Two oil companies to reimburse state $5 million
Ponca City Now - December 31, 2014 11:59 am
OKLAHOMA CITY (AP) – Two oil companies will reimburse the state $5 million as part of a settlement approved unanimously by Oklahoma Commissioners of the Land Office this week.
The Oklahoman reports the Land Office manages mineral rights on more than 1 million acres of state-owned land.
About 6,000 oil and gas wells are on the land, with most oil companies paying three-sixteenths of their production to a trust fund managed by the Land Office. Millions of dollars from that fund are distributed to Oklahoma public schools and colleges.
Office staff monitoring the wells for compliance discovered Anadarko Petroleum and Exco Resources weren’t paying the full amount. A state agency official says the $5 million will cover principal and interest associated with the underpayment.
Commissioners approved the settlement on Monday.