Government warns BP to pay royalties on oil and gas collected from runaway deepsea well

Feds: BP must pay royalties on Gulf oil collected

NEW YORK — The government says BP will be required to pay royalties for oil and gas collected from its blown-out deepsea well in the Gulf of Mexico.

BP has collected roughly 34.3 million gallons of oil and natural gas since May. Some of that has been burned off into the atmosphere. But the company also has sold some of the oil, which the government says should be subject to an 18.75 percent royalty.

The Interior Department’s regulation and enforcement office sent the British oil giant a letter Thursday saying that royalty payments are required immediately.