Stop Giving Big Oil Free Money Act

This bill aims to end “royalty-free” drilling in the Gulf of Mexico when prices are high. It blocks new federal offshore oil and gas leases unless companies agree to add price triggers to their existing Gulf leases. These triggers require them to pay royalties to the public when oil or gas prices reach set levels. The rule also covers anyone who benefits indirectly from these leases.

Companies also can’t buy or receive transfers of Gulf leases unless they’ve added these price-based royalty rules. If a lease is co-owned, the Interior Department can make separate agreements with individual owners for their share. Older Gulf leases from 1996 to 2000 can be amended, on request, to add these price triggers; any new or revised price limits would take effect on October 1, 2026.

Key points

• Who is affected: Oil and gas companies and anyone with a direct or indirect stake in Gulf of Mexico offshore leases.
• What changes: No new leases or transfers unless leases include royalty payments when prices hit set thresholds; co-owners can sign separate agreements for their share.
• When: New or revised price triggers on eligible older leases would start October 1, 2026.