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.