Thread: BP Amoco to Pay $20.5 Million for Underpayment to Indians

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, September 16, 2011

BP Amoco to Pay U.S. $20.5 Million to Resolve Allegations of Royalty Underpayments from Indian and Federal Lands

WASHINGTON – BP Amoco Corp. (formerly Amoco Corp.), Amoco Production Company, BP Exploration & Oil Inc., BP America Inc., Atlantic Richfield Company and Vastar (the BP defendants) have agreed to pay the United States $20.5 million to resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases, the Justice Department announced today.

Congress has authorized federal and Indian lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Each month companies are required to report to the U.S. Department of the Interior the amount of royalty that is due. This settlement resolves claims that the BP defendants improperly deducted from the royalty values they reported the cost of boosting gas up to pipeline pressures improperly reported processed gas as unprocessed gas to reduce royalty payments on federal and Indian leases, and improperly failed to perform “dual accountingâ€

I notice the Government is going to get their grubby paws on the money before the Indians see a dime of it! And as usual the Government will dole out the royalties as they see fit.