The Justice Department announced that Anadarko Petroleum Corporation, Kerr-McGee Corporation and affiliates have agreed to pay more than $17 million to settle allegations of knowingly underpaying royalties on natural gas produced from federal land and Indian leases. With Anadarko's settlement, oil and gas companies have paid more than $249 million to settle allegations of shortchanging the government on royalties. Previous settlements in the case, which began in 1996, have involved other industry defendants. The Anadarko settlement arose from a lawsuit filed by whistleblower Harrold Wright under the False Claims Act. Wright is deceased, so his heirs will receive $1.95 million plus interest as their share of the settlement.

Anadarko Petroleum Corporation, Kerr-McGee Corporation and their affiliates have agreed to pay the United States more than $17 million to resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases, and numerous additional administrative claims. Congress has authorized federal and Indian lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced. Each month companies are required to report to the U.S. Department of the Interior the amount of royalty that is due. This settlement resolves claims by the United States under the False Claims Act that the Anadarko and Kerr-McGee defendants improperly deducted from royalty values the cost of boosting gas up to pipeline pressures and improperly reported processed gas as unprocessed gas to reduce royalty payments, as well as a series of outstanding administrative claims. This settlement arises from a lawsuit filed by Harrold Wright under the False Claims Act. Under the qui tam or whistleblower, provisions of the act, private citizens may file actions on behalf of the United States and share in any recovery.