The OCC issued a new Oil and Gas Production Lending booklet to the Comptroller’s Handbook on April 9. The new booklet provides guidance on oil and gas production lending, including an overview of oil and gas markets, lending structures, types of reserves, associated risks and the OCC’s supervisory expectations for risk management.

     Nutter Notes: The principles contained in the new Oil and Gas Production Lending booklet apply to all national banks and federal savings associations engaged in oil and gas production lending, regardless of the size of the institution. There is no specific limit on a national bank’s oil and gas lending exposure, but certain exposure limitations do apply to federal savings associations.