The US Securities and Exchange Commission
(SEC) has adopted rules requiring oil, gas and mineral extraction
firms to disclose information on payments made to both governments
in the US and abroad in their annual financial reports.
The new rules apply to companies required to
submit an annual report to the SEC and refers to payments made in
order to acquire licences for exploration, extraction and other
commercial development activities.
Payments under $100,000 are not included under the new regulation
but it requires energy firms to provide the SEC with the following
- type and total amount of payments made for
- type and total amount of payments made to
- total amounts of the payments by
- currency used to make the payments;
- financial period in which the payments were
- business segment of the resource extraction
issuer that made the payments;
- the government that received the payments,
and the country in which the government is located, and
- the project of the resource extraction issuer
to which the payments relate.
From 30 September 2013 resource extraction
firms will have to comply with rules no later than 150 after their
The required information must be disclosed by
filling a ‘Form SD’ in one exhibit that should be
electronically tagged using the eXtensible Buiness Reporting
Language (XBRL) format.
SEC’s new rules have been adopted on the back
of the Dodd-Frank Act and seek to enhance the transparency and
accountability of governments that receive payments from oil, gas
and mineral extraction firms.