Kerr-McGee Loses Royalty Suit To Whistleblower

Law360, New York (January 24, 2007, 12:00 AM EST) -- Kerr-McGee Corp. suffered a huge loss in court on Tuesday after a jury agreed with a former Department of the Interior auditor and whistleblower who was fired after claiming that the oil company had cheated the government out of millions of dollars in royalties.

In a civil suit, a former employee of the U.S. Minerals Management Service, Bobby Maxwell, accused the company of selling federal oil to Houston-based Texon Corp. at dirt-cheap prices in exchange for marketing services.

While Maxwell was still working at the MMS,...
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