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Several Major Oil Companies Repay Royalties Owed to United States of Nearly One Half Billion Dollars Type: False Claims Act
The largest landowner in the United States
is the United States itself. Some of this land is rich in
oil and gas reserves. The United States agrees to lease the
land for collection of these valuable deposits to oil companies
who in turn agree to pay a royalty of approximately 18% of
the value of the oil and gas removed.
Petroleum engineers, Benjamin Johnson and John Martineck, discovered a conspiracy
by several major oil companies to depress the value of oil taken at the well
head and thereby understate the total amount of the royalties due the United
States. We were brought in to assist Messrs. Johnson and Martineck and their
counsel in a qui tam case brought against dozens of oil companies in Beaumont,
Texas. The suit resulted in payments exceeding $450 million by the oil companies.
Case: United
States ex rel. Johnson v. Shell Oil Co. Case No. 9:96CV66
(E.D. Texas)