DOI To Pay $65M In Gas Pipeline Contract Dispute Settlement

Law360, New York (June 6, 2016, 10:00 PM EDT) -- The federal government will pay Rockies Express Pipeline LLC $65 million under a settlement agreement in a long-running contract dispute over a 1,698-mile natural gas pipeline, according to a Friday decision by the Civilian Board of Contract Appeals approving the settlement.

The pipeline company sued the U.S. Department of the Interior in 2009 for breach of contract, accusing the agency of backing out of a $173 million commitment to ship gas on the new pipeline. The dispute also coincided with the Department of the Interior's decision to phase out its royalty-in-kind program, in which the government gets a royalty in gas,...

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