House votes to repeal SEC’s resource extraction disclosure rule
The U.S. House of Representatives voted recently to repeal a rule enacted by the Securities and Exchange Commission’s (SEC) that required oil, gas and mining companies to disclose payments they made to foreign governments.
The rule, known as the Cardin-Lugar Amendment, became law in 2010 as Section 1504 of the Dodd-Frank Act.
Critics of the rule say it put American companies at a disadvantage compared to foreign ones that are not subject to the same rule, adding over $1 billion in costs for the energy industry.
The American Petroleum Institute applauded the House’s decision.
“Today’s House vote is a necessary step by Congress to establish sensible regulations that balance increasing transparency without diminishing our industry’s competitive advantage,” API Director of Tax Policy Stephen Comstock said. “The SEC’s rule requires disclosure for American companies but not foreign entities, fundamentally harming American workers and shareholders.”
Supporters of the rule say that American citizens have a right to know what foreign governments American oil companies are paying, especially if those governments could be hostile to the United States.
API said that the oil and natural gas industries value transparency, but believe this particular rule is unfair.
“We look forward to continuing to work with the new Congress and administration on policies that will create jobs and help keep energy costs low for American consumers and businesses,” Comstock said.
