Stop Giving Big Oil Free Money Act
Sponsored By: Senator Markey, Edward J. [D-MA]
Introduced
Summary
Requires renegotiation of royalty-relief Gulf of Mexico leases so producers pay royalties when oil or gas prices rise. This bill would block anyone who still benefits from those older “covered leases” from getting new Gulf of Mexico leases or transferring leases until those leases are amended to include the price-based royalty thresholds in law.
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- Companies that hold or benefit from a "covered lease" must renegotiate each covered lease to require royalty payments when oil or gas prices reach the thresholds in clauses (v)–(vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act.
- Any person with a direct or indirect interest in a covered lease cannot receive a new Gulf lease or transfer a covered lease unless all covered leases are amended or there is an agreement with the Secretary to modify payment responsibilities.
- The Secretary must agree to requests to amend Central and Western Gulf of Mexico leases issued between January 1, 1996 and November 28, 2000 to add qualifying price thresholds, and those amendments would take effect October 1, 2026.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
New Gulf leases require royalty thresholds
If enacted, Interior would not issue new Gulf oil or gas production leases to people tied to certain older leases unless they fix them. A “covered lease” would be one that existed at enactment, was issued under the Deep Water Royalty Relief Act, and lacks price-based royalty limits at or below the thresholds in section 8(a)(3)(C)(v)–(vii) of the Outer Continental Shelf Lands Act. Those people would need to renegotiate each covered lease to require royalties when prices meet or exceed those thresholds, or sign an agreement to modify all their covered leases. They would also be barred from acquiring or transferring covered leases, their economic benefit, or any other Gulf production lease by sale, swap, spinoff, servicing, or similar deal unless they meet the same condition. These restrictions would take effect upon enactment.
Price triggers added to 1996–2000 leases
If enacted, any lessee could ask Interior to amend a Central or Western Gulf lease issued between January 1, 1996, and November 28, 2000. Interior would have to agree. The amendment would add price thresholds for suspending royalties that are at or below those in section 8(a)(3)(C)(v)–(vii) of the Outer Continental Shelf Lands Act. The new thresholds would apply starting October 1, 2026. Interior could also make separate deals with lessees who share a lease, and a share covered by such a deal would no longer be a covered lease for that party.
Sponsors & CoSponsors
Sponsor
Markey, Edward J. [D-MA]
MA • D
Cosponsors
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 3/13/2025
Peter Welch
VT • D
Sponsored 3/13/2025
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 3/13/2025
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 3/13/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov