H.R. 7074: Keeping Public Lands Out of Adversarial Hands Act

The bill titled "Keeping Public Lands Out of Adversarial Hands Act" aims to amend the Defense Production Act of 1950 to enhance oversight regarding foreign transactions involving U.S. public lands and resources. Below are the key components of the bill:

Inclusion of the Secretary of the Interior

The bill proposes to add the Secretary of the Interior as a member of the Committee on Foreign Investment in the United States (CFIUS). This committee reviews certain foreign investments to assess their impact on national security. The Secretary of the Interior's inclusion means that when any land or resource transaction is being evaluated, their guidance and expertise will be considered, especially when it relates to:

• Bureau of Land Management
• Bureau of Reclamation
• Bureau of Indian Affairs
• Bureau of Ocean Energy Management
• National Park Service
• United States Fish and Wildlife Service

Consideration of Certain Land or Resource Transactions

The bill outlines the process that CFIUS must follow when notified of reportable land or resource transactions. Specifically:

• Notification: The Secretary of the Interior will notify the CFIUS of transactions that may be of concern.
• Determine Coverage: CFIUS will assess whether the transaction in question qualifies as a "covered transaction." This typically refers to transactions that could pose risks to national security.
• Review Process: If deemed a covered transaction, CFIUS will decide on the appropriate course of action, which could involve further review or other actions to mitigate potential risks.

Definition of Reportable Transactions

The term "reportable land or resource transaction" is defined in the bill as any transaction in which:

• The Secretary of the Interior believes it is a covered transaction, and
• It involves a foreign interest from specific countries considered adversarial to U.S. interests, namely:
• People’s Republic of China
• Democratic People’s Republic of Korea
• Russian Federation
• Islamic Republic of Iran

These requirements will remain in effect until these countries are officially removed from the list of foreign adversaries, as outlined in regulatory provisions.

Overall Purpose

By amending the Defense Production Act, the bill aims to strengthen national security by ensuring that public lands and natural resources are protected from potential adversarial foreign interests. The introduction of new oversight mechanisms reflects a proactive approach to safeguarding critical U.S. assets in a changing global landscape.

Relevant Companies

• APA Corporation (APA) - As a company involved in oil and gas production, APA may face scrutiny if engaging in international deals involving land or resources adjacent to public lands.
• Schlumberger Limited (SLB) - Operating in the energy sector, any acquisitions or projects in sensitive areas could invoke the review processes established by this bill.
• Exxon Mobil Corporation (XOM) - Given its global operations in energy, Exxon Mobil may need to adhere closely to new regulations regarding foreign transactions in relation to U.S. land and resources.