42 U.S.C. § 6383 — Accounting practices
submitted 51 years ago by Pub. L. 94-163 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 605 words · no verdicts yet
The Securities and Exchange Commission must develop accounting practices for crude-oil and natural-gas producers and may adopt Financial Accounting Standards Board practices after consultation and public comment. The practices must support a detailed domestic and foreign energy database.
(a) To create a reliable energy database about crude-oil and natural-gas production, the Securities and Exchange Commission must take necessary steps to develop and ensure compliance with accounting practices* for accounts of persons producing crude oil or natural gas in the United States. The practices must be developed within 24 months after December 22, 1975, and apply beginning with each producer’s fiscal year that starts 3 months after the practices are prescribed or made effective under subsection (b)(2).
(b) The Commission must (1) consult the Secretary*, the Government Accountability Office, and the Federal Energy Regulatory Commission, and (2) may prescribe rules or recognize and rely on Financial Accounting Standards Board practices if it is assured producers will follow them to the same extent as Commission rules. Interested persons must have an opportunity to submit written comments on that choice. The Commission may extend the 24-month period as needed for meaningful comments.
(c) The Commission must ensure, as far as practicable, that the practices allow an energy database, treating domestic and foreign operations separately, containing: (1) separate capital, revenue, and operating-cost calculations for (A) prospecting, (B) acquisition, (C) exploration, (D) development, and (E) production, including the listed geological, geophysical, carrying, drilling, development, and reserve-acquisition costs. The calculations must account for disposition of capitalized costs, special conveyances and joint operations, book and tax income differences, and transfer prices for products or assets between related or unrelated persons. (2) Full financial information, including (A) domestic and foreign reserves and operations to evaluate financial effort and results and (B) functional classifications that can be compared with reserve and operating statistics. (3) Other information, projections, and relationships needed to compile the database.
For purposes of developing a reliable energy data base related to the production of crude oil and natural gas, the Securities and Exchange Commission shall take such steps as may be necessary to assure the development and observance of accounting practices* to be followed in the preparation of accounts by persons engaged, in whole or in part, in the production of crude oil or natural gas in the United States. Such practices shall be developed not later than 24 months after December 22, 1975, and shall take effect with respect to the fiscal year of each such person* which begins 3 months after the date on which such practices are prescribed or made effective under the authority of subsection (b)(2).
In carrying out its responsibilities under subsection (a), the Securities and Exchange Commission shall—
consult with the Secretary, the Government Accountability Office, and the Federal Energy Regulatory Commission with respect to accounting practices to be developed under subsection (a), and
have authority to prescribe rules applicable to persons engaged in the production of crude oil or natural gas, or make effective by recognition, or by other appropriate means indicating a determination to rely on, accounting practices developed by the Financial Accounting Standards Board, if the Securities and Exchange Commission is assured that such practice will be observed by persons engaged in the production of crude oil or natural gas to the same extent as would result if the Securities and Exchange Commission had prescribed such practices by rule.
The Securities and Exchange Commission shall afford interested persons an opportunity to submit written comments with respect to whether it should exercise its discretion to recognize or otherwise rely on such accounting practice in lieu of prescribing such practices by rule and may extend the 24-month period referred to in subsection (a) as it determines may be necessary to allow for a meaningful comment period with respect to such determination.
The Securities and Exchange Commission shall assure that accounting practices developed pursuant to this section, to the greatest extent practicable, permit the compilation, treating domestic and foreign operations as separate categories, of an energy data base consisting of:
The separate calculation of capital, revenue, and operating cost information pertaining to—
prospecting,
acquisition,
exploration,
development, and
production,
including geological and geophysical costs, carrying costs, unsuccessful exploratory drilling costs, intangible drilling and development costs on productive wells, the cost of unsuccessful development wells, and the cost of acquiring oil and gas reserves by means other than development. Any such calculation shall take into account disposition of capitalized costs, contractual arrangements involving special conveyance of rights and joint operations, differences between book and tax income, and prices used in the transfer of products or other assets from one person to any other person, including a person controlled by, controlling, or under common control with such person.
The full presentation of the financial information of persons engaged in the production of crude oil or natural gas, including—
disclosure of reserves and operating activities, both domestic and foreign, to facilitate evaluation of financial effort and result; and
classification of financial information by function to facilitate correlation with reserve and operating statistics, both domestic and foreign.
Such other information, projections, and relationships of collected data as shall be necessary to facilitate the compilation of such data base.
Source credit: (Pub. L. 94–163, title V, § 503, Dec. 22, 1975, 89 Stat. 958; Pub. L. 95–91, title III, § 301, title IV, § 402, title VII, §§ 703, 707, Aug. 4, 1977, 91 Stat. 577, 583, 606, 607; Pub. L. 105–388, § 5(a)(15), Nov. 13, 1998, 112 Stat. 3479; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.)
- 1975Enacted · Pub. L. 94-163 · 89 Stat. 958
- 1977Amended · Pub. L. 95-91 · 91 Stat. 577, 583, 606, 607
- 1998Amended · Pub. L. 105-388 · 112 Stat. 3479
- 2004Amended · Pub. L. 108-271 · 118 Stat. 814
A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-163 on 1975-12-22.
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