If you received a Notice, you may be a Class Member and eligible to receive benefits from the proposed Settlement of a class action lawsuit.
ANNOUNCEMENT: The lists showing the royalty owners subject to an Express Deduction Lease and those subject to an Affiliate Sale gas contract have beenposted on the website per the proposed Plan of Allocation and Distribution Order, page 2. Please note that a royalty owner may be on both lists. You will need the royalty owner number as shown on your check stub to determine whether you are on the lists. The lists are relevant to the structure of the settlement and the allocation of settlement benefits. The royalty interests were categorized as: 1) having a lease that expressly allows deductions of post-production costs from royalty (ED Lease) or one that does not (Non-ED Lease); and 2) producing gas subject to an affiliate sale (Affiliate Sale) or not (Non-Affiliate Sale). This resulted in four combinations to which a percentage of recovery was attributed. The four combinations and their recovery percentages are shown in the table below.
|Non-ED with Affiliate Sale
|Non-ED with Non-Affiliate Sale
|ED with Affiliate Sale
|ED with Non-Affiliate Sale
The preliminary summary final distribution has also been posted on the website. It shows, by royalty owner number, the class member’s allocated share of the Net Settlement Amountaggregated for all wells in which that royalty owner has an interest. For a royalty owner with interests in multiple wells, the allocation may include various combinations of recovery percentages shown in the table above. This list was first posted February 2, 2018. Benefit distribution will take place in late May or early June 2018.
What is the lawsuit about?
Bollenbach Enterprises Limited Partnership (“Plaintiff”) has filed a class action lawsuit asserting that Oklahoma Energy Acquisitions LP, Alta Mesa Services, LP, and Alta Mesa Holdings, LP (collectively, the “Defendants”) underpaid royalties on gas and its constituents (such as residue gas, natural gas liquids, helium, nitrogen, or drip condensate) produced from Oklahoma wells that Defendants and their affiliated predecessors and successors operated or, as a working interest owner, marketed their share of gas and directly paid royalty owners. Plaintiff asserts that from October 1, 2014 through June 30, 2017, Defendants took deductions for fees and expenses related to the midstream post-production costs of gathering, compression, dehydration, treatment, processing, and marketing.
Defendants deny all allegations of liability and damages, and have asserted various defenses to the claims raised in this lawsuit and to certification of the Settlement Class. There has been no determination by any Court, administrative agency, or other tribunal regarding the claims asserted in this lawsuit. Instead, the parties have entered into a Settlement Agreement.
Who is included?
You are a member of the Settlement Class if you are or were a royalty owner in Oklahoma wells which had production on or prior to June 30, 2017, where Defendants (including their affiliated predecessors and successors) are or were the production operator (or a working interest owner who marketed its share of gas and directly paid royalties to the royalty owners) between October 1, 2014 through June 30, 2017.
A list of persons excluded from the Settlement Class is included in the Notice which is available on theImportant Documents page.
How do I participate in the Settlement?
As a Class Member, you do not have to do anything to obtain the benefits of the proposed Settlement.