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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 »

ChevronTexaco Corporation

Improper Deductions on Gulf of Mexico Leases

Date: 07/14/2011 (Date of Penalty)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Interior

Contracting Party: Interior

Court Type: Administrative

Amount: $1,144,500

Disposition: Fine

Synopsis: The U.S. Department of the Interior’s Office of Natural Resources Revenue (ONRR) collected a $1.1 million civil penalty from Chevron U.S.A. for improperly claiming transportation deductions on certain leases it holds in the Gulf of Mexico. ONRR cited Chevron for claiming transportation deductions for certain “Section 6” leases which specifically bar deductions for oil transportation. In April 2010, ONRR denied the transportation deductions claimed by Chevron. Chevron did not dispute the order and corrected and repaid the improper transportation deductions. However, Chevron again claimed such transportation deductions in later months, which prompted ONRR to issue the penalty.