US District Court Vacates the SEC’s Resource Extraction Payments Disclosure Rule
8 July 2013
Mayer Brown Legal Update
On July 2, 2013, the US District Court for the District of Columbia vacated a US Securities and Exchange Commission rule under which resource extraction issuers would have had to disclose certain payments to governments in connection with the commercial development of oil, natural gas or minerals. The court found that the SEC had “misread” a section of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to public disclosure of the resource extraction payments reports and termed the SEC’s decision to deny any exemption “arbitrary and capricious.” As a result of the court’s action, the resource extraction payments disclosure rule is no longer in effect. Therefore, at the present time there is no requirement to file a Form SD to report resource extraction payments.