August 15, 2007 — Burlington Resources Inc. Burlington Resources Inc. (BRI) has agreed to pay $97.5 Million to settle qui tam claims filed by a private relator. The allegations asserted by the private relator, were that BRI systematically under-reported the value of natural gas which BRI produced on lands which were owned, or held by, the Federal Government. Under oil and gas leases, the Federal Government leases land owned by the Government, or Indian Tribes, to oil and gas companies. The oil and gas companies draw oil and gas from the land, and pay the Government royalties based upon the production and value of oil and gas produced. The more gas or oil they draw, the more royalties they owe to the Federal Government. By under-reporting the value of the gas it had drawn from property under one or more of these leases, BRI allegedly paid less than it owed to the Federal Government and various Indian tribes. As a result of having filed a qui tam action to expose these allegations, the private relator who filed such action is expected to receive up to $24.3 Million, as a reward. See USNewswire Release 8/15/07 |