Petroleum Geology and the securities laws: Implications for professional practice

Conference · Fri Mar 01 04:00:00 EST 1991 · AAPG Bulletin (American Association of Petroleum Geologists); (United States)

OSTI ID:5784997

Abbott, Jr, D M; Achuff, C H ^[1]

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1. Securities and Exchange Commission, Denver, CO (United States)

Many geologists' practice includes such activities as recommending prospects, estimating reserves, and assembling drilling deals. When other people's money is used to finance these and other activities, the geologist, knowingly or not, becomes subject to the securities laws. Full disclosure to investors of all relevant information is the primary securities law principle affecting geological practice. In particular, geologic recommendations or reports reaching investors must effectively communicate both the upside potential and the downside risks of the project. If investors feel misled, the geologist may be sued for statements made in or based on his or her reports or for failing to discuss significant factors. To reduce this risk, professional reports should state the date of the report, what was done, for whom, what data and underlying assumptions were used, what remains to be done, what is recommended, and whether distribution of the report should be restricted, among other things. Always retain a copy in case questions about the report's contents arise. Remember, reports tend to be passed along with the project and can be used or misused several years later by successors in interest in the project. In today's litigious society, there is an increasing likelihood that geologists may have to defend their work in court. Geologists should be aware of the impact of the securities and other laws on their practice.

• OSTI ID: 5784997
• Report Number(s): CONF-910403--
• Conference Information: Journal Name: AAPG Bulletin (American Association of Petroleum Geologists); (United States) Journal Volume: 75:3
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
ARBITRATION
INDUSTRY
INVESTMENT
LAWSUITS
LEGAL ASPECTS
LIABILITIES
PERSONNEL
PETROLEUM INDUSTRY
PROFESSIONAL PERSONNEL
RECOMMENDATIONS
REGULATIONS