Oil company owes million for underpaid royalties
Thursday, January 25, 2007
Filed Under:
Trust
A federal jury in Colorado said an oil company cheated the American public out of $7.5 million in royalties in a case the Interior Department had claimed was meritless.
The jury agreed with a former Minerals Management Service auditor who brought the case of his own accord under federal whistle blower laws. Bush administration officials accused Bobby L. Maxwell of being greedy.
The Kerr-McGee Corporation now faces a penalty of more than $30 million. Under the False Claims Act, the company can be forced to pay double or triple the amount it underpaid, plus additional penalties.
By bringing the case, Maxwell stands to gain a share of the payment.
Get the Story:
Kerr-McGee Is Found Liable in Lawsuit Over Oil Royalties
(The New York Times 1/25)
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Inspector General Report:
Minerals
Management Service's Compliance Review Process (December 2006)
GAO Letter:
Suggested Areas for
Oversight for the 110th Congress (November 17, 2006)
Inspector General Testimony:
Devaney
Interior Department: A Culture of Managerial Irresponsibility and Lack of
Accountability? (September 2006)
Inspector General Report:
Allegations
Concerning Senior Officials of the Office of Special Trustee for American
Indians (May 2005)
Relevant Links:
Government Accountability Office:
Office of Special
Trustee -
http://www.ost.doi.gov
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