To improve competition in the oil and gas industry, to strengthen antitrust enforcement with regard to industry mergers, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Oil and Gas Industry Antitrust Act 
of 2006''.

SEC. 2. PROHIBITION ON UNILATERAL WITHHOLDING.

    The Clayton Act (15 U.S.C. 12 et seq.) is amended--
            (1) by redesignating section 28 as section 29; and
            (2) by inserting after section 27 the following:

``SEC. 28. OIL AND NATURAL GAS.

    ``(a) In General.--Except as provided in subsection (b), it shall 
be unlawful for any person to refuse to sell, or to export or divert, 
existing supplies of petroleum, gasoline, or other fuel derived from 
petroleum, or natural gas with the primary intention of increasing 
prices or creating a shortage in a geographic market.
    ``(b) Considerations.--In determining whether a person who has 
refused to sell, or exported or diverted, existing supplies of 
petroleum, gasoline, or other fuel derived from petroleum or natural 
gas has done so with the intent of increasing prices or creating a 
shortage in a geographic market under subsection (a), the court shall 
consider whether--
            ``(1) the cost of acquiring, producing, refining, 
        processing, marketing, selling, or otherwise making such 
        products available has increased; and
            ``(2) the price obtained from exporting or diverting 
        existing supplies is greater than the price obtained where the 
        existing supplies are located or are intended to be shipped.''.

SEC. 3. REVIEW OF CLAYTON ACT.

    (a) In General.--The Attorney General and the Chairman of the 
Federal Trade Commission shall conduct a study, including a review of 
the report submitted under section 4, regarding whether section 7 of 
the Clayton Act should be amended to modify how that section applies to 
persons engaged in the business of exploring for, producing, refining, 
or otherwise processing, storing, marketing, selling, or otherwise 
making available petroleum, gasoline or other fuel derived from 
petroleum, or natural gas.
    (b) Report.--Not later than 270 days after the date of enactment of 
this Act, the Attorney General and the Chairman of the Federal Trade 
Commission shall submit a report to Congress regarding the findings of 
the study conducted under subsection (a), including recommendations and 
proposed legislation, if any.

SEC. 4. STUDY BY THE GOVERNMENT ACCOUNTABILITY OFFICE.

    (a) Definition.--In this section, the term ``covered consent 
decree'' means a consent decree--
            (1) to which either the Federal Trade Commission or the 
        Department of Justice is a party;
            (2) that was entered by the district court not earlier than 
        10 years before the date of enactment of this Act;
            (3) that required divestitures; and
            (4) that involved a person engaged in the business of 
        exploring for, producing, refining, or otherwise processing, 
        storing, marketing, selling, or otherwise making available 
        petroleum, gasoline or other fuel derived from petroleum, or 
        natural gas.
    (b) Requirement for a Study.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General of the United 
States shall conduct a study evaluating the effectiveness of 
divestitures required under covered consent decrees.
    (c) Requirement for a Report.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller General shall submit a 
report to Congress, the Federal Trade Commission, and the Department of 
Justice regarding the findings of the study conducted under subsection 
(b).
    (d) Federal Agency Consideration.--Upon receipt of the report 
required by subsection (c), the Attorney General or the Chairman of the 
Federal Trade Commission, as appropriate, shall consider whether any 
additional action is required to restore competition or prevent a 
substantial lessening of competition occurring as a result of any 
transaction that was the subject of the study conducted under 
subsection (b).

SEC. 5. JOINT FEDERAL AND STATE TASK FORCE.

    The Attorney General and the Chairman of the Federal Trade 
Commission shall establish a joint Federal-State task force, which 
shall include the attorney general of any State that chooses to 
participate, to investigate information sharing (including through the 
use of exchange agreements and commercial information services) among 
persons in the business of exploring for, producing, refining, or 
otherwise processing, storing, marketing, selling, or otherwise making 
available petroleum, gasoline or other fuel derived from petroleum, or 
natural gas (including any person about which the Energy Information 
Administration collects financial and operating data as part of its 
Financial Reporting System).

SEC. 6. NO OIL PRODUCING AND EXPORTING CARTELS.

    (a) Short Title.--This section may be cited as the ``No Oil 
Producing and Exporting Cartels Act of 2006'' or ``NOPEC''.
    (b) Sherman Act.--The Sherman Act (15 U.S.C. 1 et seq.) is 
amended--
            (1) by redesignating section 8 as section 9; and
            (2) by inserting after section 7 the following:

``SEC. 8. OIL PRODUCING CARTELS.

    ``(a) In General.--It shall be illegal and a violation of this Act 
for any foreign state, or any instrumentality or agent of any foreign 
state, in the circumstances described in subsection (b), to act 
collectively or in combination with any other foreign state, any 
instrumentality or agent of any other foreign state, or any other 
person, whether by cartel or any other association or form of 
cooperation or joint action--
            ``(1) to limit the production or distribution of oil, 
        natural gas, or any other petroleum product;
            ``(2) to set or maintain the price of oil, natural gas, or 
        any petroleum product; or
            ``(3) to otherwise take any action in restraint of trade 
        for oil, natural gas, or any petroleum product.
    ``(b) Circumstances.--The circumstances described in this 
subsection are an instance when an action, combination, or collective 
action described in subsection (a) has a direct, substantial, and 
reasonably foreseeable effect on the market, supply, price, or 
distribution of oil, natural gas, or other petroleum product in the 
United States.
    ``(c) Sovereign Immunity.--A foreign state engaged in conduct in 
violation of subsection (a) shall not be immune under the doctrine of 
sovereign immunity from the jurisdiction or judgments of the courts of 
the United States in any action brought to enforce this section.
    ``(d) Inapplicability of Act of State Doctrine.--No court of the 
United States shall decline, based on the act of state doctrine, to 
make a determination on the merits in an action brought under this 
section.
    ``(e) Enforcement.--The Attorney General of the United States may 
bring an action to enforce this section in any district court of the 
United States as provided under the antitrust laws, as defined in 
section 1(a) of the Clayton Act (15 U.S.C. 12(a)).''.
    (c) Sovereign Immunity.--Section 1605(a) of title 28, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``or'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) in which the action is brought under section 8 of the 
        Sherman Act.''.

Summary: Oil and Gas Industry Antitrust Act of 2006 - Amends the Clayton Act to make it unlawful for any person to refuse to sell, or to export or divert, existing supplies of petroleum, gasoline, or other fuel derived from petroleum, or natural gas, with the primary intention of increasing prices or creating a shortage in a geographic market.

Directs the Attorney General (AG) and the Chairman of the Federal Trade Commission (FTC) to study whether section 7 of the Clayton Act (prohibiting certain mergers or acquisitions) should be amended to modify how that section applies to persons engaged in the business of exploring for, producing, refining, or otherwise processing, storing, marketing, selling, or otherwise making available petroleum, gasoline or other fuel derived from petroleum, or natural gas.

Requires the Comptroller General to study the effectiveness of divestitures required under certain prior oil and gas industry consent decrees.

Directs the AG and FTC Chairman to establish a joint federal-state task force to investigate information sharing among persons in the oil and gas industry.

No Oil Producing and Exporting Cartels Act of 2006 or NOPEC - Amends the Sherman Act to make it illegal for any foreign state or instrumentality thereof to act collectively with any other foreign state or instrumentality to: (1) limit oil production or distribution; (2) set or maintain the price of oil; or (3) take any other action in restraint of trade for oil, natural gas, or any petroleum product.