Shell to Pay $2.3 Million to the U.S. Government

The United State Department of Justice has announced that Shell Oil Company, Shell Offshore Inc., Shell Frontier Oil & Gas Inc., and Shell Western Exploration and Production have come to an agreement regarding the False Claims Act charges filed against them. The Shell Defendants will pay the United States $2.2 million plus interest to resolve claims that the Shell companies violated the False Claims Act by deliberately underpaying royalties owed on natural gas produced from Federal leases. The settlement with Shell arises out of the Qui Tam provisions of the False Claims Act which allows citizens to file charges on behalf of the United States government and also share in any of the recovery proceeds.  The investigation and settlement of these matters was handled in cooperation by the Justice Department’s Civil Division and the Department of the Interior’s Office of Natural Resources Revenue, with assistance from the Department of the Interior’s Office of Inspector General, and Office of the Solicitor. The companies’ total payment, including interest, is $2,287,145.74.

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