,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bijf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #bj1 #bjai,mr4
 ,m>key introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,en]gy & ,natural ,res\rces  ,a ,,bill  
,to prohibit ! ,secret>y ( ! ,int]ior f 
issu+ new oil or natural gas production 
leases 9 ! ,gulf ( ,mexico "u ! ,out]   
,cont95tal ,%elf ,l&s ,act to a p]son t 
does n r5egotiate its exi/+ leases 9    
ord] to require royalty paym5ts if oil &
 natural gas prices are great] ?an or   
equal to specifi$ price ?re%olds1 & =   
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,/op ,giv+ ,big ,oil   
,free ,money ,act4  #b4 ,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 !
 ,secret>y "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 lessee1 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-- 7,a7 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--   
7#a7 has 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 has 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  #c4     
,price ?re%olds = royalty susp5sion     
provisions  7a7 ,9 g5]al ,! ,secret>y ( 
! ,int]ior %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  7b7 ,new or revis$
 price ?re%olds ,an am5d$ lease "u      
subsection 7a7 %all impose ! new or     
revis$ price ?re%olds effective on      
,octob] #a1 #bjbj4