BP America Must Pay $900,000 in Royalties for Federal Leases

BP America Production Co. is responsible for about $900,000 in royalties underpayments after a federal appeals court on Wednesday rejected its interpretation of a federal royalties law.

The US Court of Appeals for the Tenth Circuit affirmed a district court’ decision based on the language of and Congressional intent behind the Federal Oil and Gas Royalty Simplification and Fairness Act of 1996.

Starting in 2012, BP began to pay almost $2 million in royalty underpayments that Wyoming’s Department of Audit said it owed for leases in the state.

BP withheld about $1 million because it said the properties were ...