The Royal Dutch/Shell Group paid $33.5 million to settle a lawsuit filed by the State of Alabama claiming more royalties from natural gas Shell produced in state waters, a lawyer representing Alabama said. Shell Oil, the United States unit of Royal Dutch/Shell, was sued in June 1999 for underpaying royalties as far back as 1991 for gas from Mobile Bay, said Richard Dorman of Cunningham, Bounds, Yance, Crowder & Brown. Alabama got $27.1 million in the settlement. The remaining $6.4 million went to lawyers' fees and expenses. "Shell and the state have been working for a number of years to resolve their differences on certain mineral lease provisions," Shell Oil said. Shell Oil denied wrong doings.