• SEC Expands Disclosure Requirements for Energy Exploration Companies (Oil, Gas and Minerals)
  • September 4, 2012
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The U.S. Securities and Exchange Commission (SEC) has adopted final rules requiring oil, gas and mineral exploration companies to make annual disclosures regarding certain payments made to the U.S. government and foreign governments. See final rules. Companies subject to the new requirement to publicly disclose project-specific expenses will likely want to implement new internal procedures, or enhance existing procedures, to ensure that sufficient information regarding such payments is both gathered and retained going forward. Indeed, while the new requirements could potentially increase compliance costs for these companies, termed “resource extraction issuers,” because they direct the companies to formally record and disclose a wide range of government payments, proper planning and implementation of internal procedures in response to the new disclosure requirements could potentially help mitigate those additional costs.