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Project on Government Oversight




Oil Royalty Lawsuit Settlements Pass $1/4 Billion

December 13, 1999 


Trade publications report today that major oil companies are settling their lawsuits with the Justice Department over royalty under payments in United States of America ex. rel. Johnson v. Shell Oil Company, et al. "At last taxpayers, Native Americans, school children and the environment are getting their due from the oil companies. This is a real David and Goliath victory," according to Project On Government Oversight Executive Director, Danielle Brian.

According to Platt's Oilgram News 12/13/99:

"Six more oil companies have agreed to settle a lawsuit alleging they have underpaid their US royalties from the 1980s to the mid to late 1990s, attorneys for the firms said Dec. 10. And they say two other firms could shut the book on their cases by year-end.... Combined settlements for the six firms and five other oil companies which have already resolved their cases total $275 mil."

According to Oil Daily 12/13/99:

"At the US District Court in Lufkin, Texas, on Friday, a group of companies told a federal judge that they had agreed to pay a total of $223 million to settle the claims against them, a source involved with the trial said. Texaco, PennzEnergy, Kerr-McGee, Sunoco, Canadian Occidental, and Union Pacific Resources agreed to pay a total of $70 million, while BP Amoco, Conoco, and Chevron have agreed to pay a total of $153 million -- with a majority of that Chevron's share." To learn more about the case, please see:

Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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