* Exemptions last major issue for EU talks
* U.S. appeals court to hear challenge to U.S. law this week
* Soros, France's Hollande, Britain's Clegg back rigour
By Barbara Lewis
BRUSSELS, March 19 (Reuters) - Europe appears set to agreerules forcing oil, gas and mining companies to declare paymentsto governments, as part of efforts to end poverty inresource-rich nations by ensuring the wealth is shared out.
EU officials say Tuesday's round of negotiations on a legaltext could be the last, but it is not yet clear whether theEuropean Union's rules will be as rigorous as U.S. legislation,which has led to a challenge through the courts.
Once a text has been decided, it will require endorsementfrom parliament and member states, which would be expected overthe coming weeks.
On Friday, a U.S. appeals court will hear oral arguments inthe case against regulator the Securities and ExchangeCommission brought by industry body the American PetroleumInstitute.
In Brussels, the last major sticking point is the issue ofexemptions, which oil companies say are necessary to takeaccount of the law in certain regimes in which they operate.
Campaign groups disagree.
"It's essential the EU follows the U.S. and deletes anyreference to exemptions," Eloise Todd, Brussels director ofanti-poverty group ONE, said.
"Any whiff of exemptions in these rules could open the doorto corrupt regimes exempting oil companies from reporting thepayments they make."
Investor and philanthropist George Soros has also thrown hisweight behind watertight requirements to ensure any payments aredeclared to regulatory authorities where firms are registered.
In a speech in February, he said investors stood to gainfrom disclosure because it made assessing risk in firms easier.
He voiced concern the Dutch government was under pressurefrom Anglo-Dutch oil company Royal Dutch Shell,prompting a stiff rebuttal.
SHELL VERSUS SOROS
President Director of Shell Nederland BV Dick Benschopissued a statement denying the firm was exerting pressure "torelax the rules".
"Contrary to what Mr. Soros claims, some countries havenational legislation actually prohibiting openness about theflow of funds," his statement said, without naming thecountries.
"The consequence is that companies like Shell willeventually be forced to elect to break the law somewhere in theworld."
If exemptions are the last major hold-out, another bigdebate in Europe has been the threshold for declaring payments.
EU sources, speaking on condition of anonymity, predictedthe EU limit would be similar to the U.S. one. In votes inSeptember, the European Parliament backed reporting from aminimum threshold of 80,000 euros ($104,500), almost identicalto the $100,000 U.S. requirement.
It is much higher than the 15,000 euros some campaign groupssay is enough to matter, but far below the million-dollar levelsome resource firms had said was practical.
Britain, France and the Netherlands, home to Europe'sbiggest oil companies BP, Total and Royal DutchShell, have also offered support for tough requirements.
French President Francois Hollande in a speech in Kinshasalast October said France would push, at a European level, forpublication "country by country, project by project, withoutexception".
Britain's Deputy Prime Minister Nick Clegg, also speaking inOctober, called for rules "similar to the high standards alreadyintroduced by the U.S."
In the Netherlands, Bart Visser, a spokesman for the Dutcheconomic affairs ministry, said EU rules should be in line withthe U.S. law.
"We don't think exemptions should be made because we wouldlike to create a level playing field for companies in Europe,"Visser said.
