Royalty and Royalty Interests: Class Action

摘要

The plaintiff royalty owners in this case sue Unit alleging that royalties have been underpaid based upon the deduction of gathering, compression, fuel use, dehydration and marketing costs in computing royalty payments. The plaintiffs further allege that Unit did not disclose the deductions on the royalty remittance statements sent to the owners. The plaintiffs ask the court to certify the lawsuit as a class action. From the arguments and evidence presented on the issue of class certification, the trial court finds, among other things, that Unit's policy was to deduct the costs from royalty payments "unless a lease specifically prohibited the deduction of off-lease costs." The trial court certifies a class of royalty owners in drilling and spacing units in Oklahoma in which Unit owns working interest rights, or is the operator or distributor of royalty proceeds. Unit appeals. Held: reversed. The court of appeals first recognizes that, in 2009, the Oklahoma legislature modified the "standard of review" in appeals of class certification orders of the Oklahoma district courts. Specifically, the Legislature replaced the prior abuse of discretion standard with a de novo standard of review. 12 O.S. 2011, § 2023(C)(2). The court of appeals notes mat it will be applying that new standard in reviewing the order granting class certification in the present case.