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Nicole Daigle / Jeff Eshelman
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For Immediate Release
May 28, 2010

WASHINGTON - Following President Obama's offshore energy development announcement, Independent Petroleum Association of America Chairman Bruce Vincent, who is also the president of the Houston-based Swift Energy (NYSE: SFY), released the following statement:

"On behalf of America's domestic oil and natural gas producers, let me first say that our thoughts go out to the families and communities affected by the tragedy in the Gulf of Mexico.

"The entire industry is dedicated to working together to protect the health and safety of our people, as well as the environment in which we operate as we work to contain the damage from this incident. Many of our member companies have offered supplies and services; others are directly helping with the clean-up efforts. This is certainly a time when actions speak louder than words.

"We support President Obama's independent commission investigating the tragic Deepwater Horizon incident. It is important that a thoughtful, thorough and timely investigation and analysis of the incident is conducted to understand what caused the accident and to ensure that the proper, improved safety measures are identified and put into practice to prevent incidents in the future.

"We understand that many Americans are rightfully concerned about the environmental risks and the safety of offshore drilling. We share those concerns and understand that energy development must minimize risk to the environment and maximize safety. Independent producers are committed to working with the administration and Congress to identify the most effective solutions to move forward with responsible development offshore. However, we are greatly concerned by the administration's latest announcement to extend the drilling ban in many areas of the Gulf of Mexico (GOM) due to the job impacts to this region of our country and to the nation's energy security.

"The administration should not make hasty decisions and advocate legislative and regulatory initiatives that could result in severe limitations to offshore drilling in America - consequences that can further harm the Gulf Coast economy. Controlling the well and protecting the environment are the main priorities today. We believe the federal government, as it considers new regulations and new offshore exploration policies, should first allow the facts in this incident to be investigated.

"We must continue to recognize the critical importance of energy development in the United States. We hope that Congress will create forwarded-looking, balanced energy policies that recognize the role the oil and natural gas industry will continue to play to create jobs and revenue, to stabilize energy prices for American consumers, to address future supply in America, to reduce our reliance on resources from foreign, unstable regimes and to strengthen our national security.

"America's independent producers hold 90 percent of the leases in the GOM and have been operating responsibly in the GOM for decades. Independents produce about 30 percent of the GOM oil and more than 60 percent of the GOM natural gas. GOM production represents a significant amount of energy supply for consumers all across America, and it remains an essential component of America's energy supply. Equally important, America's independent producers are and should continue to be a key element of GOM development. Independents' years of responsible production in the GOM demonstrate that they can safely develop these resources.

"IPAA believes in the following principles:

• Any company operating offshore or onshore should be fully responsible (financial and otherwise) for all clean-up efforts.
• There must be a fund to ensure that those affected by such incidents (i.e., fishermen, etc.) will be able to fairly recoup lost costs without being caught in fierce litigation with large corporations.
• The oil industry, collectively, should contribute to this fund and ensure its long-term viability.

"These principles are already a part of federal law in the Oil Pollution Act of 1990 (OPA 90) and the Oil Spill Liability Trust Fund (OSLTF). Certainly, some changes need to be made to update out-of-date OSLTF limits.

"IPAA is now working with Congress to facilitate these goals."