Top court rejects U.S. govt's oil royalty appeal

Source: Reuters
WASHINGTON, Oct 5 (Reuters) - The Supreme Court rejected on Monday an Interior Department appeal of a ruling that the government says will likely cost it at least $19 billion in lost oil royalties from energy companies.
The justices declined to review a ruling by a U.S. appeals court that Anadarko Petroleum Corp (APC.N) did not have to pay about $350 million in royalties for drilling on federal leases in the Gulf of Mexico issued between 1996 and 2000.
The decision in Anadarko's favor could lead other energy companies to forego paying royalties and cost the United States at least $19 billion in foregone or refunded royalties, the Justice Department said in its appeal on behalf of the Interior Department.
Justice Department attorneys argued that the appeals court incorrectly interpreted the royalty relief law and said the amount of money at stake makes the case worthy of Supreme Court review.
"Whatever the precise amount of forgone future royalties proves to be, the total cost will be huge and it will have a direct adverse affect on the Treasury," Solicitor General Elena Kagan said in the appeal, adding that the companies would get "unjustified windfalls."
The Supreme Court rejected the appeal without comment LinkHere