XTO Energy to Pay $16 Million to Settle False Claims Allegations

XTO Energy Inc. will pay $16 million to settle False Claims Act allegations that it underpaid royalties on natural gas produced from federal and Native American lands, according to the Justice Department Wednesday.

Federal and Native American lands may be leased for the production of natural gas in exchange for royalty payments, said the agency. Those who hold a lease are required to put the gas in marketable condition at no cost to the US.

The settlement resolves allegations that, from January 2009 to August 2017, XTO Energy purposefully incorrectly deducted costs for putting the gas in marketable condition, ...