Petroleum Accounting and Financial Management Journal

Spring 2001 Vol. 20 № 1
A Report on the International Accounting Standards Board's Extractive Industries Accounting Project 1
Horace Brock

In December 2000 the International Accounting Standards Committee (IASC) distributed an "issues paper" as part of its extractive industries project. This paper, prepared by a project steering committee, presents the basic accounting and financial reporting issues for the mining and the upstream petroleum industries, as well as the committee's "tentative views" on some of those issues. This article presents a few of the most important matters under consideration, along with the tentative views of the Steering Committee if a tentative view has been reached, as well as a brief description of the structure and operations of both organizations as an aid to understanding the extractive industries project.

A Report on the International Accounting Standards Board's Extractive Industries Accounting Project. Brock, Horace, Spring 2001, pp. 1‑12.

Crime in the Oil Patch 13
Susan Richardson

This is the second installment of a two-part article which began in the Fall/Winter 2000 issue of the Petroleum Accounting and Financial Management Journal. This article begins with a discussion of the Texas Natural Resources Code and moves on to selected provisions of the Texas Penal Code which have cropped up in recent oil and gas cases, such as theft of used property, theft of trade secrets, deceptive business practices, bribery, misapplication of fiduciary responsibility, tampering with governmental records, and engaging in organized criminal activity.

Crime in the Oil Patch. Richardson, Susan, Spring 2001, pp. 13‑34.

Marketing Affiliates: Differences in Royalty Valuation Analysis under MMS Regulations and State Case Law 35
Norma Rosner Iacovo

To market natural gas, some producers sell all or substantially all of their production to specialized gas marketing affiliates. The corporate relationship between the producer and the marketing affiliate can complicate the determination of what the proper royalty to the lessor should be. Also complicating the determination of royalty valuation can be the differences between MMS regulations and the case law of the individual state. How far the state will go in piercing the corporate veil that shrouds the producer-marketing affiliate relationship can have a major impact on royalty determinations as illustrated in this article's state-by-state analysis of recent court decisions.

Marketing Affiliates: Differences in Royalty Valuation Analysis under MMS Regulations and State Case Law. Iacovo, Norma Rosner, Spring 2001, pp. 35‑89.

Current Developments in Production Sharing Contracts and International Petroleum Concerns 90
Daniel Johnston

This is the second installment of a two-part article on economic modeling and audits. Part II extends the audit exercise to include an examination of some of the key price, cost, and technical assumptions. Part I appeared in the Fall Winter 2000 issue of the Petroleum Accounting and Financial Management Journal.

Current Developments in Production Sharing Contracts and International Petroleum Concerns. Johnston, Daniel, Spring 2001, pp. 90‑100.

Current Developments in e-Business and Energy 101
Jim Hoffman

Energy producers are faced with choices similar to those of consumers: what do I invest in now, how do I cut my costs, and how can I prepare for the inevitability of e-business without it costing me a fortune? The hub of hubs concept is not the ultimate answer, but it is as radical a change to doing business as the first computers were to E&P companies in the early 1980's.

Current Developments in e-Business and Energy. Hoffman, Jim, Spring 2001, pp. 101‑109.

Current Developments in Environmental Issues 110
Charlotte Wright

With energy prices soaring and no end in sight for demands for still more energy, the pressure increases on the oil and gas industry to find new domestic sources. As the industry is searching for new frontiers to explore, those who are concerned with environmental preservation seek to establish many areas as being completely off limits. One "oil versus environment" issue that is evolving as a critical battleground is the proposal to open up the Arctic National Wildlife Refuge (ANWR) to exploration and drilling. The resolution of the issues surrounding the ANWR debate could have long-term effects on the future of the domestic industry.

Current Developments in Environmental Issues. Wright, Charlotte, Spring 2001, pp. 110‑113.

COPAS: An Update 114
Jon Gear

An update on the various activities of the committees and subcommittees of the Council of Petroleum Accountants Societies (COPAS).

COPAS: An Update. Gear, Jon, Spring 2001, pp. 114‑119.