DECEMBER 10, 2010
By Stephen Power and Siobhan Hughes
WASHINGTON (Dow Jones)–The federal agency that controls oil and natural gas production on U.S.-owned land “appeared to give preferential treatment” to Royal Dutch Shell PLC when the company was pursuing leases to drill on tracts of government-owned land in the western U.S. in 2005 and 2006, the acting inspector general of the Interior Department said in a report Friday.
The preferential treatment helped Shell obtain the leases and “disadvantaged” the company’s competitors, according to the acting inspector general’s report. But investigators say they found no evidence that Shell broke the law, and “no conclusive evidence” that then-Interior Secretary Gale Norton–who accepted a job with Shell several months after leaving her government post–broke federal conflict-of-interest laws.