IPAA News 12/11/09 

December 11, 2009

Dear IPAA Members and Colleagues:

As the year comes to an end, I have some very good news.  Legislative efforts in the House of Representatives to restrict your company's continued access to over-the-counter (OTC) markets has been defeated.

After an intense lobbying campaign, IPAA and its coalition supporters were able to easily defeat several amendments to HR 4173, "The Wall Street Reform and Consumer Protection Act of 2009."  House Financial Services Chairman Barney Frank (D-MA) offered an amendment that would have given the CFTC the authority to impose margin requirements on OTC hedges.  If the CFTC had this authority, producers could be required to use cash to post collateral, rather than put the cash into finding and producing natural gas and oil and maintaining employee rolls. This amendment was defeated 150 to 280.  Rep. Collin Peterson (D-MN) spoke against the amendment.  Rep. Spencer Bachus (R-AL) deemed the vote as being for "margin requirements or jobs."

IPAA also successfully opposed Rep. Bart Stupak's (D-MI) amendment that would have required all non-cleared swaps to be executed on a registered swap execution facility.  This is unnecessary, as non-cleared trades must be reported.  The reporting requirements included in the legislation will ensure adequate transparency without restricting the use of the OTC market to end users.  This amendment was defeated 98-320.  Reps. Peterson and Frank Lucas (R-OK) spoke in opposition.  Peterson termed his opposition as "reluctant," but stated that the amendment would have imposed an execution mandate.  On the floor of the House of Representatives, he referenced the letter sent by the Energy End Users Derivatives Coalition, listing IPAA as one of the associations opposed to the amendment.

The final financial reform bill was passed by the House today by a vote of 223-202.

Prior to the amendment votes last night, IPAA alerted its grassroots action network to call and send letters to members of the House.  IPAA's government relations team has spent months educating lawmakers about the detrimental proposals and made sure that every congressional office received IPAA's information.

I'd like to thank all of those who responded to our action alert.  Your participation in this program is essential to our successes in Washington.

Sincerely,

Barry Russell

President and CEO