Investigation of Suspected False Gas Production

OIG investigated allegations that an oil and gas company operating mineral leases in Wayne National Forest in Ohio paid royalties based on false gas production volumes. The company allegedly had submitted payments to the Office of Natural Resources Revenue solely to maintain the mineral leases. Working with the Bureau of Land Management’s Special Investigations Group, we determined that the allegations were unsubstantiated. We found that the company operating the leases was actively working at the site and that wells were producing gas. 

 

This is a summary of an investigative report that we provided to the Bureau of Land Management for information.