The Board held two education sessions on the extractive activities research project. In the first session, staff from the US Securities and Exchange Commission (SEC) provided an overview of the SEC Concept Release on Possible Revisions to the Disclosure Requirements Relating to Oil and Gas Reserves, which closed for comment in February 2008. No decisions were made.
In the second session, representatives of the Society of Petroleum Engineers (SPE) Oil and Gas Reserves Committee and the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) presented the findings of a review, which was undertaken at the request of the Board, to compare their respective oil & gas and minerals reserve and resource definitions and classification systems. The review concluded that there is a high degree of compatibility in the classification logic that petroleum and minerals evaluators apply in determining quantities of their respective minerals that reside in a field or a deposit and can be extracted and marketed. The review findings are presented in a report prepared by SPE and CRIRSCO that �maps� the oil & gas and minerals reserve and resource definitions to illustrate the extent of comparability between the respective definitions.
The Board expressed the view that this mapping report would be useful for developing accounting and disclosure models for reserves and resources that are comparable across minerals and oil & gas. The Board expressed its appreciation for the time and effort that members of the SPE and CRIRSCO had devoted to completing this comprehensive comparison of their respective definitions and for preparing the mapping report.
In addition, the Board expressed the view that the research project�s discussion paper should identify the SPE and CRIRSCO definition and classification systems as representing the preferred sets of definitions for use in supporting accounting and disclosure requirements for minerals and oil & gas reserves and resources. The Board asked the project team to continue to monitor the SEC�s decisions in relation to its Concept Release.
The Board discussed the extractive activities project team�s analysis regarding when an entity would be considered to control a reserve or resource for the purposes of recognising it as an asset. The team noted that a number of approvals from governments or other authorities might be required at different stages during the development of a resource property and that the lack of some of those approvals could affect whether control exists. No conclusions were reached.