What does Preamble of Stop Giving Big Oil Free Money Act do?

This bill concerns oil and natural gas production leases in the Gulf of Mexico. It proposes to prohibit the Secretary of the Interior from issuing new leases to entities that do not renegotiate existing leases. Renegotiation would be required to ensure royalty payments are made when oil and natural gas prices meet or exceed specified thresholds. The bill's purpose is to address royalty payments related to oil and natural gas production.

What does SHORT TITLE. of Stop Giving Big Oil Free Money Act do?

This bill is formally titled the 'Stop Giving Big Oil Free Money Act'.

What does ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES. of Stop Giving Big Oil Free Money Act do?

This section defines terms related to oil and gas leases in the Gulf of Mexico, including 'covered lease,' 'lessee,' and 'Secretary'. The Secretary is restricted from issuing new leases for oil and natural gas production to individuals who hold or have an interest in covered leases unless those leases are renegotiated to include royalties based on market prices. Covered leases are those in existence on the date of enactment, issued under specific legislation, and not already subject to market-price-based royalty limitations. If multiple lessees share a covered lease, the Secretary can implement separate agreements with each lessee to modify payment responsibilities. A lessee or person with an interest in a covered lease cannot obtain new leases or economic benefits from covered leases unless they renegotiate existing leases or enter an agreement with the Secretary regarding royalty relief based on market prices.

What does PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS. of Stop Giving Big Oil Free Money Act do?

This section outlines procedures for amending leases issued for tracts in the Central and Western Gulf of Mexico. The Secretary of the Interior must agree to lessee requests to amend leases issued between January 1, 1996, and November 28, 2000. The amended leases must incorporate price thresholds equal to or less than those described in section 8(a)(3)(C) of the Outer Continental Shelf Lands Act. These amended price thresholds will become effective on October 1, 2026.

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Stop Giving Big Oil Free Money Act

Last updated: 3/13/2025 · Introduced: 3/13/2025

Author: Edward Markey (D-MA)

TL;DR (AI)

The bill prohibits new oil and gas leases in the Gulf of Mexico for companies that haven't renegotiated existing leases to ensure royalty payments are tied to market prices.
Companies holding existing Gulf of Mexico leases must renegotiate those leases to incorporate price thresholds for royalty payments, or they will be ineligible for new leases and benefits.
The Secretary of the Interior must approve lease amendments for tracts leased between 1996 and 2000, incorporating specific price thresholds that will take effect in 2026.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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