Chevron agrees to settle gas royalties
Source: Agencies |
December 25, 2009, Friday
|
Print Edition
Print Edition
CHEVRON Corp is to pay US$45.5 million to resolve claims it underpaid natural gas royalties to the government and Native Americans, the Justice Department has announced.
Most of the money will be distributed to federal, state and American Indian accounts affected by the underpayments. More than US$12.3 million will go to the heirs of Harrold Wright, the man who filed the lawsuit in Texas.
Each month, companies are required to report to the Interior Department the value of the natural gas produced from their federal and Indian leases. A percentage of the reported value is paid as royalties.
The settlement includes Chevron companies Texaco Inc, Unocal Corp and other affiliates.
The government said the companies made improper deductions from royalty values and violated the False Claims Act by underpaying royalties.
"This settlement successfully ends long-standing litigation and ensures that taxpayers receive their fair share of royalty revenues from energy production on federal and American Indian lands," Interior Secretary Ken Salazar said.
Chevron said: "The agreement states that Chevron makes no admission of any kind concerning improper or fraudulent actions or omissions on its part, and Chevron reasserts that it did not engage in such activities. Chevron has settled this case simply to bring an end to a long and expensive legal proceeding."
Wright's suit alleged a number of companies underpaid royalties.
The Justice Department previously settled with Burlington Resources Inc for US$105.3 million, Shell Oil Co for US$56 million and Dominion Exploration and Production Co for US$2 million.
Most of the money will be distributed to federal, state and American Indian accounts affected by the underpayments. More than US$12.3 million will go to the heirs of Harrold Wright, the man who filed the lawsuit in Texas.
Each month, companies are required to report to the Interior Department the value of the natural gas produced from their federal and Indian leases. A percentage of the reported value is paid as royalties.
The settlement includes Chevron companies Texaco Inc, Unocal Corp and other affiliates.
The government said the companies made improper deductions from royalty values and violated the False Claims Act by underpaying royalties.
"This settlement successfully ends long-standing litigation and ensures that taxpayers receive their fair share of royalty revenues from energy production on federal and American Indian lands," Interior Secretary Ken Salazar said.
Chevron said: "The agreement states that Chevron makes no admission of any kind concerning improper or fraudulent actions or omissions on its part, and Chevron reasserts that it did not engage in such activities. Chevron has settled this case simply to bring an end to a long and expensive legal proceeding."
Wright's suit alleged a number of companies underpaid royalties.
The Justice Department previously settled with Burlington Resources Inc for US$105.3 million, Shell Oil Co for US$56 million and Dominion Exploration and Production Co for US$2 million.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
