[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1030 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1030
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
March 13, 2025
Mr. Markey (for himself, Mr. Merkley, Mr. Welch, Mr. Sanders, and Mr.
Van Hollen) introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
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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, 2026.
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