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From our archives: SHELL SETTLES ROYALTIES CASE FOR $33.5 MILLION

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. read more

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