Osage Nation to get settlement share Lawsuit claimed company illegally obtained tribal oil
The Oklahoman
June 21, 2001
TULSA - The Osage Nation is expected to share in a $25 million settlement reached in an oil-buying case between Bill Koch and Wichita, Kan.-based Koch Industries. The amount has not been determined, …
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TULSA - The Osage Nation is expected to share in a $25 million settlement reached in an oil-buying case between Bill Koch and Wichita, Kan.-based Koch Industries.
The amount has not been determined, but the Osage "quite likely" will receive a portion of the settlement, said Stephanie Hanna, a Department of Interior spokeswoman.
"Ultimately, the Osage Nation can expect to get some distribution," Hanna said.
Koch Industries could have been required to pay as much as $214 million after a federal jury in Tulsa found in 1999 that it deliberately cheated oil producers on federal and Indian lands.
The $25 million settlement was approved last month by the Department of Justice and a federal judge in Tulsa.
About 44 percent of the oil leases involved in the case were on tribal land in Osage County. Osage Nation shareholders receive royalty payments on oil production from tribal lands.
The tribe never joined in the lawsuit filed by Bill Koch on behalf of the federal government. But because the government will get about $17 million of the settlement, the Interior Department plans to issue a "proper allocation" to the tribe, Hanna said.
Bill Koch sued under the federal False Claims Act, which allows him to receive 30 percent of any award. His share is more than $7 million.
Bill Koch is the younger brother of Charles Koch, Koch Industries' chief executive. He has said the settlement marks the end of a long-standing legal battle over the family business.
In the Tulsa case, Koch Industries admitted it received about $170 million in oil it did not pay for. But the company contended that amount represented a fraction of the oil it collected from federal and American Indian lands between 1985 and 1989 and fell within industry standards.