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OCTOBER 25, 2000

The Kerr-McGee Corporation has agreed to pay $13 million to resolve allegations of underpaid oil royalties on federal and Indian lands.

The company was alleged to have underpaid on leases during the years 1988 to 1998. Claims against the company were brought under the False Claims Act, a whistle blower law which allows the government to assess penalty fines against a violating company.

It also awards a portion of the damages to the whistle blower or blowers. Depending on the type of case, receive anywhere from 15 to 30 percent of final award can be given.

Settlements have been reached with several companies over the underpaid royalties on federal and Indian land. One case which has gone to trial, involving Koch Industries and leases on primarily Osage tribal land, has resulted in an award against the company.

Get the Story:
Co. To Settle Oil Royalties Claim (AP 10/24)

Related Stories:
Judge upholds Indian oil ruling (Tribal Law 07/12)

Relevant Links:
Kerr-McGee Corporation - www.kerr-mcgee.com
The False Claims Act - www.taf.org/taf/docs/quitam.html
The Qui Tam (False Claims) Online Network - www.quitamonline.com