Federal Contractor Misconduct Database (FCMD)
Failure to Permit Audit of ND Leases
The Department of the Interior’s Office of Natural Resources Revenue (ONRR) fined Exxon Mobil subsidiary XTO Energy $1.3 million for failing to permit an audit involving several communitization agreements in North Dakota. The government alleged that XTO failed to provide information requested by ONRR’s North Dakota audit partner pertaining to federal oil and gas leases included within several communitization agreements in North Dakota, which substantially delayed the audit completion and diverted ONRR’s resources to pursuing, rather than examining, the requested information. The State of North Dakota originally sent an Audit Engagement Letter and Data Request to XTO in February 2013, requesting the information by April 1, 2013. The state and ONRR sent numerous follow-up e-mails to XTO. The state granted XTO an extended deadline for compliance to August 30, 2013; however, the company did not fully comply until February 2014.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Fine Announcement