SEC Adopts Final Resource Extraction Disclosure Rules

On June 27, 2016, the Securities and Exchange Commission ("SEC") adopted final rules requiring disclosure by resource extraction issuers of payments made to governments for the commercial development of oil, natural gas, or minerals. Specifically, issuers must disclose payments of $100,000 or more made to the United States federal government or any foreign governments¹ during a fiscal year, including production entitlements, taxes, royalties, fees, and payments for infrastructure improvements. The disclosures will be required by Rule 13q-1 and will appear on a Form SD, which issuers must file annually within 150 days after their fiscal year end beginning with fiscal years ending after September 30, 2018.