Important Update: At the Final Fairness Hearing on December 21, 2018, the Court granted final approval to the settlement and approved class counsel fees and expenses and administration expenses. Copies of the final approval documents are available from the Important Documents page.
On September 6, 2018, the Court preliminarily approved a Settlement in the above-captioned litigation (the "Class Lawsuit") between Plaintiff, McKnight Realty Co. (“Plaintiff”), on behalf of itself and all others similarly situated, and Bravo Arkoma, LLC, and Bravo Natural Resources, LLC (“Defendants” or “Bravo”). The Litigation asserts that Bravo underpaid royalties by taking deductions for fees and expenses relating to the midstream post-production costs of gathering, compression, dehydration, treatment, processing, and marketing and used fuel from the Class Wells without paying royalty on the volume of gas so used from January 1, 2014 through May 31, 2018. Bravo continues to deny all of the allegations of liability and damages and has asserted various defenses to the Class Representative’s Claims and to the certification of the Class. The Court has made no determination with respect to any of the parties’ claims or defenses.
Am I part of the Settlement Class?
The Settlement Class consists of the following individuals and entities, subject to the exceptions as described in the Notice, which can be downloaded from the Important Documents page:
All persons who are royalty owners in Oklahoma wells where Bravo Arkoma LLC or Bravo Natural Resources, LLC (including their affiliated predecessors and affiliated successors) are or were the operator (or a working interest owner, which marketed its share of gas and directly paid royalties to the royalty owners).
What does the Settlement provide?
As consideration for the Settlement, Bravo has agreed to pay $1,300,000.00. Generally, the allocation of the Net Settlement Amount (as set forth in the “Plan of Allocation”) shall be proportionately allocated among Class Members based upon their decimal interest in the royalty interests in each Class Well, and the volume of Bravo’s gas produced from the owner’s well from January 1, 2014–May 31, 2018. The Plan of Allocation is subject to Court approval.
What are my options?
Your rights and options - and the deadlines to exercise them - are summarized below. These rights and options are explained in the Notice and in the Settlement Agreement, which can be downloaded from the Important Documents page, and further information about each of these can be found in the FAQs.