Oil Windfall Acquisition Act of 1979

(Reported to Senate from the Committee on the Judiciary with amendment, S. Rept. 96-444)

Oil Windfall Acquisition Act of 1979 - Amends the Clayton Act to prohibit any major producer of crude oil and natural gas liquids from acquiring control or a majority of the assets, either directly or indirectly, through merger, consolidation, or acquisition, of: (1) any other person in the business of energy exploration, extraction, production, or conversion, if such person has total assets of $100,000,000 or more and, in the event of an acquisition of a majority of such assets, $100,000,000 or more would be acquired; or (2) any person not in any of such specified businesses, if such person has total assets of $50,000,000 or more and, in the event of an acquisition of a majority of such assets, $50,000,000 or more would be acquired.

Exempts from such prohibition any acquisition whose likely effect would be: (1) substantially to enhance competition in the domestic or foreign commerce of the United States; or (2) materially to increase or substantially to promote energy exploration, extraction, production, or conversion.

Excludes from the application of such prohibition joint undertakings for the purpose of new energy exploration, extraction, production, conversion, transportation, or distribution.

States that the total assets of a person shall include those of all persons controlled by such person. Presumes that all assets acquired within a three year period are a single acquisition. Stipulates that the value of assets is the book-value, unless less than all of the assets of a person are acquired, in which case the value of such assets is their fair market value.

Defines "major producer" as a producer of crude oil and natural gas liquids: (1) who is required to register with and make reports to the Securities Exchange Commission; and (2) who produced in calendar year 1978 an average of 150,000 barrels or more per day worldwide of crude oil and natural gas liquids.

Defines "control" as having the power, directly or indirectly, to direct the management and policies of a person through the ownership of, or the power to vote, at least 15 percent of the outstanding voting securities of such person.

Defines "conversion" as the production of synthetic fuels which can be used as substitutes for supplies of petroleum or natural gas.

Declares that this Act shall not be subject to the private civil action provisions of the antitrust laws.

Requires the court, in any action to enforce the prohibition established by this Act, whenever a challenged acquisition has been or may be consummated, to issue an order appropriate to ensure that the assets and operations of the parties to the acquisition are kept intact and held separate and that the parties do not interfere with or participate in the management or internal affairs of one another pending final adjudication.

Prohibits the Attorney General from bringing any action to enforce this Act more than 90 days after expiration of the 30-day waiting period prescribed by section 7A of the Clayton Act.

Exempts from the operation of this Act any acquisition involving solely persons controlling, controlled by, or under common control with one another.

Forbids construction of this Act to render unlawful any acquisition on the basis of increases in production or assets after consummation.

Makes this Act applicable only to acquisitions consummated between November 20, 1979 and January 1, 1991.

Requires the Federal Trade Commission, in consultation with the Department of Energy and the Department of Justice, to file by October 31, 1984 a progress report on the impact of the provisions and recommendations for legislative change, and to file a final report by October 31, 1989.

Sets the effective date of this Act on November 20, 1979.