Title: Stop Giving Big Oil Free Money Act
Policy area: Energy

Summary:
Stop Giving Big Oil Free Money Act
This bill prohibits the Department of the Interior from issuing new oil or natural gas production leases in the Gulf of Mexico to any person who does not renegotiate certain existing leases to require royalty payments if the price of oil and natural gas is greater than or equal to specified price thresholds.
Interior must also, upon request, agree 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 specified price thresholds.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2906 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2906

   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 SENATE OF THE UNITED STATES

                           November 20, 2019

  Mr. Markey introduced the following bill; which was read twice and 
       referred to the Committee on Energy and 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Giving Big Oil Free Money 
Act''.

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; Public Law 104-58); and
                    (C) not subject to limitations on royalty relief 
                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.
    (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 person 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 responsibilities 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 affiliate of the 
                        lessee) after the date of enactment of this 
                        Act; or
                    (B) any other person that has any direct or 
                indirect interest in, or that derives any benefit from, 
                a covered lease.
            (3) Multiple lessees.--
                    (A) In general.--For purposes of paragraph (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 
                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) 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 benefit from, a lease shall not 
be eligible to obtain by sale or other transfer (including through a 
swap, spinoff, servicing, 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 respect 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 Secretary 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)).

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, 2020.
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