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Nicole Daigle /
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For Immediate Release
October 19, 2009
IPAA Responds to House Financial Services Committee’s Passage of Over-the-Counter Derivatives Markets Act of 2009
WASHINGTON –
“We are encouraged that the recently reported House Financial Services bill governing transparency and oversight of the over-the-counter (OTC) derivatives markets acknowledges the end-user community, including America’s independent energy producers, and their needs to use this important business management tool to hedge financial risk for future investments.
“However, there is still a great deal of uncertainty about how the requirements for clearing in this bill will affect end-users’ relationships with counterparties. We will continue to work closely with the Financial Services Committee, as well as House Agriculture Committee members as they begin mark up on their own version of a derivatives bill. We want to ensure that any derivatives markets reform legislation will encourage investment in more American energy production rather than create additional financial obstacles to business growth.”
NOTE:
- IPAA filed testimony on October 2 with the House Agriculture Committee as part of the record for financial and derivatives reform. Click HERE to view the testimony.
- Lee Fuller, IPAA’s vice president of government relations, was quoted in the Houston Chronicle on July 7, 2009, saying: “There are producers, there are consumers who rely on these markets. The market needs to be able to function in the end.” Click HERE to view this article.
- In June, IPAA sent a letter to Speaker Pelosi and other lawmakers expressing concerns over the Stupak Amendment in the House cap-and-trade bill on commodity trading, which will have a “devastating impact on the American natural gas and oil industry.” Click HERE to view this letter.
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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.