I 
116TH CONGRESS 
1ST SESSION H. R. 5186 
To prohibit the Secretary of the Interior from issuing new oil or natural 
gas production leases in the Gulf of Mexico under the Outer Continental 
Shelf Lands Act to a person that does not renegotiate its existing 
leases in order to require royalty payments if oil and natural gas prices 
are greater than or equal to specified price thresholds, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 20, 2019 
Mr. GRIJALVA (for himself and Mr. LOWENTHAL) introduced the following 
bill; which was referred to the Committee on Natural Resources 
A BILL 
To prohibit the Secretary of the Interior from issuing new 
oil or natural gas production leases in the Gulf of Mexico 
under the Outer Continental Shelf Lands Act to a person 
that does not renegotiate its existing leases in order 
to require royalty payments if oil and natural gas prices 
are greater than or equal to specified price thresholds, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Stop Giving Big Oil 
Free Money Act of 2019’’. 
SEC. 2. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER 
OF LEASES. 
(a) DEFINITIONS.—In this section: 
(1) COVERED
LEASE.—The term ‘‘covered 
lease’’ means a lease for oil or gas production in the 
Gulf of Mexico that is— 
(A) in existence on the date of enactment 
of this Act; 
(B) issued by the Secretary under section 
304 of the Outer Continental Shelf Deep Water 
Royalty Relief Act (43 U.S.C. 1337 note; Pub-
lic Law 104–58); and 
(C) not subject to limitations on royalty re-
lief based on market price that are equal to or 
less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of 
the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(a)(3)(C)). 
(2) LESSEE.—The term ‘‘lessee’’ includes any 
person or other entity that controls, is controlled by, 
or is in or under common control with, a lessee. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Interior. 
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(b) ISSUANCE OF NEW LEASES.— 
(1) IN
GENERAL.—The Secretary shall not 
issue any new lease that authorizes the production 
of oil or natural gas under the Outer Continental 
Shelf Lands Act (43 U.S.C. 1331 et seq.) to a per-
son described in paragraph (2) unless the person has 
renegotiated each covered lease with respect to which 
the person is a lessee, to modify the payment re-
sponsibilities of the person to require the payment of 
royalties if the price of oil and natural gas is greater 
than or equal to the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). 
(2) PERSONS DESCRIBED.—A person referred 
to in paragraph (1) is— 
(A) a lessee that— 
(i) holds a covered lease on the date 
on which the Secretary considers the 
issuance of the new lease; or 
(ii) was issued a covered lease before 
the date of enactment of this Act, but 
transferred the covered lease to another 
person or entity (including a subsidiary or 
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affiliate of the lessee) after the date of en-
actment of this Act; or 
(B) any other person that has any direct 
or indirect interest in, or that derives any ben-
efit from, a covered lease. 
(3) MULTIPLE LESSEES.— 
(A) IN GENERAL.—For purposes of para-
graph (1), if there are multiple lessees that own 
a share of a covered lease, the Secretary may 
implement separate agreements with any lessee 
with a share of the covered lease that modifies 
the payment responsibilities with respect to the 
share of the lessee to include price thresholds 
that are equal to or less than the price thresh-
olds described in clauses (v) through (vii) of 
section 8(a)(3)(C) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
(B) TREATMENT OF SHARE AS COVERED 
LEASE.—Beginning on the effective date of an 
agreement under subparagraph (A), any share 
subject to the agreement shall not constitute a 
covered lease with respect to any lessees that 
entered into the agreement. 
(c) TRANSFERS.—A lessee or any other person who 
has any direct or indirect interest in, or who derives a 
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benefit from, a lease shall not be eligible to obtain by sale 
or other transfer (including through a swap, spinoff, serv-
icing, or other agreement) any covered lease, the economic 
benefit of any covered lease, or any other lease for the 
production of oil or natural gas in the Gulf of Mexico 
under the Outer Continental Shelf Lands Act (43 U.S.C. 
1331 et seq.), unless the lessee or other person— 
(1) has renegotiated each covered lease with re-
spect to which the lessee or person is a lessee, to 
modify the payment responsibilities of the lessee or 
person to include price thresholds that are equal to 
or less than the price thresholds described in clauses 
(v) through (vii) of section 8(a)(3)(C) of the Outer 
Continental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1337(a)(3)(C)); or 
(2) has entered into an agreement with the Sec-
retary to modify the terms of all covered leases of 
the lessee or other person to include limitations on 
royalty relief based on market prices that are equal 
to or less than the price thresholds described in 
clauses (v) through (vii) of section 8(a)(3)(C) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(C)). 
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SEC. 3. PRICE THRESHOLDS FOR ROYALTY SUSPENSION 
PROVISIONS. 
(a) IN GENERAL.—The Secretary of the Interior shall 
agree to a request by any lessee to amend any lease issued 
for any Central and Western Gulf of Mexico tract during 
the period of January 1, 1996, through November 28, 
2000, to incorporate price thresholds applicable to royalty 
suspension provisions, that are equal to or less than the 
price thresholds described in clauses (v) through (vii) of 
section 8(a)(3)(C) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(a)(3)(C)). 
(b) NEW
OR REVISED PRICE THRESHOLDS.—An 
amended lease under subsection (a) shall impose the new 
or revised price thresholds effective on October 1, 2021. 
(c) EXISTING LEASE PROVISIONS.—Lease provisions 
in effect on the date of enactment of this Act shall prevail 
through September 30, 2020. 
Æ 
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