News OIG in the News Shell Oil Companies to Pay $2.2 Million to Resolve Allegations of Royalty Underpayments from Federal Lands
| Shell Oil Companies to Pay $2.2 Million to Resolve Allegations of Royalty Underpayments from Federal Lands |
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The Cypress Times WASHINGTON – Shell Oil Company and other Shell affiliates have agreed to pay the United States $2.2 millionto resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed onnatural gas produced from federal leases, the Justice Department announced yesterday. Shell Oil Company isthe U.S.-based subsidiary of Royal Dutch Shell, a multinational oil company, and is a leading producer of oiland natural gas. Congress has authorized federal and Indian lands to be leased for the production of natural gas in exchange forthe payment of royalties on the value of the gas that is produced. Each month companies are required to reportto the U.S. Department of the Interior (DOI) the amount of royalty that is due. This settlement resolves claimsby the United States that the Shell defendants improperly deducted from royalty values the cost of boosting gasup to pipeline pressures, and improperly reported processed gas as unprocessed gas to reduce royaltypayments. |
