Federal ruling: Kerr-McGee
US appeals Anadarko royalty case
14 July 2009 07:36 GMT
Top US court rejects oil royalty case appeal
05 October 2009 05:56 GMT
Feds appeal Anadarko oil royalties case
30 March 2009 10:02 GMT
28 May 2009 11:01 GMT
21 September 2010 07:20 GMT
A US federal judge has ordered Kerr-McGee Oil & Gas to pay almost $23 million in penalties for making false royalty claims - with $5.7 million of that to go to the auditor who uncovered the problem.
The ruling comes almost seven years after former Minerals Management Service (MMS) auditor Bobby Maxwell discovered Kerr-McGee had underpaid federal royalties on 57 leases.
Kerr-McGee is now owned by Anadarko Petroleum.
Kerr-McGee was ordered to pay treble damages - triple the $7.5 million liability decided upon by a jury in 2007 - because of the false royalty claims it submitted to the federal government.
Federal judge Marcia Krieger yesterday ruled that Maxwell was entitled to 25% of the judgment, or about $5.7 million, under the federal whistle-blower programme for uncovering fraud and abuse.
A jury found that Kerr-McGee was selling its oil to Texon Corporation for below-market prices from 1999 to 2002 as part of an arrangement with Texon to provide marketing services and other incentives.
Kerr-McGee could still appeal the ruling.
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