Among the important developments discussed in this column are the increased emphasis of the SEC on management's discussion and analysis in reports filed with the SEC, the SEC's SAB 85, which permits the inclusion of coal seam gas in natural gas reserves and gives wider approval to use of the revenue method of amortization by full cost companies, and the FASB's project on impairment of assets.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Spring 1990, pp. 1‑8.

The Omnibus Reconciliation Act of 1989 contained several provisions affecting the oil and gas industry. Changes in the calculations of depletion and IDC for AMT purposes were important revisions. Legislative proposals affecting the industry are summarized.

Current Updates in Oil and Gas Taxation. Mark, Richard S., Spring 1990, pp. 9‑14.

In this comprehensive article, Mr. Borrego examines the problems and rights of producers involved in split stream production, reviews gas balancing agreements, and discusses royalty valuation problems when there are gas balancing agreements. The author points out the importance of having clear gas balancing agreements.

Gas Balancing Agreements. Borrego, Theodore R., Spring 1990, pp. 15‑52.

Mr. Potts gives a brief historical summary of the spot market. He explains the need for producers to establish gas marketing departments and how these departments can be profit centers. Mr. Potts stresses the necessity for producers to be involved in pipeline rate hearings before the FERC.

The Independent Producer and the "Spot" Gas Market. Potts, Ray, Spring 1990, pp. 53‑57.

In the past ten years, the petroleum industry has rapidly become engaged in the exchange of various types of information through "electronic data interchange" programs. Mr. Robertson discusses the importance of legal considerations in exchange programs. He points out that in recent months a great deal of information, not previously available, about legal aspects of data interchange has become available.

EDI and the Law. Robertson, Jr., Ken G, Spring 1990, pp. 58‑62.

A number of offshore oil and gas accidents in 1988-1989 has led the oil and gas industry to devote greater attention to such disasters. Professor Bentham reviews provisions in United Kingdom oil and gas licenses and in the U. K. statutes and regulations regarding offshore disasters. The impact of past disasters on the development of statues and regulations receives special attention.

The Consequences of Offshore Accidents. Bentham, R. W., Spring 1990, pp. 63‑73.

The Financial Accounting Standard Board's Statement of Financial Accounting Standards No. 95 specifies that a Statement of Cash Flows be included in the complete set of financial statements. This article reviews those requirements and their application to oil and gas producing companies. Special attention is given to the "adding back" of expenditures for exploratory dry holes and other exploration costs by some companies in arriving at cash flows from operations. The impact of this "add back" on reported cash flows from operations and from investments activities is analyzed.

Divergent Treatment in Calculating Operating Cash Flows. Cappel, James J., Spring 1990, pp. 74‑106.

The authors examine the alternative minimum tax for the oil and gas industry in terms of the boom-bust cycle typical of the industry. Through use of a 20-year simulation of oil and gas drilling activity, the authors demonstrate that it is difficult to effectively increase tax incentives to oil and gas exploration companies because a significant amount of the incentive will be eliminated by corporate AMT provisions.

The Corporation Alternative Minimum Tax and the Oil and Gas Exploration Industry. Sarikas, Robert H.S.; Sarikas, James J.; and Callaghan, Joseph H., Spring 1990, pp. 107‑137.