Energy & Industry

A royal cover-up

Ross Freeman May 29, 1995 From the print edition
Print Subscribe Donate Now
  A New Mexico-based oil company has shortchanged the government a possible $22 million a year in lost taxes and royalties. Meridian Oil Inc., the country's largest independent oil company with 1,073 public-land leases in the San Juan Basin, has consistently under-reported production amounts since 1989, according to a Bureau of Land Management investigation. Two years ago, federal inspectors noted "continued submission of false and inaccurate production reports," and forwarded the evidence to the U.S. Attorney's office in Albuquerque, N.M. The office declined to pursue the case, claiming it could not prove criminal intent. But it recommended that the Bureau of Land Management refer the case to the courts for civil or administrative action. The BLM, however, failed to take action and removed the $22 million annual loss figure from its final investigative report in June 1993, according to a Washington, D.C.-based watchdog group, Public Employees for Environmental Responsibility. Peer and other critics say the case points up the need for agency monitoring of oil production. Now, lease-holders do their own reporting. The agency occasionally checks the figures, but "the BLM is unable to verify what the companies are producing," says Reed Smith, a former BLM deputy state director for New Mexico. The BLM says it isn't ignoring the Meridian Oil case and Inspector General David Williams, of the Interior Department, says his office is still investigating. "We're expecting developments in the relatively near future."


*Ross Freeman


Republish Print
High Country News Classifieds
  • COPPER STAIN: ASARCO'S LEGACY IN EL PASO
     Tales from scores of ex-employees unearth the human costs of an economy that runs on copper.
  • FEATURES DIRECTOR - HIGH COUNTRY NEWS
     High Country News, an award-winning news organization covering the communities and environment of the Western United States, seeks a Features Director to join our editorial...
  • GENERAL MANAGER
     The Board of UYWCD seeks a new GM to manage operations & to implement our robust strategic plan. Details at www.upperyampawater.com. EOE
  • IN TUCSON, FOR SALE: A BEAUTIFUL, CLASSIC MID-CENTURY MODERN HOME
     designed by architect David Swanson in 1966. Located a block from Saguaro National Forest, yet minutes to Downtown and the UofA campus, 3706 sqft, 6...
  • EXECUTIVE DIRECTOR
     The Friends of the San Juans is seeking a new leader guide our efforts to protect and restore the San Juan Islands and the Salish...
  • 80 ACRES
     straddles North Platte Fishery, Wyoming. Legal access 2 miles off 1-80. Call 720-440-7633.
  • DIRECTOR OF PRODUCT AND MARKETING
     High Country News seeks a Director of Product and Marketing to join our senior team during an exciting chapter of innovation and growth. This individual...
  • OWN A THRIVING MOUNTAIN GUIDE SERVICE.
     Eastern Sierra guide service for sale to person with vision & expertise to take it onwards. Since 1995 with USFS & NPS permits. Ideal for...
  • IMPROVED LOT
     Private road, hillside, views. Well, pad, septic, 99 sq.ft. hut. Dryland permaculture orchard. Wildlife. San Diego--long growing season
  • UNIQUE INVESTMENT OPPORTUNITY
     Profitable off-the-grid business located 2 miles from Glacier National Park. Owner has 6 years operating experience. Seeking investor or partner for business expansion and enhancement....
  • REMOTE SITKA ALASKA FLOAT HOUSE VACATION RENTAL
     Vacation rental located in calm protected waters 8 miles from Sitka, AK via boat with opportunities to fish and view wildlife. Skiff rental also available.
  • EXPERT LAND STEWART
     Available for site conservator, property manager. View resume at http://skills.ojadigital.net.
  • CONSERVATIONIST? IRRIGABLE LAND?
     Stellar seed-saving NGO is available to serious partner. Package must include financial support. Details: http://seeds.ojaidigital.net.
  • CANYONLANDS FIELD INSTITUTE
     Colorado Plateau Natural & Human History Field Seminars. Lodge, river, hiking options. Small groups, guest experts.
  • WESTERN NATIVE SEED
     Specializing in native seeds and seed mixes for western states.
  • CHUCK BURR'S CULTUREQUAKE.COM BLOG
     Change will happen when we see a new way of living. Thinking to save the world.
  • COMING TO TUCSON?
     Popular vacation house, furnished, 2 bed/1 bath, yard, dog-friendly. Lee at [email protected] or 520-791-9246.
  • OJO CALIENTE COMMERCIAL VENTURE
     Outstanding location near the world famous Ojo Caliente Mineral Spring Resort. Classic adobe Mercantile complete w/living quarters, separate 6 unit B&B, metal building and spacious...