Federal

NOPEC

Source: Congress.gov · 656 words in original text

What This Bill Does

This bill amends the Sherman Act (a federal law about competition) to make it illegal for oil-producing and exporting cartels to work together to control oil markets. The bill allows the U.S. Attorney General to sue foreign countries and their agents for colluding to limit oil production, set prices or restrict trade in oil and natural gas.

Who It Affects

Foreign countries and their government agencies or agents that participate in oil cartels. The U.S. Attorney General. U.S. district courts. Potentially consumers and businesses that buy oil and petroleum products in the United States.

Key Provisions

• It becomes illegal for any foreign country, government agency or person acting with a foreign country to work together to limit the production or distribution of oil, natural gas or other petroleum products if this action directly and substantially affects the U.S. market (Sec. 2, 7A(a)(1)). • It becomes illegal for foreign countries and their agents to collectively set or maintain prices for oil, natural gas or petroleum products when this action directly and substantially affects the U.S. market (Sec. 2, 7A(a)(2)). • It becomes illegal for foreign countries and their agents to take any action that restrains trade in oil, natural gas or petroleum products when this action directly and substantially affects the U.S. market (Sec. 2, 7A(a)(3)). • The Attorney General has the sole authority to bring lawsuits to enforce this law in U.S. district courts (Sec. 2, 7A(c)). • U.S. courts cannot refuse to hear cases under this law based on the "act of state" doctrine, foreign sovereign compulsion or political question doctrine (three legal concepts that sometimes prevent courts from judging foreign governments) (Sec. 2, 7A(b)). • Foreign countries cannot claim sovereign immunity (legal protection from lawsuits) in oil cartel cases brought under this law (Sec. 3).

What Changes

The Sherman Act is amended to add a new Section 7A that creates specific illegal conduct for oil cartels. Foreign countries lose their normal legal protection from U.S. lawsuits when accused of participating in oil cartels. U.S. courts gain the authority to hear and decide these cases without dismissing them based on foreign policy concerns.

Important Definitions

The bill does not explicitly define "cartel," "petroleum product," "restraint of trade," "direct and substantial effect" or other key legal terms. It references but does not define "act of state doctrine," "foreign sovereign compulsion" and "political question doctrine."

II 118TH CONGRESS 1ST SESSION S. 678 To amend the Sherman Act to make oil-producing and exporting cartels illegal. IN THE SENATE OF THE UNITED STATES MARCH 7, 2023 Mr. GRASSLEY (for himself, Ms. KLOBUCHAR, Mr. LEE, and Mr. DURBIN) in- troduced the following bill; which was read twice and referred to the Com- mittee on the Judiciary A BILL To amend the Sherman Act to make oil-producing and exporting cartels illegal. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘No Oil Producing and 4 Exporting Cartels Act of 2023’’ or ‘‘NOPEC’’. 5 SEC. 2. SHERMAN ACT. 6 The Sherman Act (15 U.S.C. 1 et seq.) is amended 7 by adding after section 7 the following: 8 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S678.IS S678 kjohnson on DSK79L0C42PROD with BILLS 2 •S 678 IS ‘‘SEC. 7A. OIL PRODUCING CARTELS. 1 ‘‘(a) IN GENERAL.—It shall be illegal and a violation 2 of this Act for any foreign state, or any instrumentality 3 or agent of any foreign state, to act collectively or in com- 4 bination with any other foreign state, any instrumentality 5 or agent of any other foreign state, or any other person, 6 whether by cartel or any other association or form of co- 7 operation or joint action— 8 ‘‘(1) to limit the production or distribution of 9 oil, natural gas, or any other petroleum product; 10 ‘‘(2) to set or maintain the price of oil, natural 11 gas, or any petroleum product; or 12 ‘‘(3) to otherwise take any action in restraint of 13 trade for oil, natural gas, or any petroleum product, 14 when such action, combination, or collective action has a 15 direct, substantial, and reasonably foreseeable effect on 16 the market, supply, price, or distribution of oil, natural 17 gas, or other petroleum product in the United States. 18 ‘‘(b) INAPPLICABILITY OF DEFENSES.—No court of 19 the United States shall decline, based on the act of state, 20 foreign sovereign compulsion, or political question doctrine 21 to make a determination on the merits in an action 22 brought under this section. 23 ‘‘(c) ENFORCEMENT.—The Attorney General of the 24 United States shall have the sole authority to bring an 25 action to enforce this section. Any such action shall be 26 VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S678.IS S678 kjohnson on DSK79L0C42PROD with BILLS 3 •S 678 IS brought in any district court of the United States as pro- 1 vided under the antitrust laws.’’. 2 SEC. 3. NO SOVEREIGN IMMUNITY IN OIL CARTEL CASES. 3 Title 28, United States Code, is amended— 4 (1) in section 1605(a)— 5 (A) in paragraph (5), by striking ‘‘or’’ 6 after the semicolon; 7 (B) in paragraph (6), by striking the pe- 8 riod and inserting ‘‘; or’’; and 9 (C) by adding at the end the following: 10 ‘‘(7) in which the action is brought under sec- 11 tion 7A of the Sherman Act.’’; and 12 (2) in section 1610(a)— 13 (A) in paragraph (7) by striking the period 14 at the end and inserting ‘‘, or’’; and 15 (B) by adding at the end the following: 16 ‘‘(8) the judgment relates to a claim that is 17 brought under section 7A of the Sherman Act.’’. 18 SEC. 4. SEVERABILITY. 19 If any provision of this Act (or of an amendment 20 made by this Act) is held invalid, the remainder of this 21 Act (or of the amendment) shall not be affected thereby. 22 Æ VerDate Sep 11 2014 21:56 Mar 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S678.IS S678 kjohnson on DSK79L0C42PROD with BILLS

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.