SEC Proposes Rules For Resource Extraction Issuers Under Dodd-Frank Act

On December 11, 2015, the United States Securities and Exchange Commission (SEC) proposed rules requiring resource extraction issuers to disclose payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas or minerals. The proposed rules are intended to further the statutory objective to advance U.S. policy interests by promoting greater transparency about payments related to resource extraction in order to help combat global corruption and empower citizens of resource-rich countries to hold their governments accountable for the wealth generated by those resources.

As directed by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, similar resource extraction disclosure rules were initially adopted by the SEC on August 22, 2012 but were subsequently vacated by the U.S. District Court for the District of Columbia. Since then, the European Union and Canada have adopted transparency