Shell Pays US $2.2M To Settle Gas Royalty Suit

Law360, New York (May 10, 2011, 7:18 PM EDT) -- The U.S. Department of Justice said Tuesday that Shell Oil Co. had agreed to pay $2.2 million to settle a Texas suit alleging it underpaid natural gas royalties owed to the federal government.

The settlement, which relates to royalties from on-land gas production, resolves a 13-year-old False Claims Act whistleblower case against the company. Shell agreed in 2003 that it would pay $56 million to settle claims in the same case stemming from off-shore gas production in the Gulf of Mexico.

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