Kerr-McGee accepted the risks and government is seeking royalty on leases during the five years, before minimum volumes were reached.

Royalties were to be suspended (on up to 87.5 million barrels). There have been a lot of things published. This (rule) is spelled out in the act.

We have a long-standing professional relationship with the Minerals Management Service. There's no animosity but we do disagree on owing on certain leases. If we are unable to resolve it, we'll see judicial review. To sum it up, we upheld our end. Now we expect the government to do the same.

Government can't do and shouldn't do everything.

We have said since before the case was filed that we're willing to listen to the government but there are some very important principles at stake in the case that have not been negotiable.

I would like to think that the city government would not be covering things up.