Investigative Reports

We investigated allegations that a gas company underpriced carbon dioxide (CO2) produced from Federal leases and deducted unallowable costs from its CO2 production that resulted in a potential loss of Federal royalties.We did not substantiate the allegations. We found the company’s pricing used to calculate royalty payments associated with the sale of CO2 was comparable to competitors. We also found the company’s transportation allowances deducted during Federal royalty calculations complied with the Government’s permitted threshold.

We investigated allegations that Continental Resources, Inc. flared gas from Federal mineral leases in North Dakota without an approved permit from the Bureau of Land Management (BLM) and failed to report the flaring to the Office of Natural Resources Revenue (ONRR). We confirmed that Continental flared natural gas produced from Federal leases without a BLM-approved permit but did report the flared gas volumes to ONRR. As a result of the flared natural gas, the company owed unpaid royalties to ONRR in excess of $900,000 that ONRR is attempting to recover.

We investigated whether a Bureau of Land Management (BLM) field inspector accepted bribes from an oil and gas exploration company operating on an Indian reservation in exchange for allowing the company to do business on the reservation. We conducted this investigation jointly with the Federal Bureau of Investigation.Our investigation found no evidence to corroborate the bribery allegations made against the BLM field inspector. Witnesses identified by the complainant did not corroborate the complainant’s statement, and the BLM field inspector denied the allegations.

We investigated allegations that an oil and gas company unlawfully removed oil from a Federal mineral lease, transported the Federal oil to a Wyoming State lease, and concealed both the production and the transfer of the oil from the Bureau of Land Management (BLM).We determined that the alleged transfer of oil from the Federal well site was a minimal amount and an isolated occurrence. We closed this investigation and referred the matter to the BLM to address it through its regulatory authority.

We investigated allegations that an oil and gas company incorrectly adjusted oil and gas reporting and failed to apply the proper pricing for minerals produced from leases in New Mexico, potentially resulting in a loss of royalties.We determined that the alleged conduct occurred outside the 5-year statute of limitations for criminal conduct and would be appropriately addressed through administrative enforcement actions and orders. As a result, we referred the matter to the Office of Natural Resources Revenue (ONRR).

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.

An Amtrak electrician in Chicago, Illinois, resigned from employment on April 14, 2020, following our investigation which revealed the employee violated company policies by establishing a business and using it to engage in fraudulent credit card schemes for personal gain during a portion of his continuous FMLA leave. The employee admitted that he used the proceeds from his business-related fraud scheme to travel and party. Further, he was initially dishonest with our agents when asked about his conduct. Criminal judicial proceedings are pending.

Redacted

A Customer Service Representative in Joliet, Illinois, was terminated from employment on March 16, 2020, following an administrative hearing for violating company policy. Our investigation found that the employee inappropriately used leave granted under the Family Medical Leave Act to engage in outside employment. Additionally, the employee was dishonest with our agents when we interviewed him during this investigation.

A Computer Tech based in Bear, Delaware, violated Amtrak policies by conducting consultation work for a travel agency while using company equipment and resources on company time. Although the employee was instructed and counseled by her supervisors to discontinue doing so, we found occasions where the unauthorized activity continued afterbeing counseled. On March 16, 2020, the employee retired in lieu of disciplinary action.

A former Los Angeles-based Amtrak employee was sentenced in Los Angeles Municipal Court on March 13, 2020, to three years of probation, ordered to pay $34,030 in restitution to Amtrak, and to complete 90 days of community service. The former employee pleaded guilty to grand theft after our investigation revealed she stole money from the Employee Vending Commission Fund. She admitted to a portion of her total theft on December 4, 2018, during an interview with our agents, and immediately resigned from the company thereafter.