WE DID IT!

July 15, 2010 - The Senate gave final approval today to the Dodd-Frank Wall Street Reform and Consumer Protection Act with a landmark provision requiring energy and mining companies registered with the U.S. Securities and Exchange Commission to disclose how much they pay to foreign countries and the U.S. government for oil, gas, and minerals. 

The PWYP Coalition would like to thank ESTT champions Senators Benjamin Cardin (D-MD) and Richard Lugar (R-IN), and Patrick Leahy (D-VT) for introducing the provision as an amendment during the conference negotiations for the bill. Critical support came from Senators Tim Johnson (D-ND), Russell Feingold (D-WI), Charles Schumer (D-NY) and Richard Durbin (D-IL). Both the Senate Banking Committee Chairman Christopher Dodd (D-CT) and the House Financial Services Committee Chairman Barney Frank (D-MA) supported the Senate amendment during conference negotiations. We thank you for your stalwart support of this provision.

We would also like to thank the cosponsors of the Energy Security through Transparency Act: Senator Evan Bayh, Senator Richard Durbin, Senator Russell Feingold, Senator Dianne Feinstein, Senator Tim Johnson, Senator Patrick Leahy, Senator Joseph Lieberman, Senator Robert Menendez, Senator Jeff Merkley, Senator Chuck Schumer, Senator Sheldon Whitehouse and Senator Roger Wicker.
 

PWYP would also like to extend our sincere gratitude to the coalition and constituents for their tireless efforts to raise awareness of the lack of transparency in the extractive industries and for their determination to push for change. This important provision would not be possible without your continued support.

U.S. legislation shines light on billions in oil and mineral payments

Measure sets new global standard for corporate transparency 

WASHINGTON, D.C., July 15, 2010 — The Senate gave final approval today to the Dodd-Frank Wall Street Reform and Consumer Protection Act with a landmark provision requiring energy and mining companies registered with the U.S. Securities and Exchange Commission to disclose how much they pay to foreign countries and the U.S. government for oil, gas, and minerals. 

This historic measure gives citizens in resource-rich countries information they need to combat corruption in the oil and mineral sector and to demand government accountability for responsible resource use.   The House passed the same legislation on June 30, and it is expected to be signed into law by President Obama next week.

The provision was based on the Energy Security through Transparency Act (S. 1700), which was championed in the U.S. Senate by a bipartisan group of legislators led by Senators Benjamin Cardin (D-MD) and Richard Lugar (R-IN). Sen. Patrick Leahy (D-VT) introduced the provision as an amendment during the conference negotiations for the financial services reform bill. Critical support came from Senators Tim Johnson (D-ND), Russell Feingold (D-WI), Charles Schumer (D-NY) and Richard Durbin (D-IL). Both the Senate Banking Committee Chairman Christopher Dodd (D-CT) and the House Financial Services Committee Chairman Barney Frank (D-MA) supported the Senate amendment during conference negotiations. 

"This provision is a critical part of the increased transparency and corporate responsibility that we are striving to achieve in the financial industry,” said Senator Cardin. “Given the catastrophic events in the Gulf of Mexico, oil companies, in particular, should well understand that secrecy fosters instability, corruption and greater risk. We now have the tools to help people in resource-rich countries hold their leaders accountable for the money made from their oil, gas and minerals." 

"Transparency empowers citizens, investors, regulators, and other watchdogs and is a necessary ingredient of good governance for countries and companies alike. The Cardin-Lugar amendment brings a major step in favor of increased transparency at home and abroad. It empowers investors to have a more complete view of the value of their holdings. It brings more information to global commodity markets, which would benefit price stability. Most importantly, it helps empower citizens to hold their governments to account for the decisions made by their governments in the management of valuable oil, gas, and mineral resources and revenues," said Senator Dick Lugar, Senate Foreign Relations Committee Ranking Member in a Senate Floor Statement.

The measure is a major victory for the global Publish What You Pay coalition, which includes over 600 faith, human rights and development groups working in over 55 countries.

“This is a game changer,” said Isabel Munilla, Director of Publish What You Pay United States. “This legislation sheds light on billions in payments between oil and mineral companies and governments. Citizens now have a powerful tool they can use to scrutinize the levels of public spending on economic development, environmental protection and health and human services.”

The measure covers hundreds of companies, including 90% of the world’s largest internationally operating oil and gas companies, and eight of the world’s ten largest mining companies. It will, as a result, provide citizens in nearly every country around the globe with much needed information.

Publish What You Pay is calling on other governments to follow suit. “Citizens on the Gulf coast of the U.S., in the Niger Delta, and all around the world deserve to know how much their governments receive for the development of natural resources,” Munilla said.  “That’s why we are calling on other governments, such as the United Kingdom, Canada, and Australia, to adopt similar requirements, so that we can build on the leadership of the U.S. Congress."

View entire press release here.

A global appeal for transparency in the oil, gas and mining industries