September 27, 2000 Texaco Inc.
Texaco Inc. has agreed to pay $43 Million Dollars to resolve claims asserted in a qui tam action filed by two private relators, who claimed that Texaco underpaid royalties due for oil produced on federal and Indian leases from January 1, 1980 to December 31, 1998.
Federal leases are administered by the Minerals Management Service of the United State Department of the Interior. Each month, Texaco is required to report the amount of oil produced and the value of the oil produced on Federal and Indian leases. Texaco pays the government based upon the value of the oil it reports.
The settlement of this case resolves allegations that Texaco systematically under-reported the value of the oil its affiliated companies produced on Federal and Indian leases and, consequently, the companies paid less than what they owed to the government.
The two relators who filed the qui tam case may receive up to 30% of the $43 Million Dollar settlement for having filed the case.
See U.S. Dept of Justice Press Release 9/27/00