Total Fina SA and its affiliates have agreed to pay the federal government $14.6 million plus interest to resolve claims that the companies underpaid royalties owed on natural gas produced from federal and American Indian lands. The settlement between the United States and Total Fina, Total Oil and Chemical Co., Total Minatome Corp., Total Exploration Production U.S.A. Inc., Fina Oil & Chemical Co., Elf Exploration Inc. and Total E&P USA Inc. covers the period from August 1986 to the present. The agreement arises from a lawsuit filed by Harold E. Wright under the Federal False Claims Act. Under the qui tam, or whistleblower, provisions of the act, a private citizen may file actions on behalf of the U.S. government and share in the recovery of funds. Because Wright is deceased, his heirs will receive $23,000 as part of their share of the settlement. The Total settlement and numerous agreements with other energy companies in recent years have returned approximately $280 million to the federal government and Indian lessors, said Greg Gould, the Interior Department’s acting deputy assistant secretary for Natural Resources Revenue.
Underpaid
Articles from Underpaid
Shell Offshore Pays $25M for Royalty Underpayments
Shell Offshore Inc. has agreed to pay $25 million to resolve claims that it underpaid royalties owed on oil and natural gas produced from federal leases, Interior Department’s Office of Natural Resources Revenue (ONRR) said Tuesday.
Industry Briefs
Anadarko Petroleum Corp. is buying BP America Production Co.’s 93% interest in the Wattenberg Processing Plant for $575.5 million. The plant in Adams County in northeast Colorado can process up to 195 MMcf/d of natural gas and 15,000 b/d of natural gas liquids and gas condensate. Upon closing Anadarko will operate and have 100% ownership. Anadarko volumes represent about 70% of plant throughput, said Chuck Meloy, Anadarko senior vice president of worldwide operations. “We are the largest producer in the Wattenberg field, with current sales volumes of approximately 63,000 boe/d, and our early efforts in the emerging horizontal Niobrara play are very encouraging,” Meloy said. The transaction is expected to close by mid-year, subject to regulatory approvals and contractual conditions.
Occidental Fined $2.05M for Underpaying Royalties
Occidental Petroleum Corp. and affiliates Occidental Oil and Gas Corp. and OXY USA Inc. have agreed to pay the federal government $2.05 million to resolve claims that they knowingly underpaid royalties owed on natural gas produced from federal leases, the Department of Justice (DOJ) said Tuesday.
Burlington Agrees to Pay $97.5M to Resolve Royalty Underpayments
Burlington Resources Inc., a subsidiary of ConocoPhillips, has agreed to pay the federal government $97.5 million to resolve claims that it underpaid royalties owed on natural gas produced from federal and Indian leases, the Department of Justice (DOJ) said last Wednesday.
CO Judge Dismisses $7.55M Jury Verdict Against Kerr-McGee
A district court judge has overturned a jury verdict that Kerr-McGee Oil & Gas underpaid $7.55 million in federal royalties on oil production, concluding that the plaintiff in the case, a former auditor of the Minerals Management Service (MMS), failed to meet one of the conditions necessary to bring a lawsuit on behalf of the government against the producer under the False Claims Act (FCA).
CO Judge Dismisses $7.55M Jury Verdict Against Kerr-McGee
A district court judge Friday overturned a jury verdict that Kerr-McGee Oil & Gas underpaid $7.55 million in federal royalties on oil production, concluding that the plaintiff in the case, a former auditor of the Minerals Management Service (MMS), failed to meet one of the conditions necessary to bring a False Claims Act (FCA) lawsuit on behalf of the government against the producer.
El Paso Agrees to Pay $30M to Settle Royalty Claims
El Paso Corp. has agreed to pay $30 million to settle claims that it allegedly underpaid royalties for production from natural gas wells in Oklahoma, Texas and New Mexico, according to the company’s annual 10-K report that was filed with the Securities and Exchange Commission Tuesday.
Industry Briefs
Texaco Inc. has agreed to pay $43 million to settle charges byseveral whistleblowers that the firm underpaid royalties due oncrude oil drilled from federal and Indian leases, The U.S. JusticeDepartment said Wednesday. The settlement covers underpayments fromJanuary 1980 to through December 1998. Two former AtlanticRichfield Co. marketing managers brought the lawsuit in the U.S.District Court in Lufkin, TX, and will receive part of the Texacosettlement. The settlement agreement was signed by representativesof several Indian tribes, as well as the federal government. Thegovernment has reached similar settlements on royalty underpaymentswith Mobil, Occidental Petroleum, Chevron, BP Amoco, Conoco, DevonEnergy, Union Pacific Resources and Sunoco.