[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3107 Enrolled Bill (ENR)]

        H.R.3107

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
 To impose sanctions on persons making certain investments directly and 
significantly contributing to the enhancement of the ability of Iran or 
   Libya to develop its petroleum resources, and on persons exporting 
 certain items that enhance Libya's weapons or aviation capabilities or 
  enhance Libya's ability to develop its petroleum resources, 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 ``Iran and Libya Sanctions Act of 
1996''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
        (1) The efforts of the Government of Iran to acquire weapons of 
    mass destruction and the means to deliver them and its support of 
    acts of international terrorism endanger the national security and 
    foreign policy interests of the United States and those countries 
    with which the United States shares common strategic and foreign 
    policy objectives.
        (2) The objective of preventing the proliferation of weapons of 
    mass destruction and acts of international terrorism through 
    existing multilateral and bilateral initiatives requires additional 
    efforts to deny Iran the financial means to sustain its nuclear, 
    chemical, biological, and missile weapons programs.
        (3) The Government of Iran uses its diplomatic facilities and 
    quasi-governmental institutions outside of Iran to promote acts of 
    international terrorism and assist its nuclear, chemical, 
    biological, and missile weapons programs.
        (4) The failure of the Government of Libya to comply with 
    Resolutions 731, 748, and 883 of the Security Council of the United 
    Nations, its support of international terrorism, and its efforts to 
    acquire weapons of mass destruction constitute a threat to 
    international peace and security that endangers the national 
    security and foreign policy interests of the United States and 
    those countries with which it shares common strategic and foreign 
    policy objectives.

SEC. 3. DECLARATION OF POLICY.

    (a) Policy With Respect to Iran.--The Congress declares that it is 
the policy of the United States to deny Iran the ability to support 
acts of international terrorism and to fund the development and 
acquisition of weapons of mass destruction and the means to deliver 
them by limiting the development of Iran's ability to explore for, 
extract, refine, or transport by pipeline petroleum resources of Iran.
    (b) Policy With Respect to Libya.--The Congress further declares 
that it is the policy of the United States to seek full compliance by 
Libya with its obligations under Resolutions 731, 748, and 883 of the 
Security Council of the United Nations, including ending all support 
for acts of international terrorism and efforts to develop or acquire 
weapons of mass destruction.

SEC. 4. MULTILATERAL REGIME.

    (a) Multilateral Negotiations.--In order to further the objectives 
of section 3, the Congress urges the President to commence immediately 
diplomatic efforts, both in appropriate international fora such as the 
United Nations, and bilaterally with allies of the United States, to 
establish a multilateral sanctions regime against Iran, including 
provisions limiting the development of petroleum resources, that will 
inhibit Iran's efforts to carry out activities described in section 2.
    (b) Reports to Congress.--The President shall report to the 
appropriate congressional committees, not later than 1 year after the 
date of the enactment of this Act, and periodically thereafter, on the 
extent that diplomatic efforts described in subsection (a) have been 
successful. Each report shall include--
        (1) the countries that have agreed to undertake measures to 
    further the objectives of section 3 with respect to Iran, and a 
    description of those measures; and
        (2) the countries that have not agreed to measures described in 
    paragraph (1), and, with respect to those countries, other measures 
    (in addition to that provided in subsection (d)) the President 
    recommends that the United States take to further the objectives of 
    section 3 with respect to Iran.
    (c) Waiver.--The President may waive the application of section 
5(a) with respect to nationals of a country if--
        (1) that country has agreed to undertake substantial measures, 
    including economic sanctions, that will inhibit Iran's efforts to 
    carry out activities described in section 2 and information 
    required by subsection (b)(1) has been included in a report 
    submitted under subsection (b); and
        (2) the President, at least 30 days before the waiver takes 
    effect, notifies the appropriate congressional committees of his 
    intention to exercise the waiver.
    (d) Enhanced Sanction.--
        (1) Sanction.--With respect to nationals of countries except 
    those with respect to which the President has exercised the waiver 
    authority of subsection (c), at any time after the first report is 
    required to be submitted under subsection (b), section 5(a) shall 
    be applied by substituting ``$20,000,000'' for ``$40,000,000'' each 
    place it appears, and by substituting ``$5,000,000'' for 
    ``$10,000,000''.
        (2) Report to congress.--The President shall report to the 
    appropriate congressional committees any country with respect to 
    which paragraph (1) applies.
    (e) Interim Report on Multilateral Sanctions; Monitoring.--The 
President, not later than 90 days after the date of the enactment of 
this Act, shall report to the appropriate congressional committees on--
        (1) whether the member states of the European Union, the 
    Republic of Korea, Australia, Israel, or Japan have legislative or 
    administrative standards providing for the imposition of trade 
    sanctions on persons or their affiliates doing business or having 
    investments in Iran or Libya;
        (2) the extent and duration of each instance of the application 
    of such sanctions; and
        (3) the disposition of any decision with respect to such 
    sanctions by the World Trade Organization or its predecessor 
    organization.

SEC. 5. IMPOSITION OF SANCTIONS.

    (a) Sanctions With Respect to Iran.--Except as provided in 
subsection (f), the President shall impose 2 or more of the sanctions 
described in paragraphs (1) through (6) of section 6 if the President 
determines that a person has, with actual knowledge, on or after the 
date of the enactment of this Act, made an investment of $40,000,000 or 
more (or any combination of investments of at least $10,000,000 each, 
which in the aggregate equals or exceeds $40,000,000 in any 12-month 
period), that directly and significantly contributed to the enhancement 
of Iran's ability to develop petroleum resources of Iran.
    (b) Mandatory Sanctions With Respect to Libya.--
        (1) Violations of prohibited transactions.--Except as provided 
    in subsection (f), the President shall impose 2 or more of the 
    sanctions described in paragraphs (1) through (6) of section 6 if 
    the President determines that a person has, with actual knowledge, 
    on or after the date of the enactment of this Act, exported, 
    transferred, or otherwise provided to Libya any goods, services, 
    technology, or other items the provision of which is prohibited 
    under paragraph 4(b) or 5 of Resolution 748 of the Security Council 
    of the United Nations, adopted March 31, 1992, or under paragraph 5 
    or 6 of Resolution 883 of the Security Council of the United 
    Nations, adopted November 11, 1993, if the provision of such items 
    significantly and materially--
            (A) contributed to Libya's ability to acquire chemical, 
        biological, or nuclear weapons or destabilizing numbers and 
        types of advanced conventional weapons or enhanced Libya's 
        military or paramilitary capabilities;
            (B) contributed to Libya's ability to develop its petroleum 
        resources; or
            (C) contributed to Libya's ability to maintain its aviation 
        capabilities.
        (2) Investments that contribute to the development of petroleum 
    resources.--Except as provided in subsection (f), the President 
    shall impose 2 or more of the sanctions described in paragraphs (1) 
    through (6) of section 6 if the President determines that a person 
    has, with actual knowledge, on or after the date of the enactment 
    of this Act, made an investment of $40,000,000 or more (or any 
    combination of investments of at least $10,000,000 each, which in 
    the aggregate equals or exceeds $40,000,000 in any 12-month 
    period), that directly and significantly contributed to the 
    enhancement of Libya's ability to develop its petroleum resources.
    (c) Persons Against Which the Sanctions Are To Be Imposed.--The 
sanctions described in subsections (a) and (b) shall be imposed on--
        (1) any person the President determines has carried out the 
    activities described in subsection (a) or (b); and
        (2) any person the President determines--
            (A) is a successor entity to the person referred to in 
        paragraph (1);
            (B) is a parent or subsidiary of the person referred to in 
        paragraph (1) if that parent or subsidiary, with actual 
        knowledge, engaged in the activities referred to in paragraph 
        (1); or
            (C) is an affiliate of the person referred to in paragraph 
        (1) if that affiliate, with actual knowledge, engaged in the 
        activities referred to in paragraph (1) and if that affiliate 
        is controlled in fact by the person referred to in paragraph 
        (1).
For purposes of this Act, any person or entity described in this 
subsection shall be referred to as a ``sanctioned person''.
    (d) Publication in Federal Register.--The President shall cause to 
be published in the Federal Register a current list of persons and 
entities on whom sanctions have been imposed under this Act. The 
removal of persons or entities from, and the addition of persons and 
entities to, the list, shall also be so published.
    (e) Publication of Projects.--The President shall cause to be 
published in the Federal Register a list of all significant projects 
which have been publicly tendered in the oil and gas sector in Iran.
    (f) Exceptions.--The President shall not be required to apply or 
maintain the sanctions under subsection (a) or (b)--
        (1) in the case of procurement of defense articles or defense 
    services--
            (A) under existing contracts or subcontracts, including the 
        exercise of options for production quantities to satisfy 
        requirements essential to the national security of the United 
        States;
            (B) if the President determines in writing that the person 
        to which the sanctions would otherwise be applied is a sole 
        source supplier of the defense articles or services, that the 
        defense articles or services are essential, and that 
        alternative sources are not readily or reasonably available; or
            (C) if the President determines in writing that such 
        articles or services are essential to the national security 
        under defense coproduction agreements;
        (2) in the case of procurement, to eligible products, as 
    defined in section 308(4) of the Trade Agreements Act of 1979 (19 
    U.S.C. 2518(4)), of any foreign country or instrumentality 
    designated under section 301(b)(1) of that Act (19 U.S.C. 
    2511(b)(1));
        (3) to products, technology, or services provided under 
    contracts entered into before the date on which the President 
    publishes in the Federal Register the name of the person on whom 
    the sanctions are to be imposed;
        (4) to--
            (A) spare parts which are essential to United States 
        products or production;
            (B) component parts, but not finished products, essential 
        to United States products or production; or
            (C) routine servicing and maintenance of products, to the 
        extent that alternative sources are not readily or reasonably 
        available;
        (6) to information and technology essential to United States 
    products or production; or
        (7) to medicines, medical supplies, or other humanitarian 
    items.

SEC. 6. DESCRIPTION OF SANCTIONS.

    The sanctions to be imposed on a sanctioned person under section 5 
are as follows:
        (1) Export-import bank assistance for exports to sanctioned 
    persons.--The President may direct the Export-Import Bank of the 
    United States not to give approval to the issuance of any 
    guarantee, insurance, extension of credit, or participation in the 
    extension of credit in connection with the export of any goods or 
    services to any sanctioned person.
        (2) Export sanction.--The President may order the United States 
    Government not to issue any specific license and not to grant any 
    other specific permission or authority to export any goods or 
    technology to a sanctioned person under--
            (i) the Export Administration Act of 1979;
            (ii) the Arms Export Control Act;
            (iii) the Atomic Energy Act of 1954; or
            (iv) any other statute that requires the prior review and 
        approval of the United States Government as a condition for the 
        export or reexport of goods or services.
        (3) Loans from united states financial institutions.--The 
    United States Government may prohibit any United States financial 
    institution from making loans or providing credits to any 
    sanctioned person totaling more than $10,000,000 in any 12-month 
    period unless such person is engaged in activities to relieve human 
    suffering and the loans or credits are provided for such 
    activities.
        (4) Prohibitions on financial institutions.--The following 
    prohibitions may be imposed against a sanctioned person that is a 
    financial institution:
            (A) Prohibition on designation as primary dealer.--Neither 
        the Board of Governors of the Federal Reserve System nor the 
        Federal Reserve Bank of New York may designate, or permit the 
        continuation of any prior designation of, such financial 
        institution as a primary dealer in United States Government 
        debt instruments.
            (B) Prohibition on service as a repository of government 
        funds.--Such financial institution may not serve as agent of 
        the United States Government or serve as repository for United 
        States Government funds.
    The imposition of either sanction under subparagraph (A) or (B) 
    shall be treated as 1 sanction for purposes of section 5, and the 
    imposition of both such sanctions shall be treated as 2 sanctions 
    for purposes of section 5.
        (5) Procurement sanction.--The United States Government may not 
    procure, or enter into any contract for the procurement of, any 
    goods or services from a sanctioned person.
        (6) Additional sanctions.--The President may impose sanctions, 
    as appropriate, to restrict imports with respect to a sanctioned 
    person, in accordance with the International Emergency Economic 
    Powers Act (50 U.S.C. 1701 and following).

SEC. 7. ADVISORY OPINIONS.

    The Secretary of State may, upon the request of any person, issue 
an advisory opinion to that person as to whether a proposed activity by 
that person would subject that person to sanctions under this Act. Any 
person who relies in good faith on such an advisory opinion which 
states that the proposed activity would not subject a person to such 
sanctions, and any person who thereafter engages in such activity, will 
not be made subject to such sanctions on account of such activity.

SEC. 8. TERMINATION OF SANCTIONS.

    (a) Iran.--The requirement under section 5(a) to impose sanctions 
shall no longer have force or effect with respect to Iran if the 
President determines and certifies to the appropriate congressional 
committees that Iran--
        (1) has ceased its efforts to design, develop, manufacture, or 
    acquire--
            (A) a nuclear explosive device or related materials and 
        technology;
            (B) chemical and biological weapons; and
            (C) ballistic missiles and ballistic missile launch 
        technology; and
        (2) has been removed from the list of countries the governments 
    of which have been determined, for purposes of section 6(j) of the 
    Export Administration Act of 1979, to have repeatedly provided 
    support for acts of international terrorism.
    (b) Libya.--The requirement under section 5(b) to impose sanctions 
shall no longer have force or effect with respect to Libya if the 
President determines and certifies to the appropriate congressional 
committees that Libya has fulfilled the requirements of United Nations 
Security Council Resolution 731, adopted January 21, 1992, United 
Nations Security Council Resolution 748, adopted March 31, 1992, and 
United Nations Security Council Resolution 883, adopted November 11, 
1993.

SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.

    (a) Delay of Sanctions.--
        (1) Consultations.--If the President makes a determination 
    described in section 5(a) or 5(b) with respect to a foreign person, 
    the Congress urges the President to initiate consultations 
    immediately with the government with primary jurisdiction over that 
    foreign person with respect to the imposition of sanctions under 
    this Act.
        (2) Actions by government of jurisdiction.--In order to pursue 
    consultations under paragraph (1) with the government concerned, 
    the President may delay imposition of sanctions under this Act for 
    up to 90 days. Following such consultations, the President shall 
    immediately impose sanctions unless the President determines and 
    certifies to the Congress that the government has taken specific 
    and effective actions, including, as appropriate, the imposition of 
    appropriate penalties, to terminate the involvement of the foreign 
    person in the activities that resulted in the determination by the 
    President under section 5(a) or 5(b) concerning such person.
        (3) Additional delay in imposition of sanctions.--The President 
    may delay the imposition of sanctions for up to an additional 90 
    days if the President determines and certifies to the Congress that 
    the government with primary jurisdiction over the person concerned 
    is in the process of taking the actions described in paragraph (2).
        (4) Report to congress.--Not later than 90 days after making a 
    determination under section 5(a) or 5(b), the President shall 
    submit to the appropriate congressional committees a report on the 
    status of consultations with the appropriate foreign government 
    under this subsection, and the basis for any determination under 
    paragraph (3).
    (b) Duration of Sanctions.--A sanction imposed under section 5 
shall remain in effect--
        (1) for a period of not less than 2 years from the date on 
    which it is imposed; or
        (2) until such time as the President determines and certifies 
    to the Congress that the person whose activities were the basis for 
    imposing the sanction is no longer engaging in such activities and 
    that the President has received reliable assurances that such 
    person will not knowingly engage in such activities in the future, 
    except that such sanction shall remain in effect for a period of at 
    least 1 year.
    (c) Presidential Waiver.--
        (1) Authority.--The President may waive the requirement in 
    section 5 to impose a sanction or sanctions on a person described 
    in section 5(c), and may waive the continued imposition of a 
    sanction or sanctions under subsection (b) of this section, 30 days 
    or more after the President determines and so reports to the 
    appropriate congressional committees that it is important to the 
    national interest of the United States to exercise such waiver 
    authority.
        (2) Contents of report.--Any report under paragraph (1) shall 
    provide a specific and detailed rationale for the determination 
    under paragraph (1), including--
            (A) a description of the conduct that resulted in the 
        determination under section 5(a) or (b), as the case may be;
            (B) in the case of a foreign person, an explanation of the 
        efforts to secure the cooperation of the government with 
        primary jurisdiction over the sanctioned person to terminate 
        or, as appropriate, penalize the activities that resulted in 
        the determination under section 5(a) or (b), as the case may 
        be;
            (C) an estimate as to the significance--
                (i) of the provision of the items described in section 
            5(a) to Iran's ability to develop its petroleum resources, 
            or
                (ii) of the provision of the items described in section 
            5(b)(1) to the abilities of Libya described in subparagraph 
            (A), (B), or (C) of section 5(b)(1), or of the investment 
            described in section 5(b)(2) on Libya's ability to develop 
            its petroleum resources,
        as the case may be; and
            (D) a statement as to the response of the United States in 
        the event that the person concerned engages in other activities 
        that would be subject to section 5(a) or (b).
        (3) Effect of report on waiver.--If the President makes a 
    report under paragraph (1) with respect to a waiver of sanctions on 
    a person described in section 5(c), sanctions need not be imposed 
    under section 5(a) or (b) on that person during the 30-day period 
    referred to in paragraph (1).

SEC. 10. REPORTS REQUIRED.

    (a) Report on Certain International Initiatives.--Not later than 6 
months after the date of the enactment of this Act, and every 6 months 
thereafter, the President shall transmit a report to the appropriate 
congressional committees describing--
        (1) the efforts of the President to mount a multilateral 
    campaign to persuade all countries to pressure Iran to cease its 
    nuclear, chemical, biological, and missile weapons programs and its 
    support of acts of international terrorism;
        (2) the efforts of the President to persuade other governments 
    to ask Iran to reduce the presence of Iranian diplomats and 
    representatives of other government and military or quasi-
    governmental institutions of Iran and to withdraw any such 
    diplomats or representatives who participated in the takeover of 
    the United States embassy in Tehran on November 4, 1979, or the 
    subsequent holding of United States hostages for 444 days;
        (3) the extent to which the International Atomic Energy Agency 
    has established regular inspections of all nuclear facilities in 
    Iran, including those presently under construction; and
        (4) Iran's use of Iranian diplomats and representatives of 
    other government and military or quasi-governmental institutions of 
    Iran to promote acts of international terrorism or to develop or 
    sustain Iran's nuclear, chemical, biological, and missile weapons 
    programs.
    (b) Other Reports.--The President shall ensure the continued 
transmittal to the Congress of reports describing--
        (1) the nuclear and other military capabilities of Iran, as 
    required by section 601(a) of the Nuclear Non-Proliferation Act of 
    1978 and section 1607 of the National Defense Authorization Act for 
    Fiscal Year 1993; and
        (2) the support provided by Iran for acts of international 
    terrorism, as part of the Department of State's annual report on 
    international terrorism.

SEC. 11. DETERMINATIONS NOT REVIEWABLE.

    A determination to impose sanctions under this Act shall not be 
reviewable in any court.

SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES.

    Nothing in this Act shall apply to any activities subject to the 
reporting requirements of title V of the National Security Act of 1947.

SEC. 13. EFFECTIVE DATE; SUNSET.

    (a) Effective Date.--This Act shall take effect on the date of the 
enactment of this Act.
    (b) Sunset.--This Act shall cease to be effective on the date that 
is 5 years after the date of the enactment of this Act.

SEC. 14. DEFINITIONS.

    As used in this Act:
        (1) Act of international terrorism.--The term ``act of 
    international terrorism'' means an act--
            (A) which is violent or dangerous to human life and that is 
        a violation of the criminal laws of the United States or of any 
        State or that would be a criminal violation if committed within 
        the jurisdiction of the United States or any State; and
            (B) which appears to be intended--
                (i) to intimidate or coerce a civilian population;
                (ii) to influence the policy of a government by 
            intimidation or coercion; or
                (iii) to affect the conduct of a government by 
            assassination or kidnapping.
        (2) Appropriate congressional committees.--The term 
    ``appropriate congressional committees'' means the Committee on 
    Finance, the Committee on Banking, Housing, and Urban Affairs, and 
    the Committee on Foreign Relations of the Senate and the Committee 
    on Ways and Means, the Committee on Banking and Financial Services, 
    and the Committee on International Relations of the House of 
    Representatives.
        (3) Component part.--The term ``component part'' has the 
    meaning given that term in section 11A(e)(1) of the Export 
    Administration Act of 1979 (50 U.S.C. App. 2410a(e)(1)).
        (4) Develop and development.--To ``develop'', or the 
    ``development'' of, petroleum resources means the exploration for, 
    or the extraction, refining, or transportation by pipeline of, 
    petroleum resources.
        (5) Financial institution.--The term ``financial institution'' 
    includes--
            (A) a depository institution (as defined in section 3(c)(1) 
        of the Federal Deposit Insurance Act), including a branch or 
        agency of a foreign bank (as defined in section 1(b)(7) of the 
        International Banking Act of 1978);
            (B) a credit union;
            (C) a securities firm, including a broker or dealer;
            (D) an insurance company, including an agency or 
        underwriter; and
            (E) any other company that provides financial services.
        (6) Finished product.--The term ``finished product'' has the 
    meaning given that term in section 11A(e)(2) of the Export 
    Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)).
        (7) Foreign person.--The term ``foreign person'' means--
            (A) an individual who is not a United States person or an 
        alien lawfully admitted for permanent residence into the United 
        States; or
            (B) a corporation, partnership, or other nongovernmental 
        entity which is not a United States person.
        (8) Goods and technology.--The terms ``goods'' and 
    ``technology'' have the meanings given those terms in section 16 of 
    the Export Administration Act of 1979 (50 U.S.C. App. 2415).
        (9) Investment.--The term ``investment'' means any of the 
    following activities if such activity 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 Iran or a 
    nongovenmental entity in Iran, or with the Government of Libya or a 
    nongovernmental entity in Libya, on or after the date of the 
    enactment of this Act:
            (A) The entry into a contract that includes responsibility 
        for the development of petroleum resources located in Iran or 
        Libya (as the case may be), 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 that development.
            (C) The entry into a contract providing for the 
        participation in royalties, earnings, or profits in that 
        development, without regard to the form of the participation.
    The term ``investment'' does not include the entry into, 
    performance, or financing of a contract to sell or purchase goods, 
    services, or technology.
        (10) Iran.--The term ``Iran'' includes any agency or 
    instrumentality of Iran.
        (11) Iranian diplomats and representatives of other government 
    and military or quasi-governmental institutions of iran.--The term 
    ``Iranian diplomats and representatives of other government and 
    military or quasi-governmental institutions of Iran'' includes 
    employees, representatives, or affiliates of Iran's--
            (A) Foreign Ministry;
            (B) Ministry of Intelligence and Security;
            (C) Revolutionary Guard Corps;
            (D) Crusade for Reconstruction;
            (E) Qods (Jerusalem) Forces;
            (F) Interior Ministry;
            (G) Foundation for the Oppressed and Disabled;
            (H) Prophet's Foundation;
            (I) June 5th Foundation;
            (J) Martyr's Foundation;
            (K) Islamic Propagation Organization; and
            (L) Ministry of Islamic Guidance.
        (12) Libya.--The term ``Libya'' includes any agency or 
    instrumentality of Libya.
        (13) Nuclear explosive device.--The term ``nuclear explosive 
    device'' means any device, whether assembled or disassembled, that 
    is designed to produce an instantaneous release of an amount of 
    nuclear energy from special nuclear material (as defined in section 
    11(aa) of the Atomic Energy Act of 1954) that is greater than the 
    amount of energy that would be released from the detonation of one 
    pound of trinitrotoluene (TNT).
        (14) Person.--The term ``person'' means--
            (A) a natural person;
            (B) a corporation, business association, partnership, 
        society, trust, any other nongovernmental entity, organization, 
        or group, and any governmental entity operating as a business 
        enterprise; and
            (C) any successor to any entity described in subparagraph 
        (B).
        (15) Petroleum resources.--The term ``petroleum resources'' 
    includes petroleum and natural gas resources.
        (16) United states or state.--The term ``United States'' or 
    ``State'' means the several States, the District of Columbia, the 
    Commonwealth of Puerto Rico, the Commonwealth of the Northern 
    Mariana Islands, American Samoa, Guam, the United States Virgin 
    Islands, and any other territory or possession of the United 
    States.
        (17) United states person.--The term ``United States person'' 
    means--
            (A) a natural person who is a citizen of the United States 
        or who owes permanent allegiance to the United States; and
            (B) a corporation or other legal entity which is organized 
        under the laws of the United States, any State or territory 
        thereof, or the District of Columbia, if natural persons 
        described in subparagraph (A) own, directly or indirectly, more 
        than 50 percent of the outstanding capital stock or other 
        beneficial interest in such legal entity.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.