In this issue we initiate a regular update on the activities of the Council of Petroleum Accountants' Society (COPAS), an organization that has a major impact on petroleum accounting. Mr. Beaverson, the Executive Director of COPAS, reviews the activities of the various COPAS committees. Of special importance is the approval of several new COPAS Bulletins and major revisions of several other Bulletins.

COPAS: An Update. Beaverson, R.O., Summer 1990, pp. 1‑5.

Mr. Jennings reviews recent activities of COPAS, the FASB, the SEC, the Auditing Standards Board of the AICPA, the International Accounting Standards Committee, and the Accounting Standards Executive Committee of the AICPA. Among items of special interest to petroleum accountants is Mr. Jennings' discussion of the SEC's requirement for disclosure of the method being used to account for gas imbalances and also the SEC's consideration of the question of quarterly ceiling tests.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Summer 1990, pp. 6‑15.

The activities of the Revenue Service and the AICPA in considering the timing of income recognition in gas balancing arrangements are reviewed. Mr. Mark also gives an update of IPAA legislative proposals and discusses the effects of the Revenue Reconciliation Act of 1989 and recently issued Treasury Regulations on calculation of the AMT. Certain Letter Rulings and court decisions are also reviewed

Current Updates in Oil and Gas Taxation. Mark, Richard S., Summer 1990, pp. 16‑19.

In this article Messrs. Morris and Smith analyze the adjusted current earnings, or ACE adjustment, which is required to be made in computing the alternative minimum tax for years beginning after 1389. They first present an overview of the AMT, then give a detailed analysis of the required treatment of depreciation, Intangible Drilling Cost, and depletion in computing ACE. The authors also discuss the effects of changes in stock ownership on ACE. Finally tax planning considerations are reviewed

Impact of the Corporate Alternative Minimum Tax Adjusted Current Earnings Adjustment on Oil and Gas Companies. Morris, Jack R. and Smith, Raymond L., Summer 1990, pp. 20‑35.

In the Journal's annual survey, Mr. Spear presents comparative data from the financial statements of 197 oil and gas producing companies for the years 1988 and 1989. The data include selected items from the income statement, the balance sheet, and oil and gas reserve data for the companies. Data for the 25 largest companies are presented separately from the other 172 firms.

1989 Financial Performance of the U. S. Petroleum Industry. Spear, Nasser A., Summer 1990, pp. 36‑55.

Implications of the continuing debate on Federal Clean Air Amendments; community right to know Implementation and its progeny -environmental and toxic tort litigation; past exploration, production, transmission and refining practices, and their legacy; clean-ups and remedial actions under RCRA and Superfund; and management of environmental programs in the 1990's are all topics discussed in this comprehensive article on environmental issues.

The Church of What's Happening Now—Environmental Issues Impacting the Oil and Gas Industry. Golemon, R. Kinnan, Summer 1990, pp. 56‑88.

Messrs. Bell and O'Sullivan give a review of agreements that have traditionally been used in international oil and gas operations. They then discuss concession agreements, Joint ventures, production sharing contracts, and service contracts. Financial characteristics of the modern agreement, including bonus provisions, guaranteed exploration expenditures, royalties, taxation, and provision for Economic Development, are then discussed. Other typical general concessionary conditions are then reviewed.

A Review of International Oil Agreements and Their Relationship to the Standardized AAPL Form 610 Agreement. Bell, Alan D. and O'Sullivan, Jon, Summer 1990, pp. 89‑103.

This articles describes how one company (Cincinnati Gas & Electric Company) has been able to use spot market purchases to increase its profits. The authors then discuss how deficiency-based GICs and "demand-type" GICs will affect gas purchasing strategic and prices in the spot market.

Effects of Gas Storage and Inventory Charges on the Spot Market. Schmidt, C. Larry and Crumbley, D. Larry, Summer 1990, pp. 104‑115.

In this article, based on Mr. Johansen's presentation at the North Sea Oil and Gas Accounting Conference held in London in October 1989, the author gives a brief history of the Norwegian petroleum industry. He then analyzes the Norwegian joint operations agreement. Next he reviews Norwegian taxation and financial reporting in the industry.

Accounting, Taxation, and Economics Factors in the Norwegian Petroleum Industry. Johansen, Rjell Oystein, Summer 1990, pp. 116‑130.

In this article Drs. Wright and Edwards review the problems arising from APB Opinion Na. II on deferred taxes which gave rise to the issuance of FASB 96. They also discuss some of the problems that will be encountered in applying FASB 96 in the oil and gas industry.

Implementations of SFAS 96: The Latest Dilemma for Oil and Gas Producers. Wright, Charlotte and Edwards, R. Dan, Summer 1990, pp. 131‑142.