Strack vs Continental Settlement

  1. What is this Litigation about?
  2. Who are the Class Members?
  3. Who are the Class Representatives?
  4. Do we have a lawyer in this matter?
  5. Who are the Released Parties?
  6. What claims against Continental will be released by the Settlement?
  7. I sold my Mineral Interest; will I receive a Settlement Payment?
  8. How do I exclude myself from the Settlement?
  9. I have two Class Wells involved in this Litigation; can I exclude myself from the Settlement as to one well and remain in the Class and receive the Settlement Benefits for the other well?
  10. What is the difference between Objecting and Excluding myself?
  11. How do I object to something about the Settlement or the Request for Attorneys' Fees and Expenses?
  12. If the Court denies my Objection, can I file an appeal?
  13. What is the difference between Objecting and submitting a Written Comment on the Settlement?
  14. How do I submit a Written Comment on the Settlement?
  15. If I do nothing, can I sue the Released Parties fro underpayment of Royalties?
  16. When and where will the Court decide whether to approve the Settlement and the Request for Attorneys' Fees and Expenses?
  17. What has Continental agreed to do under the Settlement?
  18. How are the terms "Gathering Charges", "Processing Charges" and "Transportation Charges" defined in the Settlement Agreement?
  19. Have the Class Representatives agreed in this Settlement that Continental is entitled to make any deductions from the Class?
  20. During Claim Period 2, why is there an expected 12- to 18-month "Adjustment and Additional Consideration Period"?
  21. Am I required to hire an attorney?
  22. How will Class Counsel be paid for their services?
  23. How will the amount of my payments be determined?
  24. How do I get more information about the Litigation, the Settlement or my Rights and Options?
  1. What is this Litigation about?

    Plaintiffs filed a petition as a putative class action against Continental on November 4, 2010 and filed an Amended Petition on November 5, 2014.  In the Amended Petition, Class Representatives alleged Continental: (1) failed to pay royalties on all hydrocarbons, made improper deductions for gathering, compressing, dehydrating, field fuel, treating, processing, transporting and/or marketing; (2) provided insufficient reporting; and (3) failed to receive the best price available for oil and gas production from the Class Wells. Class Counsel further asserted Continental engaged in systematic schemes to misreport and skim oil and gas production and royalty proceeds from royalty owners for over 20 years.  Specifically, Class Representatives alleged breach of contract and statutory obligations, breach of fiduciary duties, breach of duties to market, breach of duties as operator, actual fraud, deceit, constructive fraud, conversion, unjust enrichment, civil conspiracy, and sought both actual and punitive damages, and sought an accounting for oil and gas production and proceeds from the Class wells. For a more detailed understanding of the Litigation, you may review the Amended Petition which is attached as Exhibit “A” to the Settlement Agreement, which may be obtained at www.StrackvsContinental.com.

    Continental has denied, and continues to deny, any and all liability to the Class Representatives, on behalf of themselves and as representatives of the Settlement Class..

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  2. Who are the Class Members?

    The “Settlement Class” includes all non-excluded persons or entities who are or were royalty owners in Oklahoma wells that had oil or natural gas production at any time during the period from and after July 1, 1993, and prior to February 1, 2018, where Continental Resources, Inc., or any affiliate of Continental Resources, Inc. (collectively “Continental Resources, Inc.”), is or was the operator and/or working interest owner/lessee under oil and gas leases, or under forced pooling orders.   The Class Claims relate only to payment for hydrocarbons produced from the wells and only to the extent of Continental Resources, Inc.’s working interest ownership in the Class Wells.  The Class does not include overriding royalty owners or other owners who derive their interest solely through an oil and gas lessee.

    The persons or entities excluded from the Class are: (1) agencies, departments or instrumentalities of the United States of America and the State of Oklahoma, except the Commissioners of the Land Office (which is included in the Class), (2) publicly traded oil and gas exploration companies and their affiliates, and (3) any other person or entity Plaintiffs’ counsel is, or may be prohibited from representing under Rule 1.7 of the Oklahoma Rules of Professional conduct.

    Sub-Class 1 (Claim Period 1):

    All persons or entities who are Class Members during Claim Period 1.

    Sub-Class 2 (Claim Period 2):

    All persons or entities who are Class Members during Claim Period 2 and entitled to a Sub-Class 2 Payment as determined pursuant to paragraph 3.4 of the Settlement Agreement.

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  3. Who are the Class Representatives?

    The Court has appointed: (1) Mark Stephen Strack as Sole Successor Trustee of the Patricia Ann Strack Revocable Trust dated 2/15/99 and the Billy Joe Strack Revocable Trust dated 2/15/99; and (2) Daniela A. Renner, Sole Trustee of the Paul Ariola Living Trust and the Hazel Ariola Living Trust, as Class Representatives.

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  4. Do we have a lawyer in this matter?

    The Court appointed the following experienced attorneys to represent the Settlement Class as Class Counsel: (1) Douglas E. Burns and Terry L. Stowers of Burns & Stowers, P.C. and Kerry W. Caywood and Angela Caywood Jones of Park, Nelson, Caywood, Jones LLP

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  5. Who are the Released Parties?

    The “Released Parties” under the terms of the Settlement Agreement are: Continental Resources, Inc., any subsidiaries or affiliates of Continental, and any officers, directors, employees, agents, representatives, predecessors, successors, members, partners and assigns thereof.

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  6. What claims against Continental will be released by the Settlement?

    If you remain in the Settlement Class, you will be releasing the “Released Claims” against Released Parties, including Continental.  Pursuant to the Settlement Agreement, the “Released Claims” shall mean the settled and released Class Claims which include the “Released Claims for Sub-Class 1” and the “Released Claims for Sub-Class 2”).

    Released Claims for Sub-Class 1” shall mean all Class Claims of the Sub-Class 1 Members  or any subsidiaries or affiliates of Sub-Class 1 Members and any officers, directors, employees, agents, representatives, predecessors, successors, members, partners and assigns thereof  against the Released Parties, whether asserted or unasserted, known or unknown, in contract, tort, based on statute, or any other legal or equitable ground or theory, arising out of or related to the payment, calculation, or reporting of the amount, nature, quality or quantity of production, proceeds, or royalties on hydrocarbons produced from the Class Wells during Claim Period 1, including but not limited to claims that were or could have been alleged in the Amended Petition in the Litigation, but not the Excluded Claims as defined below.

    Released Claims for Sub-Class 2” shall mean all Class Claims of the Sub-Class 2 Members or any subsidiaries or affiliates of Sub-Class 2 Members and any officers, directors, employees, agents, representatives, predecessors, successors, members, partners and assigns thereof  against the Released Parties, whether asserted or unasserted, known or unknown, in contract, tort, based on statute, or any other legal or equitable ground or theory, arising out of or related to the payment, calculation, or reporting of the amount, nature, quality or quantity of production, proceeds, or royalties on natural gas and natural gas liquids produced from the Class Wells during Claim Period 2, including but not limited to claims that were or could have been alleged in the Amended Petition in the Lawsuit, but not the Excluded Claims as defined below, and further, specifically limited to only those Sub-Class 2 Claims for gathering charges which were identified and quantified pursuant to Paragraph 3.4 of the Settlement Agreement and included as part of the Sub-Class 2 Payment.  Further, prior to the Release Date for Claim Period 2, the Court shall retain exclusive jurisdiction over the Sub-Class 2 Members’ Sub-Class 2 Claims, and during the pendency thereof, the Sub-Class 2 Members shall be prohibited from maintaining any other litigation against the Released Parties as to the Sub-Class 2 Claims which are to be released pursuant to this Settlement Agreement.

    Excluded Claims shall mean:

    i.      The claims asserted in Stamp Brothers vs. Continental Resources, CIV-14-182-C, U.S. District Court, Western Oklahoma;

    ii.     The “Settling Owners’” released claims in Bryan Mannering, et al. v. Continental Resources, Inc., No. CJ-2016-47, Dist. Ct. Custer County, Oklahoma, which are as identified in the Settlement Agreement and Release entered in that case and which are limited to those Settling Owners’ interests in the Akin 1-27-22XH and Pickens Quarter 1-34-27XH wells;

    iii.    Claims for interest on royalty payments made by Continental unrelated to the Class Claims and made outside the time frames prescribed by the Production Revenue Standards Act;

    iv.    Royalty Payments in the Ordinary Course of Business for production months prior to the Release Date;

    v.     Claims for royalty for production months for which no payment on production for that production month has been made to that royalty owner as of the Release Date;

    vi.    Claims Continental failed to comply with obligations to protect the Class Members from drainage; or

    vii.   Claims Continental breached obligations to the Class Members to develop Oklahoma oil and gas leases. 

    Royalty Payments in the Ordinary Course of Business” shall mean that portion of the royalty payment a Class Member is entitled to receive on production from the Royalty Share of production proceeds paid, or to be paid, from Class Wells for a particular production month that occurs prior to the Release Date and which is:

    1. the result of retroactive price, volume or value adjustments made by a third-party purchaser of production from Continental that have not been the subject of a payment adjustment to such Class Member as of the Release Date;
    2. the result of volumetric or cash balancing that has not been the subject of a payment adjustment to such Class Member as of the Release Date; or
    3. being held in Continental’s suspense accounts as of the Release Date, excluding any Net Settlement Payments attributed to this Settlement Agreement.; and 
    4. any statutory interest that may be due on items 1, 2 or 3.

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  7. I sold my Mineral Interest; will I receive a Settlement Payment?

    No. All Current Sub-Class 1 Owners are Eligible Sub-Class 1 Members and entitled to receive a portion of the Net Sub-Class 1 Payment as determined by the procedures set forth in the Plan of Allocation and Distribution. Prior Sub-Class 1 Owners are not Eligible Sub-Class 1 Members absent a determination or stipulation that a Prior Sub-Class 1 Owner is entitled to receive a portion of the Current Sub-Class 1 Owner's Net Sub-Class 1 Payment under the Plan of Allocation and Distribution. Those Sub-Class 1 Members who are Prior Sub-Class 1 Owners must object to the allocation of the Net Sub-Class 1 Payments to the Current Sub-Class 1 Owners to assert a claim for distribution of a portion of the Net Sub-Class 1 Payment attributable to the time they were an owner.  The procedures for resolution of potential claims between Current Sub-Class 1 Owners and Prior Sub-Class 1 Owners are set forth in the Plan of Allocation and Distribution.

    If you are a Prior Sub-Class 1 Owner, you have until May 17, 2018 at 5 p.m. CDT to submit in writing your intention to dispute allocation of the settlement payment from a particular royalty interest solely to the Current Sub-Class 1 Owner. Your written objection must follow the instructions from the Notice found on the Court Documents page.

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  8. How do I exclude myself from the Settlement?

    To exclude yourself from the Settlement Class, you must “Opt-out” of the Settlement Class by May 17, 2018 at 5 p.m. CDT by submitting in writing your desire to be excluded from the Class. Your written Opt-out must generally follow the instructions from question 21 in the Notice found on the Courts Document page.

    Your written Opt-out must be mailed on or before May 17, 2018 at 5 p.m. CDT to both of the following addresses:

    Court Clerk of Blaine County Strack vs Continental Notice Administrator Strack v. Continental Notice Administrator

    212 N Weigle

    Watonga, OK 73772

    c/o KCC Class Action Services

    PO Box 404041

    Louisville, KY 40233

    c/o KCC Class Action Services

    3301 Kerner Blvd

    San Rafael, CA 94901 (for FedEx)

               

    If you validly request exclusion as described above: (1) you will not receive a distribution of the Net Sub-Class 1 Payments or Net Sub-Class 2 Payments and will not receive the Future Time Period benefits; (2) you cannot object to the Settlement or the request for Attorneys’ Fees and Expenses; and (3) you will not have released the Released Claims against the Released Parties. You will not be legally bound by anything that happens in the Litigation. Do not request exclusion if you wish to participate in the Settlement.

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  9. I have two Class Wells involved in this Litigation; can I exclude myself from the Settlement as to one well and remain in the Class and receive the Settlement Benefits for the other well?

    No.  You have to decide whether to exclude yourself from the Settlement Class or remain in the Settlement Class.  Your decision must apply to ALL of your Class Wells involved in this Class Action Litigation; you cannot make a partial election. 

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  10. What is the difference between Objecting and Excluding myself?

    Objecting is advising the Court you are protesting something about the Settlement or the request for Attorneys’ Fees and Expenses. You can object only if you remain a Class Member. Excluding yourself is telling the Court you do not want to be part of the Settlement Class. If you exclude yourself from the Settlement Class, you have no basis to object, because the Settlement no longer affects you. If you do not exclude yourself from the Settlement Class, you will remain a member of the Settlement Class and will be bound by the terms of the Settlement Agreement (including the release contained therein) and all orders and judgments entered by the Court regarding the Settlement regardless of whether the Court accepts or denies your objection.

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  11. How do I object to something about the Settlement or the Request for Attorneys' Fees and Expenses?

    If you do not exclude yourself from the Settlement, but you decide to object to something about the Settlement or the request for Attorneys’ Fees and Expenses, you must submit your Objection by May 17, 2018 at 5 p.m. CDT. Your Objection must comply with the instructions from question 24 in the Notice from the Case Documents Page.

    Your Objection must be mailed on or before May 17, 2018 at 5 p.m. CDT to both of the following addresses:

                 

    Court Clerk of Blaine County Strack vs Continental Notice Administrator Strack v. Continentla Notice Administrator

    212 N Weigle

    Watonga, OK 73772

    c/o KCC Class Action Services

    PO Box 404041

    Louisville, KY 40233

    c/o KCC Class Action Services

    PO Box 404041

    Louisville, KY 40233 (for FedEx)

    Further, in order for the Objection to be valid, you must appear either in-person or through your own counsel at the Fairness Hearing to present the Objection and allow the Court to fully examine the basis, strength and veracity of the Objection. You may retain independent counsel to represent you at the Fairness Hearing; however, failure of a Class Member to submit a proper Objection may result in the Objection being treated as a Written Comment.

    The Court will review and consider all properly submitted Written Comments and Objections; however, a Class Member who fails to follow the procedure for submitting an Objection to the Settlement and/or requested Attorneys’ Fees and Expenses as set forth herein shall not be permitted to pursue an Objection at the Fairness Hearing or on appeal, and such failure will constitute a waiver of any Objection to the Settlement and/or award of Attorney’s Fees and Expenses.

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  12. If the Court denies my Objection, can I file an appeal?

    If you submit a valid Objection, and the Court denies the objection, you may be able to file an appeal in accordance with Oklahoma law. However, if the Court denies the Objection of an Objector and finds the Settlement and/or award of Attorneys’ Fees and Expenses fair and reasonable for the remainder of the non-objecting Class Members, the Court may require the Objector to post a supersedeas bond to cover the appellate risk, cost, and delay to the rest of non-objecting Class Members, with the amount of the bond being in an amount determined sufficient by the Court. Further, if the Objector objects only to the award of Attorneys’ Fees and Expenses, the Court may sever the Objector’s claim from the rest of the Class Members not objecting to the award of Attorney’s Fees and Expenses.

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  13. What is the difference between Objecting and submitting a Written Comment on the Settlement?

    Objecting is advising the Court you are protesting something about the Settlement or the request for Attorneys’ Fees and Expenses. Submitting a Written Comment is telling the Court there is something about the Settlement or the request for Attorneys’ Fees and Expenses you either support or don’t support, but you do not intend to formally object.

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  14. How do I submit a Written Comment on the Settlement?

    If you decide to submit a Written Comment, you must submit it by May 17, 2018 at 5 p.m. CDT. Your Written Comment must generally contain the information from question 23 of the Notice found on the Court Documents page.

    Your Written Comment must be mailed on or before May 17, 2018 at 5 p.m. CDT to both of the following addresses:

     

    Court Clerk of Blaine County Strack vs Continental Notice Administrator

    212 N Weigle

    Watonga, OK 73772

    c/o KCC Class Action Services

    PO Box 404041

    Louisville, KY 40233

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  15. If I do nothing, can I sue the Released Parties fro underpayment of Royalties?

    Not if the underpayments are based upon the Released Claims, but there are certain exceptions from the Released Claims that would allow for the future recovery of underpaid royalties if the underpayment is based upon the exceptions. For example, during both Claim Period 1 and Claim Period 2, you would be releasing the “Excluded Claims”, which includes the “Royalty Payments in the Ordinary Course of Business”, as those terms are defined above. Further, during Claim Period 2, the Released Claims for Sub-Class 2 are “specifically limited to only those Sub-Class 2 Claims for gathering charges which were identified and quantified pursuant to Paragraph 3.4 of this Settlement Agreement and included as part of the Sub-Class 2 Payment”. Finally, there is NO RELEASE related to royalty payments related to the Future Production Period. Accordingly, if you believe you have a claim against Continental for any of these exceptions or limitations to the Released Claims, you may still assert those claims and bring an action against Continental on those claims, even if you do not exclude yourself from this Class Settlement.

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  16. When and where will the Court decide whether to approve the Settlement and the Request for Attorneys' Fees and Expenses?

    The Court will hold a Fairness Hearing on June 11, 2018 at 9:00 A.M. at the Garfield County Courthouse in Enid, Oklahoma. Please note the date and location of the Fairness Hearing is subject to change without further notice.

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  17. What has Continental agreed to do under the Settlement?

    • Claim Period 1:  Continental has agreed to pay the Sub-Class 1 Members their allocated share of a Gross Settlement Payment of Forty-Nine Million Eight Hundred Thousand Dollars ($49,800,000.00).

    • Claim Period 2:  Continental will review its Oklahoma oil and gas leases to identify leases with “Express Deduction Clauses” or “Express NO Deduction Clauses,” to make adjustments for Claim Period 2 and the Future Production Period (the “Lease Review Period”). Continental will also review its gas production, proceeds and charges booking procedures as a result of the Settlement (the “Gas Production, Proceeds and Charges Booking Procedure Review Period”).

     

    If the controlling lease, as determined during the Lease Review Period, does not contain an Express Deduction Clause allowing the deduction of Gathering Charges, no deduction of gathering charges identified and accounted for as such on Continental’s payment system in effect during the Sub-Class 1 time period under Continental’s policies and procedures during that period for booking gas production, proceeds and charges from the Sub-Class 2 Members’ royalty payments for Continental’s working interest share of production shall be made by Continental, and if such gathering deductions were made during Claim Period 2, Continental will calculate the Sub-Class 2 Payment due to the Sub-Class 2 Members based on such gathering charges, and add 9% simple interest to any Claim Period 2 refund to determine the Gross Settlement Payment for Sub-Class 2 Claims.

     

    Although the amount of the Gross Settlement Payment for Sub-Class 2 Claims cannot be determined until after the Lease Review Period has concluded, Class Counsel have estimated the ultimate Gross Settlement Payment for Claim Period 2 to be approximately Seven Million Five Hundred Thousand Dollars ($7,500,000.00).

     

    • Future Production Period:  Beginning with the first month of production after Claim Period 2, and all times thereafter
      (the “Future Production Period”), but subject to paragraph 11.2 (Change in Law) of the Settlement Agreement, the following will apply to Continental’s royalty payments on Oklahoma oil and natural gas production from the Class Wells:

     

    • Future Gathering Charges:  During the Future Production Period, Continental will not deduct Gathering Charges from its leased royalty owner payments on Continental’s working interest share of production unless the lease contains an Express Deduction Clause allowing for the deduction of Gathering Charges.

     

    • Future Processing Charges: During the Future Production Period, Continental will not deduct Processing Charges from its leased royalty owner payments on Continental’s working interest share of production if the lease contains an Express NO Deduction Clause prohibiting the deduction of Processing Charges in the calculation of the royalty due the owner during the Future Production Period.

     

    • Future Transportation Charges: During the Future Production Period, Continental will not deduct Transportation Charges from its leased royalty owner payments on Continental’s working interest share of production if the lease contains an Express NO Deduction Clause prohibiting the deduction of Transportation Charges in the calculation of the royalty due the owner during the Future Production Period.

     

    • Force Pooling: During the Future Production Period, unleased mineral owners subject to a forced pooling order wherein Continental was the applicant or recipient of the Class Members’ right to drill under the forced pooling order (“Force Pooled Interests”) will be treated under the Settlement Agreement consistent with “Future Gathering Charges” above as not containing an Express Deduction Clause related to Gathering Charges.  As such, Force Pooled Interests, for settlement purposes only, under the Settlement Agreement, will not be subject to Gathering Charges on Continental’s working interest share of production during Claim Period 2 or the Future Production Period.

     

    • Other Situations: Except as specifically set forth under this “Future Production Period” section, the Parties have made no agreement on whether Continental may or may not deduct Gathering Charges, Processing Charges or Transportation Charges during the Future Production Period.

     

    The value of the agreement with Continental to the Settlement Class is dependent on Continental’s future production and development in Oklahoma and is difficult to ascertain. However, Class Counsel have estimated the value of the agreement with Continental during the first ten (10) years of the Future Production Period to be in excess of Fifty Million Dollars ($50,000,000.00).

      

    Administrative and Compliance Costs: Continental will incur substantial costs associated with performing the lease review required by this Settlement, and substantial costs associated with compliance with this Settlement Agreement. Continental shall use its current and historic royalty payment decks in its possession, and production and sales history in its possession, for purposes of determining the Class Well list and Class Member list.  As part of the Plan of Allocation and Distribution, Continental will also make Payments to Class Members from Claim Period 1 and Claim Period 2.  Continental shall bear the costs it incurs associated with researching, preparing and providing the Class Well and Class Member lists as well as making the initial Payments (as opposed to Residual Sub-Class Payments, if any). 

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  18. How are the terms "Gathering Charges", "Processing Charges" and "Transportation Charges" defined in the Settlement Agreement?

    For purposes of the Settlement Agreement, the Parties have defined “Gathering Charges”, “Processing Charges” and Transportation Charges” as follows:

     

    • Gathering Charges” shall mean all types of fees, charges, and volumetric or price adjustments reflecting the consideration for services performed by the owner of a gathering system to move natural gas from the custody transfer meter on or near the well location to the inlet of a gas processing facility, or if the gas is not processed at a gas processing facility, to the inlet of an intrastate or interstate pipeline, including any consideration for gathering, fuel, compression, dehydration, and treating services performed upstream of the inlet to the gas processing plant (or upstream of the inlet to the intrastate or interstate pipeline for gas not processed at a gas processing plant).

     

    • Processing Charges” shall mean all types of fees, charges, price adjustments, reductions in value, reductions in volume, in-kind fuel, percentage of proceeds, percentage of index, and any other consideration related to the processing and movement of natural gas from the gas plant inlet meter to custody transfer meter on or near the tailgate of the processing facility into a mainline transmission pipeline; including but not limited to, processing, compression, dehydration, treating, blending, fuel, line loss, and any other services occurring inside the gas processing plant.
    • Transportation Charges” shall mean all types of fees, charges, price adjustments, reductions in value, reductions in volume, in-kind fuel, percentage of proceeds, percentage of index, and any other consideration related to movement of natural gas on a mainline transmission pipeline; including but not limited to, compression, dehydration, treating, blending, fuel, line loss, and any other services occurring on the mainline transmission line.

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  19. Have the Class Representatives agreed in this Settlement that Continental is entitled to make any deductions from the Class?

    No. The Settlement is structured in terms of what Continental cannot deduct from the Class Members in Claim Period 2 and the Future Production Period. (“Except as set forth in this paragraph [included in this Notice as the Answer to Question 8, and this FAQ as No. 17, “What Has Continental Agreed To Do Under The Settlement”], the Parties have made no agreement on whether Continental may or may not deduct Gathering Charges, Processing Charges or Transportation Charges during the Future Production Period.” See Settlement Agreement, ¶4.5.)

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  20. During Claim Period 2, why is there an expected 12- to 18-month "Adjustment and Additional Consideration Period"?

    In order for Continental to implement the Settlement Agreement related to the Future Production Period, it is necessary for Continental to: (1) review the terms of its oil and gas leases from its royalty owners (“Lease Review Period”); (2) review its gas production, proceeds and charges booking procedures (the “Gas Production, Proceeds and Charges Booking Procedure Review Period”); and (3) modify its accounting system. This extensive process will take substantial time and resources to complete, and the Parties have agreed this process “shall be completed as expeditiously as reasonably possible.”

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  21. Am I required to hire an attorney?

    No.  The Court has appointed Class Counsel to represent you and all other Class Members in this Litigation. You will not be directly responsible to pay these attorneys for their services to you or the Class. If the Court approves the Settlement, the Court will determine how much the attorneys will be paid from the Gross Settlement Payments before the Settlement Proceeds are paid to you. If you want to be represented by your own attorney at the Fairness Hearing, you may hire one at your own expense.

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  22. How will Class Counsel be paid for their services?

    Class Counsel have filed a motion for: (a) an award of an attorneys’ fee of 40% of the Gross Settlement Payments for Claim Period 1 and Claim Period 2; (b) a Class Representatives award (sometimes called a “Case Contribution Award”) of $100,000.00 to each of the four (4) Plaintiff trusts (i.e., a total award of $400,000.00); and (c) expert and consultant fees, litigation expenses and Administrative Expenses, including the fees and expenses of the Settlement Administrator, in an amount not to exceed $1,000,000.00, (collectively the “Attorneys’ Fees and Expenses”). Class Counsel will not be seeking any additional fees based upon the value of the Settlement related to the Future Time Period.

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  23. How will the amount of my payments be determined?

    The complete procedures for allocation and distribution of the Gross Settlement Payments are set forth in the Plan of Allocation and Distribution, a copy of which may be obtained at the Case Documents page on this website.

    Sub-Class 1 Payments: Relying upon Discovery Information and Class Counsel’s Litigation Risk Analysis, the Settlement Administrator developed a model to calculate the asserted damages for the Sub-Class 1 Claim Period and the distribution of the Net Sub-Class 1 Payments at the Class Well level (the “Distribution Model”). Utilizing the Distribution Model, the Sub-Class 1 Gross Payment was allocated by gathering system or claim as follows:

    $  3,914,120.31 - Woodford Shale Gathering System

    $  6,656,720.84 - Matli Gathering System

    $11,199,530.85 - Eagle Chief Gathering System

    $21,427,238.03 - Other Third-party Owned Gathering Systems

    $  4,443,748.18 - Waste or Skim Oil Claim

    $  2,158,641.79 - Additional Consideration on Oil Sales

    $49,800,000.00 - Total Gross Sub-Class 1 Payment

     

    The Settlement Administrator shall determine the Net Sub-Class 1 Payment by subtracting the award of Attorneys’ Fees and Expenses and possible gross production taxes due, if any, and thereafter proportionately reduce the Sub-Class 1 Gross Payment by System or Claim Allocation to determine the “Sub-Class 1 Net Payment by System or Claim Allocation”.

    With due consideration given to various production characteristics, such as volume of production, timing of production, and the other factors utilized in constructing the Settlement Administrator’s Damage Model, the Settlement Administrator shall further allocate each of the resulting Sub-Class 1 Net Payment by System or Claim Allocations to each Class Well determined to be connected or related to that system or claim.  The Settlement Administrator shall then provide to Continental a report of the Sub-Class 1 Net Payment by System or Claim Allocation to the Class Well level and submit it to the Court for approval.

    Utilizing the report of the Sub-Class 1 Net Payment by System or Claim Allocation to the Class Well level provided by the Settlement Administrator, Continental shall distribute the Net Sub-Class 1 Payments to the Eligible Sub-Class 1 Members based upon the member’s decimal interest in a Class Well as identified in Continental’s royalty payment accounting system.

     

    Sub-Class 2 Payments: A similar procedure to the Sub-Class 1 Payments will be used for the Sub-Class 2 Payments, except Continental shall calculate the Sub-Class 2 Payment due to the Sub-Class 2 Members based on the gathering charges deducted during Claim Period 2 as they were identified and accounted for on Continental’s payment system. Continental shall then add 9% simple interest to the Claim Period 2 adjustment and provide Class Counsel a report containing information sufficient to verify the Gross Settlement Payments for Claim Period 2 and submit it to the Court for approval.

    After obtaining Court approval of the Gross Settlement Payments for Claim Period 2, Continental shall proportionality reduce the Sub-Class 2 Payments by the Attorney’s Fees and Expenses awarded by the Court for Claim Period 2 and distribute to Sub-Class 2 Members through Continental’s normal payment system the Net Sub-Class 2 Payments.

     

    You should periodically check this website for updated information on the allocation and distribution process.

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  24. How do I get more information about the Litigation, the Settlement or my Rights and Options?

    This Notice contains only a summary of the Class Action Litigation and the proposed Settlement.  The pleadings and orders filed in the case are in the Court Clerk’s file which may be inspected during regular business hours at the Office of the Court Clerk, Blaine County Courthouse, Watonga, Oklahoma.

    If you would like to obtain more information about the Class Action Litigation, the Settlement, or have questions about your rights and options, the following sources are also available to you:

    •  You may email specific questions to: info@StrackvsContinental.com;

     

    • You may call Toll Free  1-866-666-6721;

     

    • You may write to:                

    Strack v. Continental Notice Administrator

    c/o KCC Class Action Services

    P.O. Box 404041

    Louisville, KY 40233-4041

     

     PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE FOR INFORMATION. 

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