BP settles Alaska royalty case for $34 million

BP has paid the state of Alaska $34 million to settle a dispute over back royalties, Alaska's Governor Mr Tony Knowles said today…

BP has paid the state of Alaska $34 million to settle a dispute over back royalties, Alaska's Governor Mr Tony Knowles said today.

The payment concludes several audits of BP's royalty obligations, state officials said. The $34 million represents 2.6 per cent of the total royalties paid by BP from 1993 through 1999, officials said.

BP also paid the state $1.2 million to settle a dispute about outstanding royalty payments from Atlantic Richfield for the period through December 31st 1999 when BP assumed Atlantic's royalty debts as a result of its acquisition of the company, state officials said.

Reuters