In re: Sheridan Holding Company I, LLC, et al.
Taylor-Sheridan Fund 1 Settlement
Case No. 20-31884

Welcome to the Taylor-Sheridan Fund 1 Settlement Website

Important Update: Following the hearing on July 13, 2020, the Court entered a Judgment granting final approval to the Settlement Agreement and an Order approving fees and expenses. Copies of the Judgment and Order are available for download from the Important Documents page.

What is this lawsuit about?

Plaintiffs, on behalf of themselves and, as Class Representatives, on behalf of all similarly situated royalty owners, asserted in both the Class Lawsuit and Born that Defendants breached express terms and implied duties in the leases and breached their fiduciary duty by deducting costs incurred after the gathering line inlet from royalty.  The Released Claims (as defined in ¶ 1.24 of the Settlement Agreement) include all claims that were or could have been asserted in the Class Lawsuit and Born relating to royalties on gas and gas constituents in connection with the Class Lawsuit and Born.

Defendants have adamantly denied, and continue to deny, the claims asserted in the Class Lawsuit and Born and have vigorously defended against them.

What does the Settlement provide?

The Settlement Agreement provides that Defendants shall pay the Settlement Class $5,094,000.00, 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” as defined in ¶1.34 of the Settlement Agreement). The Settlement Proceeds is a gross amount before deduction of court approved attorneys’ fees and expenses, class representative incentive award, and Administration Expenses.

Who is included?

The Class includes all royalty owners who received or who were entitled to receive royalty payments from Sheridan Production Company, LLC (“SPC”) attributable to production from Oklahoma wells that are or have been operated (or marketed and directly paid to royalty owners) by SPC and produced gas (such as residue gas, natural gas liquids, or helium) prior to March 23, 2020 (the “Petition Date”).

Excluded from the Settlement Class are: (1) the Office of Natural Resources Revenue f/k/a the Mineral Management Service (Indian tribes and the United States); (2) Defendants and their employees, officers, and directors; and (3) any NYSE or NASDAQ listed company (and its subsidiaries) engaged in oil and gas exploration, production, gathering, processing, or marketing.

To read the full description of the Class, please read the Settlement Agreement.

Your Legal Rights and Options

Option and Deadline
Event
Do Nothing By taking no action, your interests will be represented by the Class Representative and Settlement Class Counsel. As a Class Member, you will be bound by the outcome of the Settlement, if finally approved by the Court.
Exclude Yourself
Friday, May 29, 2020
(Passed)
If you do not wish to be a member of the Settlement Class, then you may opt out of the Class as set forth in ¶ 10.3 of the Settlement Agreement. Your opt-out must contain specific information as set forth in the Notice of Proposed Settlement of Class Action at Section IV.B and be received by the Settlement Administrator on or before 5:00 PM, CST on May 29, 2020.
Object
Friday, May 29, 2020
(Passed)
You have the right to remain a member of the Settlement Class but still object to the proposed Settlement and any of its terms, including the requests for Class Counsels’ Fees and Expenses and Administration Expenses. To object to the Settlement, on or before May 29, 2020, you must file a written objection containing the information specified in Section IV.C of the Notice of Proposed Settlement of Class Action with the Clerk of the Court for the United States Bankruptcy Court for the Southern District of Texas, Houston Division, 515 Rusk St., Houston, Texas 77002.
Settlement Fairness Hearing The “Settlement Fairness Hearing” will be held on Monday, July 13, 2020 at 11:00 a.m. Central Time, at the United States Bankruptcy Court for the Southern District of Texas, Houston Division, 515 Rusk Street, Houston, Texas 77002, Courtroom 400, to consider, among other things, final approval of the Settlement Agreement and the Fees and Expenses Motion to be filed by Class Representatives and Settlement Class Counsel.

For More Information

Visit this website often to get the most up-to-date information.

Mail

Taylor-Sheridan Fund 1 Settlement
c/o JND Legal Administration
P.O. Box 91231
Seattle, WA 98111