SEC Adopts Rules For Resource Extraction Issuers

The Securities and Exchange Commission (the "Commission") recently announced it adopted final rules to require resource extraction issuers to disclose payments made to governments for the commercial development of oil, natural gas or minerals.

The rules require an issuer to disclose payments made to the US federal government or a foreign government if the issuer engages in the commercial development of oil, natural gas, or minerals and is required to file annual reports with the Commission under the Securities Exchange Act of 1934 (the "Exchange Act"). The issuer must also disclose payments made by a subsidiary or entity controlled by the issuer.

Under the rules, resource extraction issuers must disclose payments that are: made to further the commercial development of oil, natural gas, or minerals; not de minimis; and within the types of payments specified in the rules. The rules define "commercial development of oil, natural gas, or minerals" as exploration,