EOG Resources, Inc. (“EOG”), a Texas based oil and gas company, paid $243,604 to settle claims related to its alleged unauthorized drilling, extraction and sale of federal minerals, announced United States Attorney Robert J. Troester.
EOG is headquartered in Houston, Texas, and owns the Spitfire 0817 1H Well (“Spitfire”). Spitfire is located on non-federal land in Newcastle. The United States owns a 25% interest in the mineral rights below the surface of the Spitfire.
Troester said on or about January 7, 2019, EOG commenced drilling the Spitfire well and, on or about March 1, 2019, began to extract and sell federal minerals.
The United States alleges EOG drilled the well and extracted and sold the federal minerals without approval from the United States. The United States further alleges that EOG is liable for trespass and conversion damages and was unjustly enriched by the unauthorized sale of the federal minerals.
To resolve the claims, EOG paid the United States $243,604.
In reaching this settlement, EOG did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the U.S. Department of the Interior, Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Frazier and Ronald R. Gallegos prosecuted the case.
