Important Update: At the Final Fairness Hearing on January 29, 2020, the Court granted final approval to the settlement and approved class counsel fees and expenses and administration expenses. Copies of the final approval documents are available from the Important Documents page.
What is this lawsuit about?
The Litigation seeks damages for Defendants’ alleged failure to pay royalty on natural gas used as fuel to power compressors and other machinery and equipment in gathering systems and/or gas plant operations (“Fuel Gas”). Defendants deny any and all of Plaintiff’s factual and legal allegations. Defendants also expressly deny all liability related to Plaintiff’s allegations of breach of the express provisions of Plaintiff’s oil and gas leases and for any type of fraud, and they further state that neither Plaintiff nor any of the Class Members are entitled to the relief sought in the Litigation and further state that it would not be appropriate to award any type of damages. Defendants further deny it would be appropriate to certify a contested class based on the facts and claims at issue in the Litigation. The Court has made no determination with respect to any of the parties’ remaining claims or defenses.
What does the Settlement provide?
In consideration of the Settlement, Defendants have agreed to pay $10,000,000 in cash. See the Settlement Agreement for full details.
Who is included?
The Settlement Class consists of the following individuals and entities:
All non-excluded persons or entities who are or were royalty owners in Oklahoma wells where Defendants, including their predecessors, subsidiaries, or affiliates, are or were the well operator and working interest owner (or, as a non-operating working interest owner, Defendants separately marketed gas), and who, from January 1, 2013 are or were entitled to share in royalty proceeds payable under oil and gas leases that contain an express provision stating royalty will be paid on gas used off the lease premises and/or in the manufacture of products.
To learn more about who is excluded, please read the Notice of Proposed Settlement of Class Action.