2006 Annual Meeting

Michael LinnChairman

Independent Petroleum Association of America

We’re in Campaign Season

• Congress is now in recess, preparing for November elections

• Both the House of Representatives and the Senate could change majority control

• Lame duck session is certain but actions will depend on election outcome

The Stakes are High – House

Speaker:Hastert – 100%

vs.Pelosi – 28%

Ways and MeansThomas – 100%

vs.Rangel – 28%

Energy & Commerce:

Barton – 100%

vs. Dingell – 28%

Sbcmte on Env andHazardous Materials:

Gillmor – 83%vs.

Solis – 28%

Resources:Pombo – 100%

vs.Rahall – 42%

Transportation and Infrastructure:Young – 100%

vs. Oberstar – 57%

The Stakes are High – Senate

Majority Leader:

Frist - 100%vs.

Reid – 33%

Majority Whip:McConnell – 100%

vs.Durbin – 44%

Appropriations: Cochran – 100%

vs.Byrd – 55%

Finance:Grassley – 100%

vs.Baucus – 88%

EnergyDomenici – 100%

vs.Bingaman – 88%

Environment & Public Works:Inhofe – 100%

vs.Boxer – 33%

After NovemberIf Democrats Take Control

• Most oil/natural gas producing states are dominated by Republicans

• Oil state Democrats– Some are industry adversaries– For others, producers are not part of their political base– They are a minority of their party

• Democratic Leadership will dominate its Congressional agenda– In recent years, power has shifted from committee chairs to leadership

conferences– Democratic leadership groups dominated by liberal members, limited oil state

participation– Leadership pressing for member adherence to its position on issues

• 2008 Election will influence tactics– Legislation will define Democratic agenda for 2008, numerous potential

Presidential candidates will be positioning for race– Oversight of Bush Administration will be aggressive– Energy prices will influence level of attention

After NovemberIf Republicans Retain Control

• Extent of control will be narrowed– Maverick members will be able to exert greater influence

• 2008 Election will be a significant factor– Threat to majority will continue– Iraq War, energy prices, immigration, social issues will remain high

profile– Presidential candidates will be positioning themselves– Democrats will press for their agenda items to be considered

• Energy debates will likely continue with oil and natural gas policies facing mixed options– Positive – continued attention to offshore development, possible

consideration of regulatory streamlining– Adverse – royalty incentives, tax policies, market manipulation, refining

capacity, alternative fuels

IPAA in Full Court Press: Protecting Your Interests

• Meetings with secretaries of Energy and Interior; congressmen/senators and FERC commissioners

• Thousands of letters delivered to Capitol Hill from IPAA grassroots network

• New fact sheets/web updates distributed to hundreds of congressional staff and media

And, Showing Our Political Muscle

• The Largest Oil & Gas Trade Group PAC

• Record Year -- Raised 145% more in this cycle than in 2004

• Involved in 75 congressional races

• “Get Out the Vote” Mailings initiated

• Grassroots Network of 50,000 and Growing

IPAA Takes Action: Communications

• Community Voices Corps… members in hundreds of local newspapers/TV/radio

• IPAA placing… op-ed articles in dozens of newspapers nationwide

• IPAA educating… working with API on national education program

Our Communications Department is fielding dozens of phone calls from news organizations every day.

IPAA is a great news media resource reaching millions of Americans…

IPAA Takes Action:Communications

Join IPAA and Fight for Your Industry and Learn about Your Business

Redesigned website launched and new magazine

New Activities Update from Barry Russell

Weekly Washington Report

IPAA Grassroots Network grows to 50,000+ members with “Action Alerts” on key legislative and regulatory issues.

IPAA

• This will be an important election season… IPAA is working hard to protect the industry!

• Your vote counts!

• And so does your participation in your industry!

Bylaw ChangeOLD BYLAWS

Section 2. Membership Classification

A. Active Member – An Active member is an individual designated by a Member as the primary representative for the Member; in the case of an individual member, the individual himself will be considered the active member.

NEW BYLAWS

Section 1. Membership Eligibility

Members are approved for membership by the Board and accept membership to begin receiving Association benefits.

A. Active Member – An Active Member is an individual approved for membership by the board and who accepts membership.