This contract is tied to enactment of federal legislation that would rescind or curtail the use of Section 199 tax credits (aka manufacturing tax deductions) in association with the production, transportation, or distribution of oil, natural gas or petroleum products. The “Repeal Big Oil Tax Subsidies Act” (S.2204) is one such piece of pending legislation that would satisfy the criteria if enacted into law (as drafted at the time of its introduction on 3/19/12), but any enactment prior to the expiration date that rescinds or curtails the benefits of such tax credits for any tax year, whether for all oil companies, or a named or quantified subset, shall satisfy the criteria of the contract, entitling long position holders to a payout of the full notional value of their holdings.
Enactment refers to the President signing into law a bill passed or deemed passed by both houses of Congress. The contract criteria shall not be satisfied if a similar policy or financial impact is implemented not by enactment, but by executive order, regulatory decree, or any other government actions. Satisfaction of the contract criteria by such enactment shall be unaffected by subsequent judicial review, repeal or other act of Congress, the executive branch, or any other arm of government.
These rules will remain unchanged for the duration of the contract’s trading on this market, but are subject to revision prior to the launch of real-money trading.