The U.S. Department of Justice (DOJ) and the DOI Inspector General investigated the alegations against Devon Energy and its affiliates.
According to the DOJ, as a lessee, the Oklahoma-based energy company is responsible for putting the natural gas in market condition at no cost to the federal government.
In a statement, DOJ Civil Division Acting Assistant Attorney General Brian Boynton said, “The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties. This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
Devon Energy disputed the federal government’s allegations. Both parties agreed resolve the matter “to avoid the delay, uncertainty, inconvenience, and expense of protracted litigation.”
The Settlement Agreement does not mean Devon Energy admitted its alleged FCA vilation or the United States conceded that its charges are not well founded.