PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Natural Resources.
Congressional Research Service
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People & committees
Rep. Grijalva, Raúl M. [D-AZ-7] · D–AZ
Legislative record
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Referred to the House Committee on Natural Resources.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Dec 5, 2025. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-03-11 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposal would restrict access to new federal offshore oil and gas leases for specified people connected to covered Gulf of Mexico leases: current holders, holders issued a covered lease before enactment who transfer it afterward, and others with an interest in or benefit from a covered lease. Those applicants would have to renegotiate each covered lease for which they are a lessee to require royalties—payments for oil or gas production—when prices meet or exceed referenced statutory thresholds. The bill would also restrict acquisitions of Gulf leases and covered-lease benefits unless specified royalty conditions are met. The Interior Secretary would have to accept requests to add price limits to royalty relief on certain older leases. These are proposed requirements, not evidence of enacted law.
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)).
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.
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)).
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)).
Section 1 would name the bill the “Stop Giving Big Oil Free Money Act.”
This Act may be cited as the Stop Giving Big Oil Free Money Act.
Section 2 would cover Gulf of Mexico oil or gas production leases that exist when the bill becomes law, were issued under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act, and lack market-price limits on royalty relief at or below the referenced statutory thresholds. Royalty relief concerns relief from royalty payment obligations; the bill does not reproduce the numerical price thresholds.
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)).
to modify the payment responsibilities of the person to require the payment of royalties
The Secretary of the Interior would administer section 2. Its definition of a lessee, or leaseholder, would also include people or entities that control the leaseholder, are controlled by it, or share common control with it.
(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.
For applicants subject to section 2's restriction, the Interior Secretary could not issue a new oil or natural-gas production lease under the Outer Continental Shelf Lands Act unless the applicant renegotiated every covered lease for which it is a lessee under the bill's expanded definition. Those changes would have to require royalty payments when oil and natural-gas prices meet or exceed the referenced statutory thresholds.
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)).
The term lessee includes any person or other entity that controls, is controlled by, or is in or under common control with, a lessee.
The new-lease restriction would reach current covered-lease holders, holders issued a covered lease before enactment who transfer it after enactment, and anyone else with a direct or indirect interest in or benefit from a covered lease. Transfers to subsidiaries or affiliates would be included.
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.
Where several leaseholders own shares of a covered lease, the Secretary could make a separate agreement for an individual holder's share. The agreement would add price thresholds at or below the referenced statutory thresholds. Once effective, that share would no longer count as a covered lease for the holders who signed the agreement.
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)).
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.
A leaseholder or another person with a direct or indirect interest in or benefit from a lease would face restrictions on acquiring covered leases, their economic benefits, or other federal Gulf oil or gas production leases. Sales, swaps, spinoffs, servicing arrangements and other transfers would be included. Eligibility would require either renegotiating each covered lease for which the person is a lessee to add price thresholds at or below the referenced statutory thresholds, or agreeing with the Secretary to modify all of the person's covered leases to add market-price limits on royalty relief at or below those thresholds.
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)).
Section 3 would require the Interior Secretary to accept a leaseholder's request to amend a lease issued for a Central or Western Gulf of Mexico tract from January 1, 1996, through November 28, 2000. The amendment would add price thresholds to provisions that suspend royalty payments, with thresholds at or below those in the referenced statute.
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)).
For leases amended under section 3, the proposed effective date for the new or revised price thresholds is October 1, 2026.
An amended lease under subsection (a) shall impose the new or revised price thresholds effective on October 1, 2026.
The supplied December 5, 2025 source snapshot records introduction in the House and referral to the House Committee on Natural Resources on March 11, 2025.
Source snapshot updated 2025-12-05T21:32:31Z. 2025-03-11: Referred to the House Committee on Natural Resources. 2025-03-11: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-03-11. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No provision unrelated to the bill's main subject or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption or preferential treatment warranting a finding was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Dec 5, 2025. How PlainBill uses AI