BP To Pay $21M To End DOJ Gas Royalty Suit

Law360, New York (September 16, 2011, 5:10 PM EDT) -- BP PLC units have agreed to pay $20.5 million to settle government allegations that they underpaid royalties owed on natural gas produced from federal and Indian land leases, the U.S. Department of Justice said Friday.

The DOJ accused the BP units of improperly reporting processed gas as unprocessed to cut their royalty payments, deducting costs related to getting gas up to pipeline pressures, and failing to perform “dual accounting” on certain federal leases.

“Natural gas royalties provide an important source of income for the United States,...
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