Important Update: After the hearing on December 9, 2020, the Court entered a judgment directing the application of Bankruptcy Rule 7023, certifying the Settlement Class for settlement purposes only, finally approving the Settlement Agreement, and granting related relief. A copy of the Judgment is available for download from the Important Documents page.
What is the Settlement about?
The litigation which is the subject of the Settlement seeks damages for Defendant’s alleged improper payment of royalty. Defendant has adamantly denied, and continues to deny, the claims asserted in the Royalty Class Action Lawsuit and has vigorously defended against them. The Class Representative, Class Counsel, and Defendant have entered into a Settlement Agreement that shall become effective if court orders approving the Settlement become final and not subject to appeal.
What does the Settlement provide?
The Settlement Agreement provides that the 2016 Class Proof of Claim will be allowed in an aggregate amount of $45,000,000.00, subject to certain conditions, and that with respect to the Royalty Class Action Claims (i.e. claims arising in connection with the Royalty Class Action Lawsuit after May 9, 2016), Defendant will pay the following sums: $2,500,000.00 to the Settlement Class in full, complete, and final settlement of all Released Claims as to all Released Parties; $850,000.00 to the Settlement Class Counsel; and $150,000.00 to the Class Representative.
Detailed information about the benefits provided by the Settlement are available in the Notice of Proposed Settlement of Class Action, which is available for download from the Important Documents page.
Who is Included?
The Settlement Class is defined as:
All non-governmental royalty owners who own or owned mineral interests prior to the Petition Date covering wells operated by Chaparral in the State of Oklahoma, or in which Chaparral markets production, that produced natural gas and/or natural gas constituents or components, such as residue gas, natural gas liquids (or heavier liquefiable hydrocarbons), gas condensate or distillate, or casinghead gas and which is or was subject to a marketing arrangement including a percentage of proceeds, percentage of index and/or percentage of liquids arrangement and whose lease or leases with Chaparral include Mittelstaedt Clauses, with such Settlement Class commencing on June 1, 2006 through August 16, 2020.