Political Contributions
We operate in an industry that is heavily regulated and as such, we are deeply affected by the political and legislative process.
We strongly believe that Coterra’s long-term value to our shareholders is enhanced by a business environment that protects and supports the oil and gas industry’s ability to responsibly operate to provide important energy resources to consumers. Corporate contributions, if any, in furtherance of this interest are made only if consistent with our Political Contributions and Activities policy within our Code of Business Conduct and are approved by the Chief Executive Officer and reviewed by our Board of Directors’ Governance and Social Responsibility Committee.
The expenditures for 2021 described below include both those by Cabot Oil & Gas Corporation and Cimarex Energy Inc. prior to the October 1, 2021, merger that formed Coterra Energy Inc. and all contributions of the combined company after the merger.
Review our political contributions:
Direct Contributions
Coterra does not engage in independent expenditures to support or oppose any political campaign. Coterra also did not make any contributions to any political candidates, parties or party committees in 2021. From time to time, however, Coterra supports organizations that are active in the public policy and political engagement processes as they affect the exploration, production and transportation of natural gas and oil, including those organized under Section 527 of the Internal Revenue Code. In so doing, Coterra adheres to our Policy on Political Contributions and Activities and to all U.S. and state laws and regulations that govern political engagement for U.S. public companies. In 2021, Coterra’s contributions to Section 527 organizations consisted of the following:
| Section 527 Organization | Contribution | |
|---|---|---|
| Republican Governors Association | $ | 60,000 |
| GOPAC | $ | 25,000 |
| Emerge Pennsylvania | $ | 500 |
| Total | $ | 85,500 |
Coterra may also contribute corporate funds to influence state or local ballot measures when such measures are deemed to be in the best interest of Coterra, its employees and its shareholders. In 2021, Coterra did not make any contributions in support of any ballot measures.
Indirect Political Spending
Consistent with our policy and our industry peers, we also are members of business and industry trade groups (organized under Section 501(c)(6) of the Internal Revenue Code) that engage in educational and collaborative initiatives regarding issues that affect our industry. Some of these associations also engage in lobbying activities that seek to promote legislative solutions that are sound and responsible and, in our judgment, appropriately advance not only Coterra’s business, but the goals and interests of our industry as a whole. Coterra also occasionally makes contributions to 501(c)(4) tax-exempt civic or social welfare organizations that engage in political activity in support of our industry or the business community as a whole. In 2021, the total non-deductible, lobbying related portion of our dues paid to all business and trade associations and 501(c)(4) organizations, as reported to us by those organizations, was approximately $3,050,000, as detailed below:
| Business or Trade Association or Social Welfare Organization | Non-deductible Dues | |
|---|---|---|
| Appalachian Natural Gas Operators | $ | 37,584 |
| American Exploration and Production Council (AXPC) | $ | 84,000 |
| American Petroleum Institute (API) | $ | 2,651,305 |
| Commonwealth Partners Chamber of Entrepreneurs | $ | 50,000 |
| Independent Petroleum Association of America | $ | 11,375 |
| Marcellus Shale Coalition (MSC) | $ | 2,175 |
| New Mexico Oil & Gas Association (NMOGA) | $ | 87,000 |
| Petroleum Alliance of Oklahoma | $ | 24,000 |
| Pennsylvania Chamber of Commerce | $ | 3,850 |
| Shale Energy Alliance | $ | 15,000 |
| Texas Independent Producers & Royalty Owners Association (TIPRO) | $ | 300 |
| Texas Oil & Gas Association (TXOGA) | $ | 80,705 |
| US Oil & Gas Association (USOGA) | $ | 912 |
| Western Energy Alliance | $ | 1,800 |
| Total | $ | 3,050,006 |
Our Chief Executive Officer approves Coterra’s participation in, and levels of contributions to, all business and trade associations and social welfare organizations.