Exxon subsidiary resolves allegations of underpaid royalties on natural gas
- Exxon’s subsidiary XTO Energy to pay $16 million to resolve gas-royalty case
- Allegations include underpayment of royalties on natural gas extracted from federal and Native American lands
- XTO allegedly failed to pay royalties on carbon dioxide and improperly deducted transportation costs
- Settlement reached with no determination of liability
Exxon’s subsidiary XTO Energy has agreed to pay $16 million to resolve claims that it knowingly underpaid royalties owed on natural gas extracted from federal and Native American lands. The U.S. Department of Justice alleges that between 2009 and 2017, XTO failed to pay royalties on carbon dioxide and improperly deducted both carbon-dioxide transportation costs and costs necessary to put extracted gas into a marketable condition. The settlement was reached with no determination of liability.
Factuality Level: 8
Factuality Justification: The article provides specific details about the settlement between XTO Energy and the U.S. Department of Justice regarding underpaid royalties. It includes statements from both parties involved. However, the article is very short and lacks in-depth analysis or additional sources to verify the claims made.
Noise Level: 3
Noise Justification: The article provides a brief summary of the settlement between Exxon subsidiary XTO Energy and the U.S. Department of Justice regarding underpaid royalties. However, it lacks in-depth analysis, evidence, and context. The article does not explore the consequences of the actions or hold powerful people accountable. It also does not provide actionable insights or solutions. Overall, the article contains limited information and does not meet the criteria for a higher noise level rating.
Financial Relevance: Yes
Financial Markets Impacted: Exxon subsidiary XTO Energy
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses a settlement between Exxon subsidiary XTO Energy and the U.S. Department of Justice regarding underpaid royalties on natural gas extracted from federal and Native American lands. However, there is no mention of an extreme event or its impact.
Public Companies: Exxon (XOM), XTO Energy (N/A)
Key People: Dean Seal (Author)
Reported publicly:
www.marketwatch.com 
