US SEC Proposes Resource Extraction Issuer Payment Disclosure Rules … Again
22 December 2015
Mayer Brown Legal Update
The Securities and Exchange Commission has again proposed resource extraction issuer payment disclosure rules. The SEC’s first attempt in 2012 was vacated by the US District Court for the District of Columbia. The proposal would require resource extraction issuers to disclose payments made to US federal or foreign governments for the commercial development of oil, natural gas or minerals. It includes a proposed Rule 13q-1 under the Exchange Act, as well as an amendment that would add a new Section 2 to Form SD, titled “Resource Extraction Issuer Disclosure and Report.” SEC reporting companies involved in the oil, natural gas or mining industries, even if such activities are not the primary focus of their business, will need to carefully assess whether they may be subject to the proposal’s reporting obligations, particularly when they have foreign or offshore operations. The SEC has requested comments on more than 80 specific topics. Initial comments on the proposal are due by January 25, 2016. Reply comments, which are limited only to issues raised in the initial comment period, are due by February 16, 2016.