Investigative Reports

A Senior Director in Washington, D.C., was terminated from employment on April 14, 2020, following the issuance of our investigative report to the company. Our investigation found that the employee violated company policy when she participated on a Technical Evaluation Committee involved in the rating and selection of her friend’s company to conduct work for Amtrak. In addition, we found that the employee accepted a gift from this vendor.

A manager violated company policies by repeatedly directing company employees to provide a deluxe bedroom free of charge to a passenger, resulting in a potential financial loss to the company of $11,512. On April 8, 2020, a counseling letter was issued to the manager and included a requirement that he attend courses in Ethics in the Workplace and Workplace Harassment.

We investigated allegations that a utility company improperly valued gas produced from Federal mineral leases and underpaid mineral royalties to the Office of Natural Resources Revenue (ONRR).We did not substantiate the allegations and found the utility company complied with Federal guidance when it calculated and paid Federal mineral royalties to ONRR.

We investigated allegations that a National Park Service (NPS) prime contractor failed to pay its subcontractors on two NPS construction contracts.We found that the NPS prime contractor violated the Federal Acquisition Regulation’s prompt payment requirements when it failed to pay two subcontractors for work within 7 days of receiving a payment from the NPS. The prime contractor wrongfully withheld the full payment to a subcontractor for over 18 months for work completed in November 2017 at Saint-Gaudens National Historic Site. In the second case, the company withheld partial payment to another subcontractor for work completed at Voyageur National Park in September 2017.

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.