[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6710 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6710
To prohibit certain activities relating to the petroleum resources of
Iraq, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 31, 2008
Mr. Kucinich (for himself, Mr. Conyers, Mr. Farr, Mr. Filner, Mr.
Grijalva, Ms. Lee, and Ms. Woolsey) introduced the following bill;
which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To prohibit certain activities relating to the petroleum resources of
Iraq, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Oil for Iraq Liberation Act of
2008''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Every Middle Eastern country that possesses significant
petroleum resources has long held those resources as national
assets.
(2) Several developments indicate that the historical
precedent of a nationalized Iraqi oil sector could be undercut
by United States interests. The Bush Administration has
aggressively pressured the Iraqi government to privatize its
oil resources and a United States oil company has secured an
oil contract with the Kurdistan Regional Government and a
former Administration official is reported to be seeking an oil
contract with the Kurdistan Regional Government.
(3) President George W. Bush released a list of benchmarks
in August 2006 by which to judge success in Iraq. These
benchmarks included the passage of a ``hydrocarbon act''. The
Administration has characterized the bill as a national revenue
sharing plan.
(4) Hunt Oil Company, headquartered in Dallas, Texas, has
signed a production sharing agreement for petroleum
exploration, signaling that the war with Iraq has made access
to Iraqi oil a reality for United States oil companies.
(5) The CEO of the Hunt Oil Company is a major campaign
contributor for President Bush, including a $35 million
contribution to the Bush Presidential Library. He has twice
been appointed to a seat on the President's Foreign
Intelligence Advisory Board. At the invitation of the then
Halliburton CEO, Richard Cheney, he served on the Halliburton
Board of Directors.
(6) The Hunt Oil deal is now part of an internal
investigation by the Department of State.
(7) News reports indicate that former Assistant Secretary
of Defense, Richard Perle, has been pursuing oil-drilling
contracts with Iraq's Kurdistan Regional Government. Mr. Perle
served as chairman of the Defense Policy Advisory Committee
during the run up to the war in Iraq. He was an influential
advisor to the Department of Defense between 2001 and 2003 and
is credited with being an early advocate of invading Iraq and
as an Iraq war architect. Mr. Perle resigned from his
chairmanship on March 28, 2003, just after the United States
invasion of Iraq, amid controversy that there existed the
potential for his business interests to profit from the war in
Iraq.
(8) The Department of State recently led a team of United
States advisers who helped the Iraq Oil Ministry negotiate
technical service contracts to help with oil production. A
lobbyist representing efforts oil-friendly policies has called
these contracts ``a chance to get a foot in the door with
regards to future Iraqi [oil] production''.
(9) The Hunt Oil deal, the reported actions by Richard
Perle and speculation by United States oil interests undercuts
the stated United States policy of ``revenue sharing''.
(10) Certain Iraqis and analysts have concluded that the
``hydrocarbon act'' is in fact a privatization scheme to ensure
control of Iraq oil by foreign oil companies.
(11) Certain Iraqis and analysts have concluded that the
``hydrocarbon act'' is in fact a privatization scheme to ensure
control of Iraq oil by foreign oil companies.
SEC. 3. PROHIBITIONS ON CERTAIN ACTIVITIES RELATING TO THE PETROLEUM
RESOURCES OF IRAQ.
(a) In General.--The following shall be unlawful:
(1) The entry into or the performance by a United States
person, or the approval by a United States person of the entry
into or the performance by an entity owned, controlled, or
operated by such United States person, of--
(A) a contract that includes overall supervision or
management responsibility for the development of
petroleum resources located in Iraq; or
(B) a guaranty of anther person's performance under
such a contract.
(2) The entry into or the performance by a United States
person, or the approval by a United States person of the entry
into or the performance by an entity owned, controlled, or
operated by such United States person, of--
(A) a contract for the financing of the development
of petroleum resources located in Iraq; or
(B) a guaranty of another person's performance
under such a contract.
(3) Any investment by a United States person in the
petroleum resources located in Iraq.
(4) Any transaction by any United States person that
evades, avoids, or violates, has the purpose of evading,
avoiding, or violating, or attempts to evade, avoid, or
violate, any of the prohibitions described in paragraphs (1),
(2), and (3).
(b) Penalties.--A violation of subsection (a) shall be punishable
by not more than ten years imprisonment and a fine of not more than
$1,100,000.
(c) Effective Date.--This Act shall take effect on the date of the
enactment of this Act and shall apply with respect to activities
prohibited under subsection (a) that were entered into on or after
March 20, 2003, except that if a United States person, not later than
the date that is 30 days after the date of the enactment of this Act,
verifiably terminates such activities, such person shall not be subject
to the penalties specified in subsection (b).
(d) Definitions.--In this Act:
(1) Entity.--The term ``entity'' means a partnership,
association, trust, joint venture, corporation, or other
organization organized under the laws of the United States.
(2) Investment.--The term ``investment'' means any of the
following activities if any of such activities is undertaken
pursuant to an agreement, or pursuant to the exercise of rights
under such an agreement, that is entered into with the
Government of Iraq or a nongovernmental entity in Iraq:
(A) The entry into a contract that includes
responsibility for the development of petroleum
resources located in Iraq or the entry into a contract
providing for the general supervision and guarantee of
another person's performance of such a contract.
(B) The purchase of a share of ownership, including
an equity interest, in the development described in
subparagraph (A).
(C) The entry into a contract providing for the
participation in royalties, earnings, or profits in
such development.
The term ``investment'' does not include the entry into or the
performance or financing of a contract to sell or purchase
goods, services, or technology.
(3) Iraq.--The term ``Iraq'' means the land territory
claimed by Iraq and any other area over which Iraq claims
sovereignty, sovereign rights or jurisdiction, including the
territorial sea, exclusive economic zone, and continental shelf
claimed by Iraq.
(4) Person.--The term ``person'' means an individual or an
entity.
(5) Petroleum resources.--The term ``petroleum resources''
means any petroleum, petroleum products, or natural gas
originating in Iraq, including any Iraqi-origin oil
inventories, wherever located.
(6) United states person.--The term ``United States
person'' means any United States citizen, permanent resident
alien, entity organized under the laws of the United States
(including foreign branches), or any person in the United
States.
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