I 
110TH CONGRESS 
1ST SESSION H. R. 3009 
To enhance transparency of trading in over-the-counter derivatives in natural 
gas. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2007 
Mr. BARROW (for himself and Mr. GRAVES) introduced the following bill; 
which was referred to the Committee on Agriculture 
A BILL 
To enhance transparency of trading in over-the-counter 
derivatives in natural gas. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Market Transparency 
Reporting of United States Transactions Act of 2007’’. 
SEC. 2. OVER-THE-COUNTER TRANSACTIONS IN NATURAL 
GAS. 
(a) DEFINITIONS.—Section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a) is amended by adding at the 
end the following: 
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‘‘(34) 
INCLUDED
NATURAL
GAS
TRANS-
ACTION.—The term ‘included natural gas trans-
action’ means a contract, agreement, or transaction 
in natural gas that is entered into— 
‘‘(A) in reliance on the provisions of sub-
section (g) or (h) of section 2; or 
‘‘(B) by use of a domestic technology or 
software providing direct access to a foreign 
board of trade.’’. 
(b) REPORTING OF EXCLUDED TRANSACTIONS IN 
NATURAL GAS.—Section 2(g) of such Act (7 U.S.C. 2(g)) 
is amended— 
(1) by striking ‘‘or’’ after ‘‘5d,’’; 
(2) by inserting ‘‘, or paragraphs (4) and (5) of 
this subsection (with respect to any contract, agree-
ment, or transaction in natural gas))’’ after 
‘‘12(e)(2)’’; and 
(3) by adding at the end the following: 
‘‘(4) It shall be a violation of this subsection for 
any person to enter into any contract, agreement, or 
transaction in natural gas relying on the exemption 
provided in this subsection if the person, directly or 
indirectly, has, obtains, owns, controls, or maintains 
a position in a contract, agreement, or transaction 
in natural gas equal to or in excess of such amount 
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as the Commission from time to time shall fix, un-
less the person files or causes to be filed with the 
properly designated officer of the Commission such 
reports as the Commission may require by rule, reg-
ulation, or order with respect to any position in any 
contract, agreement, or transaction in natural gas 
described in this section. 
‘‘(5) Any person entering into any contract, 
agreement, or transaction relying on the exemption 
provided in this subsection shall maintain books and 
records relating to each such transaction, showing 
complete details of the transactions, positions, inven-
tories, and commitments, including the names and 
addresses of all persons having any interest therein, 
for a period of 5 years, in such form as the Commis-
sion shall require by rule, regulation, or order. The 
books and records shall be open for inspection by 
any representative of the Commission or of the De-
partment of Justice.’’. 
(c) REPORTING OF EXEMPT TRANSACTIONS IN NAT-
URAL GAS.—Section 2(h) of such Act (7 U.S.C. 2(h)) is 
amended— 
(1) in paragraph (2)— 
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(A) by inserting ‘‘and the persons that 
enter into such a contract, agreement, or trans-
action’’ after ‘‘subsection’’; 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(C) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(D) paragraphs (7) and (8) of this sec-
tion.’’; 
(2) in paragraph (4)— 
(A) by inserting ‘‘and the persons that 
enter into such a contract, agreement, or trans-
action’’ after ‘‘subsection’’; 
(B) by striking ‘‘and’’ at the end of sub-
paragraph (C); 
(C) by redesignating subparagraph (D) as 
subparagraph (E) and inserting after subpara-
graph (C) the following: 
‘‘(D) paragraphs (7) and (8) of this sec-
tion; and’’; and 
(3) by adding at the end the following: 
‘‘(7) It shall be a violation of this subsection for 
any person to enter into any contract, agreement, or 
transaction in natural gas relying on the exemption 
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provided in this subsection if the person, directly or 
indirectly, has, obtains, owns, controls, or maintains 
a position in a contract, agreement, or transaction 
in natural gas equal to or in excess of such amount 
as the Commission from time to time shall fix, un-
less the person files or causes to be filed, or with re-
spect to a contract, agreement, or transaction en-
tered into on an electronic trading facility, the elec-
tronic trading facility files or causes to be filed on 
such person’s behalf, with the properly designated 
officer of the Commission, such reports as the Com-
mission may require by rule, regulation, or order 
with respect to any position in such contracts, agree-
ments, or transactions in natural gas described in 
this section. 
‘‘(8) Any person entering into any contract, 
agreement, or transaction in natural gas relying on 
the exemption provided in this subsection shall 
maintain books and records relating to each such 
transaction and showing complete details of such 
transactions, positions, inventories, and commit-
ments, including the names and addresses of all per-
sons having any interest therein, for a period of 5 
years, in such form as the Commission shall require 
by rule, regulation, or order. The records shall be 
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open for inspection by any representative of the 
Commission or of the Department of Justice.’’. 
SEC. 3. AUTHORITY TO REQUIRE FILING OF REPORTS. 
The Commodity Exchange Act (7 U.S.C. 1–25) is 
amended by inserting after section 4p the following: 
‘‘SEC. 4q. FILING OF REPORTS OF TRANSACTIONS IN NAT-
URAL GAS. 
‘‘(a) IN GENERAL.—The Commission shall establish 
a reporting system with respect to large positions in in-
cluded natural gas transactions, as defined in section 
1a(34), that a person may, directly or indirectly, have, ob-
tain, own, control, or maintain. 
‘‘(b) REQUIRED INFORMATION.—Such required re-
ports with respect to included natural gas transactions, 
as defined in section 1(a)(34), shall be in sufficient detail 
and with sufficient frequency to enable the Commission 
to assess the overall trading activities, potential market 
power, and concentration of positions directly or indirectly 
held, obtained, owned, controlled, or maintained by the 
largest traders and to assess these factors in relation to 
the amount of potential deliverable supplies in natural gas 
directly or indirectly held, obtained, owned, controlled or 
maintained by the traders and shall enable the Commis-
sion to aggregate the positions with respect to the person’s 
separately owned or controlled accounts. 
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‘‘(c) CONFIDENTIALITY OF INFORMATION.—The re-
ports with respect to included natural gas transactions de-
scribed in subsection (b) shall be subject to section 8. 
‘‘(d) MARKET TRANSPARENCY.—The Commission 
shall publish on a regular basis a report or reports with 
respect to the information reported to it with respect to 
included natural gas transactions. The report or reports 
shall include on a summary basis information with respect 
to aggregate reportable positions held by commercial per-
sons and noncommercial persons and may not reveal the 
specific identity or size of positions of individual persons. 
‘‘(e) REQUIRED RULES.—The Commission shall issue 
rules, regulations, or an order to implement this section 
within 270 days after the date of the enactment of this 
section.’’. 
SEC. 4. CRIMINAL AND CIVIL PENALTIES. 
(a) CIVIL MONEY PENALTIES.—Section 6(c) of the 
Commodity Exchange Act (7 U.S.C. 9, 15) is amended 
in clause (3) of the 10th sentence, by striking ‘‘$100,000’’ 
and inserting ‘‘$500,000’’. 
(b) INCREASE IN PENALTIES.—Section 6c(d)(1) of 
such Act (7 U.S.C. 13a–1(d)(1)) is amended by striking 
‘‘$100,000’’ and inserting ‘‘$500,000’’. 
(c) CRIMINAL PENALTIES.—Section 9(a) of such Act 
(7 U.S.C. 13) is amended in the matter preceding para-
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graph (1) by inserting after ‘‘(or’’ the following: ‘‘for any 
violation other than manipulation or attempted manipula-
tion of the price of any commodity in interstate commerce, 
or for future delivery on or subject to the rules of any 
registered entity, or the cornering or attempt to corner 
any such commodity or knowingly to deliver or cause to 
be delivered for transmission through the mails or inter-
state commerce by telegraph, telephone, wireless, or other 
means of communication false, misleading, or knowingly 
inaccurate reports concerning crop or market information 
or conditions that affect or tend to affect the price of any 
commodity in interstate commerce’’. 
Æ 
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