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Reports

Unsubstantiated Allegations of Royalty Fraud

Report Number
18-0758

We investigated allegations that a gas company underpriced carbon dioxide (CO2) produced from Federal leases and deducted unallowable costs from its CO2 production that resulted in a potential loss of Federal royalties. We did not substantiate the allegations. We found the company’s pricing used to calculate royalty payments associated with the sale of CO2 was comparable to competitors. We also found the company’s transportation allowances deducted during Federal royalty calculations complied with the Government’s permitted threshold.

Investigation
Office of Natural Resources Revenue

Suspected Illegal Gas Flaring in North Dakota

Report Number
19-0222

We investigated allegations that Continental Resources, Inc. flared gas from Federal mineral leases in North Dakota without an approved permit from the Bureau of Land Management (BLM) and failed to report the flaring to the Office of Natural Resources Revenue (ONRR). We confirmed that Continental flared natural gas produced from Federal leases without a BLM-approved permit but did report the flared gas volumes to ONRR. As a result of the flared natural gas, the company owed unpaid royalties to ONRR in excess of $900,000 that ONRR is attempting to recover.

Investigation
Bureau of Land Management
Office of Natural Resources Revenue

Alleged Bribery of a BLM Field Inspector

Report Number
18-1192

We investigated whether a Bureau of Land Management (BLM) field inspector accepted bribes from an oil and gas exploration company operating on an Indian reservation in exchange for allowing the company to do business on the reservation. We conducted this investigation jointly with the Federal Bureau of Investigation. Our investigation found no evidence to corroborate the bribery allegations made against the BLM field inspector. Witnesses identified by the complainant did not corroborate the complainant’s statement, and the BLM field inspector denied the allegations.

Investigation
Bureau of Land Management

Alleged Oil Theft Referred to BLM for Enforcement

Report Number
19-0688

We investigated allegations that an oil and gas company unlawfully removed oil from a Federal mineral lease, transported the Federal oil to a Wyoming State lease, and concealed both the production and the transfer of the oil from the Bureau of Land Management (BLM). We determined that the alleged transfer of oil from the Federal well site was a minimal amount and an isolated occurrence. We closed this investigation and referred the matter to the BLM to address it through its regulatory authority.

Investigation
Bureau of Land Management

OIG Referred Allegations to ONRR for Possible Enforcement Action

Report Number
20-0294

We investigated allegations that an oil and gas company incorrectly adjusted oil and gas reporting and failed to apply the proper pricing for minerals produced from leases in New Mexico, potentially resulting in a loss of royalties. We determined that the alleged conduct occurred outside the 5-year statute of limitations for criminal conduct and would be appropriately addressed through administrative enforcement actions and orders. As a result, we referred the matter to the Office of Natural Resources Revenue (ONRR).

Investigation
Office of Natural Resources Revenue
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