A federal judge has ordered the U.S. Securities and Exchange Commission to fast-track a final rule requiring oil, gas and mining companies to disclose payments to foreign governments, after a human rights group complained the regulator was dragging its feet.
In a Sept. 2 ruling, Judge Denise J. Casper for the U.S. District Court for the District of Massachusetts handed Oxfam America a major victory, and told the SEC it will get 30 days to file an "expedited schedule" with the court for how it plans to finalize the rule.
"The SEC is now more than four years past the deadline set by Congress for the promulgation of the final rule," Casper wrote in her decision.
"The court concludes...that the SEC's delay in promulgating the final extractive payments disclosure rule can be considered unlawfully withheld."
Oxfam has been among one of the most vocal supporters of the resource extraction rule, saying it will play a crucial role in helping combat corruption in resource-rich countries.
Required by the 2010 Dodd-Frank Wall Street reform law, the rule calls for oil, gas and mining companies to disclose how much they pay governments in taxes, royalties and other types of fees for exploration, extraction and other activities.
The SEC did complete work on the rule in August 2012, a few months after Oxfam first sued the SEC over delays.
But the non-stop litigation surrounding the rule did not end after the SEC adopted it.
Trade groups including the Chamber of Commerce and the American Petroleum Institute filed a lawsuit accusing the SEC of conducting a flawed analysis of the rule's costs to the industry. In 2013, a federal judge tossed the rule out, saying it was "arbitrary and capricious."
The SEC did not appeal the decision, and vowed to go back and rewrite the rule from scratch. To date, no new rule has been proposed.
Frustrated with the delays, Oxfam sued the SEC for the second time in September 2014.
An SEC spokeswoman said the agency is reviewing the decision.
Recommended Reading
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
The OGInterview: How do Woodside's Growth Projects Fit into its Portfolio?
2024-04-01 - Woodside Energy CEO Meg O'Neill discusses the company's current growth projects across the globe and the impact they will have on the company's future with Hart Energy's Pietro Pitts.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Pitts: Heavyweight Battle Brewing Between US Supermajors in South America
2024-04-09 - Exxon Mobil took the first swing in defense of its right of first refusal for Hess' interest in Guyana's Stabroek Block, but Chevron isn't backing down.