Important Update: Following the Final Fairness Hearing on March 23, 2020, the Court entered the orders finally approving the class action settlement. Copies of the orders are available for download from the Important Documents page. The settlement requires that the Order and Final Judgment become Final and Non-Appealable before the distribution of settlement benefits can occur.
What is this lawsuit about?
The Litigation seeks damages for Defendants’ alleged failure to pay statutory interest on payments made by Defendants (or on behalf of Defendants) outside the time periods set forth in the Production Revenue Standards Act, 52 Okla. St. §570.1, et seq. (the “PRSA”) for oil and gas production proceeds from oil and gas wells in Oklahoma. Defendants expressly deny all of Plaintiff’s factual and legal allegations. Defendants also expressly deny all of Plaintiff’s allegations that they have done anything wrong, breached any duties under the PRSA, committed any type of fraud, been deceitful, or been unjustly enriched. Defendants also deny they are liable to Plaintiff or any of the Class Members for any of the claims and allegations in the Litigation or that it would be appropriate to award any type of damages, an accounting, or injunctive relief. Defendants further deny it would be appropriate to certify a contested class based on the facts and claims at issue in the Litigation. The Court has made no determination with respect to any of the parties’ claims or defenses.
Who are the Defendants?
The Defendants are EnerVest Operating, LLC; EnerVest Energy Institutional Fund XIII-A, L.P.; EnerVest Energy Institutional Fund XIII-WIB, L.P.; EnerVest Energy Institutional Fund XIII-WIC, L.P.; and EnerVest, Ltd. (the "Enervest Defendants"); and SM Energy Company ("SM").
Who is included in the Settlement?
The Settlement Class consists of the following individuals and entities:
All non-excluded persons or entities who received working interest, royalty, and/or overriding royalty payments from a Defendant (or a predecessor of a Defendant) for oil and/or gas proceeds related to wells located in Oklahoma at any time prior to November 1, 2019 (“Owners”).
For information on who is excluded from the Settlement Class, please read the Notice of Proposed Settlement.
What does the Settlement provide?
In settlement of all claims alleged in the Litigation, SM has agreed to pay $1,000,000.00 in cash and the EnerVest Defendants have agreed to pay $7,000,000.00 in cash, and the EnerVest Defendants have made other non-monetary agreements which are estimated by Plaintiff to have a net present value of at least $7,000,000.00. See the Settlement Agreement for full details.