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RCED-84-3 1 (1984-03-01)

handle is hein.gao/gaobabnhd0001 and id is 1 raw text is: 


UNITED STATES GENERAL ACCOUNTING OFFICE
           WASHINGTON, D.C. 20548


March 1, 1984


RESOURCES. COMMUNITY,
AND ECONOMIC DEVELOPVENT
     DIVISION


B-212010


The Honorable Joseph R. Biden, Jr.
The Honorable Bill Bradley
The Honorable Dale L. Bumpers
The Honorable John C. Danforth
The Honorable Alan J. Dixon
The Honorable Christopher J. Dodd
The Honorable Thomas F. Eagleton
The Honorable J. James Exon
The Honorable Charles E. Grassley
The Honorable Edward M. Kennedy
The Honorable Carl M. Levin
The Honorable Howard M. Metzenbaum
The Honorable Claiborne Pell
The Honorable William Proxmire
The Honorable Donald W. Riegle, Jr.
The Honorable Paul S. Sarbanes
The Honorable James R. Sasser
The Honorable Edward Zorinsky
United States Senate


123606


     Subject: Natural Gas Profit Data (GAO/RCED-84-3)

     This letter responds to your December 22, 1982, request that
we study the profitability of natural gas production under the
Natural Gas Policy Act of 1978.      In your request letter, you
expressed concern that the Congress had little information on
natural gas production profits and that such information was
needed to develop comprehensive natural gas legislation. Based on
your request and subsequent discussions with your offices, we
obtained information on (1) the extent to which profit data and
related financial data on natural gas production are collected by
federal agencies and trade associations that represent companies
in the oil and natural gas industry, (2) recent studies of natural
gas producers' profitability, (3) some of the many methods that
can be used by natural gas producers to separate the common costs
incurred in producing natural gas and oil, and (4) the two basic
accounting methods used by natural gas producers to report joint
natural gas and oil profits.

     This letter summarizes the results of our work and its enclo-
sure provides additional details. Our review, which was conducted

                                                         (308901 )


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