BP Loses $900,000 Royalty Bill Challenge for Wyoming Gas Leases

BP America Production Co. will remain on the hook for more than $905,000 in underpaid royalties on production under federal leases for a Wyoming natural gas field, after a federal court in the state rejected the company’s argument that it had already assigned its interests in the leases.

Wyoming conducted a federal royalty audit for production in the Jonah Field from January to October 2012, and determined that BP had underpaid. BP argued that it was responsible only for the period through March 2012, because it had sold its interests in those leases, both operating rights and record title, to ...