06.28.16

Final SEC Rule Implements Leahy-Authored Oil/Mining Transparency Reforms In Dodd-Frank Wall Street Reform Law

Leahy Welcomes Completion
Of SEC’s Long-Awaited Proposed Rule
On Oil And Mining Transparency

. . . Rule Implements Leahy-Authored Provision Of Dodd-Frank Reforms

WASHINGTON (TUESDAY, June 28, 2016) -- U.S. Senator Patrick Leahy (D-Vt.) Tuesday welcomed action by the Securities and Exchange Commission (SEC) late Monday to finalize a rule on a long-delayed extractive industries transparency provision of the Wall Street reform law enacted in 2010. The transparency provision was authored by Leahy and became Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

As a conferee, Leahy worked closely with Senators Dick Lugar (R-Ind.) and Ben Cardin (D-Md.) when he successfully offered the amendment during the Dodd-Frank conference negotiations that created Section 1504. The transparency provision requires every SEC-registered public oil, natural gas and mining company to report payments made to the U.S. federal government or any foreign government for the extraction of oil, natural gas and minerals by companies. Once fully implemented, Section 1504 will provide investors with a more complete view of the value of their holdings, encouraging capital formation. The reforms will also bring more information to global commodities markets, contributing to price stability. Section 1504 has also been praised as a global example for how to help empower citizens to hold their governments accountable for the decisions made in the management and sound stewardship of valuable oil, gas, and minerals resources and revenues.

A final rule on Section 1504 had originally been adopted by the SEC on Aug. 22, 2012, but it was subsequently vacated by the U.S. District Court for the District of Columbia. Since then, the European Union and Canada have both adopted transparency initiatives similar to the rule the SEC had initially adopted in 2012.

Leahy said: “I welcome the completion of the SEC’s work on this long-awaited rule. I look forward to reviewing the final rule in detail to ensure that it follows congressional intent by increasing transparency for companies involved in the development of oil, natural gas and minerals. Sunshine is a powerful disinfectant, and the SEC finally is pulling back the curtains to allow U.S. investors and citizens in resource-rich countries to hold their leaders accountable. I commend the SEC for taking action to increase corporate responsibility, promote energy security and provide U.S. investors with the information they need to properly analyze these risks. That is what Congress intended in adopting my amendment during the Dodd-Frank conference negotiations seven years ago.”

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