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Chevron may settle suit
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September 10, 1999: 8:55 a.m. ET
Report: No. 4 U.S. oil company to pay $95M to resolve royalty dispute
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NEW YORK (CNNfn) - Chevron Corp. has agreed to pay about $95 million to resolve allegations that the nation's No. 4 oil company held back on royalty payments to the federal government, the Wall Street Journal reported Friday.
Two whistle-blowers sued in 1996, alleging that 18 oil companies undervalued oil from Native American and federal lands starting in 1988 to reduce royalties owed to the government.
A trial is set for March but many of the 18 companies named in the suit have opted to settle out of court, the newspaper said.
Occidental Petroleum Corp. (OXY) agreed last week to pay $7.3 million to resolve the charges, and Mobil Corp. (MOB) agreed to pay $45 million in an August 1998 settlement.
BP Amoco PLC (BPA) and Conoco Inc. (COC.A) have also agreed to settle for some $30 million apiece, the Journal said.
Exxon Corp. (XON), which recently won a 14-year-old royalties case in California, has not entered into negotiations with the government as yet.
Exxon USA spokesman Bob Davis is reported in the Journal as declining to comment on details in the case, but saying that Exxon posts prices "fairly and properly" in accordance with contract terms.
Chevron (CHV), Conoco and BP Amoco all confirmed they are in negotiations with the government, but had no further comment, the newspaper reported.
Chevron shares closed Thursday at 97-9/16, up 3-1/8.
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