SEC rules on resource extraction disclosure now effective
13 November 2012SEC Update
The new SEC rules on disclosure by “resource extraction issuers” became effective on November 13. Rule 13q-1 under the Exchange Act requires those issuers to disclose annually on Form SD payments of $100,000 or more to a foreign government or the U.S. federal government in connection with the “commercial development of oil, natural gas, or minerals.” A resource extraction issuer must provide information about payments for each project and to each government made by it, its subsidiaries or any entity it controls. Rule 13q-1 implements Section 13(q) of the Exchange Act, which was added by Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to increase the transparency of payments made to governments by issuers engaged in extraction activities in the oil, natural gas, and minerals industry. When it issued Rule 13q-1, the SEC amended Form SD (Specialized Disclosure Report), which it had adopted as part of its “conflict minerals” rule, to require the resource extraction disclosure.