Energy Security and Industry Accountability Targeted in New Legislation by Bipartisan Senate Group
Small change by SEC will reduce risk for investors, increase public knowledge and foster stability in resource-rich countries
FOR IMMEDIATE RELEASE
NEW YORK—The Revenue Watch Institute urges the Senate to take swift action on the bipartisan "Energy Security through Transparency Act of 2009," introduced today by Senators Richard Lugar (R-Ind.) and Ben Cardin (D-Md.). The bill, which will revise U.S. Securities and Exchange Commission guidelines, is a small change that will spark great rewards in financial and political stability for the energy sector worldwide and here in the United States.
The legislation will require oil, gas, and mining companies to disclose how much they pay foreign countries and the U.S. government for oil, gas, coal and other minerals. Three other senators are original co-sponsors of the bill, including Senator Charles Schumer (D-N.Y.), who introduced a similar bill last year, along with Senators Roger Wicker (R-Miss.) and Russ Feingold (D-Wis.).
Revenue Watch Director Karin Lissakers said the adjusted reporting guidelines are "a win-win proposition for investors and for communities in resource-rich countries," where corruption and the suspicion of corruption frequently undermine the public trust, efficient oil and mining operations, and even national stability. "When companies publish what they pay to governments, they give investors decision-useful information, help local communities keep their leaders honest, and foster the stability that keeps investments flowing and secure," said Lissakers.
The rule change, if approved by Congress, would mark the first time energy companies were required to release raw materials expenditures on a country-by-country basis.
Sarah Pray, of the Publish What You Pay-US coalition, said the improved reporting rule is an idea whose time has come. "Citizens in the poorest nations shouldn't pay the price for their government's mismanagement of their most valuable resources. With these simple changes, Congress can help improve the lives and livelihoods of communities in the developing world while also enhancing U.S. energy security."
CONTACT:
Jed Miller, +1 917 257-0670, jmiller@revenuewatch.org
LEARN MORE
- Background: Energy Security Through Transparency Act of 2009 (pdf, 90 KB)
- Questions and Answers on the Energy Security Through Transparency Act of 2009 (pdf, 156 KB)
- Bipartisan Bill Proposes Simple SEC Rule Change to Help Stabilize U.S. Energy Sources (Publish What You Pay-US)
- New Strides for the Extractive Industries Transparency Disclosure Act
- U.S.: A New Focus on Transparency at State Department
- U.S. Senator Examines the Resource Curse (The Christian Science Monitor)
U.S. Said to Allow Drilling Without Needed Permits - The New York Times
Australia Gas Deal Renews Tension - Financial Times
Charged With Fraud, Nigeria's Ruling Party Leader Resigns - Reuters
Western Senators Propose Ban on Pacific Drilling - The New York Times
To Limit Corruption around Mining in Africa, Follow the Money - The Globe and Mail
Court Backs Oil Project - The New York Times
Transparency Increases, But There Is Still a Long Way to Go - The Phnom Penh Post
IMF Develops Project to Help Africa Deal with Illicit Trade - African Manager
Three-day Conference on Africa's Natural Resources Starts in Tanzania - Standard Times Press
After Oil Rig Blast, BP Refused to Share Underwater Spill Footage - ABC News
Finger-Pointing, but Few Answers at Hearings on Drilling - The New York Times
Complaints Over U.N. Prize Sponsored by Equatorial Guinea's Obiang - Reuters
Guide: Community-Company Grievance Resolution for Australian Mining Industry - Oxfam Australia (pdf)
Cote D'Ivoire: President for Life, and Then Some - The New York Times
In Midst of Massive Spill, Oil Industry Fighting Transparency and Accountability - Oxfam America
Leaked Oil Contracts in DRC Threaten Resource Wars and $10 Billion Rip-Off by British Company - Carbon Web
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