1. 2006 Annual Meeting Michael Linn Chairman Independent Petroleum Association of America

2. 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

3. The Stakes are High – House Speaker: Hastert – 100% vs. Pelosi – 28% Ways and Means Thomas – 100% vs. Rangel – 28% Energy & Commerce: Barton – 100% vs. Dingell – 28% Sbcmte on Env and Hazardous Materials: Gillmor – 83% vs. Solis – 28% Resources: Pombo – 100% vs. Rahall – 42% Transportation and Infrastructure: Young – 100% vs. Oberstar – 57%

4. 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% Energy Domenici – 100% vs. Bingaman – 88% Environment & Public Works: Inhofe – 100% vs. Boxer – 33%

5. After November If 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

6. After November If 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

7. 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

8. 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

9. 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

10. 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

12. 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.

13. 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!

14. Bylaw Change OLD 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.