August 31, 1999 Oxy USA Inc.

Oxy USA Inc., a subsidiary of Occidental Petroleum has agreed to pay $7.3 Million Dollars to settle claims asserted in a qui tam case filed by a group of private relators.  The allegations of the case were that Oxy under-reported the value of oil it produced on Federal and Indian leases, and, consequently, it paid less royalties than what it owed to the government. Federal leases are administered by the Minerals Management Service of the U.S. Department of the Interior. Oxy is required to report the amount of oil produced and the value of oil produced on Federal and Indian leases, and it pays royalties based upon the value of the oil it reports.

As part of the settlement, the relators who filed the qui tam action may receive between 15% and 30% of the $7.3 Million Dollar settlement for having filed the case.

See U.S. Dept of Justice Press Release 8/31/99

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