Spieker et al. v. PostRock Midcontinent Production, LLC, successor by merger to Quest Cherokee, LLC

Spieker et al. v. PostRock Midcontinent Production, LLC, successor by merger to Quest Cherokee, LLC, United States District Court for the District of Kansas, Case No. 07-CV-1225-EFM

Plaintiffs filed this action on August 3, 2007 against Quest Cherokee, LLC, now known as PostRock Midcontinent Production, LLC (“Quest/PostRock”).

Plaintiffs alleged that Quest/PostRock had underpaid royalty and overriding royalty in a variety of ways. Quest/PostRock denied the claims and raised various defenses in response.

On November 25, 2011, the parties to the lawsuit executed a Settlement Agreement.

On November 29, 2011, the Court entered an Order which directed that Notice be mailed to the Plaintiff Class and published, and that a Settlement Fairness Hearing be held on December 30, 2011, at 1:00 p.m. at the U.S. Courthouse, 401 N. Market St., Courtroom 408, Wichita, Kansas, for the purpose of determining whether the Settlement Agreement should be approved and addressing other issues set forth in the Notice.

On December 2, 2011, Quest/PostRock mailed a copy of the Notice of Class Action and Proposed Settlement to each member of the Class, as defined in the Settlement Agreement, at the most recent address known to Quest/PostRock.

On December 30, 2011, the Court held a Settlement Fairness Hearing and entered a Settlement Order and Judgment approving the settlement.

On January 31, 2012, the Court granted Quest/PostRock’s Motion to Alter or Amend the Judgment to allow it to postpone distribution of the first settlement payment, while Quest/PostRock gives statutorily-required notice to appropriate state and local officials about the settlement. The Court’s Order requires Quest/PostRock, no later than February 3, 2012, to pay the funds for the first settlement payment to the Clerk of the Court, who will deposit them in an interest-bearing escrow account for 90 days. At that time, the funds will be returned to Quest/PostRock for distribution, with all of the accrued interest to be distributed to Class Members.

On February 2, 2012, Quest/PostRock deposited Payment No. 1 with the Clerk of the Court.

On May 17, 2012, the Court released the settlement funds to Post Rock.

On May 23, 2012, Post Rock mailed checks to the Class Members for their share of Payment No. 1.

Copies of significant pleadings in the lawsuit may be accessed by clicking the Case Developments Page.

Click here to view the Amended Final Distribution Schedule showing the net amounts to be paid to Members of the Class, including interest earned on Payment No. 1, payment of administrative expenses and attorney fees and expenses awarded by the Court, and after redistribution of amounts previously allocated to persons who opted out of the Class. Please Note: You may have more than one royalty owner ID number, and you will need to scroll to the right to view the entire Final Distribution Schedule.

Click here to view a brief explanation of the different categories of leases and overrides and the manner in which royalties will be calculated and paid in the future.

The firm has extensive experience representing plaintiffs in class action litigation, primarily – but not exclusively – in the area of oil and gas. The firm has obtained favorable judgments and has also negotiated favorable settlements in cases involving tens of millions of dollars in damages. This experience encompasses not only court litigation but also class action arbitrations.


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