What is this lawsuit about?
This Class Action Litigation asserted that Defendants underpaid royalties by taking deductions for fees and expenses, including fuel used, for the midstream post-production costs of gathering, compression, dehydration, treatment, processing, and marketing of gas produced between December 2009 to the present. The Released Claims (as defined in ¶ 1.18 of the Settlement Agreement) include all claims that were or could have been asserted for underpayment of royalties on gas and gas constituents in connection with this Class Lawsuit. Defendants continue to deny all allegations of liability and damages and have asserted various defenses to the Class Representative’s claims and to certification of the Class.
What does the Settlement provide?
The Settlement Agreement provides that Defendants shall pay the Settlement Class $4,900,000.00, subject to the conditions and qualifications set forth in the Settlement Agreement, including the provisions decreasing such amount for the return to Defendants of any Monies Payable to Opt-Outs (the “Settlement Proceeds”). The Settlement Proceeds is a gross amount before deduction of court approved attorneys’ fees and expenses, class representative incentive award, and Settlement Administration Expenses.
Who is included?
The Class includes all non-excluded persons who are or were royalty owners in Oklahoma wells where Defendants (Chevron U.S.A. Inc., Pure Partners, L.P., Union Oil Company of California, Chevron Midcontinent, L.P., Four Star Oil & Gas Co., and McFarland Energy, Inc. (including their affiliated predecessors and affiliated successors) are or were the operator (or a working interest owner who marketed its share of gas and directly paid royalties to the royalty owners) from December 1, 2009 production to the date judgment is signed. The Class claims relate to royalty payments for gas and its constituents (such as residue gas, natural gas liquids, helium, nitrogen, or drip condensate).
To read the full description of the Class, and learn more about who is excluded, please read the Notice of Proposed Settlement of Class Action.