I 

111TH CONGRESS 

2D SESSION H. R. 6043 

To restrict participation in offshore oil and gas leasing by a person who 

engages in any activity for which sanctions may be imposed under section 

5 of the Iran Sanctions Act of 1996, to require the lessee under an 

offshore oil and gas lease to disclose any participation by the lessee 

in certain energy-related joint ventures, investments, or partnerships 

located outside Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2010 

Mr. KLEIN of Florida (for himself, Mr. KIRK, Mr. ROTHMAN of New Jersey, 

Mr. DEUTCH, Mr. MCMAHON, Ms. BERKLEY, Ms. WASSERMAN

SCHULTZ, and Mr. ENGEL) introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the 

Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To restrict participation in offshore oil and gas leasing by 

a person who engages in any activity for which sanctions 

may be imposed under section 5 of the Iran Sanctions 

Act of 1996, to require the lessee under an offshore 

oil and gas lease to disclose any participation by the 

lessee in certain energy-related joint ventures, investments, or partnerships located outside Iran, and for 

other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gulf Security and Iran 

5 Sanctions Enforcement Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) The illicit nuclear activities of the Govern9 ment of Iran—combined with its development of un10 conventional weapons and ballistic missiles and sup11 port for international terrorism—represent a serious 

12 threat to the security of the United States and 

13 United States allies in Europe, the Middle East, and 

14 around the world. 

15 (2) Executive Order 12959, issued on May 8, 

16 1995, banned all new investment in Iran by United 

17 States individuals and companies. 

18 (3) On August 5, 1996, the Iran and Libya 

19 Sanctions Act of 1996 (later re-titled the Iran Sanc20 tions Act of 1996) was enacted in order, among 

21 other purposes, to encourage foreign persons to 

22 withdraw from the Iranian market. 

23 (4) United Nations Security Council Resolution 

24 1929 (June 9, 2010) notes, ‘‘the potential connec25 tion between Iran’s revenues derived from its energy 


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1 sector and the funding of Iran’s proliferation-sen2 sitive nuclear activities,’’ and further notes that 

3 ‘‘chemical process equipment and materials required 

4 for the petrochemical industry have much in com5 mon with those required for certain sensitive nuclear 

6 fuel cycle activities’’. 

7 (5) Through its sanctions regime, the United 

8 States Government seeks to prevent the Iranian 

9 Government and engineers and scientists employed 

10 by state-owned Iranian energy companies or compa11 nies affiliated with Iran’s Revolutionary Guard 

12 Corps from gaining access to key domain expertise, 

13 technology and equipment that could aid the devel14 opment of Iran’s energy sector and also assist Iran 

15 in certain proliferation activities. 

16 (6) The Comprehensive Iran Sanctions, Ac17 countability, and Divestment Act of 2010, which was 

18 signed into law on July 1, 2010, included sanctions 

19 against goods, services, and technology to modernize 

20 Iran’s oil and natural gas sector. 

21 (7) The threat of sanctions has constrained the 

22 supply of capital, technology, and services to the Ira23 nian petroleum sector, and several companies have 

24 withdrawn their business from Iran. 


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1 (8) The Government of Iran is pursuing part2 nerships outside Iran with foreign energy-related 

3 companies, including joint ventures, investments, 

4 and partnerships. 

5 SEC. 3. SENSE OF CONGRESS. 

6 It is the sense of Congress that— 

7 (1) the United States should continue to sup8 port diplomatic efforts in the International Atomic 

9 Energy Agency and the United Nations Security 

10 Council to end the Government of Iran’s illicit nu11 clear activities; 

12 (2) international diplomatic efforts to address 

13 the Government of Iran’s illicit nuclear efforts and 

14 support for international terrorism are more likely to 

15 be effective if strong additional sanctions are im16 posed on the Government of Iran; 

17 (3) the concerns of the United States regarding 

18 the Government of Iran are strictly the result of the 

19 actions of the Government of Iran; 

20 (4) Iranian partnerships outside Iran with for21 eign energy-related companies, including joint ven22 tures, investments and partnerships, could give the 

23 Iranian Government and engineers and scientists 

24 employed by state-owned Iranian energy companies 

25 or companies affiliated with Iran’s Revolutionary 


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1 Guard Corps access to key domain expertise, tech2 nology and equipment that could aid the develop3 ment of Iran’s energy sector and also assist Iran in 

4 certain proliferation activities; 

5 (5) joint ventures with Iranian state-owned en6 ergy companies serve to interfere with international 

7 attempts to build a consensus for action regarding 

8 the Government of Iran’s ongoing refusal to comply 

9 with its international obligations regarding its nu10 clear program; and 

11 (6) in order for sanctions to be effective and en12 abling a diplomatic solution, the Government of Iran 

13 should be prevented from disregarding their inter14 national obligations by prohibiting foreign companies 

15 from receiving Iranian capital, technology, and ex16 pertise, and by blocking foreign energy-related com17 panies from entering into joint ventures, invest18 ments, and partnerships for energy and energy-re19 lated projects outside of Iran. 

20 SEC. 4. RESTRICTION ON PARTICIPATION IN OFFSHORE 

21 OIL AND GAS LEASING. 

22 (a) CERTIFICATION REQUIREMENT.—The Secretary 

23 of the Interior shall— 

24 (1) include in each lease issued after the date 

25 of enactment of this Act that authorizes drilling for 


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1 oil and gas on the Outer Continental Shelf a provi2 sion that requires that— 

3 (A) the person that is the lessee to certify 

4 annually to the Secretary that the person does 

5 not engage in any activity for which sanctions 

6 may be imposed under section 5 of the Iran 

7 Sanctions Act of 1996 (50 U.S.C. 1701 note); 

8 and 

9 (B) authorizes the Secretary to cancel the 

10 lease if the person fails to make such a certifi11 cation or makes such a certification that is 

12 false; and 

13 (2) upon determination by the Secretary, in 

14 consultation with the Secretary of the Treasury, that 

15 the person has failed to make a certification re16 quired under such provision or made such a certifi17 cation that is false, shall cancel the lease. 

18 (b) DISCLOSURE REQUIREMENT.—The Secretary of 

19 the Interior shall— 

20 (1) include in each lease issued after the date 

21 of enactment of this Act that authorizes drilling for 

22 oil and gas on the Outer Continental Shelf a provi23 sion that— 

24 (A) requires the person that is the lessee 

25 to disclose to the Secretary any participation by 


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1 the person in any energy-related joint venture, 

2 investment, or partnership located outside Iran 

3 that involves— 

4 (i) any person whose property and in5 terests in property are blocked pursuant to 

6 Executive Order 13224 (66 Fed. Reg. 

7 49079; relating to blocking property and 

8 prohibiting transacting with persons who 

9 commit, threaten to commit, or support 

10 terrorism); 

11 (ii) any person whose property and in12 terests in property are blocked pursuant to 

13 Executive Order 13382 (70 Fed. Reg. 

14 38567; relating to blocking of property of 

15 weapons of mass destruction proliferators 

16 and their supporters); or 

17 (iii) any entity listed on appendix A to 

18 part 560 of title 31, Code of Federal Regu19 lations (relating to the Iranian Trans20 actions Regulations); and 

21 (B) authorizes the Secretary to cancel the 

22 lease if the person fails to make such a disclo23 sure or makes such a disclosure that is false; 

24 and 


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1 (2) upon determination by the Secretary, in 

2 consultation with the Secretary of the Treasury, that 

3 the person has failed to make a disclosure required 

4 under such provision or made such a disclosure that 

5 is false, shall cancel the lease. 

6 (c) WAIVER.— 

7 (1) IN GENERAL.—The Secretary of the Inte8 rior may waive the requirement of subsection (a) or 

9 (b) (or both) on a case-by-case basis if the Secretary 

10 determines and certifies in writing to the appro11 priate congressional committees that it is in the na12 tional interest of the United States to do so. 

13 (2) REPORTING REQUIREMENT.—Not later than 

14 120 days after the date of the enactment of this Act 

15 and semi-annually thereafter, the Secretary of the 

16 Interior shall submit to the appropriate congres17 sional committees a report on waivers granted under 

18 paragraph (1). 

19 (d) REPORTING REQUIREMENT.—The Secretary of 

20 the Interior shall promptly report to the appropriate con21 gressional committees any cancellation of a lease under 

22 this section, including an explanation of the reasons for 

23 the cancellation. 

24 (e) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘appropriate congressional com2 mittees’’ means— 

3 (A) the Committee on Natural Resources 

4 and the Committee on Foreign Affairs of the 

5 House of Representatives; and 

6 (B) the Committee on Energy and Natural 

7 Resources and the Committee on Foreign Rela8 tions of the Senate; and 

9 (2) the term ‘‘person’’ has the meaning given 

10 such term in section 14(14) of the Iran Sanctions 

11 Act of 1996 (50 U.S.C. 1701 note). 

12 SEC. 5. SUNSET. 

13 This Act shall terminate 30 days after the date on 

14 which the President certifies to Congress that the Govern15 ment of Iran— 

16 (1) has permanently ceased— 

17 (A) providing support for acts of inter18 national terrorism and no longer satisfies the 

19 requirements for designation as a state sponsor 

20 of terrorism for purposes of section 6(j) of the 

21 Export Administration Act of 1979, section 

22 620A of the Foreign Assistance Act of 1961, 

23 section 40 of the Arms Export Control Act, or 

24 any other provision of law; and 


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1 (B) the pursuit, acquisition, and develop2 ment of nuclear, biological, and chemical weap3 ons and missiles; and 

4 (2) poses no significant threat to United States 

5 national security, interests, or allies. 

Æ 


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