Strack vs Continental Settlement

Strack vs. Continental Resources, Inc. 

In the District Court of Blaine County, State of Oklahoma

Case No. CJ-10-75

Latest New Updates: 

As of September 13, 2018, the distribution to the Sub-Class 1 Class Members has begun.  The distribution by Continental Resources started with payments to those royalty owners who normally receive royalty payments through direct electronic deposit. Distribution checks to the remaining Sub-Class 1 Class Members, with good mailing addresses, are scheduled to be mailed on September 14, 2018. Please allow until at least until September 21, 2018 before contacting the Settlement Administrator about the status of your distribution.  Please do not contact Continental Resources about your Sub-Class 1 settlement payment, all inquiries should be directed to the Settlement Administrator.

-7/23/2018: The Court entered an Order Approving the Report of the Settlement Administrator Allocating the Net Sub-Class 1 to the Class Well Level. A copy of the Order and Well Level Allocation of the Net Sub-Class 1 Payment is located in the Case Documents.

-7/13/2018: The Judgment approving the Settlement became "Final & Unappealable" such that the distribution process may begin with regard to the Sub-Class 1 Payment.

-7/13/2018: The Court entered Journal Entries approving: (1) the Attorneys' Fees and Class Representatives' Case Contribution Award; and (2) Litigation and Administrative Expenses. The Judgments are located in the Case Documents.

-7/13/2018: The Court entered an Order finding that no Gross Production Taxes were due on the Sub-Class 1 Settlement. The Order is located in the Case Documents.

- 6/11/2018: The Court conducted the Fairness Hearing on June 11, 2018. The Court approved the Settlement Agreement and entered: (1) the Final Judgment; and (2) the Plan of Allocation and Distribution. The Judgment and Order are located in the Case Documents.


Notice was given pursuant to the Order of the Distribution Court of Blaine County, Oklahoma (the "Court"), pursuant to Okla. Stat. tit. 12, § 2023.

If you belong to the Settlement Class and this Settlement is approved, your legal rights will be affected.

YOU DO NOT NEED TO DO ANYTHING TO REMAIN A PART OF THIS SETTLEMENT CLASS. IF YOU DO NOT WANT TO BE IN THE SETTLEMENT CLASS, YOU HAVE TO NOTIFY THE COURT USING THE OPT-OUT PROCEDURE OUTLINED ON THE WEBSITE.

Read the information on this website carefully to see what your rights and options are in connection with this Settlement. However, this website and the Notice only summarize the Settlement Agreement, which you can review on the Case Documents page on this website. 

On April 3, 2018, the Court preliminarily approved a Settlement in the above-captioned Class Action Litigation. This Settlement relates ONLY to Continental Resources, Inc’s (“Continental”) royalty payments (not overriding royalty payments) for the Class Wells located in the State of Oklahoma, and ONLY to payment for hydrocarbons produced from the Class Wells to the extent of Continental’s working interest ownership in the Class Wells.  To determine if a well in which you own a royalty interest is included in this Settlement, you should review the list of the Class Wells located on the Case Documents page on this website.

If you received a Notice, or if you received oil or gas royalty payments from Continental (or possibly from another well operator who was distributing royalties for Continental) on a Class Well since July 1, 1993, you are likely a member of the Settlement Class (or possibly a royalty distributor who distributed royalties for Continental). Please see the formal definition of the Settlement Class in FAQ No. 2 “Who are the Class Members?

This Settlement involves three separate time periods (Continental’s agreement as to each time period is different) and your participation in this Settlement may relate to any one, two or all three of the time periods, depending upon the production dates from your Class Well:

 

“Claim Period 1”

“Claim Period 2”

“Future Period”

Beginning of period

July 1993 Production

December 2015 Production

First Production Month after the end of the Adjustment and Additional Consideration Period (estimated mid-2019)

End of period

November 2015 Production

End of the Adjustment and Additional Consideration Period (estimated mid-2019)

Perpetual

(unless the law changes)

To settle the Released Claims, Continental has agreed to:

Pay Sub-Class 1 Members their allocated share of $49,800,000.00

Pay Sub-Class 2 Members for gathering charges deducted, with 9% interest, unless the lease has an Express Deduction Clause

Not deduct Gathering Charges, unless the lease has an Express Deduction Clause; Not deduct Processing or Transportation Charges if the lease has an Express No Deduction Clause prohibiting such deductions

The Total Value of the Settlement to the Class

For Claim Period 1, Continental has agreed to pay Sub-Class Members their allocated share of $49,800,000.00.  For Claim Period 2 and the Future Production Period, the value of the settlement will be determined by the lease review, determination of the amount of gathering charges deducted during Claim Period 2 and Continental’s future production in Oklahoma during the Future Time Period.  As a result, estimating the value of the Settlement during Claim Period 2 and the Future Production Period is difficult and speculative.  However, Class Counsel have estimated the value of the Settlement during Claim Period 2 to be approximately $7,500,000.00 and the value during the Future Production Period to be in excess of $50,000,000.00. 

 

 

“Claim Period 1”

“Claim Period 2”

“Future Period”

Total Value*

Value of the Settlement to the Class

$49,800,000.00

Sub-Class 1 Payment

$7,500,000.00

estimated

$50,000,000.00

estimated

 

$107,300,000.00*

 

*Sub-Class 1 Payment + Estimated Values of Sub-Class 2 Payment and the Future Production Period benefits.

Your Legal Rights and Options

You Do Not Need To Take Any Further Action To Participate In The Settlement

If the Settlement is approved, you do not need to take any further action to participate in the Settlement (but if you no longer own your minerals, then see below). The portion of the Net Sub-Class 1 Payment and/or Net Sub-Class 2 Payment to which you are entitled will be calculated and paid as part of the administration of the Settlement. Further, you will also automatically receive the benefit of Continental’s agreement during the Future Period to: (1) not deduct Gathering Charges from your royalties, unless your lease has an express clause that allows Continental to make deductions for Gathering Charges from your royalties (an “Express Deduction Clause”); (2) not deduct Processing Charges from your royalties, if your lease has an express clause that prohibits Continental from making deductions for Processing Charges from your royalties (an “Express No Deduction Clause” for Processing Charges); and (3) not deduct Transportation Charges from your royalties, if your lease has an express clause that prohibits Continental from making deductions for Transportation Charges from your royalties (an “Express No Deduction Clause” for Transportation Charges).

You Have The Right To Opt-Out Of The Settlement Class, Or File Written Comments Or Objections To the Settlement Or Attorneys’ Fees And Expenses, But If You Elect To Do So, You Must File It With The Court By May 17, 2018 at 5 p.m. CDT

Opt-Out: You May Exclude Yourself From The Settlement By Opting-out Of The Settlement

If you do not wish to be a member of the Settlement Class, you must exclude yourself and you will not receive any payment from the Settlement or the Future Production Period benefits. See the required process described in FAQ No. 8.

Written Comment: If You Remain In The Settlement Class, You May File A Written Comment (Supporting Or Opposing) The Settlement Or The Attorneys’ Fees And Expenses

If you remain a member of the Settlement Class, you may submit written comments concerning the Settlement and/or Class Counsel’s request for an award of Attorney’s Fees and Expenses, either supportive or non-supportive. See the required process described in FAQ No. 14.

Objection To The Settlement: If You Remain In The Settlement Class, You May File An Objection To The Settlement

If you remain a member of the Settlement Class, you may object to the fairness of the Settlement by submitting a written objection to the Settlement. See the required process described in FAQ No. 11.

Objection To The Attorneys’ Fees And Expenses: If You Remain In The Settlement Class, You May File An Objection To Class Counsels’ Request for Attorneys’ Fees And Expenses

If you remain a member of the Settlement Class, you may object to the reasonableness of Class Counsel’s Request for an award of Attorneys’ Fees and Expenses by submitting a written objection. See the required process described in FAQ No. 11.

Objection To Payments To Current Owner Rather Than The Prior Owner

If you no longer own minerals in a Class Well, the Payments will be made to the current owner, not you. If you object to this payment, you must file an objection. See FAQ No. 7.

The Fairness Hearing On The Settlement And Attorneys’ Fees And Expenses Will Be Held On

June 11, 2018 at 9:00 A.M. At the Garfield County Courthouse In Enid, OK

Fairness Hearing: June 11, 2018 at 9:00 A.M. At the Garfield County Courthouse In Enid, OK

The Fairness Hearing is open to the public. You are NOT required to attend the Fairness Hearing to be part of the Settlement Class. However, you are required to appear in-person or through your own attorney at the Fairness Hearing to present any Objection you may have filed. Your failure to submit a proper Objection (or appear in-person or through counsel) may result in the Objection being treated as a Written Comment, rather than an Objection. See FAQ No. 11 and No. 13.