Petroleum Advisory Forum

“Members are be classified as principal members and associate members. The dues payable by associate members is one-half (1/2) the dues payable by principal members. The board of directors consists of the representatives appointed by each member. Each new member is entitled to appoint a director. Directors appointed by principal members each has two (2) votes and directors appointed by associate members each has one (1) vote on matters submitted for vote to the board of directors. Each member is entitled to be represented on each committee, except the executive committee. The executive committee consists of five (5) members of the board of directors, excluding directors appointed by associate members, selected by the board of directors.”

“Members are be classified as principal members and associate members. The dues payable by associate members is one-half (1/2) the dues payable by principal members. The board of directors consists of the representatives appointed by each member. Each new member is entitled to appoint a director. Directors appointed by principal members each has two (2) votes and directors appointed by associate members each has one (1) vote on matters submitted for vote to the board of directors. Each member is entitled to be represented on each committee, except the executive committee. The executive committee consists of five (5) members of the board of directors, excluding directors appointed by associate members, selected by the board of directors.”

“The information provided in the organization's form 990 is gathered and prepared by the organization's accountant and lawyer and then reviewed by its executive director.”

“The association is established to further the common business interests of the member companies and these are usually agreed upon by consensus at board meetings. The by-laws allow for voting procedures but that has not been called for in recent history. Accordingly there is no plan to formalize a conflict of interest policy.”

“The compensation for the executive director is determined by the executive committee and approved by the board annually. The compensation is approved in the form of a written employment contract. The executive committee is comprised of the heads or senior executives of the major international oil companies who have access to information on relevant compensation levels and for this reason there is no need for independent compensation consultants.”

“No documents available to the public”

“There are no w-2 filing requirements as all employees reside outside of the united states.”

“As members took a decision to terminate their participation, PAF reduced and fully terminated the provision of its programs.”

“Attachment 1 THE PRIMARY PURPOSE OF THE PETROLEUM ADVISORY FORUM (PAF) IS TO PROVIDE ITS MEMBERS WITH INFORMATION PROMOTING THE ADOPTION IN RUSSIA OF LEGISLATION AND REGULATION FAVORABLE TO INVESTMENT. THIS HAS INCLUDED LAWS RELATING TO SUBSOIL LAW AND A TAX REGIME FOR GREEN FIELD PROJECTS. THE ORGANIZATION HAS ALSO WORKED CLOSELY WITH RUSSIAN GOVERNMENT ENTITIES RESPONSIBLE FOR THE REGULATIONS CONCERNING OIL AND GAS PRODUCTION AND TRANSPORTATION. IN ADDITION, PAF'S VIEW ON THE SPECIFIC NEEDS OF POTENTIAL FOREIGN INVESTORS IN RUSSIA HAS BEEN SOUGHT BY VARIOUS FOREIGN GOVERNMENTS AND INTERNATIONAL FINANCIAL INSTITUTIONS. PAF SERVES ITS 9 MEMBERS BY SENDING THEM REPORTS ON THE ORGANIZATION'S REGULAR MEETINGS WITH ITS RUSSIAN CONTACTS AND ITS OPINIONS ON VARIOUS DRAFT LAWS AND REGULATIONS. ALTHOUGH NOT MEASURABLE, IN A MATERIAL SENSE, PAF'S ACHIEVEMENTS IN IMPROVING THE CONDITIONS FOR FOREIGN INVESTMENT IN THE RUSSIAN OIL AND GAS INDUSTRY ARE NONETHELESS RECOGNIZED BY ITS MEMBERSHIP, WHO CONTRIBUTE THEIR ANNUAL MEMBERSHIP FEE.”

“There are no w-2 filing requirements as all employees reside outside of the united states.”