The Plaintiff filed a class action lawsuit alleging that the Defendants underpaid royalties on gas and its constituents (residue gas, natural gas liquids, helium, nitrogen, or drip condensate) produced from Oklahoma wells that the Defendants and their affiliated predecessors and successors operated or, as a working interest owner, marketed its share of gas and directly paid royalty owners. The lawsuit alleges that from October 1, 2014 through June 30, 2017, the Defendants took deductions for fees and expenses related to the midstream post-production costs of gathering, compression, dehydration, treatment, processing, and marketing.
The 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.