BP Amoco Corp, BP America Inc., and other related companies (BP) have agreed to pay the U.S. government $20.5 million to settle allegations that they defrauded the federal government out of royalties on natural gas obtained from federal lands.

The defendants fraudulently reduced the amount of royalty payments to the U.S by deducting the cost of bringing the gas to the surface and reporting processed gas as unprocessed gas, according to the complaint.  Defendants also allegedly failed to comply with proper accounting procedures.

BP is among several gas companies sued by Harold Wright, a whistleblower who passed away while the case was pending.  The government has continued his case and has collected $270 million so far.

Read the entire article, “BP Amoco to Pay U.S. $20.5 Million to Resolve Allegations of Royalty Underpayments from Indian and Federal Lands”