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Ending Oil Royalty Relief: Mandatory Payments When Oil and Gas Prices Are High.

This Act aims to compel oil companies benefiting from royalty relief in the Gulf of Mexico to renegotiate their existing leases. If oil and natural gas prices exceed specified thresholds, these companies must pay royalties, potentially increasing public revenue. Failure to renegotiate will block them from obtaining new leases or transferring existing ones, which could affect energy supply and pricing stability.
Key points
Oil companies holding old Gulf of Mexico leases without market price limits on royalty relief must renegotiate their terms.
If companies fail to agree to pay royalties when oil and gas prices are high, they become ineligible for new leases or lease transfers.
The goal is to ensure oil companies pay due royalties when they profit significantly from high commodity prices, potentially boosting federal revenue.
The Act also allows companies to voluntarily amend leases issued between 1996 and 2000 to incorporate price thresholds for royalty suspension, effective October 1, 2026.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1030
Sponsor: Sen. Markey, Edward J. [D-MA]
Process start date: 2025-03-13
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Stop Giving Big Oil Free Money Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1030.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-03-13.

What are the main provisions?

Key points include:

  • Oil companies holding old Gulf of Mexico leases without market price limits on royalty relief must renegotiate their terms.
  • If companies fail to agree to pay royalties when oil and gas prices are high, they become ineligible for new leases or lease transfers.
  • The goal is to ensure oil companies pay due royalties when they profit significantly from high commodity prices, potentially boosting federal revenue.
  • The Act also allows companies to voluntarily amend leases issued between 1996 and 2000 to incorporate price thresholds for royalty suspension, effective October 1, 2026.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Markey, Edward J. [D-MA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Economy Environment