§6213 Certain Lease Bidding Arrangements Prohibited

Summary

The Secretary of the Interior must, no later than 30 days after December 22, 1975, make a rule that stops anyone from bidding for rights to develop oil, natural gas, or natural gas liquids on the Outer Continental Shelf when the bidder is significantly owned by more than one major oil company, more than one affiliate of a major oil company, or a major oil company together with its affiliate. The rule must explain what counts as an affiliate and what counts as a significant ownership interest. Definitions (one line each): "Major oil company" — a company that, alone or with related firms it owns or controls, averaged at least 1,600,000 barrels per day of oil and gas equivalents in a 6‑month period set by the Secretary. "Barrel of natural gas equivalent" — 5,626 cubic feet of gas at 14.73 psi and 60°F. "Barrel of natural gas liquids equivalent" — 1.454 barrels of NGL at 60°F. The Secretary can grant exemptions after a hearing if the lands are extremely costly to explore or develop and development won’t happen without the exemption; those decisions are final unless arbitrary or capricious. The rule does not stop combining producing fields to increase recovery. The Secretary must report to Congress, within 6 months after December 22, 1975, on whether the ban should be extended to other Federal lands and to coal and oil shale.