DENVER—Federal authorities say Gary-Williams Energy Co. will pay $2.7 million to settle allegations that it shortchanged taxpayers on oil drilled in the Gulf of Mexico.
Colorado’s U.S. attorney, John Walsh, announced the payment on Monday.
According to a statement from Walsh, the Denver-based company claimed discounts and credits for shipping oil to various markets for oil extracted between October 2008 and September 2009. However, it said the company wasn’t qualified to get those discounts because it transferred the oil to a third party and didn’t ship it itself.
In 2008, a Gary-Williams subsidiary was one of several companies tied to a scandal involving Department of Interior employees rigging bids and accepting gifts from industry officials. The company has since sold the subsidiary.
A message left for the company wasn’t immediately returned.
