In this issue of Mayer Brown’s Global Energy Industry Review, we analyze two regional developments—in Mexico, President Enrique Peña Nieto’s proposal to overhaul the country’s energy industry by promoting broad constitutional changes that would open the Mexican petroleum industry to private participation, and, in Myanmar, the emergence of myriad opportunities in the energy sector as that country experiences a period of political transition and reform.
At a time of considerable consolidation in the energy industry, we also take a fresh look at the premerger notification filing requirements under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 and the energy-specific exemptions under HSR that apply to broad categories of energy mergers and acquisitions.
We assess the potential income tax advantages of a master limited partnership as a business structure for companies with revenues tied to the extraction of natural resources, a benefit that, according to several recent IRS private letter rulings, also can accrue to many businesses involved with hydraulic fracturing.
Finally, we look at US Securities and Exchange Commission staff guidance regarding disclosure requirements for “conflicts minerals”—certain minerals originating in the Democratic Republic of Congo or an adjoining country that are used in products manufactured or contracted to be manufactured by an SEC-reporting company. Similar guidance was provided by the SEC staff for the SEC’s resource extraction payments disclosure rules, but those rules were vacated by a federal district court’s ruling in July 2013. It is likely that a very similar version of the vacated rules will be re-proposed and adopted by the SEC, but probably not in 2013.
We regularly publish legal updates on timely industry issues. We invite you to visit the Energy “News & Publications” page on our web site to view a complete list of our energy updates.