This study focuses on non-financial variables to explain cross-sectional differences in the level of audit and non-audit fees. In an industry like oil and gas, with unique characteristics which distinguish it from other industries, non-financial factors as measures of future profit potential occupy a crucial role in the analysis of audit and non-audit fee determinants. The traditional financial variables may not be sufficient for firms operating in such industries. One has to look beyond those factors and consider variables that are non-financial or technical in nature to make a proper evaluation of audit/non-audit fee variations across firms.

The Effect of Non-Financial Factors on Cross-Sectional Differences in Audit and Non-Audit Fee Levels of Oil and Gas Firms. Mitra, Santanu and Crumbley, D. Larry, Summer 2004, pp. 1‑12.

This the first installment of a four-part series which explores the influence of private and market uncertainty on the economic and system measures associated with various fiscal regimes. This paper focuses on the application of meta-modeling to fiscal system analysis and design. In Part IT, meta-modeling is used to examine the impact of Deepwater royalty relief on the Gulf of Mexico's Deepwater Na Kika development. In Part III, an analytic framework is developed for production sharing agreements, followed in Part N by an examination of the design of Angola's fiscal arrangement for the Girassol field development. Parts IT-N will appear consecutively in the next three issues of the Journal.

A Meta-Modeling Approach to Fiscal Systems Analysis. Part 1: Concessionary Systems. Kaiser, Mark J. and Pulsipher, Allan G., Summer 2004, pp. 13‑38.

This is the second installment of a two-part article which began in the Spring 2004 issue of the Journal. As sub-state governmental units become more active in regulating and/or prohibiting oil and gas drilling and production activities, the likelihood arises that there will be an increase in the amount of constitutional challenges filed. Just as the state may prohibit a property owner from operating a nuisance, a state may prohibit a mineral owner from engaging in activities that its ownership interest does not authorize.

Drilling in the Cities and Towns: Rights and Obligations of Lessees, Royalty Owners, and Surface Owners in an Urban Environment. Kramer, Bruce, Summer 2004, pp. 39‑71.

The oil and gas lease is an American invention designed to give the lessee an exclusive option to develop leased land. However, the term "royalty" does not describe what the lessor is entitled to in the event of production; it merely indicates the lessor will be compensated in some fashion if development is successful. The precise terms of the lease will define the "royalty" that is due.

Exploring the Origins of Royalty Disputes. Pierce, David, Summer 2004, pp. 72‑111.

The "savings index" is a measure of how much a company gets to keep for every dollar it saves. Keeping costs down benefits both the government and the international oil company (IOC) in a production sharing contract (PSC). Most fiscal systems are well designed in this regard: there is a clear alignment of interests.

More on the Savings Index. Johnston, Daniel, Summer 2004, pp. 112‑120.

A report on the activities of the various committees and subcommittees of Council of Petroleum Accounting Societies (COPAS).

COPAS: An Update. Gear, Jon, Summer 2004, pp. 121‑127.