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Energy Company Underpaid Mineral Royalties to Indian Tribes

Report Information

Date Issued
Report Number
16-0226
Report Type
Investigation
External Entity
Office of Natural Resources Revenue
Description

The OIG investigated allegations that QEP Energy Company (QEP) failed to properly value minerals produced from Tribal and Indian Allottee properties for 2013 and 2014.

We found that QEP underpaid mineral royalties owed to Indian mineral owners in North Dakota, Oklahoma, and New Mexico by $118,716. Subsequently, the Office of Natural Resources Revenue (ONRR) discovered QEP also undervalued natural gas liquids associated with the leases included in our investigation. This separate violation directly affected QEP’s overall royalty obligation. As a result, ONRR needed to complete an audit to determine any further extent of QEP’s royalty obligations. This matter was referred to ONRR for administrative resolution.

Joint Report
No
Agency Wide
Yes
Local File
InvestigativeSummary_QEPEnergy.pdf
Oversight Report File
https://www.doioig.gov/sites/doioig.gov/files/InvestigativeSummary_QEPEnergy.pdf