
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC6383]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                     CHAPTER 77--ENERGY CONSERVATION
 
                    SUBCHAPTER IV--GENERAL PROVISIONS
 
             Part A--Energy Data Base and Energy Information
 
Sec. 6383. Accounting practices


(a) Development by Securities and Exchange Commission; time of taking 
        effect

    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) of 
this section.

(b) Consultation with Secretary, General Accounting Office and Federal 
        Energy Regulatory Commission; rules; reliance on practices 
        developed by Financial Accounting Standards Board; opportunity 
        to submit written comment

    In carrying out its responsibilities under subsection (a) of this 
section, the Securities and Exchange Commission shall--
        (1) consult with the Secretary, the General Accounting Office, 
    and the Federal Energy Regulatory Commission with respect to 
    accounting practices to be developed under subsection (a) of this 
    section, and
        (2) 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) of this 
section as it determines may be necessary to allow for a meaningful 
comment period with respect to such determination.

(c) Requirements for accounting practices

    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:
        (1) The separate calculation of capital, revenue, and operating 
    cost information pertaining to--
            (A) prospecting,
            (B) acquisition,
            (C) exploration,
            (D) development, and
            (E) 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.
        (2) The full presentation of the financial information of 
    persons engaged in the production of crude oil or natural gas, 
    including--
            (A) disclosure of reserves and operating activities, both 
        domestic and foreign, to facilitate evaluation of financial 
        effort and result; and
            (B) classification of financial information by function to 
        facilitate correlation with reserve and operating statistics, 
        both domestic and foreign.

        (3) Such other information, projections, and relationships of 
    collected data as shall be necessary to facilitate the compilation 
    of such data base.

(Pub. L. 94-163, title V, Sec. 503, Dec. 22, 1975, 89 Stat. 958; Pub. L. 
95-91, title III, Sec. 301, title IV, Sec. 402, title VII, Secs. 703, 
707, Aug. 4, 1977, 91 Stat. 577, 583, 606, 607; Pub. L. 105-388, 
Sec. 5(a)(15), Nov. 13, 1998, 112 Stat. 3479.)


                               Amendments

    1998--Subsec. (b). Pub. L. 105-388, Sec. 5(a)(15)(A), substituted 
``with respect to'' for ``with repect to'' in concluding provisions.
    Subsec. (c)(1). Pub. L. 105-388, Sec. 5(a)(15)(B), substituted ``, 
controlling,'' for ``controlling'' in concluding provisions.

                          Transfer of Functions

    ``Secretary, the General Accounting Office, and the Federal Energy 
Regulatory Commission'' substituted for ``Federal Energy Administration, 
the General Accounting Office, and the Federal Power Commission'' in 
subsec. (b)(1) pursuant to sections 301, 402, 703, and 707 of Pub. L. 
95-91, which are classified to sections 7151, 7172, 7293, and 7297 of 
this title and which terminated Federal Energy Administration and 
transferred its functions (with certain exceptions) to Secretary of 
Energy and terminated Federal Power Commission and transferred its 
functions to Federal Energy Regulatory Commission and Secretary of 
Energy.

                  Section Referred to in Other Sections

    This section is referred to in title 15 section 796.
