The Oil & Gas Journal reported that operators, drilling contractors, and their trade associations have voiced concern about proposed accounting changes they fear would complicate contractual relationships, confuse investors and raise administrative costs.

OGJ noted that the proposal would not apply to leases of mineral rights but, as currently worded, potentially would treat drilling contracts as leases requiring new levels of reporting.

OGJ said drilling contractors argue that treatment of their agreements with operating companies as leases under the new standards would make reports less comparable than they are now.

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