119-hr2053

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2053 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2053

 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

 March 11, 2025

 Mr. Grijalva 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 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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