What is this lawsuit about?
The Litigation seeks damages for Defendants’ and/or PetroQuest’s alleged failure to pay statutory interest on allegedly late payments under Oklahoma law. Defendants expressly deny 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 the merits of any of the parties’ claims or defenses. A more complete description of the Litigation, its status, and the rulings made in the Litigation are available in the pleadings and other papers maintained by the United States District Court for the Eastern District of Oklahoma in the file for the Litigation.
Who is included?
The Settlement Class in the Litigation consists of the following individuals and entities:
All non-excluded persons or entities who: (1) received Untimely Payments from Defendants (or Defendants’ designees, including PetroQuest Energy, L.L.C. as contract operator) for oil-and-gas proceeds from Oklahoma wells during the Claim Period, and (2) who have not already been paid in full for statutory interest on the Untimely Payments. An “Untimely Payment” for purposes of this class definition means payment of proceeds from the sale of oil and gas production from an oil-and-gas well, including unclaimed property payments, after the statutory periods identified in Okla. Stat. tit 52, § 570.10(B)(1), (i.e., commencing not later than six (6) months after the date of first sale, and thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold). Untimely Payments do not include: (a) payments of proceeds to an owner under Okla. Stat. tit 52, § 570.10(B)(3) (minimum pay); (b) prior period adjustments; or (c) pass-through payments.
A list of the persons or entities excluded from the Classes can be found in the Notice of Proposed Settlement, which is available for download from the Important Documents page.
What does the Settlement provide?
In settlement of the Litigation, Defendants have agreed to pay Fifteen Million Dollars ($15,000,000.00) in cash (“Gross Settlement Fund”). In exchange for the payment noted above and other consideration outlined in the Settlement Agreement, the Settlement Class shall release the Released Claims (as defined in the Settlement Agreement) against the Released Parties (as defined in the Settlement Agreement).The Gross Settlement Fund, less Plaintiff’s Attorneys’ Fees and Litigation Expenses and Administration, Notice, and Distribution Costs, and other costs approved by the Court (the “Net Settlement Fund”), will be distributed to final Class Members pursuant to the terms of the Settlement Agreement, along with the PetroQuest Settlement Funds, which were separately contributed by PetroQuest Energy, L.L.C. The Settlement Agreement also includes Future Benefits for the Settlement Class.