Oil and Gas Production Company Failed to Properly Report Oil and Gas Production

We investigated allegations that an oil and gas company improperly reported oil and gas production from Federal leases to the Office of Natural Resources Revenue (ONRR), which resulted in a loss of public mineral royalties. We found the company failed to properly report production and mineral royalties to ONRR as alleged, but we did not find the company intended to defraud the Government. The improper reporting occurred because the company did not provide adequate lease production information to the contractor it hired to perform the production and royalty reporting. Further, the contractor was unfamiliar with ONRR’s reporting procedures and requirements.