The commissioner of the Texas General Land Office may be the A biggest oil baron in the Lone Star state,@ but he=s also the steward of the state=s natural resources. Lawsuits recently filed by the state of Texas could cause far-reaching changes in the way in which oil and gas royalties are calculated and paid.

Royalty Issues Facing State Governments. Mauro, Garry, Fall/Winter 1997, pp. 1‑7.

Constantly evolving and increasingly sophisticated oil and gas lease provisions governing state of Texas lands contain some unique wording that requires special analysis to ensure that lessees realize the benefits and avoid the repercussions that may result from non-compliance. The prudent operator must stay abreast of these lease provisions to avoid adverse consequences.

State of Texas Lease Provisions Giving Rise to Controversies. Whitworth, H. Philip, Fall/Winter 1997, pp. 8‑27.

Where do the states stand in the nation-wide debate on the valuation of oil and gas for royalty purposes? Do they follow the lead of industry or the federal government? Increasingly, states tired of waiting for the federal government to make up its mind Care leading the debate on valuation.

Valuation under State Leases: State Land Trusts CA Thumb on the Scale of Justice? Helfrich, Lee, Fall/Winter 1997, pp. 28‑46.

This article examines the critical royalty provisions of the Bureau of Indian Affairs and explores the factual and policy differences underlying the treatment of federal and Indian oil and gas leases. The author provides a history of the relationship between Indian tribes and the U.S. and discusses the implications of the Supron decision.

Valuation of Oil and Gas for Royalty Purposes for Indian Tribes and Allotters: Lease Provisions in Indian Leases Giving Rise to Controversies. Taradash, Alan R., Fall/Winter 1997, pp. 47‑56.

New rules proposed by the Minerals Management Service have created new definitions and wide-ranging changes in the valuation of oil and gas prices. If passed, these rules could cause every federal lessee to review their operations, contractual arrangements, and accounting systems.

Changes in Royalty and Revenue Accounting Resulting from New MMS Rules. Wamsley, Rick, Fall/Winter 1997, pp. 57‑68.

A knowledgeable reader can derive a lot of data from disbursement check stubs. The marketplace has changed, and the savvy revenue auditor or interest owner must have at least some knowledge of marketing, production, and land to stay on top.

Conducting a Desk Audit of Your Check Stub: The Basics of How Royalty is Computed. Petree, Dale, Fall/Winter 1997, pp. 69‑79.

Petroleum companies may use interest rate swaps to manage or reduce the sensitivity of earnings to rate fluctuations, but the practice is not without risk. Oil and gas companies should frequently audit risk exposures to assess the efficacy of risk management programs.

Risks, Strategies, and Utilization of Interest Rate Swaps in the Petroleum Industry. Bean, LuAnn and Jarnagin, Bill D., Fall/Winter 1997, pp. 80‑97.

FASB news in this issue includes an EITF on minority shareholder rights, accounting for delayed receipt of exercised option shares, pooling-of-interests accounting, and employee stock purchase plans. The SEC addresses year 2000 issues, corporate spin-offs, business combinations, and audit re-engineering.

Current Developments in Financial Accounting and Reporting. Jennings, Dennis R., Fall/Winter 1997, pp. 98‑110.

An update and review of the activities of the various committees and subcommittees of the Council of Petroleum Accountants Societies.

COPAS: An Update. Gear, Jon, Fall/Winter 1997, pp. 111‑125.

An FASB exposure draft from February 1996 concerning methods for accounting site exit costs will impact how virtually every petroleum company accounts for future dismantlement, closure, and environmental costs. A final statement is expected sometime this year.

Current Developments in Environmental Issues. Wright, Charlotte, Fall/Winter 1997, pp. 126‑128.