* Exemptions a sticking point
* Differences narrowed, further talks in April
* U.S. appeals court to hear challenge to U.S. law this week
* Soros, France, Britain back rigour
By Barbara Lewis
BRUSSELS, March 19 (Reuters) - The European Union failed toreach agreement on Tuesday on a planned law that would requireoil, gas and mining companies to declare payments togovernments.
The law is part of efforts to end poverty in resource-richnations and follows similar legislation passed in the UnitedStates.
Though EU officials had said Tuesday's talks on a legal textcould be the last, a spokeswoman for the EU presidency, held byIreland, said there would have to be another round in April.
"Hopefully, that really will be the last. There weretechnical difficulties about the administrative burden oncompanies, but we made good progress," the spokeswoman said.
It remains unclear whether the EU rules will be as rigorousas a U.S. law, which has led to a challenge through the courts.
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."
Once an EU text has been decided, it will requireendorsement from parliament and member states, which would beexpected over the coming weeks. Ireland aims to finalise thedossier before the end of its presidency in June.
SOROS VERSUS SHELL
Investor and philanthropist George Soros is among those toback watertight requirements to ensure any payments are declaredto 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 Royal Dutch Shell, prompting a stiff rebuttal.
Dick Benschop, president director of Shell Nederland BV,issued 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," he said, without naming the countries. "Theconsequence is that companies like Shell will eventually beforced to elect to break the law somewhere in the world."
In addition to exemptions, another big debate in Europe hascentred on 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 in September, the European Parliament backedreporting from a minimum threshold of 80,000 euros ($104,500),almost identical to the $100,000 U.S. requirement.
It is much higher than the 15,000 euros some campaigners sayis enough to matter, but far below the million-dollar level someresource 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 last Octobersaid France would push, at a European level, for publication"country by country, project by project, without exception".
Britain's Deputy Prime Minister Nick Clegg, also speaking inOctober, called for rules "similar to the high standards alreadyintroduced by the U.S."
The Netherlands holds a similar opinion, according to BartVisser, a spokesman for the Dutch economic affairs ministry.
"We don't think exemptions should be made because we wouldlike to create a level playing field for companies in Europe,"Visser said on Tuesday.
