Chevron Corp. is ready to pay federal and Indian leases an amount of $46 million. This amount is charged against the company to settle longstanding claims. The company underpaid royalties from natural gas it produced from government land, and as a result, it has to pay this heavy amount.

The company and its other inherited companies, Texaco and Unocal Inc., did not give the original value of natural gas that it used from March 1988 and November 2008, and drastically underpaid the royalties.

"This settlement successfully ends long-standing litigation and ensures that taxpayers receive their fair share of royalty revenues from energy production on federal and American Indian lands", said Interior Secretary Ken Salazar. The Department's Minerals Management Service looks at the collection of royalties from the leases.

This money will be distributed among federal, state and American Indian accounts that were affected by the underpayments.

The company is now looking to settle its long, expensive legal proceeding.