Lost Oil Royalties Could Cost U.S. Billions: Report

Law360, New York (April 13, 2007, 12:00 AM EDT) -- The U.S. government could lose billions of dollars in oil and gas royalties if a lawsuit challenging its authority to collect the payments is successful, a congressional report has claimed.

The report, delivered to the Senate Energy and Natural Resources Committee Thursday, said low production volumes and fluctuating prices meant the figure might be less than the $60 billion estimated by the Department of the Interior, but it would still be colossal.

Committee Chairman Jeff Bingaman, who had asked the Government Accountability Office in January 2006...
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