Court Jurisdiction, Procedure and Review: Class Action Royalty and Royalty Interests: Marketable Product Rule

摘要

Foster brings suit alleging that Apache systematically underpaid royalty on gas production from Oklahoma wells. Foster asserts claims for breach of duty, tortious breach of contract, actual and constructive fraud, deceit, breach of implied duty to market, unjust enrichment and civil conspiracy. She asks that the court award compensatory and punitive damages, order an accounting and grant a temporary restraining order. In objecting to Apache's deduction of certain expenses in computing gas royalty payments, Foster argues that the gas is not marketable until the residue gas is in a fungible condition and can be transmitted through an interstate pipeline. Before the court in this ruling is Foster's request that the court certify a statewide class of royalty owners in Oklahoma wells where Apache markets gas on behalf of itself and possibly other working interest owners (or, as a non-operator, Apache separately markets its share of the gas) from and after January 1, 2000.