The Securities Commission in Alberta and Ontario has granted Exxon Mobil Corporation an exemption from the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (NI 51-101). This decision is based on the fact that less than 10% of Exxon Mobil’s securities are beneficially owned by Canadian residents, and the company will continue to be a U.S. issuer and an SEC foreign issuer.
The exemption is conditional on Exxon Mobil complying with the oil and gas disclosure requirements of the U.S. Securities and Exchange Commission (SEC) and the New York Stock Exchange (NYSE), and filing such disclosures. Additionally, the company must issue a news release in Canada stating its adherence to U.S. disclosure rules rather than NI 51-101, and file the oil and gas disclosure with the securities regulatory authorities in the reporting jurisdictions promptly after filing in the U.S.
The decision is supported by the fact that Exxon Mobil is a corporation governed by New Jersey laws, is a reporting issuer in Canada, and is not in default of Canadian securities legislation. The company’s securities are registered under the U.S. Securities Exchange Act of 1934 and listed on the NYSE. The company has conducted a thorough investigation to confirm the residency of its security holders, concluding that Canadian residents do not own more than 10% of any class or series of its securities.
The exemption is made under the securities legislation of Alberta and Ontario, with the Alberta Securities Commission acting as the principal regulator for the application. The decision reflects the test set out in the legislation for the decision maker to grant such an exemption.