ALBUQUERQUE, N.M. (AP) — The U.S. government has reached a settlement with a Texas-based company over money owed on natural gas production on leased lands in New Mexico.
Federal prosecutors say they recovered $600,000 to settle allegations that Great Western Drilling Corp. underreported and underpaid royalties due from July 2010 through June 2016.
They say the company received a lower sales price from its third-party purchasers because those purchasers paid another company for the transportation, compression and processing of the gas.
Officials say Great Western Drilling did not credit the federal government for the portion of the price reduction related to processing costs. Instead, it paid royalties only on the decreased purchase price.
Most Read Business Stories
- Jet-engine explosion triggered chaotic 2015 Las Vegas fire, NTSB report says
- GE's fall illuminates bigger problems facing the American economy | Jon Talton
- High Court: Online shoppers can be forced to pay sales tax
- Intel CEO out after consensual relationship with employee
- With stock and real estate hot, Seattle pet-insurance company Trupanion buying Georgetown HQ
For the 2017 fiscal year, New Mexico received $455 million in energy production disbursements from revenues collected by the federal government.