This is an individual assignment. I’m asking you to write a two-to three-page paper (double-spaced following APA guidelines) on how you would handle the dilemma described in this case. Think about the situation, describe your action(s). Please also predict what Elena’s reaction will be and how you will respond. Since we all have the same case, please keep the recap of the situation minimal (less than 2/3 of a page).In addition to describing your actions, please include how these actions fit into the Engineer’s Code of Ethics or other class ethics sources, being sure to cite the specific statements that guide your choices. Please see the rubric for more grading details.
DESCRIBING THE ROLE OF THE RESERVES COMPANY
See if the below explanation helps.
The reserves consulting company is an independent asset evaluator.
The best way to describe it is to provide an analogy.
You want to buy a car, but you don’t have enough money to pay cash.
You find a seller with the perfect vehicle for you. Unfortunately, they only want full payment, so without a rich aunt or uncle, you must borrow the money from a bank to pay them. If you default on the loan, the bank can repossess the car and sell it to recoup the money they lent you.
However, before making this loan, the bank wants to ensure this is a legit vehicle worth at least the amount you want to borrow, so they send an appraiser to look at the car and establish a value for the car. That’s it. The appraiser isn’t involved in the loan itself. The appraiser doesn’t provide business or consulting advice on if you should or shouldn’t buy this car or if the bank should or shouldn’t make the loan. The appraiser is an independent, third-party with knowledge of car evaluations who both you and the bank trust. The evaluator is brought in to establish value. THAT is the role Elana’s reserves company play, just with oil and gas assets instead of a vehicle.
To apply this analogy back to the case, the landowner is expecting a $12.5 million payment now for the lease. Elana is using the current value of her company’s assets (its oil and gas in the ground) to borrow from the bank to pay the landowner. The bank, not knowing much about oil and gas evaluations, will only accept the value assigned by a known, established, and trusted reserves firm, like yours.
It’s never my intent to have the setting be the hurdle. The main focus is the ethics of the situation.
CITATION EXAMPLES FOR NSPE
CITING AS A WEBSITE (PREFERRED)
Paraphrasing. Comes at the end of the sentence before the sentence’s period:
(Code of Ethics, 2019)
Direct quote. Comes immediately the quote regardless of where it is in the sentence:
(Code of Ethics, 2019, [Section Title])
Example of this one: (Code of Ethics, 2019, Rules of Practice Section) on first reference
CITING AS A PDF
Paraphrasing. Comes at the end of the sentence before the sentence’s period:
(National Society of Professional Engineers, 2019) on first reference
(NSPE, 2019) on the second reference
Direct quote. Comes immediately the quote regardless of where it is in the sentence:
(National Society of Petroleum Engineers, 2019, Rules of Practice Section) on the first reference
(NSPE, 2019, Rules of Practice Section)
REFERENCE PAGE ENTRY
Code of Ethics. (2019). National Society of Professional Engineers. https://www.nspe.org/resources/ethics/code-ethics
National Society of Petroleum Engineers. (2019). Code of Ethics for Engineers. https://www.nspe.org/sites/default/files/resources/pdfs/Ethics/CodeofEthics/NSPECodeofEthicsforEngineers.pdf
I hope the documents attached will help. If you have any questions about the assignment let me know. One or two sources are fine.