What is this lawsuit about?
The Litigation seeks damages for Defendants’ and/or PetroQuest’s alleged underpayment of royalty on gas and gas constituents from Oklahoma oil-and-gas wells during the Claim Period. Defendants expressly deny all allegations of wrongdoing or liability with respect to the claims and allegations in the Litigation. The Court has made no determination with respect to the merits of any of the parties’ claims or defenses. A more complete description of the Litigation, its status, and the rulings made in the Litigation are available in the pleadings and other papers maintained by the United States District Court for the Eastern District of Oklahoma in the file for the Litigation.
Who is included?
The Settlement Class in the Litigation consists of the following individuals and entities:
All non-excluded persons or entities who are or were royalty owners in the Class Wells located in Oklahoma where Defendants (including their affiliated predecessors and affiliated successors) or Defendants’ designees, including PetroQuest Energy, L.L.C., are or were the operator (or a working interest owner who marketed its share of gas and directly paid royalties to the royalty owners) during the Claim Period, including all such persons or entities whose gas was sold to NextEra Energy Marketing, LLC (or its affiliated predecessors and affiliated successors). The Class claims relate to royalty payments for gas and its constituents (such as residue gas, natural gas liquids, helium, nitrogen, or drip condensate).
A list of the persons or entities excluded from the Classes can be found in the Notice of Proposed Settlement, which is available for download from the Important Documents page.
What does the Settlement provide?
In settlement of the Litigation, Defendants have agreed to pay Forty-Five Million Dollars ($45,000,000.00) in cash (“Gross Settlement Fund”). In exchange for the payment noted above and other consideration outlined in the Settlement Agreement, the Settlement Class shall release the Released Claims (as defined in the Settlement Agreement) against the Released Parties (as defined in the Settlement Agreement). The Gross Settlement Fund, less Plaintiff’s Attorneys’ Fees and Litigation Expenses and Administration, Notice, and Distribution Costs, and other costs approved by the Court (the “Net Settlement Fund”), will be distributed to final Class Members pursuant to the terms of the Settlement Agreement, along with the PetroQuest Settlement Funds, which were separately contributed by PetroQuest Energy, L.L.C.