Royal Dutch Shell evasion of royalties
Published: March 21, 2002
The Royal Dutch/Shell Group paid $33.5 million to settle a lawsuit filed by the State of Alabama claiming more royalties from natural gas Shell produced in state waters, a lawyer representing Alabama said.
Shell Oil, the United States unit of Royal Dutch/Shell, was sued in June 1999 for underpaying royalties as far back as 1991 for gas from Mobile Bay, said Richard Dorman of Cunningham, Bounds, Yance, Crowder & Brown.
Alabama got $27.1 million in the settlement. The remaining $6.4 million went for lawyers’ fees and expenses.
”Shell and the state have been working for a number of years to resolve their differences on certain mineral lease provisions,” Shell Oil said. Shell Oil denied wrongdoing.