Kerr-McGee sues federal department over royalty payments

OKLAHOMA CITY (AP) _ Kerr-McGee has filed a lawsuit against the US Department of the Interior in federal court in Louisiana. <br/><br/>The Oklahoma City-based oil company claims that the department has

Saturday, March 18th 2006, 5:40 pm

By: News On 6

OKLAHOMA CITY (AP) _ Kerr-McGee has filed a lawsuit against the US Department of the Interior in federal court in Louisiana.

The Oklahoma City-based oil company claims that the department has violated the law by demanding the Oklahoma City-based oil company make royalty payments from some properties in the Gulf of Mexico.

The Interior Department says that Kerr-McGee and 40 other oil and natural gas producers made improper claims of more than 500 million dollars in royalty relief in 2004.

The company says that a federal law protects them from having to pay the royalties.

A Kerr-McGee attorney said the case will last about 18 months.