API Applauds House Resolution Rejecting New SEC Rule that Puts America at a Competitive Disadvantage and Harms Workers
WASHINGTON, February 1, 2017 – Today API applauded the House’s action to reject the Securities and Exchange Commission’s (SEC) rule implementing Section 1504 of the Dodd-Frank Act, which fails to strike the right balance between its intention to expand disclosure and protecting the competitiveness of Americans companies, and in turn harming American workers.
“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,” said API Director of Tax Policy Stephen Comstock. “The SEC’s rule requires disclosure for American companies but not foreign entities, fundamentally harming American workers and shareholders.
“The rule also undermines global payment transparency efforts and is inconsistent with other major international reporting regimes, like the Extractive Industries Transparency Initiative (EITI) and the European Union’s disclosure rules. The oil and natural gas industry strongly supports transparency and has been a leading advocate for greater transparency for decades through the EITI.
“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.”
The first rule was invalidated in a 2012 lawsuit brought by API. In key respects, the revised rule repeats many of the errors that caused the court to vacate the first version of the rule. The SEC’s rule unreasonably rejected a model of payment transparency proposed by API which would have required the SEC to publish an annual compilation of company payment data in a clear and user-friendly format while disclosing payments received by a citizen’s federal and local government by resource type, the location of the extractive activity, and the method of extraction.
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.