That is what matters. If the operator takes greater risks in the residual assets of the facility (e.g. B damage caused by a blowout), the operator may try to increase his control over the management of these risks. In other words, in return for taking on greater risks when drilling the well, the operator can design the contract in such a way that it gives more decision-making power over how the drilling erg is used and for what purpose. Time is really important. As the effective date approaches (i.e. January 1, 2019 for public bodies and January 1, 2020 for all other companies), the most important step an O&G company can take is to start efforts related to this accounting change now. It can be difficult to anticipate data gaps and overcome the barrier to data reduction, but this can be achieved with adequate support and sufficient time. With the right planning, O&G companies can help ensure that their transition to the new leasing standard runs smoothly and successfully.

The provisions on termination rights in the event of an event of force majeure and loss of the drilling logging facility should also be carefully reviewed and documented. The owner and operator of the installation generally consider properly allocating the risk of force majeure and sometimes agree on how this risk is shared between them. Loss of the drilling logging facility often results in immediate termination and is not an offence under normal circumstances. If a right of early termination exists for convenience, the clear terms of such termination should be well documented. Early termination is essentially a lump-sum compensation clause which, as a general rule, causes the operator to lose the right to terminate before the end of the period. Terminating a drilling contract can pose particular problems for both the logging platform owner and the operator, so it is important that the termination terms are well understood and defined. As O&G companies identify and collect the data needed to meet ASU requirements, companies should also consider the challenges of day-to-day data management. Data collection and abstraction can take many months, while new leases are executed and other leases are renewed, modified or terminated. Other important decision rights affecting the economic benefits to be derived from a drilling logging facility should also be taken into account in determining whether the operator`s decision rights most influence, how and for what purpose the asset is used. The question arises as to the scope of the new standard and whether easements and rights of way would or could fall within the scope of the standard. These questions are often based on the idea that such agreements are intangible assets and would therefore be automatically excluded from the scope of the standard.

We do not believe that these rules are automatically excluded from the scope of the standard; Rather, we believe that they would require analysis to determine whether they are leases. .