The SEC will require “resource extraction issuers” to disclose certain payments made to the U.S. government and to foreign governments. Resource extraction issuers are companies that engage in the development of oil, natural gas, or minerals.
A payment or series of related payments must be disclosed if:
-the payment(s) are made to further the commercial development of oil, natural gas, or minerals;
-the payment(s) total $100,000 or more to a government within one fiscal year; and
-the payment(s) fit into certain categories, including:
–Fees (including license fees)
Various details about the payments must be disclosed, including:
-the types of payments,
-the amount paid,
-the currency used,
-the financial period in which the payments were made,
-the business segment of the issuer that made the payments,
-the government that received the payments, and
-the project the payments relate to.
These disclosure are made on a new form, Form SD, which is filed annually. The form must be filed within 150 days of the end of the company’s fiscal year. The rule applies to fiscal years ending after September 30, 2013.
This alert applies to the Series 82, Series 62, and Series 79.