S. 1030 — Stop Giving Big Oil Free Money Act

This section prohibits the Secretary of the Interior from issuing any new oil or natural gas lease under the Outer Continental Shelf Lands Act (OCSLA, 43 U.S.C. 1331 et seq.) to holders of a "covered lease"—defined as a Gulf of Mexico oil or gas lease existing on the date of enactment, issued under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (P.L. 104-58; 43 U.S.C. 1337 note) without market price limitations on royalty relief equal to or less than the thresholds in 43 U.S.C. §1337(a)(3)(C)(v)-(vii)—unless the holder renegotiates the covered lease to require royalties when oil and natural gas prices meet or exceed those thresholds. (As background, the Deep Water Royalty Relief Act provided royalty suspensions to encourage deepwater development in the Gulf of Mexico; covered leases lack price caps that would resume royalties at high market prices, unlike later OCSLA leases.) The section similarly bars such persons (including affiliates or those deriving benefits from covered leases) from acquiring by transfer, sale, or other means any covered lease, its economic benefits, or any other Gulf of Mexico OCS oil or natural gas lease unless they renegotiate or enter an agreement with the Secretary to add those price thresholds; for leases with multiple lessees, separate renegotiations may apply to individual shares (after which, the share is no longer a covered lease as to participating lessees).

This section directs the Secretary of the Interior to agree, upon request by any lessee, to amend oil and gas leases issued for Central and Western Gulf of Mexico tracts from January 1, 1996, through November 28, 2000 (i.e., under early deepwater royalty relief programs lacking price thresholds), to incorporate price thresholds applicable to royalty suspension provisions that are equal to or less than those specified in clauses (v) through (vii) of 43 U.S.C. 1337(a)(3)(C). (Thus, royalty relief for such leases ends when oil or gas prices exceed the thresholds, with amendments effective October 1, 2026.)