Virtually every oil and gas lease executed in Texas within the last seventy-five years contains the same standardized provisions regarding its duration: The lease is to last for a specified period, such as five years, and as long thereafter as oil or gas is produced. Throughout the twentieth century a variety of clauses were added to oil and gas leases to protect the lessee against termination in many of the most common situations causing temporary cessation of production. A series of cases out of the Texas Panhandle are attempting to define the circumstances under which the "temporary-cessation-of-production" doctrine preserves an oil and gas lease.

Temporary Cessation of Production: The Panhandle Cases. Smith, Ernest, Spring 2003, pp. 1‑17.

Although the greater availability of electronic data has made access to information easier, the accurate interpretation of data remains a challenge to market analysts. There is no single tool, web site, or data source that will determine the reasonableness of royalty payments under the mineral lease or production payments under the joint operating agreement. Regardless of the standard that will be used to evaluate the reasonableness of payments for oil and gas, the starting point for any comparison must be a compilation of the amounts that have been paid.

Using the Web to Determine the Reasonableness of Payments to Royalty Owners and Non-Operators. Ellis, Jonathan E. and Alguire, Christopher K., Spring 2003, pp. 18‑35.

This is the first installation of a two-part article that explores the role of the United States Department of the Interior's Minerals Management Service's efforts to develop clear, fair, and cost-effective regulations to establish the royalty value of gas production from Indian lands. The exploration, production, and sale of natural gas from the nation's Indian reservations and allotted lands has generated billions of dollars in revenue. Historically, only a small part of that revenue has gone to Indian tribes, and the allotters have long sought a greater—in their view fairer—distribution of royalty revenues, challenging the federal government to honor its trust obligation to manage and protect these valuable mineral resources.

Developing the Mineral Res on the "Rez"—The New Indian Gas Royalty Regulations: Is It Still a Matter of Trust? Glaze, James, Spring 2003, pp. 36‑69.

Many oil and gas companies have significant inventories of purchased and/or produced oil, gas, and derivative products. For financial accounting purposes, inventory cost may be determined by specific identification or by the association of the flow of cost factors—first-in, first-out (FIFO), last-in, first-out (LIFO), and average cost. This article addresses whether the use of the average cost method clearly reflects income for federal income tax purposes and illustrates the potential impact that using the average cost method rather than FIFO can have on taxable income during periods of rising prices.

Is the Average Cost Method a Permissible Inventory Method for Federal Income Tax Purposes in the Oil and Gas Industry? Walter, Bill and Walter, Larry, Spring 2003, pp. 70‑83.

Negotiating exploration contracts with foreign government representatives is a dynamic experience. Government personnel find the experience equally fascinating, but the dynamics are different. Unfortunately some of the dynamics are adverse and created by personnel making what they consider to be innocent statements.

Current Developments in Production Sharing Contracts and International Concerns: Avoiding Typical Negotiation Blunders. Johnston, Daniel, Spring 2003, pp. 84‑88.

On average, upstream energy companies investigate replacing their back office software every seven to ten years. Today's CFO must decide to whom to trust the computer systems that run this business. What functionality will truly make a difference in the bottom line? How can you keep up with industry practice changes, business process improvements, and the ever growing technological and system compatibility needs of the industry? How can you use your business computer system to make money rather than just track what happened?

Tech Startups in E&P: Investigating Software Solutions. Hoffman, Jim, Spring 2003, pp. 89‑93.

A report on the activities of the various committees of the Council of Petroleum Accountants Societies.

COPAS: An Update. Gear, Jon, Spring 2003, pp. 94‑97.