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2009

ERP Examination
TM

STUDYGUIDE
GARPS ENERGY RISK PROFESSIONAL (ERP): T H E D E S I G N AT I O N F O R R I S K P R O F E S S I O N A L S I N T H E E N E R G Y S E C T O R

2009 Energy Risk Professional Examination Study Guide

The Study Guide sets forth primary and subtopics covering physical operations and physical and financial markets for energy, as well as risk management techniques in both areas. The topics selected by the Energy Oversight Committee (EOC) reflect those that energy risk professionals working in practice today must master. The topics are reviewed yearly to ensure the ERP Examination is kept timely and relevant.

Readings Questions for the ERP Examination are derived from the readings listed under each topic. These readings were selected by the ERP EOC to assist candidates in their review of the subjects covered by the exam. It is strongly suggested that candidates review these readings in depth prior to sitting for the examination.

Test weights and question allocation for the 2009 ERP ERP Examination Approach The ERP is a practice-oriented examination. Its questions are derived from a combination of science, industry practice, and theory, as well as real-world work experience. Candidates are expected to understand both physical and financial energy sectors, general and specific risk management concepts and approaches, and how they are applied in an energy risk professionals dayto-day activities. The ERP Examination is a comprehensive assessment, testing risk professionals on a number of energy-related risk management concepts and approaches. One should note that it is very rare that an energy risk professional will be faced with an issue that can immediately be slotted into one category; in the real world, an energy risk professional must be able to identify any number of risk-related issues and be able to manage them effectively. Financial Disclosure, Accounting, and Compliance ....... 10% 18 questions Risk Management in Financial Trading ......................... 15% 27 questions Valuation and Structuring of Energy Transactions ........ 15% 27 questions Financial Trading Instruments....................................... 20% 36 questions Physical Energy Markets............................................... 40% 72 questions Exploration and Production (Petroleum and Natural Gas)........................................................... 5% Crude Oil................................................................ 5% Refined Petroleum Products................................... 5% Natural Gas............................................................ 5% Liquefied Natural Gas ............................................ 5% Coal........................................................................ 5% Electricity ............................................................... 5% Alternative Energy ................................................. 5% Examination will be as follows:

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2009 Energy Risk Professional Examination Study Guide

PHYSICAL ENERGY MARKETS


Exploration and Production (Petroleum and Natural Gas) Crude Oil Refined Petroleum Products Natural Gas Liquefied Natural Gas Coal Electricity Alternative Energy

NOTE: Because many of the readings in the physical market section cover physical risk management and mitigation techniques as part of daily operations, there is no separate risk management section for physical energy markets.

Readings for Exploration and Production: Petroleum and Natural Gas


1. Charles F. Conaway. The Petroleum Industry: A Nontechnical Guide (Tulsa, OK: PennWell, 1999). Chapter 2 . . . . . . . . . . . Petroleum Origins and Accumulation Chapter 3 . . . . . . . . . . . Petroleum Exploration Chapter 4 . . . . . . . . . . . Contracts and Regulations Energy Information Agency. The Annual Energy Outlook 2009. DOE/EIA-0383(2009) March. Available online: http://www.eia.doe.gov/oiaf/aeo/pdf/aeo2009_presentation.pdf. Institut Francais du Petrole Publications. Oil, Gas Exploration, and Production: Reserves, Costs, Contracts (Paris: Editions Technip, 2007). Chapter 3 . . . . . . . . . . . Hydrocarbon Reserves Chapter 4 . . . . . . . . . . . Investments and Costs Chapter 5 . . . . . . . . . . . Legal, Fiscal and Contractual Framework Chapter 8 . . . . . . . . . . . Health, Safety, the Environment, Ethics William L. Leffler, et al. Deepwater Petroleum Exploration and Production: A Nontechnical Guide (Tulsa, OK: PennWell, 2003). Chapter 3 . . . . . . . . . . . Exploring the Deepwater Chapter 4 . . . . . . . . . . . Drilling and Completing Wells Chapter 6 . . . . . . . . . . . Fixed Structures Chapter 7 . . . . . . . . . . . Floating Production Systems Petroleum Reserves and Resources Definitions: http://www.spe.org/spe-app/spe/industry/reserves/index.htm.

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2009 Energy Risk Professional Examination Study Guide

Readings for Crude Oil


1. 2. FERC Oil Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/oil.asp. Norman J. Hyne. Nontechnical Guide to Petroleum Geology, Exploration, Drilling, and Production, 2nd Edition (Tulsa, OK: PennWell, 2001). Chapter 1 . . . . . . . . . . . Nature of Gas and Oil - Petroleum; Chemical Composition; Crude Oil 3. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 1 . . . . . . . . . . . Risk Management in Energy Markets Chapter 15 . . . . . . . . . . Operational Risk and its Management 4. Thomas O. Miesner and William Leffler. Oil and Gas Pipelines: In Nontechnical Language (Tulsa, OK: PennWell, 2006). Chapter 1 . . . . . . . . . . . How Pipelines Differ Chapter 7 . . . . . . . . . . . Offshore Pipelines Chapter 10 . . . . . . . . . . Investment Decisions Chapter 12 . . . . . . . . . . Engineering and Design - Storage Tar Sands 1. Michael Toman, et al. Unconventional Fossil-Based Fuels: Economic and Environmental Trade-Offs. (Santa Monica, CA: Rand, 2008). Available online: http://www.rand.org/pubs/technical_reports/TR580/. Chapter 4 . . . . . . . . . . . Oil Sands and Synthetic Crude Oil

Readings for Refined Petroleum Products


1. James H. Gary, Glenn E. Handwerk and Mark. J Kaiser. Petroleum Refining: Technology and Economics, 5th Edition (New York: CRC Press, 2007). Chapter 1 . . . . . . . . . . . Introduction (thru 1.8) Chapter 14.3 . . . . . . . . . Economics and Planning Applications William L. Leffler. Petroleum Refining in Nontechnical Language, 3rd Edition (Tulsa, OK: PennWell, 2000). Chapter 20 . . . . . . . . . . Simple and Complex Refineries National Petrochemical and Refiners Association (NPRA): http://www.npradc.org/.

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Readings for Natural Gas


1. 2. 3. Rebecca L. Busby. Natural Gas in Nontechnical Language (Tulsa, OK: PennWell, 1999). Chapter 8 . . . . . . . . . . . Regulatory History of the Gas Industry FERC Natural Gas Market Oversight: http://www.ferc.gov/market-oversight/mkt-gas/overview.asp. Arthur J. Kidnay and William R. Parrish. Fundamentals of Natural Gas Processing (Boca Raton, FL: Taylor and Francis, 2006). Chapter 12 . . . . . . . . . . Transportation and Storage

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Readings for Liquefied Natural Gas


1. 2. FERC LNG Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/lng.asp. Michael D. Tusiani and Gordon Shearer. LNG: A Nontechnical Guide (Tulsa, OK: PennWell, 2007). Chapter 1 . . . . . . . . . . . The Liquefied Natural Gas Industry Chapter 3 . . . . . . . . . . . The LNG Chain: The Project Nature of the LNG Business Chapter 5 . . . . . . . . . . . The Liquefaction Plant Chapter 6 . . . . . . . . . . . LNG Tankers Chapter 7 . . . . . . . . . . . LNG Import Terminals Chapter 9 . . . . . . . . . . . Orchestration and Financing of an LNG Project Chapter 11 . . . . . . . . . . The Economics of an LNG Project

Readings for Coal


1. James T. Bartis, Frank A. Camm and David S. Ortiz. Producing Liquid Fuels from Coal: Prospects and Policy Issues (Santa Monica, CA: Rand, 2008). Available online: http://www.rand.org/pubs/monographs/MG754. Chapter 2 . . . . . . . . . . . The Coal Resource Base Chapter 3 . . . . . . . . . . . Coal-to-Liquids Technologies Chapter 6 . . . . . . . . . . . Critical Policy Issues for Coal-to-Liquids Development Appendix A . . . . . . . . . . Cost-Estimation Methodology and Assumptions FERC Coal Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/coal.asp. James Speight. Handbook of Coal Analysis (Hoboken, NJ: John Wiley & Sons, 2005). Chapter 1 . . . . . . . . . . . Coal Analysis Chapter 2 . . . . . . . . . . . Sampling and Sample Preparation

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Readings for Electricity


1. Chris Harris. Electricity Markets: Pricing, Structures and Economics (West Sussex, England: John Wiley & Sons, 2006). Chapter 2 . . . . . . . . . . . Structure, Operation and Management of the Electricity Supply Chain Chapter 6 . . . . . . . . . . . Power Capacity Chapter 7 . . . . . . . . . . . Location Sally Hunt. Making Competition Work in Electricity (John Wiley & Sons, Inc. New York, NY. 2002). Chapter 2 . . . . . . . . . . . The Essential Aspects of Electricity Chapter 7 . . . . . . . . . . . Trading Arrangements Chapter 8 . . . . . . . . . . . Details of the Integrated Trading Model Denise Warkentin-Glenn. Electric Power Industry: in Nontechnical Language, 2nd Edition (Tulsa, OK: PennWell, 2006). Chapter 1 . . . . . . . . . . . Power Generation Chapter 2 . . . . . . . . . . . Power Transmission and Distribution Chapter 4 . . . . . . . . . . . The Electric Industry as a Regulated Entity

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Readings for Alternative Energy


1. 2. 3. FERC Emissions Allowance Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/emiss-allow.asp. Fisher Investments. Fisher Investments on Energy (Hoboken, NJ: John Wiley & Sons, 2009). Chapter 6 . . . . . . . . . . . Alternative Energy Roy L. Nersesian. Energy for the 21st Century: A Comprehensive Guide to Conventional and Alternative Sources (Armonk, NY: M.E. Sharpe, 2007). Chapter 3 . . . . . . . . . . . Biomass Chapter 8 . . . . . . . . . . . Nuclear and Hydropower Chapter 9 . . . . . . . . . . . Sustainable Energy United Nations Framework Convention on Climate Change. Essential Background: The Convention and the Protocol. (Kyoto Protocol). Available online: http://unfccc.int/essential_background/items/2877.php.

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FINANCIAL TRADING INSTRUMENTS


What Makes Energies Different Spot Pricing Forwards and Futures Options Swaps Other Derivatives Electricity Trading Carbon Finance / Emissions Markets

Readings for Financial Trading Instruments


1. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Power and Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007). Chapter 2 . . . . . . . . . . . Energy Derivatives Carol A. Dahl. International Energy Markets: Understanding Pricing, Policies and Profits (Tulsa, OK: PennWell, 2004). Chapter 15 . . . . . . . . . . Energy Futures and Options Markets for Managing Risks Steven Errera and Stewart L. Brown. Fundamentals of Trading Energy Futures & Options, 2nd Edition (Tulsa, OK: PennWell, 2002). Chapter 3 . . . . . . . . . . . Behavior of Commodity Futures Prices Chapter 4 . . . . . . . . . . . Speculation and Spread Trading Chapter 7 . . . . . . . . . . . Energy Options Strategies Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 3 . . . . . . . . . . . Energy Futures Contracts

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2009 Energy Risk Professional Examination Study Guide

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Vincent Kaminski (ed). Managing Energy Price Risk (London: Risk Books, 2004). Chapter 1 . . . . . . . . . . . Energy Swaps Chapter 2 . . . . . . . . . . . Energy Options Chapter 3 . . . . . . . . . . . Energy Exotic Options Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill, 2007). Chapter 4 . . . . . . . . . . . Essential Statistical Tools Chapter 5 . . . . . . . . . . . Spot Price Behavior Chapter 6 . . . . . . . . . . . The Forward Price Curve

Electricity Trading 1. Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments in Modeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003). Chapter 7 . . . . . . . . . . . Hybrid Process for Power Prices Chapter 8 . . . . . . . . . . . Structured Products: Fuels and Other Commodities 2. Vincent Kaminski (ed). Energy Modelling: Advances in the Management of Uncertainty (London: Risk Books, 2005). Chapter 2 . . . . . . . . . . . Fundamentals of Electricity Derivatives Carbon Finance / Emissions Market / Emission Trading 1. Tom James and Peter Fusaro. Energy and Emissions Markets: Collision or Convergence? (Singapore. John Wiley & Sons (Asia) Pte Ltd. 2006). Chapter 3 . . . . . . . . . . . Green Trading Schemes Chapter 6 . . . . . . . . . . . Overview of the Carbon Exchanges Chapter 10 . . . . . . . . . . What Risk? An Introduction to Managing Risk Chapter 11 . . . . . . . . . . Risk-Policy Guidelines 2. Sonia Labatt, Rodney R. White. Carbon Finance: The Financial Implications of Climate Change (Hoboken, NJ: John Wiley & Sons, Inc., 2007). Chapter 6 . . . . . . . . . . . Emissions Trading in Theory and Practice

VALUATION AND STRUCTURING OF ENERGY TRANSACTIONS


Volatility Correlations Option pricing models Other modeling

Readings for Valuation and Structuring of Energy Transactions


1. Peter C. Beutel. Surviving Energy Prices (Tulsa, OK: PennWell, 2005). Chapter 5 . . . . . . . . . . . Understanding Futures and Options

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2009 Energy Risk Professional Examination Study Guide

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Markus Burger, Bernhard Grae ber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Power and Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007). Chapter 4 . . . . . . . . . . . Fundamental Market Models Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management (London: Lacima Publications, 2000). Chapter 3 . . . . . . . . . . . Volatility Estimation in Energy Markets Chapter 6 . . . . . . . . . . . Spot Price Models and Pricing Standard Instruments Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments in Modeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003). Chapter 4 . . . . . . . . . . . Reduced-form Processes Helyette Geman (ed). Risk Management in Commodity Markets: From Shipping to Agriculturals and Energy (West Sussex, England: John Wiley & Sons, 2008). Chapter 2 . . . . . . . . . . . Forward Curve Modelling in Commodity Markets Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill, 2007). Chapter 7 . . . . . . . . . . . Building Marked-to-Market Forward Price Curves: Implementing Forward Price Models Chapter 8 . . . . . . . . . . . Volatilities Chapter 9 . . . . . . . . . . . Overview of Option Pricing for Energies Chapter 10 . . . . . . . . . . Option Valuation Chapter 11 . . . . . . . . . . Valuing Energy Options Platts. The Increasing Divergence of WTI Pricing from World Markets (March 2009). Available online: http://www.platts.com/Content/Oil/Resources/Market%20Issues/wtipricing.pdf.

RISK MANAGEMENT IN FINANCIAL TRADING


Risk Measurement and Monitoring Value-At-Risk Hedging Trading Strategies Credit Risk Counter-Party Risk Carbon Finance / Emissions Market

Readings for Risk Measurement, Monitoring, and Value-At-Risk


1. 2. Peter C. Beutel. Surviving Energy Prices (Tulsa, OK: PennWell, 2005). Chapter 3 . . . . . . . . . . . Different Kinds of Risk Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Power and Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007). Chapter 6.2 . . . . . . . . . . Value-at-Risk and Further Risk Measures

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2009 Energy Risk Professional Examination Study Guide

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Helyette Geman (ed). Risk Management in Commodity Markets: From Shipping to Agriculturals and Energy (West Sussex, England: John Wiley & Sons, 2008). Chapter 15 . . . . . . . . . . Case Studies and Risk Management in Commodity Derivatives Trading Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 10 . . . . . . . . . . Management Controls Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: Risk Books, 2005). Chapter 8 . . . . . . . . . . . Wider Risk Management Questions Alessandro Mauro. Price Risk Management in the Energy Industry: The Value at Risk Approach, Proceedings of the XXII Annual International Conference of the International Association for Energy Economics (June 9-12, 1999): http://ssrn.com/abstract=1020917. Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill, 2007). Chapter 2 . . . . . . . . . . . What Makes Energies So Different? John Wengler. Managing Energy Risk: A Nontechnical Guide to Markets and Trading (Tulsa, OK: PennWell, 2001). Chapter 6 . . . . . . . . . . . Energy Risk Boot Camp: Must Know Concepts for Managers and Directors

Readings for Hedging and Trading Strategies in Energy Products


1. Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management (London: Lacima Publications, 2000). Chapter 9 . . . . . . . . . . . Risk Management of Energy Derivatives Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments in Modeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003). Chapter 10 . . . . . . . . . . Risk Management Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 6 . . . . . . . . . . . Options Trading and Hedging Application Strategies Chapter 13 . . . . . . . . . . Energy-Market Hedging Scenarios Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: Risk Books, 2005). Chapter 4 . . . . . . . . . . . Physical Transactions and Basic Hedging Instruments Fletcher J. Sturm. Trading Natural Gas: A Nontechnical Guide (Tulsa, OK: PennWell, 1997). Chapter 4 . . . . . . . . . . . Hedging and Trading Instruments

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Readings for Credit and Counter-Party Risk


1. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Power and Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007). Chapter 6.3 . . . . . . . . . . Risk Management (Credit Risk)

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2009 Energy Risk Professional Examination Study Guide

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Peter C. Fusaro (ed). Energy Risk Management: Hedging Strategies and Instruments for the International Energy Markets (New York: McGraw Hill, 1998). Chapter 12 . . . . . . . . . . Credit Issues and Counterparty Risk 3. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 16 . . . . . . . . . . A Practical Guide to Credit Control and Risk-Mitigation Methods 4 . Vincent Kaminski (ed). Energy Modelling: Advances in the Management of Uncertainty (London: Risk Books, 2005). Chapter 12 . . . . . . . . . . Credit Risk Management for the Energy IndustrySome Perspectives

FINANCIAL DISCLOSURE, ACCOUNTING AND COMPLIANCE IN THE ENERGY INDUSTRY


Financial Accounting Standards Board (FASB) Sarbanes-Oxley Act of 2002 International Accounting Standards Board (IASB) Securities and Exchange Commission (SEC) Basel Committee on Banking Supervision Comment on Fair Value Measurements Federal Energy Regulatory Commission (FERC) North American Electric Reliability Corporation (NERC) Commodities Future Trading Commission (CFTC) Securities and Exchange Commission (SEC) Financial Services Authority Open Compliance and Ethics Group

Note on Financial Disclosure, Accounting and Compliance: GARP recognizes that issues of financial disclosure, accounting, and compliance are critical to the daily life of an energy risk professional. While adherence to a regulatory body will be governed by ones specific firm or geographic region, it is critical for any globally-minded energy risk professional to have a base level understanding of several of the larger regulators that will likely be encountered. However, as global energy markets continue to evolve, so do the standards of these globally-recognized regulators. As such, for the October 2009 ERP Examination, candidates may expect to be tested on changes occurring in the below mentioned governing bodies through June 1, 2009, the date of this study guide. Any changes made after this date will be picked up by the 2010 ERP Study Guide to be issued in November 2009. Candidates are expected to understand the objectives and general structure of each of the below mentioned regulators and general application of the various regulations listed. Candidates are not expected to memorize specific details.

Readings for Financial Disclosure and Accounting


1. 2. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008). Chapter 17 . . . . . . . . . . Accounting for Energy Derivatives Trades U.S. Federal Sentencing Guidelines, Chapter 8Part B: Remedying Harm from Criminal Conduct, and Effective Compliance and Ethics Program. (November, 2004). http://www.ussc.gov/2004guid/8b2_1.htm.

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2009 Energy Risk Professional Examination Study Guide

Basel Committee on Banking Supervision 1. Basel Committee on Banking Supervision: Discussion paperfair value measurements http://www.bis.org/bcbs/commentletters/iasb20.pdf. Financial Accounting Standards Board (FASB) 1. Financial Accounting Standards Board: Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (Posted April 9, 2009). http://www.fasb.org/pdf/fsp_fas157-4.pdf. 2. Financial Accounting Standards Board: Summary of Statement No. 133. http://www.fasb.org/st/summary/stsum133.shtml. 3. Financial Accounting Standards Board: Summary of Statement No. 157. http://www.fasb.org/st/summary/stsum157.shtml. 4. Financial Accounting Standards Board: Summary of Statement No. 161. http://www.fasb.org/news/nr031908fas161.shtml. International Accounting Standards Board (IASB) 1. International Accounting Standards Board: Fair Value Measurement Project http://www.iasb.org/Current+Projects/IASB+Projects/Fair+Value+Measurement/Fair+Value+Measurement.htm. 2. International Accounting Standards Board: IASB Work Planprojected timetable as of April 30, 2009: http://www.iasb.org/Current+Projects/IASB+Projects/IASB+Work+Plan.htm. Sarbanes-Oxley Act of 2002 1. Sarbanes-Oxley Act of 2002: SEC. 302. Corporate Responsibility for Financial Reports. http://www.sox-online.com/act_section_302.html. 2. Sarbanes-Oxley Act of 2002: SEC. 401. Disclosure in Periodic Reports. http://www.sox-online.com/soxact.html#sec401. 3. Sarbanes-Oxley Act of 2002: SEC. 404. Management Assessment of Internal Controls. http://www.sox-online.com/soxact.html#sec404. 4. Sarbanes-Oxley Act of 2002: SEC. 409. Criminal Penalties for Altering Documents http://www.sox-online.com/soxact.html#sec409. 5. Sarbanes-Oxley Act of 2002: SEC. 802. Real Time Issuer Disclosure. http://www.sox-online.com/soxact.html#sec802. Securities and Exchange Commission (SEC) 1. Securities and Exchange Commission: Selected Staff Accounting Bulletins. http://www.sec.gov/interps/account.shtml.

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2009 Energy Risk Professional Examination Study Guide

Readings for Compliance


1. Peter Y. Malyshev, et al.: FTC Joins Other Agencies in Policing Oil Industry Market Manipulation and False Reporting. http://www.mwe.com/info/news/wp0208a.pdf.

Commodities Future Trading Commission (CFTC) 1. Commodity Exchange Act: http://www.cftc.gov/lawandregulation/index.htm. 2. Markets, Clearing Organizations, and Intermediaries: http://www.cftc.gov/industryoversight/index.htm. Commodity Futures Exemption Requirements 1. CME Group. Online Rulebook (December, 2008). Chapter 4 . . . . . . . . . . . Section 443: Position Limit Violations: http://www.cmegroup.com/rulebook/CBOT/I/4/4.pdf. 2. IntercontinentalExchange (Europe). Regulations (2009). Section P . . . . . . . . . . . . Position Reporting, Accountability and Limits: https://www.theice.com/futures_europe_regulations.jhtml. 3. NYMEX. Online Rulebook (2008). Chapter 9A . . . . . . . . . . Position Rules: http://www.nymex.com/rule_main.aspx?pg=13. Federal Energy Regulatory Commission (FERC) 1. Energy Policy Act (EPAct) of 2005: http://www.ferc.gov/legal/fed-sta/ene-pol-act.asp. 2. FERC & EPAct 2005Overview: http://www.ferc.gov/legal/fed-sta/ferc-and-epact-2005.pdf; Details available in LNG, electric, gas, hydropower, and more: http://www.ferc.gov/legal/fed-sta/ene-pol-act.asp. 3. FERC Federal Order 670Prohibition of Energy Market Manipulation (January 19, 2006): http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=10932497. 4. FERC Prohibition of Energy Market Manipulation (updated January 15, 2009): http://www.ferc.gov/enforcement/market-manipulation.asp. 5. FERC Standards of Conduct for Transmission Providers Order No. 717: http://www.ferc.gov/whats-new/comm-meet/2008/101608/M-1.pdf. 6. FERC Strategic Plan, FY 2006-FY 2011: http://www.ferc.gov/about/strat-docs/strat-plan.asp. 7. FERC Top Priorities, FY 2006-FY2011: http://www.ferc.gov/about/top-priorities.asp. Financial Services Authority (FSA) 1. FSA Handbook. http://fsahandbook.info/FSA/html/handbook. North American Electric Reliability Corporation (NERC) 1. NERC: About the Compliance and Enforcement Program. http://www.nerc.com/fileUploads/File/Compliance/About-Compliance(1).pdf. Open Compliance and Ethics Group (OCEG) 1. Measurement and Metric Guide: http://www.oceg.org/view/MMG. Securities and Exchange Commission (SEC) 1. Modernization of Oil and Gas Reporting: http://www.sec.gov/rules/final/2008/33-8995.pdf.

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2009 Energy Risk Professional Examination Study Guide

Notes

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2009 Global Association of Risk Professionals. All Rights Reserved.

Energy Oversight Committee Members

The following individuals were responsible for the oversight of the development of the 2009 ERP Study Guide:

Ken Abbott . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Morgan Stanley & Company Richard Apostolik . . . . . . . . . . . . . . . . . . . . . . . . . . . . President and CEO, Global Association of Risk Professionals Mark Galicia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compliance Manager, BP North America, Inc. Gordon E. Goodman . . . . . . . . . . . . . . . . . . . . . . . . . . Trading Control Officer, Occidental Petroleum Corporation James Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Morgan Stanley & Company Mark Jenner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director, Credit Risk, BG Group Jeff Jewell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, DTE Energy Glenn Labhart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Partner, Labhart Risk Advisors, Inc. Spyros Maragos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manager, Quantitative Analysis, Chevron Mark D. May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manager, Regional Risk Supply & Trading, Americas, ConocoPhilips Jeff Parke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Senior Director, Risk Management, Koch Industries, Inc. Jonathan C. Stein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, Vice President, Hess Corporation Andrew D. Sunderman . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, JP Morgan Glen Swindle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Energy Trade & Marketing, Credit Suisse John Wengler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, Entergy Services, Inc.

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