Mobil Oil Companies to Pay U.S. $32.2 Million : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Mobil Oil Companies to Pay U.S. $32.2 Million

April 5, 2010

Mobil Oil Companies to Pay U.S. $32.2 Million
Mobil Oil Companies to Pay U.S. $32.2 Million
WASHINGTON – (rushPRnews) 04/05/10 — Mobil Oil Companies to Pay U.S. $32.2 Million to Resolve Allegations of Underpayment of Royalties from American Indian and Federal Land
Mobil Natural Gas Inc., Mobil Exploration & Producing U.S. Inc. and their affiliates have agreed to pay the United States $32.2 million to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and American Indian leases, the Justice Department announced today. The Mobil companies are alleged to have systematically under reported the value of natural gas taken from the leases from March 1, 1988, to Nov. 30, 1999, and, consequently, paid less royalties than owed to the United States and various American Indian tribes.

The settlement with the Mobil companies arises from a lawsuit filed by Harold Wright on behalf of the United States. The qui tam or whistleblower provisions of the False Claims Act allow private citizens to file actions on behalf of the United States and to share in any recovery. Because Mr. Wright is deceased, his heirs will receive a $975,000 share of the settlement.

The Justice Department partially intervened against the Mobil defendants in the Wright lawsuit, and previously settled with Burlington Resources Inc. for $105.3 million, Shell Oil Co. for $56 million, Chevron Corporation, Texaco and Unocal Incorporated for $45.5 million and Dominion Exploration and Production Co. for $2 million. The Mobil companies were merged into and became subsidiaries of ExxonMobil, the world’s largest publically traded international oil and gas company in November 1999.

"The message to those who seek to evade their mineral royalty obligations is this: We will aggressively pursue you," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We at the Justice Department are committed to protecting the public trust by ensuring that those who remove valuable minerals, some of which are non-renewable, from American Indian or public lands pay their full, fair, negotiated share for those assets."

The Minerals Management Service (MMS) of the U.S. Department of the Interior is responsible for overseeing the collection of royalties on federal and American Indian leases, as well as federal offshore lands on the Outer Continental Shelf. Each month, companies are required to report to MMS the value of the natural gas produced from their federal and American Indian leases and to pay a percentage of the reported value as royalties. The United States alleged that the Mobil companies used transactions with affiliated entities to falsely reduce the reported value of gas taken from federal and American Indian leases, to claim excessive deductions for the cost of transporting that gas, and to otherwise understate the value they reported each month for their natural gas production.

"This settlement closes another important portion of long-standing litigation that MMS participated in to ensure that taxpayers receive their fair share of royalty revenues from energy production that occurs on federal lands," said MMS Director Liz Birnbaum. "The revenues collected from the settlement will be disbursed to appropriate Federal, state and American Indian accounts that were affected by the underpayment of royalties."

The investigation of and settlement with the Mobil Defendants was jointly handled by the U.S. Attorney for the Eastern District of Texas and the Civil Division of the Department of Justice, with the assistance of the Department of the Interior’s Office of Inspector General, Minerals Management Service, and Office of the Solicitor.

The case is U.S. ex rel. Wright v. Chevron USA, Inc. et al., 5:03-CV-264 (E.D. Tex.)

Media Contact Name: U.S. Department of Justice
Click here to see all news from this author/company

Filed Under: BREAKING NEWS, BUSINESS NEWS, Crime, PRESS RELEASE, U.S.A. Government

RUSH PR NEWS newswire and press release services at rushprnews.com / AH Marketing ahmarketinggroup.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Heero: the Perfect 3D Printing Partner Monitors & Controls Progress

Brisbane, Australia 07/21/16 · Heero: Aussie Design Team Launches Kickstarter for Device...

Wharton MBA Students to Release World’s First Consumer Smart-Mirror

NEW YORK 07/20/16 · A team of Wharton MBA students announced that...

Gallery Pouch Protects your Artwork During Shipping

Dallas, Texas 07/14/16 · Great protective packaging when shipping all delicate objects...

SAP Shows Further Commitment to the SME Market by Hiring New President

London, UK 07/14/16 · If, when you think about SAP SE's main...

What Credit Market Experts Are Saying about Brexit

London, UK 07/08/16 · In the initial hours after the leave vote...

Why Starting Off with VPS Hosting is a Wise Decision

London, UK 06/27/16 · You may have heard the term ‘VPS Hosting,...

FlipBelt Launches Hydration Belt for Runners and Fitness Enthusiasts

DENVER, CO 06/22/16 · FlipBelt announces new version of its wildly popular...

Kickstarter Fun: Wu & Y: Combines Art & Activewear

Brooklyn, NY 06/16/16 · Artistic Activewear Brand Raises 20K on the First...

Nursing Schools Struggle to Keep Up With Demand for Nurses

Peoria, Illinois 06/15/16 · Recent studies carried out by the Georgetown Center...

20 Dollars Discount On All PR Distribution Packages Now

San Francisco 06/14/16 · Time to share the joy again! We just...