SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oil for Iraq Liberation Act of 
2008''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Every Middle Eastern country that possesses significant 
        petroleum resources has long held those resources as national 
        assets.
            (2) Several developments indicate that the historical 
        precedent of a nationalized Iraqi oil sector could be undercut 
        by United States interests. The Bush Administration has 
        aggressively pressured the Iraqi government to privatize its 
        oil resources and a United States oil company has secured an 
        oil contract with the Kurdistan Regional Government and a 
        former Administration official is reported to be seeking an oil 
        contract with the Kurdistan Regional Government.
            (3) President George W. Bush released a list of benchmarks 
        in August 2006 by which to judge success in Iraq. These 
        benchmarks included the passage of a ``hydrocarbon act''. The 
        Administration has characterized the bill as a national revenue 
        sharing plan.
            (4) Hunt Oil Company, headquartered in Dallas, Texas, has 
        signed a production sharing agreement for petroleum 
        exploration, signaling that the war with Iraq has made access 
        to Iraqi oil a reality for United States oil companies.
            (5) The CEO of the Hunt Oil Company is a major campaign 
        contributor for President Bush, including a $35 million 
        contribution to the Bush Presidential Library. He has twice 
        been appointed to a seat on the President's Foreign 
        Intelligence Advisory Board. At the invitation of the then 
        Halliburton CEO, Richard Cheney, he served on the Halliburton 
        Board of Directors.
            (6) The Hunt Oil deal is now part of an internal 
        investigation by the Department of State.
            (7) News reports indicate that former Assistant Secretary 
        of Defense, Richard Perle, has been pursuing oil-drilling 
        contracts with Iraq's Kurdistan Regional Government. Mr. Perle 
        served as chairman of the Defense Policy Advisory Committee 
        during the run up to the war in Iraq. He was an influential 
        advisor to the Department of Defense between 2001 and 2003 and 
        is credited with being an early advocate of invading Iraq and 
        as an Iraq war architect. Mr. Perle resigned from his 
        chairmanship on March 28, 2003, just after the United States 
        invasion of Iraq, amid controversy that there existed the 
        potential for his business interests to profit from the war in 
        Iraq.
            (8) The Department of State recently led a team of United 
        States advisers who helped the Iraq Oil Ministry negotiate 
        technical service contracts to help with oil production. A 
        lobbyist representing efforts oil-friendly policies has called 
        these contracts ``a chance to get a foot in the door with 
        regards to future Iraqi [oil] production''.
            (9) The Hunt Oil deal, the reported actions by Richard 
        Perle and speculation by United States oil interests undercuts 
        the stated United States policy of ``revenue sharing''.
            (10) Certain Iraqis and analysts have concluded that the 
        ``hydrocarbon act'' is in fact a privatization scheme to ensure 
        control of Iraq oil by foreign oil companies.
            (11) Certain Iraqis and analysts have concluded that the 
        ``hydrocarbon act'' is in fact a privatization scheme to ensure 
        control of Iraq oil by foreign oil companies.

SEC. 3. PROHIBITIONS ON CERTAIN ACTIVITIES RELATING TO THE PETROLEUM 
              RESOURCES OF IRAQ.

    (a) In General.--The following shall be unlawful:
            (1) The entry into or the performance by a United States 
        person, or the approval by a United States person of the entry 
        into or the performance by an entity owned, controlled, or 
        operated by such United States person, of--
                    (A) a contract that includes overall supervision or 
                management responsibility for the development of 
                petroleum resources located in Iraq; or
                    (B) a guaranty of anther person's performance under 
                such a contract.
            (2) The entry into or the performance by a United States 
        person, or the approval by a United States person of the entry 
        into or the performance by an entity owned, controlled, or 
        operated by such United States person, of--
                    (A) a contract for the financing of the development 
                of petroleum resources located in Iraq; or
                    (B) a guaranty of another person's performance 
                under such a contract.
            (3) Any investment by a United States person in the 
        petroleum resources located in Iraq.
            (4) Any transaction by any United States person that 
        evades, avoids, or violates, has the purpose of evading, 
        avoiding, or violating, or attempts to evade, avoid, or 
        violate, any of the prohibitions described in paragraphs (1), 
        (2), and (3).
    (b) Penalties.--A violation of subsection (a) shall be punishable 
by not more than ten years imprisonment and a fine of not more than 
$1,100,000.
    (c) Effective Date.--This Act shall take effect on the date of the 
enactment of this Act and shall apply with respect to activities 
prohibited under subsection (a) that were entered into on or after 
March 20, 2003, except that if a United States person, not later than 
the date that is 30 days after the date of the enactment of this Act, 
verifiably terminates such activities, such person shall not be subject 
to the penalties specified in subsection (b).
    (d) Definitions.--In this Act:
            (1) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, or other 
        organization organized under the laws of the United States.
            (2) Investment.--The term ``investment'' means any of the 
        following activities if any of such activities is undertaken 
        pursuant to an agreement, or pursuant to the exercise of rights 
        under such an agreement, that is entered into with the 
        Government of Iraq or a nongovernmental entity in Iraq:
                    (A) The entry into a contract that includes 
                responsibility for the development of petroleum 
                resources located in Iraq or the entry into a contract 
                providing for the general supervision and guarantee of 
                another person's performance of such a contract.
                    (B) The purchase of a share of ownership, including 
                an equity interest, in the development described in 
                subparagraph (A).
                    (C) The entry into a contract providing for the 
                participation in royalties, earnings, or profits in 
                such development.
        The term ``investment'' does not include the entry into or the 
        performance or financing of a contract to sell or purchase 
        goods, services, or technology.
            (3) Iraq.--The term ``Iraq'' means the land territory 
        claimed by Iraq and any other area over which Iraq claims 
        sovereignty, sovereign rights or jurisdiction, including the 
        territorial sea, exclusive economic zone, and continental shelf 
        claimed by Iraq.
            (4) Person.--The term ``person'' means an individual or an 
        entity.
            (5) Petroleum resources.--The term ``petroleum resources'' 
        means any petroleum, petroleum products, or natural gas 
        originating in Iraq, including any Iraqi-origin oil 
        inventories, wherever located.
            (6) United states person.--The term ``United States 
        person'' means any United States citizen, permanent resident 
        alien, entity organized under the laws of the United States 
        (including foreign branches), or any person in the United 
        States.
Oil for Iraq Liberation Act of 2008 - Prohibits: (1) the entry into or the performance by a U.S. person or an entity owned or controlled by such person of a contract that includes overall management responsibility for petroleum development in Iraq, a contract for financing petroleum development in Iraq, or the guaranty of another person's performance under either such contract; (2) any investment by such person in Iraq's petroleum resources; and (3) any transaction by such person that evades or violates such prohibitions.

Sets forth penalties for violation of such prohibitions.

Defines specified terms.
To prohibit certain activities relating to the petroleum resources of Iraq, and for other purposes.