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Oxy Says $2M Gas Royalty Payment Order Must Be Undone
Law360 (July 22, 2021, 9:01 PM EDT) Occidental Petroleum Corp. on Wednesday urged the Tenth Circuit to wipe out an order that it pay $2 million in federal gas royalties for leases in northeastern New Mexico, saying a lower court rubber-stamped the government s erroneous conclusion that the company needed to pay up.
In rejecting Occidental unit Oxy USA Inc. s bid to dodge the payments ordered by the Office of Natural Resource Revenue, a New Mexico federal judge in December said the agency had appropriately relied on the terms of Oxy s gas lease to come up with the figure, instead of relying on outdated regulations from the 1980s..