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Project on Government Oversight




Oil Industry Tycoon Disputes Royalty Claims Made by Government

February 15, 2006 


Today, an oil industry executive issued a letter to the Congress disputing many of the claims recently made by the Interior Department to explain why a New York Times article in January found a possible $700 million in missing federal drilling royalties.

The executive is Jack Grynberg, President and CEO of Grynberg Petroleum and the plaintiff in a lawsuit against 300 oil and gas companies alleging that they have underpaid gas royalties for drilling on federal and Indian lands.

A front page Denver Post article recently reported on Mr. Grynberg's lawsuit which alleges the companies underpaid the federal government by $30 billion.

The New York Times has published several articles on royalty underpayments and royalty relief in the past month prompting many members of Congress to issue requests for further information. Some of that correspondence, including the Interior Department's letters to which Mr. Grynberg responds, can be found on POGO's website under in its Energy Archives.

Mr. Grynberg's letter was sent to the House Resources Committee and the Senate Energy and Natural Resources Committee.  

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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