MMS AUDITING GAS PURCHASE CONTRACT SETTLEMENTS

The Minerals Management Service has begun auditing recent U.S. natural gas purchase contract settlements. Under scrutiny are contracts in which producer and buyer have agreed to price changes, take or pay settlements, buydowns, or buyouts. It estimated the more than 1,700 audits, some of which will take until 1996, will reap $200-400 million in revenues for the federal government.

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