One reason for an engineer to estimate the value of oil and gasproperties is to prepare an offer to purchase. Another reasonis to respond to a request from the accounting department. Byreading about selected IRS rulings, SEC rules, and FASBStatements and Concepts, the reader will better understandwhy the guidelines were adopted and how valuation methodsand assumptions can be changed to comply with differentguidelines in the United States. This paper is intended to beillustrative in nature and to provide a basis for a commonunderstanding between engineers and accountants. This paperis not intended to be a definitive text. Interpretations of theguidelines and regulations may change and new rules orinterpretations may be adopted from time to time. Otherregulations and guidelines exist on the country, state, and locallevels. They can vary by area and require local expertise.
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