BP (NYSE:BP) and its partners in the Niakuk oilfield on the North Slope: Exxon Mobil Corp (NYSE:XOM), ConocoPhillips (NYSE:COP), and Chevron Corp (NYSE:CVX), were ruled against by a federal judge, resulting in the U.S. Bureau of Indian Affairs have to pay out $4.92 million to heirs of Andrew Oenga.
Oenga signed a lease agreement with the oil companies which allowed them to develop and produce crude from Niakuk.
Heirs of Oenga claimed BP and its partners used more of the land than the lease agreement allowed, setting up the legal confrontation.
The Bureau of Indian Affairs had to pay out based on the conclusion they had violated its fiduciary duty to collect fair compensation for commercial use of the land.
Judge Nancy Firestone of the U.S. Court of Federal Claims in Washington, D.C. agreed with the heirs, saying, Firestone, in a ruling issued late Tuesday, agreed with the family. "The rent paid thus far to the Oengas has covered only the authorized use of the allotment."
BP and its partners may be asked to pay for part of the award given the family.
Steve Rinehart, spokesman for BP Exploration (Alaska) noted, "We are considering alternative ways to reach and develop resources in that area."
BP closed Wednesday at $45.83, dropping $0.54, or 1.16 percent.
Thursday, February 10, 2011
BP (NYSE:BP) Oilfield Battle Lost to Alaskan Heirs
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2 comments:
Interesting how only BP is repeatedly mentioned in the article, while Exxon, Conoco and Chevron are mentioned as "BP partners". This US media war against BP sucks !!
IS THERE A MEDIA WAR AGAINST BP? YES. PERHAPS A MEDIA WAR IN THE UK SHOULD BE STARTED AND THAT WOULD NOT BE TO HARD.
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