Releases

The recently passed financial reform bill contains a “transparency” provision with disclosure requirements that could place domestic energy companies in a considerable bind. In an effort to reduce the possibility of corruption, the Dodd-Frank Act requires SEC-registered corporations to disclose how much they pay foreign governments for oil, gas and mineral rights. “Many foreign governments mandate that the terms of these agreements be kept confidential, so forcing the disclosure of this information could cause U.S. companies to violate the terms of their contracts,” says Andrew Derman, leader of the International Energy Practice Group at Thompson & Knight. “While some contracts with foreign governments contain exceptions that allow the disclosure of certain confidential information, it’s unclear how the SEC may interpret the limits of that disclosure.” For more information, contact Barry Pound at 800-559-4534 or barry@androvett.com.