Occidental To Pay $2M To Resolve Royalty Suit

Law360, New York (March 24, 2011, 6:15 PM EDT) -- Occidental Petroleum Corp. has agreed to pay $2.05 million plus interest to settle a whistleblower case in Texas accusing the company of underpaying royalties on natural gas produced from federal leases, the U.S. Department of Justice announced Tuesday.

Occidental and two subsidiaries allegedly violated the False Claims Act by improperly deducting the cost of boosting gas up to pipeline pressures from the royalty values they reported to the federal government, according to the DOJ, which intervened in the case in the U.S. District Court for the...
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