Bill > S1030

This bill aims to prevent oil and gas companies from obtaining new drilling leases in the Gulf of Mexico unless they renegotiate their existing leases to include royalty payments when oil and natural gas prices reach certain high thresholds. Specifically, the bill requires companies with "covered leases" (existing oil and gas production leases in the Gulf of Mexico issued under certain conditions) to modify their lease agreements to mandate royalty payments when energy prices meet or exceed predetermined levels. Companies that do not renegotiate these leases will be ineligible to receive new drilling leases. The legislation applies not just to the original lease holders, but also to entities that have transferred leases or have indirect financial interests in them. The bill mandates that any lease amendments must incorporate new price thresholds effective October 1, 2026, which would require oil and gas companies to pay royalties to the government when energy prices are high, potentially generating additional revenue from offshore drilling operations. This approach is designed to ensure that oil and gas companies do not benefit from extremely profitable market conditions without providing appropriate compensation to the federal government.

Agriculture and Natural Resources

https://www.congress.gov/bill/119th-congress/senate-bill/1030/all-info