US Supreme Court backs gov't on oil, gas royalties

[sabra]

http://www.alertnet.org/thenews/newsdesk/N11197804.htm

US Supreme Court backs gov't on oil, gas royalties


WASHINGTON, Dec 11 (Reuters) - The U.S. Supreme Court ruled on Monday that energy companies owing additional oil or natural gas royalties to the federal government are not protected by a limit on how many years back those payments can go.

The court said the Interior Department could seek the underpayment of royalties that were more than six years old, which potentially could bring in millions of more dollars to the government in royalties from production on federal leases.

The case occurred after the Interior Department's Minerals Management Service said Amoco Production Co., which is now a part of BP Plc <BP.L>, did not pay enough royalties on the natural gas it produced on federal lands in New Mexico's San Juan Basin.

In a 7-0 decision, the Supreme Court said while court actions are subject to a 6-year federal statute of limitations, the MMS payment order, which is essentially a bill for money due, is not.

[annabanana]

1. They will appeal it. .

down to pennies, no doubt.

[Ezlivin]

6. Appeal to which higher court?

This was a Supreme Court ruling.

[jdlh8894]

2. Was this just for Govt. land?

My family gets royalties from wells in WV from leases dating back to the 30's on land they own. If this affects private leases,my Mom is going to be pissed!

[TechBear_Seattle]

3. Seven to zero?

Who refused to take sides? And why?

I have $10 saying that the two who recused themselves from the ruling are Bush appointees.

[Eugene]

4. According to the AP report...

Roberts participated in the case as an appeals court judge.
Samuel Alito wrote the decision.

Neither the AP nor Reuters names the other justice.

[last1standing]

5. It's very hard to appeal a U.S. Supreme Court ruling.

There's no one to appeal it to, you see. This is the end of the road for the oil companies unless bushco* steps in to save the day for them.

Edit: This was meant to be a reply to post #1.