The American Chemical Society has distributed a Dear Colleague letter alerting potential grant applicants to the possibility of a decrease in the number of grants the Petroleum Research Fund will be able to support in 2009 and beyond.
The Petroleum Research Fund has certain limitations built into the Transfer Agreement which governs the Fund. In particular there is a specific limitation which occurs when the value of the PRF corpus drops below $400,000,000. This occurred last week in the Friday October 10, 2008 downturn in the equity markets.
The letter goes on to state that if the fund is below this $400,000,000 figure on December 31, 2008, further spending will be limited to investment income only, rather than the standard 5% of a 3-year rolling average. Several upcoming proposal review panels may be cancelled or modified as a result.
This may be only the first notice of this kind from a grant-making organization, given the global economic situation.