SEC Adopts Dodd-Frank Resource Extraction Payments Disclosure Rules

On August 22, 2012, the US Securities and Exchange Commission adopted new disclosure rules¹ for oil, natural gas and mining companies that file annual reports with the SEC—defined in the rules as "resource extraction issuers."

Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act added subsection (q) to Section 13 of the Securities Exchange Act of 1934, mandating the SEC to adopt rules requiring resource extraction issuers to disclose annually certain information on payments they make to the US government and foreign governments for the purpose of the commercial development of oil, natural gas or minerals. Section 13(q)(2)(E) provides that the adopted rules should support the commitment of the US government to promote international transparency efforts relating to the commercial development of these natural resources.