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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Exxon Mobil

U.S. ex rel. Wright v. Chevron (Underpayment of Natural Gas Royalties)

Date: 04/05/2010 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Interior

Contracting Party: Interior

Court Type: Civil

Amount: $32,200,000

Disposition: Settlement

Synopsis: Mobil Natural Gas, Inc., and Mobil Exploration & Producing U.S., Inc. (which merged into and became subsidiaries of ExxonMobil in 1999), agreed to pay $32.2 million to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and American Indian leases. The Mobil companies are alleged to have systematically under reported the value of natural gas taken from the leases from 1988 to 1999 and, consequently, paid less royalties than owed to the federal government and various American Indian tribes. (See related ChevronTexaco Corporation instance, "U.S. ex rel. Wright v. Chevron (Underpayment of Natural Gas Royalties)".)