Royal Dutch Shell Plc  .com Rotating Header Image

Posts Tagged ‘False Claims Act’

Shell Oil Companies to Pay $2.2 Million to Resolve Allegations of Royalty Underpayments from Federal Lands

Department of Justice

Office of Public Affairs: Tuesday, May 10, 2011

WASHINGTON – Shell Oil Company and other Shell affiliates have agreed to pay the United States $2.2 million to resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal leases, the Justice Department announced today. Shell Oil Company is the U.S.-based subsidiary of Royal Dutch Shell, a multinational oil company, and is a leading producer of oil and natural gas.

Congress has authorized federal and Indian lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced.   Each month companies are required to report to the U.S. Department of the Interior (DOI) the amount of royalty that is due. This settlement resolves claims by the United States that the Shell defendants improperly deducted from royalty values the cost of boosting gas up to pipeline pressures, and improperly reported processed gas as unprocessed gas to reduce royalty payments.
read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Oil Company to Pay $2.2 Million Settlement to Resolve Federal False Claims Case

Tuesday, 10 May 2011: Contact: Patrick Etchart, ONRR (303) 231-3162
WASHINGTON–(ENEWSPF)–May 10, 2011.  Shell Oil Company, Shell Offshore Inc., Shell Frontier Oil & Gas Inc., and Shell Western Exploration and Production (Shell Defendants) have agreed to pay the United States $2.2 million plus interest to resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from Federal leases, the Department of the Interior (DOI) and the U.S. Department of Justice announced today.

The agreement was reached among the Shell Defendants, the Department of the Interior through its Office of Natural Resources Revenue (ONRR), and the Department of Justice. The total payment, including interest, is $2,287,145.74.

“We are required to ensure that energy companies accurately report production and pay the required royalties,” said Chris Henderson, Acting Assistant Secretary for the DOI’s Office of Policy, Management and Budget. “We will continue to pursue any case where companies do not follow the rules.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
%d bloggers like this: