Effective And Compliance Dates Set For SEC Resource Extraction Disclosure Rule

An SEC final rule requiring that resource extraction issuers "disclose payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas, or minerals" was published in the Federal Register.

The final rule - which will go into effect on March 16, 2021 - requires domestic or foreign resource extraction issuers to (i) annually file a Form SD, (ii) disclose payments made by a domestic or foreign issuer, or a subsidiary or entity controlled by the issuer, and (iii) publicly disclose company-specific, project-level payment information. For compliance purposes, the SEC adopted a two-year transition period, such that a resource extraction issuer will be required to comply with amended Exchange Act Rule 13q-1 ("Disclosure of Payments Made by Resource Extraction Issuers") and Form SD for fiscal years ending "no earlier than two years after the effective date of the final rules."