SEC Proposes Disclosure Rules for Payments by Resource Extraction Issuers

The Securities and Exchange Commission (SEC) recently published for public comment proposed rules that would require each resource extraction issuer to disclose in its annual report information relating to any payment made by the issuer, its subsidiaries or entities it controls to a foreign government or the U.S. Federal Government for the purpose of the commercial development of oil, natural gas or minerals. The proposed rules would implement the disclosure provisions of Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Based on the volume of SEC comment requests contained throughout the proposing release, which can be found here, the final rules may vary significantly from the proposed rules. Comments on the proposed rules must be submitted to the SEC by January 31, 2011.