Ms., Wagoner reports on the results of a survey of interest capitalization rules of 23 oil and gas companies. Such topics as minimum amount required for capitalization, minimum time period for capitalization date capitalization period begins and borrowings included in computing the capitalization rate are covered.

In this article the authors discuss the expansion of traditional cash flow analysis in order to make different financial methods for oil and gas properties more compatible. A case study is used to illustrate this cash flow strategy.

Should the auditor insist on applying a ceiling to capitalized costs? If so, what would be the logical approach (or approaches) to computing a ceiling, based on the facts given?

When should ceiling test computations using the full cost method be included in capitalized costs to be amortized?

Volatile oil prices during the last decade have made impairment of long-lived assets a significant and far-reaching issue for full cost firms. The issuance by the FASB of a discussion memorandum on impairment of long-lived assets makes appropriate a re-evaluation of the practical and theoretical validity of the full cost ceiling test and the need to consider changes.

Smith and Herrmann analyze the need for a ceiling on capitalized costs when the full-cost method is used, discuss the valuation method to be used in computing the ceiling, and identify reserve categories to be included. They also analyze the income tax effects to be considered in applying the ceiling test.

This paper critically examines the association of executive pay and firms' accounting performance as a function of the accounting method used, successful efforts vs. full cost. Specifically, they test whether or not there is any link between the accounting method used for exploration expenditures and pay-performance sensitivity. Using alternate measures of accounting performance, the authors estimate econometric models of CEO cash compensation and total compensation that incorporate the interaction of the selected accounting method and accounting performance.

Mr. Haddock, President and Chief Executive Officer of American Petrofina Inc. discusses some of the most challenging and pressing problems and challenges facing the oil and gas industry in the next decade. These challenges include the changing supply/demand balance, environmental issues, the challenge of obtaining capital, energy taxes, and globalization of the industry. Mr. Haddock suggests ways that these challenges might be met, giving as examples some of the steps that have been taken by American Petrofina.

Since 1989, the Institute of Petroleum Accounting at the University of North Texas in partnership with PricewaterhouseCoopers L.L.P. has conducted surveys of accounting practices in the oil and gas industry. In the first of a two-part article, the authors compare some important accounting practices and how they have changed over time as reflected in the surveys of 1994, 1997, and 1999. Part Two of this article will appear in the spring issue of the Petroleum Accounting and Financial Management Journal.

This is the second and final installment of an article on changes in petroleum accounting practices as detected by a series of surveys conducted jointly by the Institute of Petroleum Accounting and PricewaterhouseCoopers L.L.P. The topics covered in this installment include gas imbalance accounting, crude oil exchange, revenue accruals and finding costs, capitalized interest, and needed rule changes. The first part of this article appeared in the Fall/Winter 2001 issue of the Petroleum Accounting and Financial Management Journal.

The Institute of Petroleum Accounting at the University of North Texas in partnership with PricewaterhouseCoopers L.L.P. has periodically over the years conducted a survey of accounting practices in the oil and gas extractive industry. By comparing the 2001 survey results with that of the 1999 survey this article considers some of the major changes observed as the industry entered the new millennium.

In 2008, the Institute of Petroleum Accounting, in partnership with PricewaterhouseCoopers LLP, conducted a survey of accounting practices for the U.S. petroleum exploration and production industry. Part I of this article discusses the major changes observed since the last survey.

In 2008, the Institute of Petroleum Accounting at the University of North Texas, in partnership with PricewaterhouseCoopers LLP, conducted its survey of U.S. accounting practices. The survey is the latest in a sequence of studies completed by the Institute since the 1980s. This article, part two of a two-part sequence, discusses some new insights provided by the 2008 Survey.

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.

During the 1980's, a convergence of unfavorable events triggered extensive restructuring and retrenchment within the U.S. petroleum industry. One result was an increase in foreign exploration and development. This article explores the shift from domestic to foreign operations that occurred in the oil industry during the period 1981-1990.

The author provides recent evidence regarding the major structural changes in the audit market for the U.S. oil and gas industry.

In this research article Mr. Jones reports on a survey of accounting practices of successful efforts companies in situations where the company, the operator in a joint interest, uses drilling rigs on which it is paying excessively high rental rates under long-term contracts.

This article is intended to provide practical advice for landowners in negotiating oil and gas leases for their mineral interests.

Although the Chinese oil and gas sector has grown rapidly over the past decade, much work still remains. Growing demand is already outstripping production, and the gas industry is still in an underdeveloped stage. No comprehensive legal framework exists, and there are improper restrictions on import, export, and pricing of crude oil and oil products. Forecasts suggest that by 2010 China will experience a shortage of more than 10 million tons of oil and will need to find a way to reduce this demand and supply gap.

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.

In an update to his very successful article in the Summer 1990 Journal, Mr. Goleman addresses topics of critical importance in the post-Exxon Valdez spill era: implications of the 1990 Federal Clean Air Act amendments; past exploration, production, transmission, and refining practices and their legacies--cleanups under RCRA and Superfund; community right-to-know implementation and its progeny-environmental and toxic tort litigation; and management of environmental Programs in the 1990's.

Fraud has essentially the same meaning in the criminal context as in the civil context, although they share vastly different burdens of proof. Evidence that may not support a conviction for criminal fraud may suffice in a civil action.

This paper, a companion piece to the preceding article, discusses class action in state and federal oil and gas cases from the defendant's perspective. In the past few years, high courts in oil-rich states such as Louisiana and Texas have recognized and applied the conservative standards of federal class action jurisprudence, most significantly in the opinions in Ford v. Murphy Oil U.S.A, Inc. and Southwestern Refining Co. v. Bernal. Class actions are not new to the oil and gas industry, and they are not likely to go away.

The author discusses the state of Earth's climate, what related science represents, knowledge and fact climate changes, the two sides of the argument and the role of media.

Cloud computing continues to be adopted at or near double digit growth rates for the near future, despite strong evidence showing that security remains a significant concern. This article analyzes cloud risk management, governance, mitigations and remedies.

In an appeal filed by Sunnyside Coal Company, the Tenth Circuit Court of Appeals recently affirmed that premiums for coal miners' retirement benefits that were assessed against a bankruptcy estate under the 1992 Coal Industry Retiree Health Benefit Act are taxes incurred by the estate.

Mr. Seckman reviews examples of situations in which crude oil has been stolen or improperly removed. He discusses the need for periodic, unannounced, back gauging by a second person to detect and control theft. Procedures for detecting and combatting equipment theft and fraud are also discussed.

Everyone hopes that each drilling opportunity goes smoothly from the beginning when the lease is evaluated through the time of a profitable payout and up to and including an easy plugging by the grandchildren of the original lessees. Unfortunately, this seldom happens. In the business of mineral development it is best to know the potential pitfalls in advance, as well as the available methods for resolving any problems that may arise, many of which can be readily identified and resolved if the practitioner knows where to look

The International Committee of the PASD reports on a study of the various forms of accounting procedures in five areas of the world. The study covers agreements among participating companies; it does not cover agreements between companies and host governments.

This article reports on a survey of selected accounting practices by certain Canadian oil and gas companies using the full-cost method. It compares the results of the survey with the results of a similar survey of U.S. companies conducted in 1982 by the Extractive Industries Accounting Research Institute.

A study discussing the petroleum fiscal regime changes experienced in the Malaysian oil and gas industry from pre-1974 to 2010.

Concern over the existence of non market-responsive gas supplies prompted the passage of FERC Orders 380, 436, 500, and 636. The changes dictated by the new regulations have resulted in an increasingly competitive natural gas market.

Under the 1986 Tax Reform Ad, massive changes were made in the computation of the foreign tax credit. Many of these changes are not yet fully appreciated by taxpayers and tax return preparers. For oil and gas producers with foreign operations, full compliance with the law may necessitate major changes in tax records. Dr. Price examines the most important elements in computing the credit, especially for oil and gas producers.

Vollintine and McCune review the requirements of FAS 69 which establishes new disclosures requirements relating to oil and gas producing activities of publicly-held companies. The authors present a comprehensive example illustrating the disclosures required, including the analysis of changes in the discounted present value of future cash flows from the production of proved oil and gas reserves.

Summary by John Jolly about the development of the computerized equipment pricing system for the oil and gas industry.

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.

The FASB's new accounting standards, specifically SFAS Nos. 90, 92, and 101, deviate from previous legislative and regulatory mandates on several crucial points, including FERC's system of accounts, retroactive rate-making, original cost rate-making, and PUC rate-making.

A number of offshore oil and gas accidents in 1988-1989 has led the oil and gas industry to devote greater attention to such disasters. Professor Bentham reviews provisions in United Kingdom oil and gas licenses and in the U. K. statutes and regulations regarding offshore disasters. The impact of past disasters on the development of statues and regulations receives special attention.

As the estimates of environmental clean-up costs skyrocket, the SEC's concern that these costs have not yet passed through financial statements has led to a pro-active policy on environmental accounting and disclosure.

Over the last decade, most of the failures of exploration and production ventures can be attributed to price risk. By utilizing existing financial instruments, today's producer can control price risk, obtain additional funding for oil and gas acquisition, stabilize profits and cash flows, reduce both the cost of equity and borrowing funds, and increase the existing borrowing base.

Recent accounting pronouncements and the impact of recent market changes have altered the way financial statements are prepared in Great Britain. This article examines the repercussions on the issues of decommissioning, take-or-pay contracts, impairment, and associate or joint ventures.

This is Part I of a two-part article which examines COPAS accounting procedures and the operating agreement which establishes the overall structure and framework for conducting exploration and production operations and sharing the costs of such operations among the parties to the agreement.

Part II of a two-part article (see Part I in the Spring 2017 issue) examines COPAS accounting procedures and the operating agreement and addresses a number of specific issues, past and future that are legally affected by the Joint Operating Agreement.

A Published Pricing Taskforce formed from within COPAS has recommended, and the COPAS Board of Directors has sanctioned, the use of Historical Price Multipliers.

A report from the executive director on the various committees and subcommittees of the Council of Petroleum Accountants Societies.

A report from the executive director on the various committees and subcommittees of the Council of Petroleum Accountants Societies.

This issue's update includes a review of Board activities at the Fall COPAS meeting in San Antonio from COPAS President Jon Gear, plus reports from the various COPAS committees and information on the new COPAS Accredited Petroleum Accountant Program.

An update of the activities of the Council of Petroleum Accountants Societies from Executive Director Jon Gear.

Tom Wierman was approved by COPAS as the eighth Executive Director effective March 1, 2012. Mr. Wierman gives an update of COPAS activities and initiatives.

COPAS is the only authoritative body that develops and publishes the standards and guidelines regarding oil and gas contracts and establishes the guidelines by which accountants perform their day-to-day functions. Mr. Wierman gives a 2013 COPAS update.