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UPDATE 1-Chevron to pay $46 mln to settle royalty charges
December 23, 2009 / 10:11 PM / 8 years ago

UPDATE 1-Chevron to pay $46 mln to settle royalty charges

(Adds comment, detail)

WASHINGTON, Dec 23 (Reuters) - Chevron Corp (CVX.N) has agreed to pay almost $46 million to settle charges that it underpaid royalties owed for natural gas produced from federal and Indian leases, the Justice Department said on Wednesday.

Chevron and the two companies it now owns, Texaco and Unocal Inc, were accused of under-reporting the value of the natural gas they took from the lands between March 1988 and November 2008 and therefore paid less royalties than were owed, the Justice Department said.

Companies are required to report the value of the natural gas they produce from federal and Indian leases and pay a percentage as royalties.

“This settlement successfully ends long-standing litigation and ensures that taxpayers receive their fair share of royalty revenues from energy production on federal and American Indian lands,” Interior Secretary Ken Salazar said in a statement.

The Interior Department’s Minerals Management Service oversees the collection of royalties from the leases.

Most of the money will be disbursed to federal, state and American Indian accounts that were affected by the underpayments, Salazar said.

A representative from Chevron was not immediately available for comment. (Reporting by Jeremy Pelofsky; Editing by Richard Chang, Phil Berlowitz)

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