,,ii  #aai? ,,congress  #b;d ,session   
,s4 #dedd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ad1 #bjbf,mr4    
,cornyn 7= himself & ,ms4 ,ros57        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on ,arm$ 
,s]vices  ,a ,,bill  ,to require a      
report on c\nt]+ ! smuggl+ ( hydroc>bon 
products by transnational crim9al       
organizations1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,/op ,fuel+ ,c>tel ,viol5ce ,act4  #b4  
,f9d+s ,congress f9ds ! foll[+3 7#a7    
,mexico-bas$ transnational crim9al      
organizations1 includ+ ! ,c>tel ,jalisco
 ,nueva ,g5]acion 7,,cjng71 ! ,s9aloa   
,c>tel1 ! ,gulf ,c>tel1 & ! ,nor!a/     
,c>tel1 h develop$ l>ge-scale ent]prises
 to /eal1 div]t1 & smuggle crude oil1   
diesel1 gasol9e1 & ref9$ petroleum      
products f ,mexico's /ate-own$ en]gy    
company1 ,petrleos ,mexicanos 7,pemex74 
7#b7 ,su* op]ations involve illegally   
drill+ cl&e/9e taps into fuel pipel9es1 
raid+ ref9]ies1 hijack+ petroleum tank] 

trucks1 brib+ ,pemex employees1 & us+   
networks ( front companies & %ell       
companies to laund] ! result+ illicit   
proce$s4  7#c7 ,! ,dep>tm5t ( !         
,treasury has det]m9$ t fuel !ft1       
includ+ crude oil smuggl+1 is curr5tly !
 mo/ significant non-drug illicit rev5ue
 s\rce = ,mexico-bas$ c>tels & o!r      
illicit actors4  7#d7 ,!ft ( hydroc>bon 
products by transnational crim9al       
organizations & =eign t]rori/           
organizations has gr[n to an extraord9>y
 scale1 z ,pemex e/imates t ?ieves /ole 
approximately #ihg1jjj1jjj lit]s ( fuel 
9 cal5d> ye> #bjbd1 ne>ly ?ree times !  
volume /ol5 9 cal5d> ye> #bjai4  7#e7 ,!
 ,dep>tm5t ( ! ,treasury has report$ t !
 ,mexican ,gov]nm5t has su/a9$ billions 
( doll>s 9 lo/ rev5ue 9 rec5t ye>s      
attributable to ^! op]ations1 &         
indep5d5t indu/ry analyses e/imate t    
fuel smuggl+ & associat$ tax evasion    
deprive ,mexico ( approximately         
#bd1jjj1jjj 9 pot5tial tax rev5ue p]    
day4  7#f7 ,accord+ to data cit$ 9      

,dep>tm5t ( ! ,treasury en=cem5t        
actions1 betwe5 #af & #bg p]c5t ( total 
annual fuel consumption 9 ,mexico       
orig9ates f illegal s\rces4  7#g7 ,9    
connection ) sanctions actions tak5     
aga9/ ,,cjng-l9k$ fuel !ft networks 9   
,septemb] #bjbd & ,may #bjbe1 !         
,secret>y ( ! ,treasury /at$1 ,fuel !ft 
& crude oil smuggl+ are ca% c[s =       
,,cjng's n>co-t]rori/ ent]prise1 provid+
 a lucrative rev5ue /ream = ! gr\p &    
enabl+ x to wreak havoc 9 ,mexico & !   
,unit$ ,/ates44  7#h7 ,on ,septemb] #aj1
 #bjbd1 ! ,(fice ( ,=eign ,assets       
,control1 act+ 9 coord9ation ) ! ,drug  
,en=cem5t ,adm9i/ration & ,mexico's     
,f9ancial ,intellig5ce ,unit1 sanction$ 
n9e ,mexican nationals & #bf            
,mexico-bas$ entities l9k$ to a ,,cjng  
fuel !ft network t g5]ates t5s (        
millions ( doll>s 9 illicit rev5ue =    
,,cjng1 an organization simultane\sly   
responsible = a significant proportion (
 f5tanyl & o!r controll$ sub/ances      
traffick$ into ! ,unit$ ,/ates4  7#i7   

,on ,may #a1 #bjbe1 ! ,(fice ( ,=eign   
,assets ,control sanction$ an additional
 ?ree ,mexican nationals & two          
,mexico-bas$ entities involv$ 9 a       
f5tanyl traffick+ & fuel !ft network t  
g5]ates hundr$s ( millions ( doll>s     
annually = ,,cjng4  7#aj7 ,! ,f9ancial  
,crimes ,en=cem5t ,network1 9 an al]t   
issu$ on ,may #a1 #bjbe1 9 coord9ation )
 ! ,(fice ( ,=eign ,assets ,control1 !  
,drug ,en=cem5t ,adm9i/ration1 ! ,f$]al 
,bureau ( ,inve/igation1 & ,homel&      
,security ,inve/igations1 describ$ 9    
detail h[ c>tels employ complicit       
,mexican brok]s to smuggle /ol5 crude   
oil across ! s\?we/ bord] ( ! ,unit$    
,/ates1 by mislabel+ %ipm5ts z wa/e oil 
or haz>d\s mat]ials1 = deliv]y to       
complicit ,unit$ ,/ates-bas$ import]s   
op]at+ prim>ily 9 ! ,l[] ,rio ,gr&e     
,valley1 ! ,eagle ,=d ,%ale1 & ! ,p]mian
 ,bas9 regions ( ,texas4  7#aa7 ,on     
,febru>y #bj1 #bjbe1 ! ,secret>y (      
,/ate1 act+ pursuant to ,executive ,ord]
 #adaeg1 designat$ ,,cjng1 ! ,s9aloa    

,c>tel1 ! ,gulf ,c>tel1 ! ,nor!a/       
,c>tel1 ,tr5 de ,aragua1 & ,m>a         
,salvatru*a z ,=eign ,t]rori/           
,organizations & ,specially ,designat$  
,global ,t]rori/s4  7#ab7 ,section #abd 
( title #aj1 ,unit$ ,/ates ,code1       
designates ! ,dep>tm5t ( ,def5se z !    
s+le lead ag5cy ( ! ,f$]al ,gov]nm5t = !
 detection & monitor+ ( a]ial & m>itime 
transit ( illegal drugs into ! ,unit$   
,/ates1 to be c>ri$ out 9 support ( !   
c\nt]drug activities ( ,f$]al1 ,/ate1   
local1 & =eign law en=cem5t ag5cies4 ,! 
,dep>tm5t employs a]ial1 m>itime1 &     
gr\nd surveillance assets & int]ag5cy   
in=mation-%>+ networks ^: capabilities  
are directly applicable to ! detection &
 monitor+ ( ! illicit movem5t ( /ol5    
hydroc>bon products across or ne> !     
b\nd>ies ( ! ,unit$ ,/ates4  7#ac7 ,!   
physical & logi/ical *>act]i/ics (      
hydroc>bon smuggl+ op]ations are        
sub/antially simil> to ^? ( n>cotics    
smuggl+1 & ! surveillance1 signals1 &   
communication ar*itectures curr5tly     

deploy$ by ! ,dep>tm5t ( ,def5se =      
c\nt]drug purposes are directly         
applicable to ! hydroc>bon ?reat4  #c4  
,s5se ( ,congress ,x is ! s5se (        
,congress t-- 7#a7 ! !ft & illicit      
transbord] traffick+ ( crude oil1       
diesel1 gasol9e1 & ref9$ petroleum      
products by ,mexico-bas$ transnational  
crim9al organizations con/itutes a      
significant ?reat to ! national security
 & public safety ( ! ,unit$ ,/ates2 &   
7#b7 ! ,unit$ ,/ates ,gov]nm5t %\ld     
treat ! traffick+ ( /ol5 hydroc>bon     
products z a priority compon5t ( its    
c\nt]drug & c\nt]-transnational organiz$
 crime /rategy4  #d4 ,report on c\nt]+  
c>tel hydroc>bon smuggl+  7a7 ,report   
requir$ ,n lat] ?an #ahj days aft] !    
date ( ! enactm5t ( ?is ,act1 !         
,secret>y ( ,def5se %all submit to !    
congressional def5se committees a report
 t-- 7#a7 details activities tak+ place 
pursuant to section #bhd ( title #aj1   
,unit$ ,/ates ,code1 or o!r au?orities (
 ! ,dep>tm5t ( ,def5se1 to d5y1 disrupt1

 or degrade transnational crim9al       
organizations directly or indirectly    
engag$ 9 ! !ft1 div]sion1 or illicit    
movem5t ( /ol5 hydroc>bon products2 &   
7#b7 includes-- 7,a7 recomm5dations =   
future additional activities to c\nt] ! 
activities ( transnational crim9al      
organizations describ$ 9 p>agraph 7#a71 
includ+-- 7i7 capacity build+ ) national
 security =ces ( p>tn] nations pursuant 
to section #ccc ( title #aj1 ,unit$     
,/ates ,code2  7ii7 in=mation %>+ )     
civilian ,unit$ ,/ates ,gov]nm5t ag5cies
 specializ+ 9 c\nt]+ transnational      
crim9al organizations2  7iii7 assessm5ts
 ( key nodes ( activity ( transnational 
organiz$ crime networks engag$ 9 !      
smuggl+ ( hydroc>bon products2 &  7iv7  
any o!r non-k9etic activity ! ,secret>y 
det]m9es appropriate to d5y1 disrupt1 or
 degrade ! smuggl+ ( hydroc>bon         
products2 &  7,b7 an assessm5t (        
res\rces us$ to conduct ! activities    
describ$ 9 p>agraph 7#a74  7b7          
,hydroc>bon products def9$ ,9 ?is       

section1 ! t]m hydroc>bon products means
 crude oil classifi$ "u head+ #bgji4jj (
 ! ,h>moniz$ ,t>iff ,s*$ule ( ! ,unit$  
,/ates 7,petroleum oils & oils obta9$ f 
bitum9\s m9]als1 crude71 includ+        
unprocess$ crude petroleum oils 7:e!r   
te/+ "u or ov] #be ,,api gravity71 crude
 oils obta9$ f bitum9\s m9]als1         
cond5sates d]iv$ :olly f natural gas1 & 
recon/itut$ crude petroleum4