Hilcorp San Juan, a Houston-based oil and gas firm, has consented to a payout of $34.6 million in a bid to settle allegations of deliberately underpaying royalties on oil and gas. The allegations were that the company consistently failed to pay their dues to the fullest amount, which significantly impacted those who were reliant on the funds that should have been accruing from the company's operations.
1. Hilcorp San Juan, a Houston-based oil and gas firm, has agreed to pay $34.6 million to settle allegations of deliberately underpaying royalties on their production.
2. The allegations claimed that Hilcorp consistently failed to pay their due royalties in full, impacting those relying on the funds accruing from the company's operations.
3. The settlement stemmed from accusations that Hilcorp purposely underreported the volumes and prices of natural gas produced in several Native American and federal lands from 2006 to 2016.
4. Due to the company's inaccurate reporting over that period, it allegedly short-changed the government and Native American tribes by millions of dollars in royalties.
5. Hilcorp San Juan has now reached an agreement over the contested issues and is ready to rectify the situation.
In 2016, Hilcorp Energy reported annual revenues of approximately $13.5 billion.
The settlement resulted from allegations that Hilcorp San Juan purposely underreported the volumes and prices of natural gas produced in several Native American and federal lands from 2006 to 2016. The company, due to its inaccurate reporting over the course of those years, is said to have short-changed the government and the tribes to the tune of millions of dollars in royalties. Now, having come to an agreement over the contested issues, Hilcorp is prepared to rectify the situation.