United States Dodd-Frank Act: Disclosure Requirements for Publically Traded Oil, Gas and Mining Companies<br />Rees Warne<...
Dodd-Frank Act: Section 1504<br />Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act <br />(US ...
Which Companies are Covered? <br />All oil, gas and mining companies that<br /><ul><li>Are publically held (i.e., that hav...
 Are registered with the US Securities and Exchange Commission (the “SEC”  is the US government agency  that oversees the ...
Many of the largest mining companies</li></li></ul><li>What Companies must Disclose<br />Extractives companies must disclo...
Disaggregated information
For each country where they operate (“Country-by-Country” reporting)
For each “project” in each country (Project-by-Project reporting)
On the different types of payments they make (taxes, royalties, fees, signature bonuses, etc.)</li></li></ul><li>Timeline:...
July 2010: President Obama signed the law
August to October 2010: 1st public comment period
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US Dodd-Frank Act: Disclosure requirement for publicly for

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On 24 May 2011 Rees Warne of Catholic Relief Services gave this presentation in the session, "Initiatives in the International Context: Linkages and Impacts on Africa".

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  • The law has gotten a lot of attention, and there’s signals that the EU is considering similar legislation – DG Markt recently held a public comment on country by country financial reporting for all sectors, and recently President Sarkozy made a public statement saying that he would call for EU legislation on country by country reporting in the extractive industries
  • US Dodd-Frank Act: Disclosure requirement for publicly for

    1. 1. United States Dodd-Frank Act: Disclosure Requirements for Publically Traded Oil, Gas and Mining Companies<br />Rees Warne<br />Policy Advisor for Extractive Industries: Catholic Relief Services<br />Member: PWYP-US Management Committee <br />
    2. 2. Dodd-Frank Act: Section 1504<br />Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act <br />(US Public Law 111-203) <br />Requires all oil, gas and mining companies that are listed on US stock exchanges <br />To disclose what they pay to the governments of the countries where they operate<br />
    3. 3. Which Companies are Covered? <br />All oil, gas and mining companies that<br /><ul><li>Are publically held (i.e., that have sold stock to investors) AND
    4. 4. Are registered with the US Securities and Exchange Commission (the “SEC” is the US government agency that oversees the US stock exchanges)</li></ul>This includes<br /><ul><li>90% of the 30 largest internationally operating oil companies
    5. 5. Many of the largest mining companies</li></li></ul><li>What Companies must Disclose<br />Extractives companies must disclose in their annual report to the SEC what they paid to governments<br />Companies must report<br /><ul><li>Every year
    6. 6. Disaggregated information
    7. 7. For each country where they operate (“Country-by-Country” reporting)
    8. 8. For each “project” in each country (Project-by-Project reporting)
    9. 9. On the different types of payments they make (taxes, royalties, fees, signature bonuses, etc.)</li></li></ul><li>Timeline: Law and Rules<br />Law and Rules/Regulations<br /><ul><li>5-year process of working with US Congress and the SEC
    10. 10. July 2010: President Obama signed the law
    11. 11. August to October 2010: 1st public comment period
    12. 12. December 2010: SEC provided draft rules
    13. 13. December 2010 – present: 2nd public comment period
    14. 14. Between August and December 2011 (delayed): SEC expected to publish final rules</li></li></ul><li>6<br />PWYP slide <br />
    15. 15. Comments on Proposed Rules (1)<br />All comments submitted to the SEC are public http://www.sec.gov/comments/s7-42-10/s74210.shtml<br />Many comments support strong rules (especially comments from PWYP; development, environmental, human rights and faith-based organizations; and some investors and companies)<br />
    16. 16. Comments on Proposed Rules (2)<br />Other comments seek weaker rules (especially comments from major oil companies) <br />Exemptions for countries that prohibit disclosure<br />Remove project by project reporting<br />Claim that strong rules would weaken the EITI<br />Claim that law would hurt US companies<br />Our Responses<br />Countries that prohibit disclosure are precisely the countries where transparency is most important<br />Different project agreements have different payment requirements <br />The law and rules are designed to be consistent with – and complementary to – the EITI<br />Other markets are exploring adoption of similar disclosure requirements – we strongly support this<br />
    17. 17. Timeline: Company Reporting<br />The first company reports are due 1 year after rules are published<br /><ul><li> If the rules are published in August 2011 </li></ul> -> company reports are due in September 2012<br /><ul><li> If the rules are published in December 2011</li></ul> -> company reports are due in January 2013<br />
    18. 18. Information will be Public<br />Information required by Section 1504 of the Dodd-Frank Act will be publically available on the SEC’s website<br /><ul><li> In each company’s reports
    19. 19. As data compiled by the SEC
    20. 20. In an interactive format</li></li></ul><li>How this information is used<br />is up to you!<br />

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