January 23, 2001 Shell Oil Company
Shell Oil Company has agreed to pay $110 Million Dollars to resolve claims asserted in a qui tam action filed by two private relators, who claimed that the company underpaid royalties due for oil produced on federal and Indian leases between 1980 and 1998.
Federal leases are administered by the Minerals Management Service of the United State Department of the Interior. Each month, oil companies are required to report the amount of oil produced and the value of the oil produced on Federal and Indian leases, and they pay the government based upon the value of the oil they report.
The settlement of this case resolves allegations that Shell Oil under-reported the value of the oil it produced on Federal and Indian leases and, consequently, paid less than what it owed to the government.
The two relators who filed the qui tam case may receive up to 30% of the $110 Million Dollar settlement for having filed the case.
See U.S. Dept of Justice Press Release 1/23/01