text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Oil Industry Merger Antitrust 
  Enforcement Act''.
  
  SEC. 2. STATEMENT OF FINDINGS AND DECLARATIONS OF PURPOSES.
  
      (a) Findings.--Congress finds the following:
              (1) American consumers are suffering from excessively high 
          prices for gasoline, natural gas, heating oil, and other energy 
          products.
              (2) These excessively high energy prices have been caused, 
          at least in substantial part, by undue concentration among 
          companies involved in the production, refining, distribution, 
          and retail sale of oil, gasoline, natural gas, heating oil, and 
          other petroleum-related products.
              (3) There has been a sharp consolidation caused by mergers 
          and acquisitions among oil companies over the last decade, and 
          the antitrust enforcement agencies (the Federal Trade 
          Commission and the Department of Justice Antitrust Division) 
          have failed to employ the antitrust laws to prevent this 
          consolidation, to the detriment of consumers and competition. 
          This consolidation has caused substantial injury to competition 
          and has enabled the remaining oil companies to gain market 
          power over the sale, refining, and distribution of petroleum-
          related products.
              (4) The demand for oil, gasoline, and other petroleum-based 
          products is highly inelastic so that oil companies can easily 
          utilize market power to raise prices.
              (5) Maintaining competitive markets for oil, gasoline, 
          natural gas, and other petroleum-related products is in the 
          highest national interest.
      (b) Purposes.--The purposes of this Act are to--
              (1) ensure vigorous enforcement of the antitrust laws in 
          the oil industry;
              (2) restore competition to the oil industry and to the 
          production, refining, distribution, and marketing of gasoline 
          and other petroleum-related products; and
              (3) prevent the accumulation and exercise of market power 
          by oil companies.
  
  SEC. 3. BURDEN OF PROOF.
  
      Section 7 of the Clayton Act (15 U.S.C. 18) is amended by adding at 
  the end the following:
      ``In any civil action brought against any person for violating this 
  section in which the plaintiff--
              ``(1) alleges that the effect of a merger, acquisition, or 
          other transaction affecting commerce may be to substantially 
          lessen competition, or to tend to create a monopoly, in the 
          business of exploring for, producing, refining, or otherwise 
          processing, storing, marketing, selling, or otherwise making 
          available petroleum, oil, or natural gas, or products derived 
          from petroleum, oil, or natural gas; and
              ``(2) establishes that a merger, acquisition, or 
          transaction is between or involves persons competing in the 
          business of exploring for, producing, refining, or otherwise 
          processing, storing, marketing, selling, or otherwise making 
          available petroleum, oil, or natural gas, or products derived 
          from petroleum, oil, or natural gas;
  the burden of proof shall be on the defendant or defendants to 
  establish by a preponderance of the evidence that the merger, 
  acquisition, or transaction at issue will not substantially lessen 
  competition or tend to create a monopoly.''.
  
  SEC. 4. ENSURING FULL AND FREE COMPETITION.
  
      (a) Review.--The Federal Trade Commission and the Antitrust 
  Division of the Department of Justice shall jointly review and revise 
  all enforcement guidelines and policies, including the Horizontal 
  Merger Guidelines issued April 2, 1992 and revised April 8, 1997, and 
  the Non-Horizontal Merger Guidelines issued June 14, 1984, and modify 
  those guidelines in order to--
              (1) specifically address mergers and acquisitions in oil 
          companies and among companies involved in the production, 
          refining, distribution, or marketing of oil, gasoline, natural 
          gas, heating oil, or other petroleum-related products; and
              (2) ensure that the application of these guidelines will 
          prevent any merger and acquisition in the oil industry, when 
          the effect of such a merger or acquisition may be to 
          substantially lessen competition, or to tend to create a 
          monopoly, and reflect the special conditions prevailing in the 
          oil industry described in subsection (b).
      (b) Special Conditions.--The guidelines described in subsection (a) 
  shall be revised to take into account the special conditions prevailing 
  in the oil industry, including--
              (1) the high inelasticity of demand for oil and petroleum-
          related products;
              (2) the ease of gaining market power in the oil industry;
              (3) supply and refining capacity limits in the oil 
          industry;
              (4) difficulties of market entry in the oil industry; and
              (5) unique regulatory requirements applying to the oil 
          industry.
      (c) Competition.--The review and revision of the enforcement 
  guidelines required by this section shall be completed not later than 6 
  months after the date of enactment of this Act.
      (d) Report.--Not later than 6 months after the date of enactment of 
  this Act, the Federal Trade Commission and the Antitrust Division of 
  the Department of Justice shall jointly report to the Committee on the 
  Judiciary of the Senate and the Committee on the Judiciary of the House 
  of Representatives regarding the review and revision of the enforcement 
  guidelines mandated by this section.
  
  SEC. 5. DEFINITIONS.
  
      In this Act:
              (1) Oil industry.--The term ``oil industry'' means 
          companies and persons involved in the production, refining, 
          distribution, or marketing of oil or petroleum-based products.
              (2) Petroleum-based product.--The term ``petroleum-based 
          product'' means gasoline, diesel fuel, jet fuel, home heating 
          oil, natural gas, or other products derived from the refining 
          of oil or petroleum.
target: Oil Industry Merger Antitrust Enforcement Act - Amends the Clayton Act to require, in any civil action in which the plaintiff alleges that the effect of a merger, acquisition, or other transaction (transaction) may be to substantially lessen competition or to create a monopoly in the business of exploring for, producing, refining, marketing, or selling petroleum, oil, natural gas, or their related products and that establishes that the transaction involves competitors in that business, the burden of proof shall be on the defendant to establish that such transaction will not substantially lessen competition or create a monopoly.
  
  Directs the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice to jointly review and revise applicable enforcement guidelines and policies in order to: (1) specifically address the above transactions; and (2) ensure that the guidelines will prevent any transaction which substantially lessens competition or creates a monopoly.
feat_title: A bill to prevent anti-competitive mergers and acquisitions in the oil and gas industry.