Chevron hit with $1.1 million fine

Source: Houston Chronicle

Chevron hit with $1.1 million fine
By JENNIFER A. DLOUHY
WASHINGTON BUREAU
July 20, 2011, 7:48PM


WASHINGTON — The government has slapped Chevron Corp. with a $1.1 million fine for improperly claiming deductions for transporting oil in connection with some of its Gulf of Mexico leases.

The Interior Department announced the civil penalty Wednesday, a week after Chevron paid the fine. The company also has corrected erroneous royalty reports, which were filed last year.

"It is imperative that companies report accurately and promptly pay all royalties due from energy production on federal leases," said Greg Gould, the Interior Department's acting deputy assistant secretary for natural resources revenue. "We intend to collect every dollar due."

Chevron was cited for claiming deductions for transporting oil produced on the leases. Although similar deductions may be allowed for some federal offshore oil and gas leases, they are barred under some legacy leases that Chevron held. Those leases were initially issued by Louisiana in the 1940s and were later converted to federal leases but retain provisions barring the deduction.


Read more: http://www.chron.com/disp/story.mpl/business/7662479.html

How about collecting from BP next?

But at least it's something. I'm shocked they actually paid. That company is positively satanic. When I see their hoaky commercials, I gag.

Just a cost of doing business.

and then we're talking real money to them...