The US has collected $25 million in unpaid royalties from Shell for offshore oil and gas production in the Gulf of Mexico, the Office of Natural Resource Revenue said Tuesday.
The settlement agreement with Shell covers both royalties owed directly by Shell and royalties payable under the now discontinued royalty-in-kind program, ONRR said. The agreement covers oil production from September 1, 2000, to December 31, 2008 and for gas production from July 1, 2000 to December 31, 2008. The discrepancies were discovered during an audit of of Shell's offshore leases, ONRR said.
"This resolution demonstrates ONRR's commitment to pursue all revenues due from energy production that occurs on federal onshore and offshore lands," said Greg Gould, acting deputy assistant for natural resource revenue at the Interior Department.
Shell called the settlement, which followed negotiations over royalty calculations, "fair and appropriate."
"Shell's policy is to pay all royalty correctly," spokeswoman Kelly op de Weegh said in a statement. "Should issues arise, we seek to clarify matters through consultation and compromise. Execution of this agreement provides clarity, as we continue to produce critical offshore resources to meet the world's growing energy needs."
ONRR was created last year as part of the reorganization of former Minerals Management Service. The agency collects royalties from onshore and offshore oil and gas production on federal lands.
