Accounting Expert Opines on Underpayment of Royalties by Natural Gas Firm

Case Overview

This case involves the alleged underpayment of royalties to a group of plaintiffs involved in the extraction, refinement, and sale of a variety of oil and gas products in the Alaska. The plaintiffs were the owners of a tract of land upon which the defendant company had operated fossil fuel extraction operations. It was alleged that the defendant over charged for post-production expenses such as transportation and compression, which in turn reduced royalty payments due to the plaintiffs. In addition, the defendant allegedly did not obtain the reasonable market value for gas sold, once again underpaying royalties.