Important Update: The Settlement Administrator began issuing Distribution Checks to eligible Class Members on February 18, 2022.

What is this lawsuit and Settlement about?

The Litigation alleges that Oxy USA, Inc. breached an implied covenant to market in the underlying leases by taking deductions from royalties and not basing royalty payments on the highest arms’-length sales price. Defendant expressly denies 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 any of the parties’ claims or defenses.

What does the Settlement provide?

In settlement of all claims alleged in the Litigation, Defendant has agreed to pay Seven Million Five Hundred Thousand Dollars ($7,500,000.00) in cash. The $7,500,000.00 cash payment is referred to as the “Gross Settlement Fund”. The Gross Settlement Fund, less Class Counsel’s Fees and Expenses, Administration Expenses, any case contribution awards to Class Representatives, and other costs approved by the Court (the “Net Settlement Fund”), will be distributed to Class Members.

Who is included?

The Settlement Class consists of all non-excluded royalty owners in Kansas wells: (a) where Oxy USA, Inc. was the operator (or as a non-operator, separately marketed gas); (b) who were paid royalties for production of Gas, NGLs, or Helium from July 1, 2007 to April 30, 2014; and (c) whose gas was marketed under (i) the Gas Processing Agreement for the Amoco Hugoton Jayhawk Plant, between Amoco Production Company and OXY USA, Inc., dated June 15, 1998, as amended, (ii) the Gathering and Processing Agreement between Oxy USA, Inc. and Regency Midcon Gas, LLC dated December 1, 2004, as amended, (iii) the Gathering and Processing Agreement between Oxy USA Inc. and Regency Midcon Gas, LLC dated September 1, 2003, as amended, and (iv) the Processing Agreement between Oxy USA, Inc. and Duke Energy Field Services, LP dated as of August 1, 2005, as amended.

Excluded from the Class are: (1) the Office of Natural Resources Revenue, formerly known as the Mineral Management Service (Indian tribes and the United States); (2) all presiding judge(s) together with their immediate family members; (3) Oxy USA, Inc., its affiliates, its predecessors-in-interest, and their respective employees, officers, and directors; and (4) any publicly traded company or its affiliated entity that produces, gathers, processes, or markets gas.

If you belong to the Settlement Class and the Settlement is approved, your legal rights will be affected. Read the Notice carefully to see what your rights and options are in connection with the Settlement.

These deadlines may be moved, canceled, or otherwise modified, so please check this site regularly for updates.