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Two Energy Companies Settle Whistleblower Qui Tam Suit

This is a settlement for the Qui Tam Whistleblower lawsuit.

A unit of Dominion Resources Inc. and Marathon Oil Corp agreed to pay $2.2 million and $4.7 million, respectively, to settle a claim that arose from a whistleblower qui tam lawsuit. The Justice Department said both companies knowingly underpaid royalties owed on natural gas from federal and Indian leases.

The settlement resolves claims that the companies improperly deducted from royalty values the cost of boosting gas up to pipeline pressures, and that Dominion improperly reported processed gas as unprocessed gas to reduce royalty payments.

Whistleblower Harold Wright is now deceased but his heirs will receive a $1.8 million share of the settlement.

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Published on Aug-23-10


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