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GLOBAL ASSOCIATION OF RI S K P R O F E S S I O N A L S

2010
ERP
®

Examination
STUDYGUIDE
GARP’S ENERGY RISK PROFESSIONAL (ERP)
THE DESIGNATION FOR RISK PROFESSIONALS IN THE ENERGY SECTOR
2010 Energy Risk Professional Examination Study Guide

The Study Guide sets forth primary and subtopics covering physical Readings

operations and physical and financial markets for energy, as well as risk Questions for the ERP Examination are derived from the readings listed

management techniques in both areas. The topics selected by the Energy under each topic. These readings were selected by the ERP EOC to assist

Oversight Committee (EOC) reflect those that energy risk professionals candidates in their review of the subjects covered by the exam. It is strongly

working in practice today must master. The topics are reviewed annually suggested that candidates review these readings in depth prior to sitting

to ensure the ERP Examination is kept timely and relevant. for the examination.

Test weights and question allocation for the 2010 ERP Examination will be
ERP Examination Approach as follows:

The ERP is a practice-oriented examination. Its questions are derived from • Physical Energy Markets .............................................. 40%
72 questions
a combination of science, industry practice, and theory, as well as “real- - Exploration and Production (Petroleum and
Natural Gas) .......................................................... 5%
world” work experience. Candidates are expected to understand both - Crude Oil................................................................ 5%
- Refined Petroleum Products .................................. 5%
physical and financial energy sectors, general and specific risk manage- - Natural Gas ........................................................... 5%
- Liquefied Natural Gas............................................ 5%
ment concepts and approaches, and how they are applied in an energy risk - Coal ....................................................................... 5%
- Electricity ............................................................... 5%
professional’s day-to-day activities. - Alternative Energy ................................................. 5%

• Financial Trading Instruments ...................................... 20%


36 questions
The ERP Examination is a comprehensive assessment, testing risk profession-
• Valuation and Structuring of Energy Transactions ....... 15%
als on a number of energy-related risk management concepts and approaches. 27 questions

One should note that it is very rare that an energy risk professional will be • Risk Management in Financial Trading ........................ 15%
27 questions
faced with an issue that can immediately be slotted into one category; in the
• Financial Disclosure, Accounting, and Compliance ...... 10%
real world, an energy risk professional must be able to identify any number 18 questions

of risk-related issues and be able to manage them effectively. NOTE: Since URLs are apt to change, online readings will be provided in
a singular, downloadable document available on the GARP Digital Library.
URLs are provided here for reference. Nonetheless, whenever possible candi-
dates are encouraged to review the actual websites for further insight.

© 2010 Global Association of Risk Professionals. All rights reserved. 1


2010 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
2. 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
3. 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

Readings for Crude Oil

1. 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

2 © 2010 Global Association of Risk Professionals. All rights reserved.


2010 Energy Risk Professional Examination Study Guide

2. 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
3. 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/2008/RAND_TR580.pdf.
• 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
2. William L. Leffler. Petroleum Refining in Nontechnical Language, 3rd Edition (Tulsa, OK: PennWell, 2000).
• Chapter 20 . . . . . . . . . . Simple and Complex Refineries

Readings for Natural Gas

1. Rebecca L. Busby. Natural Gas in Nontechnical Language (Tulsa, OK: PennWell, 1999).
• Chapter 8 . . . . . . . . . . . Regulatory History of the Gas Industry
2. Arthur J. Kidnay and William R. Parrish. Fundamentals of Natural Gas Processing (Boca Raton, FL: Taylor and Francis, 2006).
• Chapter 12 . . . . . . . . . . Transportation and Storage

Readings for Liquefied Natural Gas

1. 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

© 2010 Global Association of Risk Professionals. All rights reserved. 3


2010 Energy Risk Professional Examination Study Guide

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/2008/RAND_MG754.pdf.
• 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
2. James Speight. Handbook of Coal Analysis (Hoboken, NJ: John Wiley & Sons, 2005).
• Chapter 1 . . . . . . . . . . . Coal Analysis
• Chapter 2 . . . . . . . . . . . Sampling and Sample Preparation

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
2. 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
3. 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

Readings for Alternative Energy

1. Fisher Investments. Fisher Investments on Energy (Hoboken, NJ: John Wiley & Sons, 2009).
• Chapter 6 . . . . . . . . . . . Alternative Energy
2. 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

4 © 2010 Global Association of Risk Professionals. All rights reserved.


2010 Energy Risk Professional Examination Study Guide

3. United Nations Framework Convention on Climate Change.


Review sections below listed contained in http://unfccc.int/essential_background/items/2877.php.
1. Essential Background: http://unfccc.int/essential_background/items/2877.php.
2. Learn about Kyoto: http://unfccc.int/kyoto_protocol/items/2830.php.
3. Text of Kyoto Protocol: http://unfccc.int/resource/docs/convkp/kpeng.pdf.
4. Kyoto mechanisms: http://unfccc.int/kyoto_protocol/mechanisms/items/1673.php.
- Emissions Trading: http://unfccc.int/kyoto_protocol/mechanisms/emissions_trading/items/2731.php.
- Clean Development Mechanisms (CDM):
http://unfccc.int/kyoto_protocol/mechanisms/clean_development_mechanism/items/2718.php.
- Joint Implementation (JI): http://unfccc.int/kyoto_protocol/mechanisms/joint_implementation/items/1674.php.

FINANCIAL TRADING INSTRUMENTS

• What Makes Energy 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
2. 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
3. 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
4. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).
• Chapter 3 . . . . . . . . . . . Energy Futures Contracts

© 2010 Global Association of Risk Professionals. All rights reserved. 5


2010 Energy Risk Professional Examination Study Guide

5. Vincent Kaminski (ed). Managing Energy Price Risk (London: Risk Books, 2004).
• Chapter 1 . . . . . . . . . . . Energy Swaps
• Chapter 2 . . . . . . . . . . . Energy Options
• Chapter 3 . . . . . . . . . . . Energy Exotic Options
6. 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 / Emissions 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

6 © 2010 Global Association of Risk Professionals. All rights reserved.


2010 Energy Risk Professional Examination Study Guide

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
2. 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 4 . . . . . . . . . . . Fundamental Market Models
3. 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
4. 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
5. 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
6. 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
7. Platts. “The Increasing Divergence of WTI Pricing from World Markets” (March 2009). Available online:
https://www1.platts.com/Oil/Resources/Market%20Issues/wtipricing.pdf.

© 2010 Global Association of Risk Professionals. All rights reserved. 7


2010 Energy Risk Professional Examination Study Guide

RISK MANAGEMENT IN FINANCIAL TRADING

• Risk Measurement and Monitoring


• Value-At-Risk
• Hedging
• Trading Strategies
• Credit Risk
• Counter-Party Risk
• Carbon Finance / Emissions Markets

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

1. Peter C. Beutel. Surviving Energy Prices (Tulsa, OK: PennWell, 2005).


• Chapter 3 . . . . . . . . . . . Different Kinds of Risk
2. 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
3. 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
4. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).
• Chapter 10 . . . . . . . . . . Management Controls
5. Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: Risk Books, 2005).
• Chapter 8 . . . . . . . . . . . Wider Risk Management Questions
6. 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.
7. Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill, 2007).
• Chapter 2 . . . . . . . . . . . What Makes Energies So Different?
8. 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

8 © 2010 Global Association of Risk Professionals. All rights reserved.


2010 Energy Risk Professional Examination Study Guide

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
2. 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
3. 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
4. Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: Risk Books, 2005).
• Chapter 4 . . . . . . . . . . . Physical Transactions and Basic Hedging Instruments
5. Fletcher J. Sturm. Trading Natural Gas: A Nontechnical Guide (Tulsa, OK: PennWell, 1997).
• Chapter 4 . . . . . . . . . . . Hedging and Trading Instruments

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)
2. 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 Industry—Some Perspectives

© 2010 Global Association of Risk Professionals. All rights reserved. 9


2010 Energy Risk Professional Examination Study Guide

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)
• New York Mercantile Exchange (NYMEX)
• IntercontinentalExchange (ICE)
• Federal Trade Commission (FTC)
• Commodities Futures Trading Commission (CFTC)

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 particular regulatory body will be governed by one’s 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
2010 ERP Examination, candidates may expect to be tested on changes occurring in the below mentioned governing bodies through
November 2, 2009, the date this study guide was issued. Any changes made after this date will be picked up by the 2011 ERP Study Guide
to be issued in November 2010. Further, we recognize that at first glance some of these websites can be daunting. Candidates should
become familiar with the general theme of the organization/subject represented on that website, on what it/they do and do not cover.
Candidates should not get bogged down in details. Instead, a general familiarity with the material should suffice to take the Exam.

Most are links to documents or pages that are manageable in terms of reading length (e.g. Sarbanes Oxley Sect 302, FASB 133). These
should be treated like any other reading—attention to detail is a must. Nonetheless, we recognize that some documents are lengthy. Herein
we suggest candidates become familiar with the objective of the document and its authoring body, and read the executive summary, and
any other highlights.

Readings for Financial Disclosure and Accounting

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

10 © 2010 Global Association of Risk Professionals. All rights reserved.


2010 Energy Risk Professional Examination Study Guide

Basel Committee on Banking Supervision


1. Basel Committee on Banking Supervision. “Discussion paper—fair value measurements”
http://www.bis.org/bcbs/commentletters/iasb20.pdf.

Financial Accounting Standards Board (FASB)


1. Financial Accounting Standards Board: Summary of Statement No. 133. http://www.fasb.org/st/summary/stsum133.shtml.
2. Financial Accounting Standards Board: Summary of Statement No. 157. http://www.fasb.org/st/summary/stsum157.shtml.
3. 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 Measure
http://www.iasb.org/NR/rdonlyres/C4096A25-F830-401D-8E2E-9286B194798E/0/EDFairValueMeasurement_website.pdf.

Sarbanes Oxley Act of 2002


Review sections below listed contained in
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills&docid=f:h3763enr.tst.pdf.
1. Sarbanes Oxley Act of 2002: SEC. 302. Corporate Responsibility for Financial Reports.
2. Sarbanes Oxley Act of 2002: SEC. 401. Disclosure in Periodic Reports.
3. Sarbanes Oxley Act of 2002: SEC. 404. Management Assessment of Internal Controls.
4. Sarbanes Oxley Act of 2002: SEC. 409. Criminal Penalties for Altering Documents
5. Sarbanes Oxley Act of 2002: SEC. 802. Real Time Issuer Disclosure.

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 Futures Modernization Act of 2000:
http://www.cftc.gov/stellent/groups/public/@lrrulesandstatutoryauthority/documents/file/ogchr5660.pdf.

© 2010 Global Association of Risk Professionals. All rights reserved. 11


2010 Energy Risk Professional Examination Study Guide

Federal Trade Commission (FTC)


Federal Trade Commission. 16 CFR Part 317. Prohibitions on Market Manipulation; Final Rule (posted August 8, 2009).
http://www.ftc.gov/os/2009/08/P082900mmr_finalrule.pdf.

Intercontinental Exchange (Europe). Regulations (2010).


Section P . . . . . . . . . . . . Position Reporting, Accountability and Limits Available online:
https://www.theice.com/publicdocs/contractregs/SECTION%20P.pdf.

NYMEX. Online Rulebook (2009).


• Chapter 5, Section 559 . . . . . . . . . .Position Limits and Exemptions: http://www.cmegroup.com/rulebook/NYMEX/1/5.pdf.

Federal Energy Regulatory Commission (FERC)


1. FERC & EPAct 2005—Meeting Milestones: http://www.ferc.gov/legal/fed-sta/ferc-and-epact-2005.pdf 2. FERC Federal
Order 670—Prohibition of Energy Market Manipulation (January 19, 2006):
http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=10932497.

Securities and Exchange Commission (SEC)


1. Modernization of Oil and Gas Reporting: http://www.sec.gov/rules/final/2008/33-8995.pdf.

12 © 2010 Global Association of Risk Professionals. All rights reserved.


Energy Oversight Committee (EOC) Members

The following individuals were responsible for the oversight of the development of the 2010 ERP Study Guide:

• Glenn Labhart, Chair, EOC . . . . . . . . . . . . Partner, Labhart Risk Advisors, Inc.

• Ken Abbott . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Morgan Stanley & Company

• Richard Apostolik . . . . . . . . . . . . . . . . . . . President and CEO, Global Association of Risk Professionals

• Mark Galicia . . . . . . . . . . . . . . . . . . . . . . . Commercial 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

• Spyros Maragos . . . . . . . . . . . . . . . . . . . . Manager, Quantitative Analysis, Chevron

• Mark D. May . . . . . . . . . . . . . . . . . . . . . . Manager, Regional Risk Supply & Trading, Americas, ConocoPhillips

• 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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GARP1027 5-10