Sec Resource Extraction Rule Eliminated
Date: February 16, 2017
From: Reid A. Godbolt, Esq.
With the onset of the Trump administration, regulatory relief has arrived. On February 14th President Trump signed a joint resolution of Congress passed under the Congressional Review Act (“CRA”) eliminating the Securities and Exchange Commission’s (“SEC”) rule requiring resource extraction issuers to disclose payments made to the U.S. federal government or foreign governments for commercial development of oil, natural gas or minerals. Section 1504 of the Dodd-Frank Act of 2010 required the SEC to issue rules requiring resource extraction issuers to include, in an annual report, information relating to any payment made by the issuer or its affiliates to the U.S. federal government or a foreign government for the purpose of the commercial development of oil, natural gas or minerals.
The CRA permits the nullification of any recently finalized federal regulation by a simple majority vote in both chambers, subject to presentment to the President for signature or veto. A rule invalidated under the CRA is treated as not having taken effect and may not be reissued in substantially the same form unless the reissued or new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule. The CRA also provides that congressional nullification of a regulation is not subject to judicial review.
The original resource extraction rule was adopted by the SEC in August 2012 and floundered after a successful regulatory challenge by the American Petroleum Institute. The resource extraction disclosure rule was adopted in June 2016 and would have required that issuers comply with the disclosure requirements starting with their fiscal year ending on or after September 30, 2018.
We will see what else Congress and President Trump eliminate – either by resolution or a new act of Congress. It appears they now have other, significant important matters to address for now.
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Christopher R. Johnson 303-785-1669 firstname.lastname@example.org
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This information is not intended as legal advice. Readers should seek specific legal advice before acting with regard to the subjects mentioned herein.