Devon Energy Company Pledges $ 6.15 Million to Settle Allegations of False Claims for Underpayment of Federal Gas Royalties | Takeover bid

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Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its subsidiaries, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company LP (collectively, Devon), have agreed to pay $ 6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.

The United States leases federal land for the production of natural gas in exchange for paying royalties on the value of the gas produced. Tenants must bring the gas to marketable condition at no charge to the United States. The regulation resolves allegations that, in calculating the royalties, Devon improperly deducted payments to third parties for the transportation and processing of the gas which included costs to bring the gas to a marketable state, and thus knowingly underreported and underpaid royalties to the Home Office (DOI).

The United States allows companies to take gas off federal lands, which belong to all of us, in exchange for the payment of appropriate royalties, said Acting Deputy Attorney General Brian M. Boynton of the Civil Division of the Department of Justice . This regulation shows that the government will hold accountable those who abuse public resources.

We care deeply about our public lands in Colorado, said Acting US Attorney Matthew T. Kirsch for the District of Colorado. We will not allow companies that extract natural resources from these lands to avoid paying what they rightfully owe.

The Office of Inspector General is committed to working with our partners in the Department of Justice, the Office of Natural Resources Revenue and the Solicitor’s Office to ensure that companies producing minerals from areas under jurisdiction federal officials are fulfilling their legal and professional responsibilities, said Special Agent Responsible Ron Gonzales for the Energy Investigations Unit of the DOI’s Office of the Inspector General.

The resolution of this case is the result of a coordinated effort between the Civil Division of the Department of Justice, the Commercial Litigation Branch, the Fraud Section and the United States Attorneys Office for the District of Colorado, with assistance from the Office of the Inspector General of the DOI – Energy Investigations Unit, DOIs Office of the Solicitor and DOIs Office of Natural Resources Revenue.

The case was investigated by senior attorney Gregory Pearson and assistant U.S. attorney Amanda Rocque of the Colorado District.

The claims resolved by the settlement are only allegations and there has been no determination of liability.

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