Oil Company Revives Suit on Avoidance of Royalties

March 3, 2007

The New York Times:

WASHINGTON, March 2 — One of the nation’s biggest oil producers in the Gulf of Mexico is pressing ahead with a lawsuit that could, if successful, allow energy companies to avoid as much as $60 billion in royalties to the government over the next two decades.

Indeed, industry executives say that major oil companies are politically divided about the legal gauntlet thrown down by Kerr-McGee and Anadarko Petroleum.

“I think there are a lot of folks in the industry, particularly those involved in advocating the original legislation, that absolutely don’t agree with Kerr-McGee,” said John Northington, an industry lobbyist who worked in the Energy Department under President Clinton.