Texas, Demencia Molina and Josefina Garcia, both of Runge. Wake prayers and a Rosary service will be at 4 p.m. Wednesday at Worlein Blooming Prairie Funeral Home. Friends may call from 4:30 p.m. to 7 p.m. Wednesday at the funeral home, and an hour before the service Thursday at the church. ************************************************ From wilsoncountynews.com Feb. 2, 2008 La Vernia powerlifting teams compete in Kenedy Classic The La Vernia girls and boys powerlifting teams competed in the Kenedy Invitational meet on Feb. 2, and both teams performed well. In the girls division, Jodie Herley took home first place in the 148- pound class. Jacey Kent placed second in the 114-pound class, Ashley Armstrong placed second in the 123-pound class, and Yesenia Raygoza and Saleena Lopez placed third and fifth, respectively, in the 148- pound class. Kalynn Sampson rounded things off for La Vernia as she placed fourth in the 181-pound class. In the boys division, Dean Lewis placed fourth in the 114-pound class, Kurt Kite placed third in the 132-pound class, and Brody Walton placed third in the 148-pound class. In the 165-pound class, Quinton Garcia placed second and Hunter Basham placed 10th. Steven Rechy placed first in the 181-pound class, and Ray Martinez finished seventh. Chance McGrath placed first and Justin Degrave placed eighth in the 198-pound class. Matt Cornett also took home first-place honors in the 220-pound class, and Joe Martinez finished fifth. Pat McGrath placed first and Zeke Riser placed third in the 242-pound class. Victor Buitrago placed first in the super-heavyweight class. Also competing was Leon McClendon. The girls finished in second place as a team, and the boys took home first-place team honors. All-around lifter honors went to Herley and McGrath. ************************************************ From baycitytribune.com February 6, 2008 NRC hears STP backers, detractors By Mike Reddell Bay City Tribune Supporters and opponents of STP’s units 3 and 4 took center stage at the first of two Nuclear Regulatory Commission’s public meetings on the plant’s environmental impact Tuesday. An estimated 260 people attended the NRC’s afternoon public scoping session at the Bay City Civic Center, while the evening meeting was expected to draw more. The Tuesday sessions were aimed at drawing public comments that will be part of the NRC’s Environmental Impact Statement (EIS) that includes suitability of the site and how seismic, flooding or hurricanes could affect the plant, said George Wunder, NRC’s senior project manager, division of new reactor licensing. Wunder said the environmental and safety review for STP’s units 3 and 4 also would include how the reactors are built, quality assurances and the security and training involved with 5,000 construction workers. "Through the environmental review, we can document decisions in a clear way to ensure the entire process is open as possible, no matter what decision is made," Wunder said. While the NRC’s permit application process calls for tandem environmental and safety reviews, STP found "design-support issues" and asked NRC for a partial hold of the safety review Jan. 10. NRC put most of the safety review on hold Jan. 30. About five protestors — mostly from San Antonio — carrying placards that carried anti-nuke messages greeted people arriving at the civic center for the meeting. They were members of the Southwest Workers Union, which opposes San Antonio’s City Public Service (CPS) partnership in STP. When NRC opened the meeting to public comments, it got a mix of several local officials who spoke to the benefits that STP has given Matagorda County and people from different organizations that oppose NRC granting STP a permit to build the two new reactors. Matagorda County Sheriff James Mitchell told the NRC officials that STP goal is to protect people — "They’ve been doing that for 20 years." Noting the training STP has given law enforcement officers here, Mitchell said the city-county combined SWAT team’s certification came from STP. Bay City Mayor Richard Knapik said STP has "brought a culture of excellence and community spirit" to Matagorda County, noting that STP employees serve on city councils and school boards in the communities where they live. Knapik said STP’s units 3 and 4 is a $64 billion investment in the county, as are the 800 permanent jobs the units will bring. "Let’s talk about the environment," said Mitch Thames, president of Bay City Chamber of Commerce and Agriculture. He cited Matagorda County’s status of winning the Audubon’s North American Christmas Bird Count nine of past 10 years — with 236 species spotted in the most recent survey here — as evidence of STP’s environmental impact. Thames followed up by touting the county’s excellent fishing and water-fowl hunting. Other officials supporting STP’s permit application were: State Rep. Mike O’Day; Palacios Mayor Joe Morton; D.C. Dunham, executive director of Bay City Community Development Corporation; and Owen Bludau, executive director of Matagorda County Economic Development Corporation. While several people also spoke in opposition to building units 3 and 4, perhaps the most contentious was from well-known Tom "Smitty" Smith, director of Public Citizen’s Texas Office. Smith took issue with the NRC continuing the environmental review, while the safety review is on hold. Smith said the NRC was allowing STP to gather more information for its safety review, while the commission had a Feb. 18 deadline on comments to the environmental and safety scoping process, and a Feb. 26 cutoff on intervening. Smith and other opponents of the units also spoke about the impact of uranium mining in Kleberg and Karnes counties, the state’s overall lack of radioactive waste storage and the climate’s change on future river flows. "Radioactive waste is the real bugaboo in the room that no one wants to talk about," said Cyrus Reed, with the Sierra Club in Austin. "Where does it come from and what is the full impact?" Also speaking against the plant were: Susan Dancer, with Matagorda County Citizens for Nuclear Industry Accountability; Karen Hadden, executive director of the Sustainable Energy and Economic Development (SEED) Coalition; and members of the Southwest Workers Union. ************************************************ From fortcollinsnow.com Feb 6, 2008 Power Struggle Opponents of a proposed uranium mine near Nunn find kindred spirits in South Texas By Rebecca Boyle GOLIAD, Texas — The first sign that there might be something wrong with the water on Craig Duderstadt’s south Texas ranch was when the cows wouldn’t drink. Last summer, they began to bypass their special groundwater well-fed trough, preferring to drink from a muddy puddle of rainwater. "This is a full water trough, and they’d walk a couple hundred yards and drink from a water hole. They’d walk right past that water trough," Duderstadt said. "You can’t make ‘em drink." About that same time, the well water used inside the house for everything from showering to drinking started running red and slimy. A well filter that would normally last six months plugged up in a matter of hours—one time, Craig couldn’t even get it out of the filter casing because of all the sediment. The Duderstadts stopped drinking the water, too. A Culligan driver now brings four blue jugs of clean water a month from Victoria, the nearest big town, about a 30-minute drive northeast. The culprit, they say, is a uranium mining operation 1,250 feet from their front door. They say the water turns bad when the mining company drills exploration wells nearby. The resurgent field of in-situ uranium mining throughout the American West has forged a new kind of pioneer, one who still fights for land and water on the plains but must oppose a well-heeled, highly technical modern foe. It’s different than oil and gas production, which is as familiar to the West as open fields and thunder, and it’s prompted a new wave of education and employment on both sides. Fort Collins Now traveled to Goliad, Texas, to find out how ranchers and grandmothers are trying to stop a newly formed company from extracting uranium from the ground using their groundwater. The fight against in-situ uranium mining in south Texas is similar to a battle brewing in Northern Colorado. There are differences, to be sure, but in both places, the fight comes down to water and the fundamental fact that it is essential to life. It’s an especially tough issue for people who long thought they could count on that water to work on the land and earn a peaceful living. But as the Duderstadts and their neighbors have learned, nothing is ever certain. ••• The third-generation farm Craig and Luann Duderstadt share with two dogs and three horses is a comfortable, quiet place where butterfly weeds grow along the patio and where ball moss, blown in one day on a hurricane, makes its home on the inner branches of giant live oak trees. A bull watches visitors with suspicion from a small barn across the yard, and a spare water trough behind the house betrays the Duderstadts’ fondness for creatures of all sizes—it’s dedicated especially for wildlife and the many migratory birds who pass through Texas’ Coastal Bend region. Atop the wooden kitchen table at the center of the old farmhouse is the first sign that this is not an average Texas ranch, however. Next to a ceramic vase and a candy bowl is a framed photograph of a billboard in Victoria: "Help Stop Uranium Mining." On the carpet a few feet away, Luann pushed back her two blond braids to sift through a plastic tub of papers and files she has amassed about uranium mining, Texas land law and her cohorts in the fight against Uranium Energy Corporation. Like Powertech Uranium Corp., which wants to mine in Northern Colorado, UEC is based in Vancouver, British Columbia, has a corporate office in the capital city of the state they’re exploring for uranium, and set up a field office in the town where their opponents live. Luann is Texas-style blunt and does not seem given to hyperbole; it’s clear that raw emotions feed her activism against an operation she believes will poison her water beyond repair. Until two summers ago, the Duderstadts’ lives consisted of farming and ranching and generally appreciating south Texas life at the end of a fulvous gravel road. Since Uranium Energy Corp., a newly formed company, starting drilling exploration and test wells for uranium, her water and her life have both changed for the worse. She said she is committed to helping stop the "environmental disaster" she believes is inevitably wrought by this type of mining. "The Navajo people say it all when they refer to yellowcake as yellow death," she said, referring to the material uranium is processed into. The people of the South Texas Crossroads region are largely ranchers and farmers, salt-of-the-earth people with hubcap-sized Lone Stars on their homes. They’re the sort who balk when a new restaurant dares to charge $11.99 for chicken parmesan. They are the kind of people who wear cowboy boots because of the mud, not the style. They keep horses for work, not as pets. They keep herds of whitetail deer in fenced-in private ranches, for the hunting pleasure of the region’s tourist visitors. Buzzards are praised for keeping the roads clean. Their cattle, including Hereford and Texas Longhorns, drink from troughs fed by the groundwater—until last summer when uranium exploration operations began in earnest. Since the water turned bad in 2007, the Duderstadts have tested it for radionuclides and other material and will probably do it again, but each time a baggie of the red stuff is sent to the water district, the Duderstadts fork over $400. Some tests have shown elevated levels of iron. The Duderstadts can’t afford to test it as regularly as they’d like. Their friend Mark Krueger, who lives in neighboring Victoria County, offered a cheaper trick that will betray any particles in the water invisible to the unaided eye. He shone a laser pointer, the kind used to assist in PowerPoint presentations, through a glass of water. In a glass of well water, the laser beam is visible all the way through the water; in a glass of distilled water, the laser light is only visible where it enters and exits the glass. There is no line through the distilled water, because there’s nothing in it to reflect the light. But the trick is only comforting to a certain level—what about hazardous content that can’t be seen? The mining company and the Texas Railroad Commission, which has jurisdiction over mining exploration, have told the Duderstadts the uranium exploration has nothing to do with the changes in their well water, and that in the areas near where the uranium ore is found, it is undrinkable anyway. But Duderstadts and generations of many other families have lived in the area and have been drinking the water for a hundred years, and their relatives say it has never been red. The families said any changes that are directly related to the mining or exploration are just tough luck. There is no recompense. "You don’t see them paying the Culligan man for bringing all this water, and you don’t see them coming to my door to ask me, either, because they don’t give a damn," Luann said. The Duderstadts have about 15 cattle on the 150-acre property and several more nearby. Craig has been slowly moving them to other ranchland. But Mary and Tom Anklam can’t do that. The couple moved from Michigan to Victoria in 1997 to retire, and bought a ranch in Goliad down the road from the Duderstadts four years later. The Southern Comfort Ranch is now home to Boer goats the Anklams raise for meat and for show. The animals fetch between $150 and $400 a head, but since uranium exploration began, nobody wants to buy them. Mary Anklam said she takes the animals to auction, where she can only get $30 to $60 a head. "People are afraid to buy them," she said. They see the drill rigs near her property and start asking questions. "I have to tell them; I can’t lie to them." Loss of livestock income is not an option in historic Goliad, which extols itself as the birthplace of Texas ranching. The town, whose population was 1,975 in 2000, is one of the oldest municipalities in Texas. In 1749, Spanish settlers established a mission and a fort, in an area that was then called Santa Dorotea. Presidio la Bahía, the "fort by the bay," is still nestled on the southern bank of the San Antonio River. In February 1829, the town’s name was changed to Goliad, an anagram derived from the last name of a missionary priest, Miguel Hidalgo, a father of Mexican independence from Spain. About a 90-mile drive upriver is the famous Alamo—remember it for the standoff where Davy Crockett died—but Goliad is the site where Texians stormed the garrison, defeated the Mexican troops and first declared their independence from Mexico as the Republic of Texas, in 1835. Now, as they fight to keep their land from a more modern foe, the residents of Goliad are prepared to make another historic stand. It’s one that is bound to be repeated throughout the United States, including in Nunn just northeast of Fort Collins, as uranium mining—an industry that was recently as fallow as some of the fields that will be drilled—enjoys a resurgence on the tail of rising uranium prices, and a renewed interest in nuclear power. ••• Goliad’s fight started almost two years ago, when UEC began knocking on doors. Not all residents had an intrinsic bad feeling about uranium mining—this is oil and gas country, after all, and residents are more than accustomed to trucks and pipes and drill rigs dotting the landscape. Mineral extraction is nothing new to Goliad County. What’s more, the company arrived with promises to be good neighbors, offering handshakes, scholarships for local high school students and, some residents recall, hams and cookies delivered to landowners. But then they poisoned the land, some believe—UEC improperly filled some of its initial drill holes, resulting in radioactive soil around the boreholes. Residents started to worry, and the history of south Texas uranium operations did little to ease their fears. People knew of uranium mining operations in next-door Karnes County through the 1980s, and a history of spills and contamination fears from in-situ uranium operations in Kleberg County’s Kingsville, about two hours’ drive south. UEC started drilling exploration boreholes in Goliad in May 2006, in an area about 15 miles north of the town. Opposition and concern grew that summer, and the county commissioners passed a resolution opposing the proposed mining operation. In November 2006, the commissioners decided to form a uranium research and advisory board. The presidents of the area groundwater district and farm bureau are among the members. The commissioners also voted to spend $150,000 to hire experts, including an attorney, Jim Blackburn, anticipating a contested case hearing in the matter of UEC’s mining permit. That hearing would be similar to a civil trial in terms of evidence and argument, and it would be intended to fight the state’s decision, if it is so made, allowing the mining company to move forward. Commissioner Jim Kreneck said he’s lost some support and even some friends because of his outspoken opposition to the project. But as a rancher and public official, his concern for the water supersedes any political ideology that might otherwise bend him the opposite direction. The taxpayers are the ones who must ultimately pay, he said. After the uranium committee formed, local opposition started growing, said Art Dohmann, president of the Goliad County Groundwater Conservation District. The bad blood began flowing in earnest in spring 2007. That April, several residents, including the Duderstadts, complained to the water district that their wells were being plugged up with slimy red sediment. The water district tested the residential wells and found "significant changes" in iron and other mineral content in four of the wells; a fifth had only turned red, according to Dohmann. On top of that, the Texas Railroad Commission found that the company had not plugged the majority of its boreholes as it said it would. GPS coordinates also didn’t lead to any holes, and the wells they were able to find were surrounded by piles of radioactive dirt because the holes had been improperly refilled. Residents seized upon those violations as proof that UEC had already shirked its environmental responsibility and would continue to do so. Harry Anthony, chief operating officer of the uranium company, told residents at a formal meeting Jan. 24 that those violations happened because UEC used a different method than previously chosen to plug the holes. The new method, using cement, is better, but state regulators had expected something different and that’s why the company was cited; he said the company’s permit has been modified to reflect the change, and the company bought better GPS devices. But residents’ concerns took off from the first violation, so they were already primed for a fight when, last August, the Texas Commission on Environmental Quality notified residents that UEC had applied for an underground injection control permit. It is the first step needed to begin in-situ leaching of uranium from the rock. Powertech Uranium Corp. is about a year away from filing a permit to do the same in Northern Colorado. Dohmann, the county’s groundwater conservation district president, said the monitoring and exploration wells are being drilled in a concentrated area at the moment, but it’s expanding. The ore body is 157 acres, and Dohmann said test wells were being drilled over a 600- 700-acre area; in recent weeks, new testing began in other areas of the company’s 10,000-acre exploration permit. "It’s like a fire. It’s just going to keep spreading," he said. That kind of language is common among the opponents. Paranoid might not be the right word, but to say they’re scared is an understatement. Resident Margaret Rutherford, who started a group called Uranium Information At Goliad, said she has felt intimidated. Health problems led her to step down recently as the group’s president, but she’s still involved and said her newspaper, for which she writes a column about uranium, has been repeatedly stolen. She even thinks someone may have tapped her phone. Rutherford said she worries about her water and health but also her land and her home, where her late husband’s carvings are still embedded in the wood. Her memories live there and she doesn’t want to abandon them. She has nowhere else to go. That comment surprised Luann Duderstadt. "You’re gonna live here if they get a permit?" she said. "What am I gonna do?" Rutherford shot back, throwing up her hands. "I’m not living here," Duderstadt replied. Anklam said she'd considered packing up and going somewhere else. "Can I live with you?" Duderstadt asked her. "Sure, we’ll have a little house on the prairie," Anklam replied with a laugh. "Let’s go." The women all chuckled at the fantasy. "At least we can still laugh," Rutherford said. Although the company’s opponents find comfort in each other, the issue has divided the community. Members of Rutherford’s own family have willingly leased their land and support UEC, to her great chagrin. Her aunt and uncle, Joe and Betty Jacob, even had their pictures included in a 3/4-page newspaper ad UEC took out in the Victoria Advocate, the larger local paper. "I think the project is a great blessing for the county. I think it’s safe; we've researched it and feel real good about it," Betty Jacob is quoted as saying. Luann Duderstadt and Rutherford scoff that they’re just in it for the money, and that opponents outnumber the willing participants. They say even some who have leased their land now regret the decision. Across the road from the Duderstadts, Elder Abrameit leased his mineral rights for $5 an acre in the early 1980s. Soon after, a precipitous drop in uranium prices meant the deal fizzled—until three years ago. Now Abrameit is saddled with a decades-old lease which comes with a promise of 8.25 percent royalty on the ore extracted from beneath his land. County Commissioner Kreneck wondered how the company will measure the extraction to properly pay royalties—it’s not like oil and gas, which can be easily metered. And even then, payment of royalties isn’t payback for the loss of their water. So the opponents hope the state can help. The Duderstadts, the Anklams, Rutherford and about 450 of their neighbors turned out for a meeting with state officials Jan. 24, the one in which Anthony explained the company’s violations. ••• The meeting was sponsored by the Texas Commission on Environmental Quality, TCEQ, along with the mining company. During exploration, which is ongoing, the Texas Railroad Commission has jurisdiction. Mining requires a separate permit from the TCEQ, which is still pending; the meeting was to address questions and accept formal comments from residents regarding the permit application. The complexity of the permiting process is similar to that faced by Powertech in Northern Colorado. Texas and Colorado laws are different, but the same federal environmental and nuclear regulations apply, and it takes several months to complete information-gathering, public review and final approval. UEC’s application in Goliad is about a year ahead of the proposed project northeast of Fort Collins. TCEQ geologist David Murry told the crowd he was still examining the application and that no mining could take place until a permit was granted. Several residents wondered how well TCEQ could protect their interests, noting that the agency is funded mostly by permit fees from the industries it regulates. At one point, Murry answered a question about water quality monitoring and told residents the company would provide the samples to be tested. Some people guffawed at that. "You obviously don’t find that very comforting," Murry acknowledged. There weren’t enough chairs in the auxiliary hall at Immaculate Conception Catholic Church; so many people turned out that the Texas Rangers came to provide security. Town Constable Kirby Brumby, who is running for county sheriff, said earlier in the day that there was even a security meeting to discuss logistics. In fact, so many people were there in opposition, Sherilyn Arnecke said, that the quiet base of support for the mining operation was nervous to speak. She appeared in that newspaper ad with Rutherford’s aunt, and has been one of only a couple to stick her neck out in favor of UEC. "We don’t have the money to hire lawyers to come in here, and we don’t have all the facts and figures, but there are a bunch of us," she said. Her said her elderly parents have been harassed because they leased with UEC, and she found that unacceptable and was motivated to speak in favor of it. "I don’t feel like I’ve been lied to. There are a lot of people for this, but you don’t see them in here, because they’re afraid to come in here and face this bunch," she said. Sidney Braquet, an attorney who owns land in Goliad and also supports UEC, said his family’s roots in the county go back to the 1800s and he wouldn’t jeopardize his family land. He said Goliad residents should not fall victim to misinformation and fear. "There are risks involved in all aspects of life," he said of their concerns. He also talked about the potential growth of nuclear power. "Why not use what south Texas has to offer to reduce our reliance on foreign sources for our energy future?" he said. A few clapped for Arnecke and Braquet, but most of those who asked questions and read formal statements opposed the company's efforts. They argued in-situ mining was unsafe, unproven and unhealthy; that it would poison their water; and that the state was the only entity that could help them. Pat Calhoun, a barrel-chested ex-Marine and president of the Goliad County Farm Bureau, boomed agricultural statistics into the microphone, estimating how many gallons of groundwater would be denied thirsty lactating cows if the mining operation went ahead. He said the TCEQ should deny the permit. "There (is) historical evidence that no unconfined aquifer can be mined without irrevocable change and damage to it," he said. Even before the residents spoke, Anthony said those claims were unfounded. His comments were echoes of the arguments used by Powertech to quell concern and opposition to its project in Nunn. "This project will not adversely affect the groundwater, nor will it cause other concerns," he said. "We’re well aware that many people have concerns about this project. I respect those concerns and so does the company. We wouldn’t have undertaken this project if those concerns were even partially true." Anthony is among a small group of people who blazed trails decades ago for this form of mining, saying it is better for human and environmental health and safety. No pits or caverns involved; it is not even really mining in the traditional sense, but a chemical process that, for a moment, reverses the work of millions of years. Those in the field trust the method and say it is the best way to extract a relatively abundant resource that can help power the world. Anthony said UEC just wants to recover some of Goliad County’s "ample resources" in order to power potential nuclear power plants in the U.S.—including one that just filed a permit application in Victoria, the first newly licensed nuclear plant in 30 years. "The U.S. is trying to achieve energy independence—both the United States and Texas. And they can do this by finding clean sources of energy," he said. Whether residents agree with nuclear power or not, the needs for new energy are clear. Anthony is far from the only one promoting nuclear as a homegrown solution. ••• Texas has bountiful uranium reserves, about 18 million tons of ore, equating to 23 million pounds of yellowcake, according to the U.S. Energy Information Administration. The agency estimated reserves based on cost in 2003, and the 18 million figure is based on a price of $50 per pound. But last summer, uranium prices more than doubled that amount, and were hovering around $80 a pound the week of Jan. 28. It’s evidence that investors and private and public utilities know uranium is an increasingly feasible alternative to coal and gas-fired power plants, especially since nuclear power plants don’t generate greenhouse gases in the process of creating electricity. That is what led Paul Moore, a co-founder of the global environmental group Greenpeace, to advocate for nuclear. He is now a paid spokesman for the industry-funded Clean and Safe Energy Coalition, whose logo includes a 70’s-style nuclear power plant protest pin with the phrase "No Nukes," but the "no" is crossed out and "yes" is scratched in. On the group’s Web site, several national lawmakers are quoted saying good things about nuclear power, including Senate Majority Leader Harry Reid, from Nevada, who reportedly said, "I’m cool with nukes," and GOP presidential front-runner John McCain, who is quoted saying, "We need to go back to nuclear power." Talk of a nuclear resurgence is being phrased in the language of national security, even patriotism—the United States needs home- harvested material like uranium to survive, advocates say. It’s not a renewable resource, but advocates say it could prolong stockpiles of fossil fuels that some say are right now reaching their peak. In large measure, fears about nuclear meltdowns have abated since the Three Mile Island nuclear power plant incident in 1979, when a malfunction caused the reactor core to overheat. Although no one died, or was even hurt, the incident prompted sweeping changes to the nuclear power industry. It also generated enough public mistrust and trepidation to help quash it. At the same time, uranium prices plummeted, and industry interest in the resources dissipated. Dain McCoig is evidence of the three-decade gulf in uranium interest. A 2002 Colorado School of Mines graduate, he now works as senior engineer at Uranium Resources Inc.’s Kingsville, Texas, in- situ mine and processing facility. There’s a wide generation gap in his profession—some of his colleagues are old enough to be his parents—but the field is again ascendant as prices in uranium and even precious metals like gold have sparked a resurgence in mining education and employment. It’s tied to the potential "nuclear renaissance" many believed would begin after the 2005 energy bill, which promised huge tax credits for new nuclear power plants. South Texas seems to be the modern-day Florence in this new renaissance. In the past three years, NRG Energy, Energy Future Holdings Corp. and Exelon Corp. are among companies in Texas to have proposed eight new reactors, one-fourth of the total planned in the U.S., according to the Nuclear Regulatory Commission. Exelon proposed the new plant in Victoria. Julian Reed, a public relations expert hired by UEC, said the plant could conceivably use Goliad-mined yellowcake for power. "It so happens that this area has very extensive uranium deposits," he said. Many Goliad opponents don’t believe that’s where the processed uranium will be used, however, saying they know the biggest markets for uranium are still overseas. Reed said much of the opposition is fueled by misinformation or misunderstanding. "The scientific facts are that this can be done without doing harm to the environment," he said. Residents in Kingsville, Texas, would beg to differ, however. The rapid rise in uranium prices led URI, where Dain McCoig works, to reopen its in-situ uranium operation in Kingsville in 2005 and drill new wells. The Kingsville Dome—actually a visible dome-like swell in the land, covering a major oil and mineral deposit—was mined for uranium from 1988 through 1999, but closed for a while after low prices made it uneconomical. Some also say pollution from spills and abandoned wells was partly to blame. The operation restarted after a controversial decision by the TCEQ to overrule the state Office of Administrative Hearings, which had tried to stop new operations until the company had cleaned up its previous wells. Teo Saenz started a group called STOP, South Texans Against Pollution, to fight URI and raise awareness of its previous actions. Saenz, a pharmacist in Kingsville who also owns a ranch, lives about three-fourths of a mile from the mine production area, and worries about arsenic, selenium and other metals in his well water. The fields look fine, with white PVC pipes sticking up from the ground. But what lies beneath is far uglier, according to Saenz. "The reality is they can’t clean up, they can’t restore the water," he said. The mining companies say they can, and that Mother Earth will help. The uranium came to rest under Kingsville, Goliad and Nunn for a number of reasons, including other elements in the rock that "reduced" it from a mobilized state and essentially made it part of ancient river sands (in Colorado’s case, sands from a Cretaceous era marine barrier island). The reducing agents are still there, and when the uranium and other metals are mobilized, they can only move so far before the Earth will bring them back in, the companies say. But Saenz has done his own research, rattling off members of the periodic table of the elements and saying scientists have told him the cleanup can’t be done. There are key differences in the geology of South Texas versus Northern Colorado, which Powertech says will safeguard this region’s water more so than in Texas. (For more on the scientific aspects of in-situ mining, including why Powertech, UEC and URI say their operations will be safe and how the two regions’ geology differs, see Friday’s edition of Fort Collins Now.) Saenz said TCEQ has abdicated its duty by not forcing URI to clean up wells from 1988, and he believes regulators have made things easy for the industry. He thought the meeting in Goliad would be a "sham." "You’re not only going against the business, you’re going against the state, too," he said. In what appears to be a common industry refrain, Powertech officials have said in interviews that they have not yet devised the exact method for cleaning up Northern Colorado’s water—many company officials have worked for other in-situ operations before, but as a company, Powertech hasn’t done it yet. They have promised to figure it out, as they must in order to get a permit. Saenz said URI told Kingsville the same thing. "They keep saying, ‘We’ll figure it out, we’ll clean it up.’ That’s not good enough," he said. "It’s not a little poker game. You’re dealing with people’s lives." He said potential problems from materials in the aquifer won’t manifest themselves in the years URI, or any other company, is mining; it could be years, even decades, down the road. He is so against in-situ mining that he even traveled to New Mexico to drum up opposition in that region. In Cibola County, N.M., county and municipal officials have announced support for URI’s plans to mine in that region, despite a history of pollution problems in the Navajo Nation. The Navajo came up with the phrase Luann Duderstadt remembered—yellow death—but other New Mexico residents in sparsely populated areas seem supportive so far. Saenz said he’s heard about the brewing battle in Northern Colorado and wished his counterparts luck. "I hope that maybe you can learn something from our mistakes," he said. ••• That solidarity is common among opponents of uranium mining. Weird, unlikely alliances are formed in this field. There’s Moore, from Greenpeace, going nuclear. And in Goliad, conservative-minded ranchers like Kreneck are active members of the Sierra Club, where they share environmental beliefs with liberal types who choose not to eat the beef those ranchers spend their lives raising. Dr. Richard Abitz, a geochemist from Cincinnati hired by the groundwater district, said it’s common for such matters to transcend politics or personal persuasion. "What’s that quote from ‘Oklahoma!’—‘The farmer and the cowboy should be friends,’" he said. "Everybody should be friends when it’s the right issue." Fear seems to be a unifying one. McCoig, the URI engineer, said fear drives a lot of the opposition. "A lot of people just don’t want us here in the first place. They hear that uranium word and it’s scary," he said. He lives a 50-minute drive away in Corpus Christi with his wife and future daughter, who is due in a matter of weeks, and he cares about the land and his family’s health. Most URI employees live in Kingsville or nearby towns, and wouldn’t harm the land and water they use themselves, he said. He said many opponents make up their minds before they have all the facts. If they learned about the careful regulations the industry must follow to protect water, and if they learned the science, which explains how the earth itself will protect the aquifer, they wouldn’t be as afraid, he said. In fact, they might embrace the method because it is so much less intrusive. "If everything could be mined this way, you wouldn’t have any pits, you wouldn’t have any shafts, you wouldn’t have any mountaintops removed for coal, the environment wouldn’t be pillaged," McCoig said. "When we’re done here, it will be restored back to farmland. … The same water is going to be there and the same land is going to be there." Some Goliad residents who oppose UEC agree that the land will be the same, and some even say they support mining; the difference, they say, is that they don’t want it in their water source. On his Web site, Goliadproject.org, Mark Krueger, the Victoria County resident who brought the laser pointer to the Duderstadts’, said he is not against mining on the whole. "Please keep in mind that I do not oppose mining as it is necessary for the continuing development of our technology-based society. I DO oppose uranium mining in a people’s drinking water supply! In-situ leach mining needs to be done in remote areas, not in my (your) water supply until it can be proven to be 100 percent safe!" he wrote. At the meeting last month, he asked if that was possible. Krueger waited until the end of the question period to take the microphone. In his soft-spoken way, he asked TCEQ and Anthony a few pointed questions about how many wells were situated within a quarter-mile of the mine site, what kinds of material would be used to clean the water and how long it would take. His last question: "Is it possible that one well, one well for human water consumption, could be contaminated in Goliad County? Yes or no question. Does the possibility exist?" The audience watched expectantly. Tara Drissell, with the office of public assistance for the TCEQ, turned to her colleagues on the left and to the UEC table on her right. She paused for a moment and looked at him with an uneven, almost exasperated expression, as if knowing her answer wouldn’t be the one he wanted. "Nothing is 100 percent," she said. ************************************************ From redorbit.com Feb. 7, 2008 Lucas Energy Announces Record Third Fiscal Quarter 2008 Financial Results HOUSTON, Feb. 7, 2008 (PRIME NEWSWIRE) -- Lucas Energy, Inc. (OTCBB:LCAE), a U.S.-based independent oil and gas company, today announced financial results for the third fiscal quarter and nine months for the period ended December 31, 2007. Share count and all per share information has been adjusted to reflect the 1-for-4 reverse stock split which was effected on February 4, 2008, subsequent to the end of the third quarter. Highlights * Cash flow, as measured by EBITDA* for the third quarter, increased 7% to $364,023, or $0.04 per share. * Announced an initial production rate for the Hagen Ranch No. 3 well southwest of Gonzales, Texas, of 163 BOPD and 125 MCF per day. * Successfully completed the drilling of a new lateral from the Perkins Oil Unit No.1 well, Pilgrim (Austin Chalk) Field, Gonzales County, Texas. The initial production was reported to the state as 73 BOPD, 3 BWPD, and 30 MCF per day. * Reported the results of an independent study of the Company's oil and gas reserves performed by Forrest A. Garb and Associates, Inc., an independent licensed petroleum engineering firm based in Dallas. The report estimates the undiscounted future net revenue (FNR) from these reserves at $92,674,580, or a discounted PV-10 of $54,555,200, which is commonly known as the SEC PV-10 figure. This equates to $5.34 per share in discounted (PV-10) Proved Reserves. The reserve report is based on interests owned by Lucas Energy, Inc. in certain oil and gas properties located in Gonzales, Baylor, Karnes, and Wilson counties, Texas. * Acquired the Cone-Dubose Unit No.1 well, Christian (6800) Field, Gonzales County, Texas. The new 300 acre property offsets its Hagen Ranch No.3 well to the southwest and is part of the Company's plan to extensively develop the area. The Cone-Dubose Unit No.1 well was acquired from an independent operator in the area and is currently shut in. * Subsequent to the end of the quarter, the Company announced a 1- for-4 reverse split of its Common Stock that took effect with the start of trading on February 4, 2008. The reverse split was done in order to meet listing requirements for the AMEX. The Company has made application to the AMEX and meets all of the listing requirements except for stock price. After giving effect to the reverse split, the Company had 10,211,156 million shares of Common stock outstanding. Total revenues for the three months ended December 31, 2007 were up 104.6% to $811,023 compared to $396,367 in the year-ago period. For the nine months ended December 31, 2007, total revenues were up 85% to $1,747,510 compared to $944,788 in the year ago period. Oil and gas revenues increased during the period due to additional wells put on line through the ongoing acquisition and rework program and from the addition of new laterals drilled during the quarter. The company produced 9,093 bbls of oil and 584 mcf natural gas net to the company in the quarter, compared to 7,045 bbls and nil in the prior year's period, and realized average prices of $88.89 per barrel and $5.08 per cubic square foot of gas, compared to $56.27 per barrel last year (there were no gas revenues in last year's same period). James J. Cerna, Chief Executive Officer of Lucas Energy, stated, "Our third fiscal quarter was productive from both an operational and financial perspective, and we are pleased to be able to announce our eleventh consecutive quarter of profitability and cash generation. Our drilling program, focused on substantially increasing the production from our portfolio of properties, has proven to be highly successful and continues to deliver cash flow for our investors. Three out of 10 of the wells in our program are currently producing and we are getting ready to begin drilling a fourth well. Our focus remains on operating efficiently and profitably, and it is our objective to continue to acquire assets with proven reserves to increase our cash flow, while simultaneously executing a low risk drilling strategy." For the three months ended December 31, 2007, total operating expenses were $589,879 compared to total operating expenses of $108,854 in the prior year's period. For the nine months ended December 31, 2007, total operating expenses were $1,357,103 compared to total operating expenses of $423,136 in the prior year's period. Operating income was $221,144, for the quarter compared to operating income of $287,513, in last year's period. Operating income for the nine-month period was $390,406 compared to operating income of $521,652 in last year's period. The increases in SG&A and LOE were primarily driven by increased upfront costs for drilling operations, increased costs for field engineers, information technology services, and administrative personnel as well as increased public company costs in this year's period. Cash flow, as measured by EBITDA* for the third quarter, increased 7% to $364,023, or $0.04 per basic and diluted share (based on 10,211,156 basic and diluted shares) from $340,363, or $0.05 per basic and diluted share (based on 6,885,250 basic and diluted shares). The increase was driven by the higher revenue realized in the quarter due to higher commodity prices and increased production in the quarter. * In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Lucas Energy uses non-GAAP measures of operating income (loss), net income (loss) and income (loss) per share, which are adjustments from results based on GAAP to exclude Depreciation and Amortization, and other non-cash items as reconciled in the financial statements below. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.) Net income for the third quarter, ended December 31, 2007 was $179,906, up 8.1% from net income of $166,467 for the three months ended December 31, 2006. The increase in income for the period is attributable to the increase in revenues. For the nine months ended December 31, 2007, net income was $267,168 compared to $349,938 for the nine months ended December 31, 2006. Basic and diluted earnings per share for the three months ended December 31, 2007 were $0.01 compared to basic and diluted earnings per share of $0.02 for the three months ended December 31, 2006. Basic and diluted earnings per share for the nine months ended December 31, 2007 were $0.03 compared to basic and diluted earnings per share of $0.05 for the nine months ended December 31, 2006. The decrease in net income for the nine months was attributed to higher professional fees, headcount and public company costs. At December 31, 2007, the Company had $3.3 million in cash and marketable securities and working capital of $2,276,867. This compares to cash of $710,018 and working capital of $473,556 at March 31, 2007. Total shareholder equity increased to $19,099,664 and total assets increased to $21,119,111. Lucas has no debt. Mr. Cerna concluded, "Beyond the success we've had in our exploration and drilling initiatives, we are also excited about our upcoming move to the American Stock Exchange. We expect this move will provide greater awareness and visibility for the Company to both institutional and retail investors and will provide broader access to, and lower cost of, capital if needed, all of which results from the greater depth of market the AMEX has to offer." About Lucas Energy, Inc. Lucas Energy, Inc. (OTCBB:LCAE) is an independent crude oil and gas company building a diversified portfolio of valuable oil and gas assets in the United States. The company is focused on identifying underperforming oil and gas assets, which are revitalized through a meticulous process of evaluation, application of modern well technology, and stringent management controls. This process allows the company to increase its reserve base and cash flow while significantly reducing the risk of traditional exploration projects. The Company's headquarters are located at 3000 Richmond Avenue, Suite 400, Houston, Texas 77098. The Lucas Energy logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4192 Forward-Looking Statement This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects,""projects,""plans,""feels,""anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Lucas Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors. The complete filing is available at http://www.sec.gov Lucas Energy, Inc. Consolidated Statements of Operations and Comprehensive Income For the Three and Nine Months Ended December 31, 2007 and 2006 (Unaudited) For For For For the Three the Three the Nine the Nine Months Months Months Months Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2007 2006 2007 2006 REVENUES Oil and gas revenues $ 811,023 $ 396,367 $ 1,737,510 $ 910,788 Other revenues -- -- 10,000 34,000 ----------- ----------- ----------- ----- ------ Total Revenues 811,023 396,367 1,747,510 944,788 EXPENSES Lease operating expenses 245,179 16,465 552,320 185,926 Depreciation, depletion and accretion 90,960 48,663 198,034 111,820 General and administrative 253,740 43,726 606,749 125,390 ----------- ----------- ----------- ----------- Total Expenses 589,879 108,854 1,357,103 423,136 ----------- ----------- ----------- ----------- INCOME FROM OPERATIONS 221,144 287,513 390,406 521,652 ----------- ----------- --- -------- ----------- OTHER INCOME (EXPENSES) Gain on sale of assets -- -- -- 81,534 Interest income 51,919 4,187 118,045 8,347 Interest expense -- (84,060) (101,877) (139,236) ----------- ----------- ------ ----- ----------- Total Other Income (Expenses) 51,919 (79,873) 16,168 (49,355) ----------- ----------- ----------- ----------- NET INCOME BEFORE INCOME TAXES 273,063 207,640 406,574 472,297 INCOME TAX EXPENSE 93,157 41,173 139,406 122,359 ----------- ----------- -------- --- ----------- NET INCOME $ 179,906 $ 166,467 $ 267,168 $ 349,938 =========== =========== =========== =========== OTHER COMPREHENSIVE INCOME (LOSS) (49,000) -- 24,000 -- ----------- ----------- ---------- - ----------- COMPREHENSIVE INCOME $ 130,906 $ 166,467 $ 291,157 $ 349,938 =========== =========== =========== =========== INCOME PER SHARE - BASIC AND DILUTED $ 0.01 $ 0.02 $ 0.03 $ 0.05 =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED 10,211,156 6,885,850 9,007,615 6,859,420 =========== =========== =========== =========== Lucas Energy, Inc. Consolidated Balance Sheets (Unaudited) Dec. 31, March 31, 2007 2007 ------------ ------------ CURRENT ASSETS Cash $ 2,771,990 $ 710,018 Marketable securities 517,850 -- Oil and gas receivables 296,835 131,485 Note receivable 32,000 32,000 Other current assets 272,293 38,823 ------------ ------------ TOTAL CURRENT ASSETS 3,890,968 912,326 ------------ ------------ OIL AND GAS PROPERTIES, FULL COST METHOD Properties subject to amortization 16,845,902 9,623,745 Accumulated depletion (351,723) (166,204) ------- ----- ------------ OIL AND GAS PROPERTIES, NET 16,494,179 9,457,541 -- ---------- ------------ FIXED ASSETS, net of accumulated depreciation of $145 and $0, respectively 2,473 -- OTHER ASSETS Drilling deposits, bonds, and prepaid expenses 317,025 56,123 Note receivable 414,466 -- ------------ ------------ TOTAL ASSETS $ 21,119,111 $ 10,425,990 ============ ============ CURRENT LIABILITIES Accounts payable and accrued expenses $ 1,614,101 $ 386,004 Accrued interest payable -- 52,766 ------------ ------------ TOTAL CURRENT LIABILITIES 1,614,101 438,770 ------------ ------------ NON-CURRENT LIABILITIES Note payable -- 2,300,000 Asset retirement obligation 133,755 111,022 Deferred tax liabilities 271,591 132,185 ------------ ------------ TOTAL LIABILITIES 2,019,447 2,981,977 ------------ ------------ STOCKHOLDERS' EQUITY Preferred stock, 10,000,000 shares authorized of $0.001 par value, no shares issued and outstanding -- -- Common stock, 25,000,000 shares authorized of $0.001 par value 10,211,156 and 7,448,107 shares issued and outstanding, respectively 10,211 7,448 Additional paid-in capital 18,413,841 7,052,121 Retained earnings 651,612 384,444 Unrealized gain on marketable equity securities 24,000 -- ------------ ------------ TOTAL STOCKHOLDERS' EQUITY 19,099,664 7,444,013 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,119,111 $ 10,425,990 ============ ============ EBITDA RECONCILIATION TABLE ---------------- ----------------------------------------------------- Three Three Nine Nine months months months months ended ended ended ended 12/31/07 12/31/06 12/31/07 12/31/06 ---------------------------------- ----------------------------------- GAAP Net Income 179,906 166,467 267,168 349,938 ------------------------------------------------------ --------------- Interest Expense 0 84,060 101,877 139,236 ------------ --------------------------------------------------------- Taxes 93,157 41,173 139,406 122,359 ---------------------------------------- ----------------------------- D,D, &A 90,960 48,663 198,034 111,820 -- ------------------------------------------------------------------- EBITDA 364,023 340,363 712,485 723,353 ------------------------------- -------------------------------------- EBITDA/Basic and Diluted Share $0.04 $0.05 $0.08 $0.11 ---------------------------------------------- ----------------------- Oil and Gas Production ----------------------- ---------------------------------------------- For the three For the three months ended months ended Increase/ Dec. 31, 2007 Dec. 31, 2006 (Decrease) ----------------------------------------------------------- ---------- ----------------------------------------------------------- ---------- Volumes: (net) -------------------------------------------- ------------------------- Oil (bbls) 9,093 7,045 2,039 --------------- ------------------------------------------------------ Gas (mcf) 584 - - 584 ---------------------------------------------------------------- ----- ---------------------------------------------------------------- ----- Average price received: ---------------------------------------- ----------------------------- Oil $ 88.89 $ 56.27 $ 32.62 ------------ --------------------------------------------------------- Gas $ 5.08 - - -------------------------------------------------------------------- - -------------------------------------------------------------------- - Revenues: ---------------------------------------------------------- ----------- Oil $808,238 $396,367 $411,871 --------------------------- ------------------------------------------ Gas $ 2,785 $ 0 $ 2,785 --- ------------------------------------------------------------------ Total $811,023 $396,367 $414,656 ------------------------------------- -------------------------------- This news release was distributed by PrimeNewswire, www.primenewswire.com CONTACT: Lucas Energy, Inc. James Cerna, Jr., Chief Executive Officer 713-528-1881 Hayden Communications Investor Relations Peter Seltzberg 646-415-8972 peter@haydenir.com Source: PrimeNewswire ************************************************ From seguingazette.com February 14, 2008 Navarro finishes regular season By Jason Chlapek The Gazette-Enterprise KENEDY — Even with second place wrapped up, the Navarro boys basketball team still played like it had something to prove on Tuesday. For the second time in as many games, the Panthers received double- doubles from Wesley Ply and A.K. Williams as they ran out to a 76-52 victory over Kenedy in the regular season finale for both teams on Tuesday at Kenedy High School. With the win, Navarro finished District 29-2A play with an 11-3 record. The Panthers are 18-10 overall. Navarro must wait to find out who it will meet in the bi-district round of the Class 2A state playoffs as Cole and Cotulla meet in a playoff play-in game to determine the third-place spot out of District 30-2A. Those teams split their regular season series, and finished in a third-place tie behind 30-2A champion Jourdanton and runner-up Hawkins. With nothing to gain with a win, the Panthers played their starters for half of the game, and gave some of the backups more playing time. Zach Hernandez, Navarro’s leading scorer, played in the first half without scoring a single point. That’s because he did not take a shot, and opted to set his teammates up for scores to the tune of 11 assists. Ply and Williams thrived under the paint, though. Ply recorded his 14th double-double of the season with 11 points and 13 rebounds, while Williams posted his eighth double-double of the year with 22 points and 12 rebounds. Will Valdez scored 14 points, while Clayton Warren led with four steals. Hernandez was the assists leader. Navarro hosts Lytle at 6 p.m. Friday in a playoff warmup game. Seguin boys SEGUIN — The Seguin boys basketball team closed out the 2007-08 season with a 57-39 loss to Akins at Goldie Harris Gymnasium. Seguin finished the season with an 11-19 record in a year plagued by injuries. It was the final game for seniors Blake Rabe, Jordan Sheffield and Kevin Smith. Seguin fell behind, 14-3, after one quarter of play, but outscored Akins, 14-12, in the second quarter to pull within nine, 26-17, at halftime. Akins put the game away with a 24-12 run in the third quarter to build a 50-29 lead entering the fourth. Seguin was led by Sheffield’s 9 points, while Rabe and Smith each had 6. ************************************************ From wilsoncountynews.com Miss Karnes County pageant Feb. 16 KENEDY — The Kenedy Rotary International Club members invite the public to support the students of Karnes County at this year’s Miss Karnes County Pageant Saturday, Feb. 16, at 7 p.m. in the Kenedy High School Auditorium. The Little Mister and Miss Karnes County contest also will take place, and country singer Jay Harvey will entertain the crowd. This annual event is the Rotary Club’s effort to raise scholarship funds for the youth in the communities. All proceeds will be used to finance scholarships awarded to students from Runge, Falls City, Karnes City, and Kenedy. Tickets can be purchased for $4 from contestants, Rotary members, or at the door. Tickets are $1 for children. ************************************************ From stripes.com February 22, 2008 Controlling the web of communication in Iraq By Vince Little, Stars and Stripes CAMP VICTORY, Iraq — Spread across dozens of locations in Iraq, more than 500 soldiers with the 44th Expeditionary Signal Battalion are working to tie U.S. and coalition forces into a blossoming information grid. The Mannheim, Germany-based unit operates 40 sites in country and that number is growing. It provides all communication networks for several Army divisions and the Marines out west. “We’ve had many technological upgrades since past OIFs. That enables us to go into smaller sites in more remote locations, such as (joint security stations),” said Lt. Col. Kris Kramarich, 40, of Belgrade, Mont., and the battalion commander. “We’re not limited by distance anymore. It’s all satellite.” That’s also led to faster computer connections and better telephone service, she said. The battalion, which deployed last October, participated in the first Iraq rotation and also went to Afghanistan from 2005-2006. Sgt. Delora Zamora, 26, of Denver, is a team leader for Company B’s technical control facility at Forward Operating Base Delta in southern Iraq, near the Iranian border. She’s on her first deployment. “The environment is not bad. It’s real quiet here,” she said by video teleconference. “That makes us able to focus more on work.” Despite the 12-hour shifts six days a week, Zamora tries to find time for pursuits away from work. Like many others, she watches movies, plays video games and goes online. But she recently led a small group in salsa dancing lessons, too. “I’m not certified, but I did my best,” she added. “We had fun with it.” Male soldiers at FOB Delta live in concrete bunkers, which Saddam Hussein used as hangars for fighter jets. Among them is Spc. Lacy Thompson, 28, of Oxon Hill, Md., a cable systems installer for Company B. “I have one roommate but it’s not too bad,” Thompson said. “You get some privacy.” The battalion’s Company C provides network transitions for personnel at Camp Echo in Diwaniyah, also in southern Iraq. Pfc. Whitney Parks, 22, of Arlington, Texas, says her team stays busy running cable and fiber-optic lines. Troubleshooting and moving bunkers to accommodate new equipment are other routine tasks. But she said quality of life at Camp Echo is exceptional, with an abundance of amenities all conveniently located near living quarters. “It’s beautiful. I’m so lucky to be here,” Parks said. Her only complaint? The dreaded mud that shows up after any rainfall. “It’s horrible [and] feels like I’m walking with moon boots on,” she added. “And it doesn’t come off.” Staff Sgt. Michael McDonald, 31, of Runge, Texas, is Company C’s senior mechanic and force protection noncommissioned officer. He’s in Iraq a second time after deploying to Basra in 2003-2004. “The mission is completely different. Circumstances have changed,” McDonald said. “There’s a lot more moving pieces we have to concern ourselves with. We’re much busier today than we were four years ago.” Free time is hard to come by, McDonald said. He goes to the gym five or six days a week and stays in touch with his wife and children in Mannheim. Sunday is generally slower than most, he added. “There’s no off day per se, but I prefer it that way,” he said. “The busier you are, the faster time goes.” Spc. Andrew Crozier, 34, of Braselton, Ga., works as a hub operator for Company A at Camp Victory, where he helps monitor massive DKET satellite communications dishes used to extend computer and telephone services to bases throughout Iraq. The U.S. military operates six in the world, including four at Camp Victory. “We’re like a (Management Information Systems) department in the desert,” Crozier said. “Dust is definitely a factor for us, and the heat is real hard on communications equipment. It likes the cold. “Some of these guys don’t have AC in their tents or buildings. This summer, we’re expecting a lot of equipment to go down because of the heat.” Dust doesn’t bother Pfc. David Noyola — at least on duty, where he’s a line-of-sight radio operator with Company A. His unit is responsible for making sure the bases have reliable radio communications. “Radio links are more stable than satellites. They’re able to be fixed quicker,” said Noyola, 21, of San Antonio. “Rain and cloud cover affect us. It affects signal strength. Clear days are good. But dust is no factor.” ************************************************ From woai.com 02/26/08 Concerns About Principal Force Local School Closures A school district decided to close all of its schools Monday after an incident involving one of its administrators. The Kenedy Independent School District canceled classes Monday after receiving an alert concerning the principal at Kenedy Middle School. The principal, Rick Johnson, was placed on administrative leave last week. The district has not released the reason for the leave. Johnson returned to the campus Friday to turn in some paperwork and became upset. He then left the school and went to the Kenedy Police Department to speak to officers he knew and check on some cases involving the school. He reportedly told the officers he was having a bad week and was going to go visit relatives in Oklahoma. Johnson's wife called police Sunday after Johnson packed his belongings, including some firearms, and left their Beeville home to visit his parents in Oklahoma. Johnson's wife told Beeville police her husband was having a problem with some medication he'd been prescribed, and she feared for his safety and the safety of others. Beeville police then issued an alert over scanners to nearby areas and contacted police in Kenedy. The Kenedy School District decided to close the schools as a precaution after receiving the alert from the Kenedy Police Department and finding out that the police had not been able to confirm Johnson's location as of Sunday night. "We're looking out for the welfare of the students, the teachers, the community, and included in that, is Mr. Johnson," said Duane DuBose, Kenedy Police Chief. "We are investigating an incident that took place recently and we are in the process of determining the specifics. We are not at liberty to discuss it right now," said Dr. Jan LaCour, Kenedy ISD Superintendent. "We are reviewing what, if any, actions need to be taken. Administratively, we are following our procedures and gathering information before a decision is made." Police have since confirmed Johnson is in Oklahoma. ************************************************ From baptiststandard.com 2/29/08 BGCT board allocates funds, approves missions partnership, hears reports By Marv Knox Elected four members to fill vacancies on the Executive Board—Debbie Ferrier, a lay member of Tallowood Baptist Church in Houston; Jo Ann Gartman, a layperson from Calvary Baptist Church in McAllen; John Wheat, pastor of First Baptist Church in Kenedy; and Darrell Miles, a layperson from Field Street Baptist Church in Cleburne. ************************************************