Stop Giving Big Oil Free Money Act

Requirement of Royalty Payments: The bill seeks to modify payment responsibilities so that royalties are required when oil and gas prices hit certain price thresholds (Section 2(b)(1)). This could result in more money being paid when prices are high.

Lease Amendment Process: The Secretary of the Interior is directed to agree to requests to amend leases for specific Central and Western Gulf of Mexico tracts to include these price thresholds (Section 3(a)). This provides a mechanism to update older lease terms.

Restrictions on New Leases: The Secretary is prohibited from issuing new oil or natural gas production leases to any person who holds a "covered lease" unless they first renegotiate their existing terms (Section 2(b)(1)). This creates a prerequisite for obtaining new business.

Limitations on Lease Transfers: A person or entity cannot obtain a covered lease through sale, transfer, swap, or spinoff unless they have renegotiated their leases or entered into an agreement with the Secretary to modify the terms (Section 2(c)). This restricts the ability of entities to trade or move lease interests.

Mandatory Price Thresholds: Under the amended terms, leases will be subject to price thresholds that are equal to or less than the thresholds described in the Outer Continental Shelf Lands Act (Section 3(a)). These thresholds would become effective on October 1, 2026 (Section 3(b)).