SEC Adopts Rules Implementing Disclosure Requirements Relating To Payments By Resource Extraction Issuers: Practical Steps For Complying With These Requirements

The Securities and Exchange Commission (the "SEC") recently adopted rules implementing the disclosure of payments by issuers to foreign governments or the U.S. federal government for the purpose of the commercial development of oil, natural gas or minerals required by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").¹ The SEC has adopted a new Form SD for use by covered issuers in disclosing the information required by the new rules. These rules were adopted contemporaneously with the SEC's new rules regarding conflict minerals disclosure, which also requires disclosure on the new Form SD. The new disclosure requirements apply regardless of whether covered payments are material to the business of the issuer. This client alert reviews the new disclosure requirements and provides practical recommendations for preparing the required information and complying with the new rules.