April 25,2006

Senators Call for Tax Information on Oil and Gas Giants as Fuel Prices Prices Rise for American Families, Businesses

Washington, DC --- U.S. Senators Chuck Grassley (R-Iowa) and Max Baucus (D-Mont.), Chairman
and Ranking Member of the Senate Finance Committee, are asking the Internal Revenue Service to
provide tax and financial information on the nation’s largest oil and gas companies. Gas prices now
top three dollars per gallon in many regions of the country. American families and businesses are
feeling harsh economic effects from high fuel prices, while oil companies are posting record profits.
The Senators are planning a comprehensive review of Federal taxes paid by oil and gas companies
on these record profits.

"We’re seeing record profits and significant executive compensation in the oil and gas
industry,” said Grassley. “We all know there can be a slip between cup and lip on corporate
profits made and taxes paid. I want to make sure the oil companies aren’t taking a speed pass
by the tax man."

“The whole country is trying to figure out what should be done about record high gasoline
prices at a time of record oil company profits,” said Baucus. “It’s relevant to know what the
real financial picture is for this industry, because the financial picture for American
consumers is pretty bleak.”

The text of their letter to IRS Commissioner Mark Everson follows here:

April 26, 2006

The Honorable Mark W. Everson
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224

Dear Mr. Commissioner:

As pressure mounts to address extraordinarily high gas prices that consumers are facing at the pump,
we feel we should better understand the federal tax posture of the industry. Pursuant to Internal
Revenue Code section 6103(f)(1) and (f)(4)(A), we would like to inspect the annual Federal
corporate income tax returns for the last five years of the largest 15 oil and gas companies, based on
sales. Recent press articles have highlighted the industry’s record profits, as well as an extremely
lucrative retirement plan by one oil and gas industry executive, benefits which may have been
subsidized in part by the taxpayers.

While our review of the Federal taxes paid by these companies will be comprehensive, we would
initially like to see consolidated Forms 1120 (the U.S. corporate income tax return), 1118 (Foreign
tax credits-corporations), 5471 (Information with respect to certain controlled foreign corporations),
6765 (Credit for increasing research activities), Schedule M-3 (Net income (loss) reconciliation for
corporations with total assets of $10 million or more), if applicable during those years, and any
supplementary schedules, statements, or attachments to any of the foregoing.

Pursuant to Internal Revenue Code section 6103(f)(4)(A), the Chairman hereby designates {staff
names redacted} as authorized to receive and inspect tax returns and return information with regard
to this request.

If you have any questions, please do not hesitate to contact us. We look forward to receiving this
information in a timely manner.

Sincerely yours,

Charles E. Grassley

Max Baucus
Ranking Member

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