Oil & Gas Fraud

Oil & Gas fraud often includes:

  • Failure to pay royalties
  • Underpayment of royalties
  • Mis-measuring volumes or mineral values

Oil & Gas royalty underpayment settlements include:

Chevron Paid $45 Million to Resolve Allegations of Royalties Underpayment

Chevron Corporation, Texaco, Unocal Incorporated and their affiliates paid the U.S. government $45.5 million to resolve allegations that they underpaid royalties from 1988 to 2008.

“This settlement successfully ends long-standing litigation and ensures that taxpayers receive their fair share of royalty revenues from energy production on federal and American Indian lands.” - Interior Secretary Ken Salazar.

BP Amoco Paid $20.5 Million to Resolve Allegations of Royalty Underpayments from Indian and Federal Lands

BP Amoco Corp. agreed to pay the U.S. government $20.5 million to resolve allegations that they knowingly underpaid royalties owed on natural gas produced from federal and Indian leases.

“Natural gas royalties provide an important source of income for the United States, Native Americans, and various states, and help support critical programs from which we all benefit” - Tony West, Assistant Attorney General for the Civil Division of the Department of Justice.

Becoming a whistleblower, and exposing oil and gas fraud, helps protect the second largest source of income for the federal government. Second only to income taxes, this enormous source of funds is generated as a result of natural resources that are mined on Federally leased land, the Outer Continental Shelf or Native American leases. Royalty payments are owed to the government for the use and exploration of these natural resources.

In 2007, the Department of the Interior collected over $9 billion in royalties from oil and natural gas leases. Though the government entities responsible for enforcing royalty collection have been changed in recent years, there have been numerous cases in which massive oil companies further gouge each of us, in spite of their already incredible profits, by not paying the royalty payments they owed in full.