he United States' largest natural gas pipeline company settled its United Nations oil-for-food program liabilities Wednesday, agreeing to pay the U.S. government $7.7 million (€5.94 million) to resolve allegations that it dealt with companies which paid secret illegal surcharges to the former government of Iraq.

Under an agreement announced by federal prosecutors and the FBI, El Paso Corp. will forfeit $5.48 million (€4.23 million) to the United States, which will seek to transfer the money to the Development Fund of Iraq to be paid as restitution for the benefit of the people of Iraq.

In a separate deal with the Securities and Exchange Commission, the Houston-based El Paso agreed to pay an additional $2.25 million (€1.74 million).

In a statement, U.S. Attorney Michael Garcia said the $5.48 million (€4.23 million) represented the amount of illegal surcharges paid to Saddam Hussein's government by third parties from whom El Paso purchased Iraqi oil from approximately mid-2000 until about March 2003.

In return for the settlements, El Paso will not be prosecuted for any crimes except possibly criminal tax violations as long as it continues to continue cooperating fully with the federal government in its investigation into the scandal-ridden U.N. program, Garcia said.