NOTICE OF DISCIPLINARY ACTION

NON-MEMBER:

HARVEST ENERGY, LTD.

LEGACY EXCHANGE RULE:

538.H. Documentation

Parties to any EFRP transaction must maintain all documents relevant to the Exchange contract and the cash, OTC swap, OTC option, or other OTC derivatives, including all documents customarily generated in accordance with relevant market practices and any documents reflecting payment and transfer of title. Any such documents must be provided to the Exchange upon request, and it shall be the responsibility of the carrying clearing member firm to provide such requested documentation on a timely basis.

FINDINGS:

Pursuant to an offer of settlement Harvest Energy, Ltd. (“Harvest”) presented at hearing on June 16, 2015, in which Harvest neither admitted nor denied the rule violations upon which the penalty is based, a Panel of the NYMEX Business Conduct Committee (“Panel”) found that it had jurisdiction over Harvest pursuant to Rules 402 and 418, and that on February 5, 2014, Harvest entered into an EFRP transaction that did not contain documentation of the corresponding simultaneous swap transaction, and therefore was not a bona fide EFRP.

The Panel found that as a result, Harvest violated Legacy Rule 538.H.

PENALTY:

In accordance with the settlement offer, the Panel ordered Harvest to pay a fine to the Exchange in the amount of $7,500.