Oklahoma - Oil & Gas

摘要

In Fitzgerald v. Chesapeake Operating, Inc., No. 111,566, 2014 WL 813861 (Okla. Ct. App. Feb. 14,2014), the Oklahoma Court of Civil Appeals reversed a district court's order certifying a statewide class of royalty owners in an action seeking damages for the alleged underpayment of royalties. The class was defined as all persons who have been royalty owners in Oklahoma wells since January 1,2004, that were operated by Chesapeake Operating, Inc. (Chesapeake) or where Chesapeake, as a non-operator, separately marketed gas. The class claims related to alleged underpayment of royalty for gas and its constituents (helium, residue gas, natural gas liquids, nitrogen, and condensate). The trial court found that Chesapeake paid royalties based upon netback pricing and that it had a uniform practice of deducting from royalties costs of gathering, compression, dehydration, treatment, and processing.