Court Vacates SEC Resource Payments Disclosure Rule: Court Rules that Public Disclosure of Issuers’ Reports Is Not a Statutory Requirement and Criticizes the SEC’s Decision Not to Grant an Exemption for Countries that Prohibit Disclosure; Plaintiffs’ Other Challenges Not Addressed

Sullivan & Cromwell LLP - July 2, 2013

Earlier today, the U.S. District Court for the District of Columbia vacated the rule requiring disclosure of payments by resource extraction issuers adopted by the Securities and Exchange Commission in August 2012 under Section 13(q) of the Securities Exchange Act of 1934. The rule, which was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, provided that issuers engaging in the commercial development of oil, natural gas or minerals must publicly disclose detailed information relating to certain payments made to certain governments and governmental entities annually on Form SD.