Tax Law Blog | IRS Tax Attorneys

NEW ORLEANS — The Terrebonne Parish assessor has filed a multimillion dollar lawsuit against two wholly-owned subsidiaries of ConocoPhillips, the third largest oil company in the world.

And the case may be the first of many similar lawsuits accusing big oil companies of skirting their tax obligations.

The lawsuit, filed in federal court around 11 a.m. Thursday, alleges that Burlington Resources and Louisiana Land and Exploration have been defrauding the people of coastal Terrebonne Parish for generations.

The assessor claims that the companies have been undervaluing their offshore equipment and facilities used for oil production. That property is subject to being taxed by the parish, but the lawsuit accuses the companies of hiding it in order to avoid taxes.

“The defendants in the case falsely and fraudulently under-reported, misreported and failed to report the ownership of movable property (and) personal property within the jurisdictional limits of the parish of Terrebonne,” said the plaintiff’s attorney, Don Richard.

Terrebonne Parish Assessor Gene Bonvillain hired a national firm to survey all 1,546 wells and production facilities in the parish to determine what was being reported and what was being left out. His attorneys say this is just two of 50 cases that will ultimately be filed against Burlington Resources and Louisiana Land and Exploration.

The parish is seeking payment of delinquent taxes with penalties that could eventually total tens of millions of dollars.

For more information on the lawsuit, visit paytaxesoil.com.

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