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15
if any, on our businesses. Furthermore, certain of the other requirements under the Act have taken effect and other
regulations that could have a significant impact on us are expected to be finalized in the near future.
In addition, various foreign jurisdictions have adopted or are in the process of adopting legislation regulating the
use of derivatives, including Singapore and Europe, where we currently conduct certain derivatives activities.
As regulations are finalized, adopted and implemented, we continue to evaluate how legislation will impact our ability to
conduct our business. In particular, the Act and any new (or newly implemented) regulations and international legislation
could significantly increase the cost of our derivative contracts (including through requirements to post collateral, which
could adversely affect our cash flows and liquidity, or subject us directly or indirectly to additional reporting requirements),
materially alter the terms of our derivative contracts, reduce our ability to offer derivative and other price management
products to our customers, reduce the demand for our price risk management services, reduce the availability of derivatives
to protect against risks we encounter, increase price volatility in commodities we buy and sell (and derivatives related to
those commodities), affect cash flow and liquidity due to margin calls, reduce our ability to monetize or restructure our
existing commodity price contracts, and increase our exposure to less creditworthy counterparties. If the increased cost of
derivative contracts is significant or we reduce or limit our derivatives activities as a result of any such legislation or rules,
our profitability and results of operations could be adversely affected. Any of these consequences could have a material
adverse effect on us, our financial condition, and our results of operations and cash flows.
Item 1B. Unresolved Staff Comments
None.