,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bbhg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #aj1 #bjah,mr4 
,m>key 7= himself & ,ms4 ,w>r57         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to repeal ! m$ical 
device excise tax1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,no ,taxation on ,device ,innovation  
,act4  #b4 ,repeal ( ! m$ical device    
excise tax  7a7 ,9 g5]al ,*apt] #cb ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ sub*apt] ,e4  7b7 ,con=m+      
am5dm5ts  7#a7 ,subsection 7a7 ( section
 #dbba ( su* ,code is am5d$ by /rik+ !  
la/ s5t5ce4  7#b7 ,p>agraph 7#b7 (      
section #fdaf7;b7 ( su* ,code is am5d$  
by /rik+ ! la/ s5t5ce4  7c7 ,cl]ical    
am5dm5t ,! table ( sub*apt]s = *apt] #cb
 ( su* ,code is am5d$ by /rik+ ! item   
relat$ to sub*apt] ,e4  7d7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to sales aft] ,decemb] #ca1  
#bjag4  #c4 ,prohibition on us+ la/-91  

fir/-out acc\nt+ = major integrat$ oil  
companies  7a7 ,9 g5]al ,section #dgb ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7h7 ,major integrat$ oil   
companies ,not)/&+ any o!r provision (  
?is section1 a major integrat$ oil      
company 7z def9$ 9 section #afg7;h77 may
 n use ! me?od provid$ 9 subsection 7b7 
9 inv5tory+ ( any goods4  4  7b7        
,effective date & special rule  7#a7 ,9 
g5]al ,! am5dm5t made by subsection 7a7 
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjag4  7#b7 ,*ange 9     
me?od ( acc\nt+ ,9 ! case ( any taxpay] 
requir$ by ! am5dm5t made by ?is section
 to *ange its me?od ( acc\nt+ = its fir/
 taxable ye> beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act--  7,a7 su* *ange   
%all be treat$ z initiat$ by ! taxpay]2 
7,b7 su* *ange %all be treat$ z made ) !
 cons5t ( ! ,secret>y ( ! ,treasury2 &  
7,c7 ! net am\nt ( ! adju/m5ts requir$  
to be tak5 into acc\nt by ! taxpay] "u  
section #dha ( ! ,int]nal ,rev5ue ,code 

( #aihf %all be tak5 into acc\nt ratably
 ov] a p]iod 7n great] ?an #h taxable   
ye>s7 beg9n+ ) su* fir/ taxable ye>4    
#d4 ,eligibility = new leases & !       
transf] ( leases  7a7 ,def9itions ,9 ?is
 section3 7#a7 ,cov]$ lease ,! t]m cov]$
 lease means a lease = oil or gas       
production 9 ! ,gulf ( ,mexico t is--   
7,a7 9 exi/5ce on ! date ( enactm5t (   
?is ,act2  7,b7 issu$ by ! ,dep>tm5t ( !
 ,int]ior "u section #cjd ( ! ,out]     
,cont95tal ,%elf ,deep ,wat] ,royalty   
,relief ,act 7#dc ,u4,s4,c4 #accg note2 
,public ,law #ajd-eh72 &  7,c7 n subject
 to limitations on royalty relief bas$  
on m>ket price t are equal to or less   
?an ! price ?re%olds describ$ 9 clauses 
7v7 ?r\gh 7vii7 ( section               
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c774  7#b7 ,lessee ,!   
t]m lessee includes any p]son or o!r    
entity t controls1 is controll$ by1 or  
is 9 or "u common control )1 a lessee4  
7#c7 ,secret>y ,! t]m ,secret>y means ! 

,secret>y ( ! ,int]ior4  7b7 ,issuance (
 new leases  7#a7 ,9 g5]al ,! ,secret>y 
%all n issue any new lease t au?orizes !
 production ( oil or natural gas "u !   
,out] ,cont95tal ,%elf ,l&s ,act 7#dc   
,u4,s4,c4 #acca et seq47 to a p]son     
describ$ 9 p>agraph 7#b7 unless ! p]son 
has r5egotiat$ ea* cov]$ lease ) respect
 to :i* ! p]son is a lessee to modify ! 
paym5t responsibilities ( ! p]son to    
require ! paym5t ( royalties if ! price 
( oil & natural gas is great] ?an or    
equal to ! price ?re%olds describ$ 9    
clauses 7v7 ?r\gh 7vii7 ( section       
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c774  7#b7 ,p]sons      
describ$ ,a p]son ref]r$ to 9 p>agraph  
7#a7 is a p]son t-- 7,a7 is a lessee t--
  7i7 holds a cov]$ lease on ! date on  
:i* ! ,secret>y consid]s ! issuance ( ! 
new lease2 or  7ii7 0 issu$ a cov]$     
lease be=e ! date ( enactm5t ( ?is ,act1
 b transf]r$ ! cov]$ lease to ano!r     
p]son or entity 7includ+ a subsidi>y or 

affiliate ( ! lessee7 aft] ! date (     
enactm5t ( ?is ,act2 or  7,b7 any o!r   
p]son t has any direct or indirect      
int]e/ 91 or t d]ives any b5efit f1 a   
cov]$ lease4  7#c7 ,multiple lessees    
7,a7 ,9 g5]al ,= purposes ( p>agraph    
7#a71 if !re are multiple lessees t own 
a %>e ( a cov]$ lease1 ! ,secret>y may  
implem5t sep>ate agreem5ts ) any lessee 
) a %>e ( ! cov]$ lease t modifies !    
paym5t responsibilities ) respect to !  
%>e ( ! lessee to include price ?re%olds
 t are equal to or less ?an ! price     
?re%olds describ$ 9 clauses 7v7 ?r\gh   
7vii7 ( section #h7;a77#c77;,c7 ( !     
,out] ,cont95tal ,%elf ,l&s ,act 7#dc   
,u4,s4,c4 #accg7;a77#c77;,c774  7,b7    
,treatm5t ( %>e z cov]$ lease ,beg9n+ on
 ! effective date ( an agreem5t "u      
subp>agraph 7,a71 any %>e subject to !  
agreem5t %all n con/itute a cov]$ lease 
) respect to any lessees t ent]$ into ! 
agreem5t4  7c7 ,transf]s ,a lessee or   
any o!r p]son :o has any direct or      
indirect int]e/ 91 or :o d]ives a b5efit

 f1 a lease %all n be eligible to obta9 
by sale or o!r transf] 7includ+ ?r\gh a 
swap1 sp9(f1 s]vic+1 or o!r agreem5t7   
any cov]$ lease1 ! economic b5efit ( any
 cov]$ lease1 or any o!r lease = !      
production ( oil or natural gas 9 !     
,gulf ( ,mexico "u ! ,out] ,cont95tal   
,%elf ,l&s ,act 7#dc ,u4,s4,c4 #acca et 
seq471 unless ! lessee or o!r p]son     
has--  7#a7 r5egotiat$ ea* cov]$ lease )
 respect to :i* ! lessee or p]son is a  
lessee1 to modify ! paym5t              
responsibilities ( ! lessee or p]son to 
include price ?re%olds t are equal to or
 less ?an ! price ?re%olds describ$ 9   
clauses 7v7 ?r\gh 7vii7 ( section       
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c772 or  7#b7 ent]$ into
 an agreem5t ) ! ,secret>y to modify !  
t]ms ( all cov]$ leases ( ! lessee or   
o!r p]son to include limitations on     
royalty relief bas$ on m>ket prices t   
are equal to or less ?an ! price        
?re%olds describ$ 9 clauses 7v7 ?r\gh   

7vii7 ( section #h7;a77#c77;,c7 ( !     
,out] ,cont95tal ,%elf ,l&s ,act 7#dc   
,u4,s4,c4 #accg7;a77#c77;,c774  7d7     
,price ?re%olds = royalty susp5sion     
provisions  7#a7 ,9 g5]al ,! ,secret>y  
%all agree to a reque/ by any lessee to 
am5d any lease issu$ = any ,c5tral &    
,we/]n ,gulf ( ,mexico tract dur+ !     
p]iod ( ,janu>y #a1 #aiif1 ?r\gh        
,novemb] #bh1 #bjjj1 to incorporate     
price ?re%olds applicable to royalty    
susp5sion provisions1 t are equal to or 
less ?an ! price ?re%olds describ$ 9    
clauses 7v7 ?r\gh 7vii7 ( section       
#h7;a77#c77;,c7 ( ! ,out] ,cont95tal    
,%elf ,l&s ,act 7#dc ,u4,s4,c4          
#accg7;a77#c77;,c774  7#b7 ,requirem5t  
7,a7 ,9 g5]al ,a lease am5d$ "u p>agraph
 7#a7 %all impose ! new or revis$ price 
?re%olds effective ,janu>y #a1 #bjah4   
7,b7 ,exi/+ lease provisions ,exi/+     
lease provisions = a lease am5d$ "u     
p>agraph 7#a7 %all prevail ?r\gh        
,decemb] #ca1 #bjag4