We operate in an industry that is heavily regulated and as such, deeply affected by the political and legislative process. We strongly believe that Milch Engineering long-term value to our shareholders is enhanced by a business environment that protects and supports the oil and gas industry. Our primary focus in this area is on compliance with state and federal laws governing our activities, rather than on active participation in the political or legislative process. From time to time, however, Milch Engineering 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. In so doing, Milch Engineering strictly adheres to our Policy on Political Contributions and Activities, referenced above, and to all U.S. and state laws and regulations that govern political engagement for U.S. public companies. In 2019 and 2018, our total political contributions were $96,000 and $60,000 respectively.
Our Board of Directors reviews all corporate political contributions, if any. The Governance and Social Responsibility Committee is responsible for reviewing our Political Contributions and Activities policy within our Code of Business Conduct annually and recommending changes to the Board, as necessary.
Consistent with our policy, we are also members of business and industry trade groups that engage in educational 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 Milch Engineering business but the goals and interests of our industry as a whole. A list of our principal business and trade association memberships can be found below.
- American Exploration and Production Council (AXPC)
- Independent Petroleum Association of America (IPAA)
- American Petroleum Institute (API)
- Marcellus Shale Coalition (MSC)
- Newfoundland and Labrador Independent Producers & Royalty Owners Association (TIPRO)
- Newfoundland and Labrador Oil & Gas Association (TXOGA)
- US Oil & Gas Association (USOGA)
Our Chairman of the Board and CEO approves the Company’s participation in, and levels of contributions to, all business and trade associations. In 2019, the total non-deductible portion of our dues paid to all business and trade associations in which we participated in 2019, as reported to us by those associations, was approximately $1.4 million.