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119-hr-2053119th CongressWALLET

Stop Giving Big Oil Free Money Act

Sponsored By: Representative Grijalva, Raúl M. [D-AZ-7]

Introduced

Summary

Conditions new Gulf oil and gas leases on companies renegotiating existing leases to require royalty payments when prices reach set thresholds. It would define which existing leases count as "covered leases" and set a mechanism to force renegotiations for many Gulf leases, including specific amendments for older Central and Western Gulf tracts.

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  • Companies that hold or benefit from a covered lease would be barred from receiving new Gulf leases unless they renegotiate each covered lease to require royalties when market prices hit the law's thresholds.
  • People who try to buy or otherwise gain economic benefit from a covered lease would have to renegotiate those covered leases or enter an agreement with the Interior Secretary limiting market-price-based royalty relief before a transfer can proceed.
  • Leases issued for Central and Western Gulf tracts from January 1, 1996 through November 28, 2000 would be amended to include the price thresholds, with those changes taking effect October 1, 2026.
  • For shared leases the Secretary could make separate agreements with individual lessees so that a share covered by an agreement would no longer count as a covered lease for the others.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

New Gulf leases tied to royalty rules

If enacted, Interior would not issue new Gulf oil or gas leases to a company unless it first renegotiates its covered leases to require royalties once prices meet set thresholds. It would also block sales, swaps, spinoffs, or other transfers of covered leases or their economic benefits unless the buyer agrees to those terms or signs an agreement to update all covered leases. For shared leases, Interior could make separate deals with each owner, and the updated share would no longer be treated as a covered lease for that owner. A covered lease would be a Gulf lease issued under deep‑water royalty relief, in place at enactment, and not already limited by those price thresholds. These limits would start when the bill is enacted.

Older Gulf leases face price triggers

If enacted, Interior would agree to requests to amend leases issued January 1, 1996, through November 28, 2000, in the Central and Western Gulf. The change would add price thresholds so royalty suspensions end once oil or gas prices reach those levels, matching thresholds referenced in current law. In any amended lease, the new thresholds would take effect on October 1, 2026. This would apply only to that 1996–2000 group of leases.

Sponsors & CoSponsors

Sponsor

Grijalva, Raúl M. [D-AZ-7]

AZ • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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