House and Senate Approve Joint Resolution to Disapprove the SEC's Resource Extraction Rule
The US House of Representatives and the US Senate have approved a joint resolution to disapprove the SEC's resource extraction rule. The President later signed the resolution, after which the resource extraction rule has no further force or effect.
Last week, the US House of Representatives and the US Senate each approved H.J.Res.41, a joint resolution to disapprove the SEC's resource extraction rule. The President is expected to sign the resolution shortly, at which point the resource extraction rule will have no further force or effect.
The SEC adopted final rules for resource extraction issuers in June 2016, as required under Section 13(q) of the Exchange Act ( www.practicallaw.com/5-382-3808) . Section 13(q), enacted as part of the Dodd-Frank Act ( www.practicallaw.com/4-502-8619) , requires the SEC to adopt rules requiring certain disclosure by reporting companies ( www.practicallaw.com/2-382-3758) in commercial development of oil, natural gas, or minerals. The final rules took effect on September 26, 2016 and would have required resource extraction issuers to comply with the final rules for fiscal years ending on or after September 30, 2018.
It is worth noting that the resolution repeals the SEC's final rules adopted in June 2016; it does not repeal the Dodd-Frank provision (or Section 13(q) of the Exchange Act) mandating that the SEC adopt resource extraction disclosure rules.
Update: The President signed the resolution on February 14, 2017.
For more information about Section 13(q) of the Exchange Act and related rulemaking, see Practice Note, Summary of the Dodd-Frank Act: SEC Authority and Selected Securities Act and Exchange Act Provisions ( www.practicallaw.com/3-502-8592) .