March 27, 2016
Dear Secretary Fields, Chair White, and Commissioners Several,
I write on behalf of Alaska Consumer Oil Gas, LLC and echo the comments made by Messrs. Rosenthal and Gilvary. Specifically, we do not sit at a point of no return with regard to the implementation of regulation in the US or EU as to project-level reporting (quite the opposite is true, this debate is relevant, timely, and actionable).
There is no question the Commission's goal "to empower citizens of ... resource producing countries to hold their governments accountable for the wealth generated by those resources" and the Act's broader goal to increase transparency are both important.
However, the Proposed Rule requires a granularity and specificity of disclosure that is strangling in practice, inadequate in protection, and unimaginative as to consequence. As to the penultimate and ultimate points, firms operating under the Proposed Rule will comply at their peril, releasing project-level information to competitors.
By adopting the Proposed Rule, the Commission asks SEC registrants and firms that find themselves within the ambit of the Commission's jurisdiction to operate at a significant and lasting disadvantage, unable to conceal proprietary, valuable, and timely information from competitors. For an eloquent discussion of this concern, see Mr. Rosenthal's letter dated 2/16/16 at p.5-7.
For these reasons, and those elaborated upon by my many esteemed colleagues at other firms, I urge that you not adopt the Proposed Rule.
Respectfully,
Karl T. Muth, Ph.D.
CEO, Alaska Consumer Oil and Gas, LLC