McKnight Realty Co. v. Bravo Arkoma, LLC, et al.
Bravo Settlement
6:17-cv-00308-KEW

Frequently Asked Questions

 

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  • The Class Representative on behalf of itself and similarly situated royalty owners asserted 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. The Released Claims (as defined in Section 1.18 of the Settlement Agreement) include all claims that were or could have been asserted for underpayment of royalties on gas and gas constituents in connection with this Class Lawsuit.

    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 not expressed any opinion regarding the merits of either the Class Representative’s claims or Bravo’s defenses.

  • The Settlement Class consists of the following individuals and entities, subject to certain exceptions listed below:

    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).

  • Yes. The persons or entities excluded from the Settlement Class are: (1) agencies, departments or instrumentalities of the United States of America, including but not limited to the U.S. Department of the Interior (the United States, Indian tribes, and Indian allottees); (2) the State of Oklahoma or any of its agencies or departments that own royalty interests; (3) Defendants, their affiliates, predecessors, and employees, officers, and directors; (4) any company or its affiliated entities that produces, gathers, processes, or markets gas; and, (5) royalty owners only to the extent receiving “Blanchard” payments.

  • As consideration for the Settlement, Defendants have 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.

  • 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.

    The distribution to Class Members described above is based on the following assumptions: (a) that very few sales of royalty interests have occurred during the specified time period; (b) that, where sales did occur, the parties intended for the buyer to receive payment for past claims; and (c) that, where royalty interests passed through inheritance, devise or interfamily transfers, it was the intent that the heir, devisee or transferee receive the right to receive payment for claims based on past production. To the extent these assumptions are not correct in relation to particular transfers of interests; the Court will be asked to order that the Class Member who receives payment shall in turn make payment to the proper party.

    Class Representative will submit the Summary Final Distribution Report to the Court for approval at the Settlement Fairness Hearing. The Summary Final Distribution Report will show the distributions to each Class Member for whom an address and amount of distribution of Settlement Proceeds can be determined. Please check this website for the Summary Final Distribution Report in December, 2018.

  • To obtain the benefits of this proposed Settlement, you do not have to do anything. By taking no action, your interests will be represented by the Class Representative and Class Counsel. As a Class Member, you will be bound by the outcome of the Settlement, if finally approved by the Court.

  • If you do not wish to be a member of the Settlement Class, then you may opt out of the Class as set forth in ¶10.3 of the Settlement Agreement and summarized below. On or before November 19, 2018 at 5:00 p.m. Central time, your opt-out must be filed with the United States District Court for the Eastern District of Oklahoma.

    Your opt-out must state the following:

    1. I do not want to be a member of the Settlement Class in McKnight Realty Company v. Bravo Arkoma, LLC, et al., No. CIV-17-308-KEW, pending in the United States District Court for the Eastern District of Oklahoma. I understand it will be my responsibility to pursue any claims I may have, if I so desire, on my own and at my expense;
    2. My Bravo royalty identification number is #__________. I own royalty interest in the following Class Wells: [identify each Class Well by Well name]; and
    3. The opt-out member's signature acknowledged by a Notary Public.
  • You have the right to remain a Class Member but still object to the proposed Settlement and any terms thereof under ¶10.3 of the Settlement Agreement. To object to the Settlement, on or before November 19, 2018 at 5:00 p.m. Central time, you must file with the Clerk of the Court for the United States District Court for the Eastern District of Oklahoma, 101 North 5th Street, Muskogee, OK 74401, a written objection that contains the following information:

    1. A heading referring to McKnight Realty Company v. Bravo Arkoma, LLC, et al., No. CIV-17-308-KEW, pending in the United States District Court for the Eastern District of Oklahoma;
    2. A reasonably detailed statement of each objection;
    3. The objector’s current address and telephone number;
    4. The name, address, and telephone number of objector’s counsel, if any;
    5. The objector’s owner identification number with Bravo and the identification by Well name for each Class Well in which objector owns a royalty interest;
    6. The objector's notarized signature.

    Any Class Member who fails to timely file such written statement or fails to provide the required information will be treated as if not filed at all. Any appeal by a valid and timely objector must comply with the Settlement Agreement, which includes a provision for the posting of an appeal bond.

  • The Court has appointed the following lawyers as Settlement Class Counsel:

    Barbara Frankland
    Scott Goodger
    Ryan Hudson
    Rex Sharp
    REX A. SHARP, P.A.
    5301 West 75th Street
    Prairie Village, KS 66208
     

    Reagan Bradford
    Mark Lanier
    THE LANIER LAW FIRM, P.C.
    100 E. California Ave., Suite 200
    Oklahoma City, OK 73104
     

  • Class Counsel will ask the Court to (i) award Class Counsel an attorney’s fee in an amount to be determined by the Court, but not to exceed forty percent of the Settlement Proceeds; (ii) award the Class Representative a fee in an amount to be determined by the Court but not to exceed two percent of the Settlement Proceeds; and (iii) reimburse Class Counsel from the Settlement Proceeds for all reasonable litigation expenses they have paid, including expert and consulting fees and other litigation expenses in amounts to be provided to the Court, and Administration Expenses advanced before the Settlement is finally approved. If the Court approves this request, these amounts will be deducted from the Settlement Proceeds before Distribution Checks are mailed to the Class from the Net Settlement Amount.

  • The Settlement Fairness Hearing will be held on December 21, 2018 beginning at 9:30 a.m., in the United States District Court for the Eastern District of Oklahoma, 101 North 5th Street, Muskogee, OK 74401. Please note that the date of the Final Fairness Hearing is subject to change without further notice. If you plan to attend the hearing, you should check with the Court and this website to be sure no change to the date and time of the hearing has been made.

  • The Notice summarizes the Settlement. The complete terms of the Settlement are set out in the Settlement Agreement and the documents referenced therein. You may obtain a copy of the Notice and the Settlement Agreement, as well as other documents, from the Important Documents page.

  • In addition to the information available on this website, you can call 1-833-288-5306 toll free or write to:

    Bravo Settlement
    c/o JND Legal Administration, Settlement Administrator
    P.O. Box 91343
    Seattle, WA 98111.

    INQUIRIES

    All inquiries concerning this notice or any other questions by Class Members should be directed to the Settlement Administrator using the contact information available on the Contact Us page.

For More Information

Visit this website often to get the most up-to-date information.

Mail

Bravo Settlement
c/o JND Legal Administration
PO Box 91343
Seattle, WA 98111