Legislative Arrogance

The House of Representative recently passed a bill titled, "No Oil Producing and Exporting Cartels Act of 2007". This bill amends the Sherman Anti Trust Act to make oil producing and exporting cartels illegal. In other words, it gives the US the right to sue OPEC if they engage in the following conduct:

`(a) In General- It shall be illegal and a violation of this Act for any foreign state, or any instrumentality or agent of any foreign state, to act collectively or in combination with any other foreign state, any instrumentality or agent of any other foreign state, or any other person, whether by cartel or any other association or form of cooperation or joint action--

`(1) to limit the production or distribution of oil, natural gas, or any other petroleum product;

`(2) to set or maintain the price of oil, natural gas, or any petroleum product; or

`(3) to otherwise take any action in restraint of trade for oil, natural gas, or any petroleum product;

when such action, combination, or collective action has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of oil, natural gas, or other petroleum product in the United States.

`(b) Sovereign Immunity- A foreign state engaged in conduct in violation of subsection (a) shall not be immune under the doctrine of sovereign immunity from the jurisdiction or judgments of the courts of the United States in any action brought to enforce this section.

`(c) Inapplicability of Act of State Doctrine- No court of the United States shall decline, based on the act of state doctrine, to make a determination on the merits in an action brought under this section.

`(d) Enforcement- The Attorney General of the United States may bring an action to enforce this section in any district court of the United States as provided under the antitrust laws.'.

If the language of this bill were changed only slightly, the results would be quite different. Here's how I would edit the bill language:

`(a) In General- It shall be illegal and a violation of this Act for any foreign state, or any instrumentality or agent of any foreign state, to act collectively or in combination with any other foreign state, any instrumentality or agent of any other foreign state, or any other person, whether by cartel or any other association or form of cooperation or joint action--

`(1) to limit the production or distribution of oil, natural gas, or any other petroleum product;

`(2) to set or maintain the price of oil, natural gas, or any petroleum product; or

`(3) to otherwise take any action in restraint of trade for oil, natural gas, or any petroleum product;

when such action, combination, or collective action has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of oil, natural gas, or other petroleum any product in the United States.

`(b) Sovereign Immunity- A foreign state engaged in conduct in violation of subsection (a) shall not be immune under the doctrine of sovereign immunity from the jurisdiction or judgments of the courts of the United States in any action brought to enforce this section.

`(c) Inapplicability of Act of State Doctrine- No court of the United States shall decline, based on the act of state doctrine, to make a determination on the merits in an action brought under this section.

`(d) Enforcement- The Attorney General of the United States may bring an action to enforce this section in any district court of the United States as provided under the antitrust laws.'

Striking a few words and adding only one three letter word produces the first true free trade act. This change would allow the US to not only sue OPEC, but any state that acts to restrain trade. Unfortunately for Congress it would also allow the Attorney General to sue the United States.

Why is oil different than any other product?

The bill, as currently written, is one of the most arrogant legislative acts ever written. It criminalizes behavior for foreign countries which the US engages in itself. Congress limits production of oil and gas in the US by placing areas of known oil deposits, such as ANWR and the continental shelf, off limits, yet presumes to tell other countries how to manage their own resources. There are apparently no limits to the arrogance of our politicians.

Update: My daughter (she's brilliant) has a little different attitude about NOPEC:

Mrs. Sue Opec