If you received a Notice, it is because you may be a member of the Settlement Class in the Litigation. Payment history and suspense records reflect that you have received payments from Defendant (or someone paying proceeds on Defendant’s behalf) for oil and gas production proceeds from oil and gas wells in Oklahoma during the Claim Period (as defined in the Settlement Agreement and in the answer to FAQ 13) or that suspense funds or unclaimed property funds associated with your interest were held by Defendant or paid to states. The Court caused the notice to be sent to you because, if you fall within this group and are not otherwise excluded from the Settlement Class, your rights will be affected and you have a right to know about the proposed Settlement, and about all of your options, before the Court decides whether to approve the Settlement. If the Court approves it, after any objections and appeals are resolved, the Court-appointed Settlement Administrator will cause payments to be made to Class Members in accordance with the Settlement Agreement.

The Notice package describes the Litigation, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. The Notice is not intended to be, and should not be construed as, an expression of any opinion with respect to the merits of the allegations in the Petition or Complaint filed in the Litigation. The Notice explains the claims being asserted in the Litigation, explains the Settlement, explains your right to remain a member of the Settlement Class (see FAQ 13), explains your right to opt out of the Settlement Class and be excluded from the Settlement (see FAQ 14), and explains your right to object to the Settlement (see FAQ 19).

The Court in charge of this Litigation is the United States District Court for the Northern District of Oklahoma. The persons prosecuting this Litigation on behalf of the Class are called the “Plaintiffs” and the company they are suing is called the “Defendant.”  This case, also called the “Litigation,” is known as Chieftain Royalty Company, et al. v. BP America Production Company, Case No. 18-cv-54-JFH-JFJ.

The Litigation seeks damages for Defendant’s alleged failure to pay statutory interest on payments made by Defendant (or on behalf of Defendant) outside the time periods set forth in the Production Revenue Standards Act, 52 Okla. St. §570.1, et seq. (the “PRSA”) for oil and gas production proceeds from oil and gas wells in Oklahoma. The Litigation also seeks damages for Defendant’s alleged failure to pay or accrue such interest on proceeds held in suspense or paid to various states as unclaimed property. Specifically, in their Complaint, Plaintiffs allege Defendant: (1) failed to pay or accrue statutory interest on payments made outside the time periods set forth in the PRSA, proceeds paid to various state agencies as unclaimed property, and proceeds held in suspense; (2) wrongfully awaited a demand prior to paying statutory interest under the PRSA; (3) misrepresented and/or omitted the amount of statutory interest owed; and (4) is liable to Class Members for breach of the PRSA, breach of the duty to investigate and pay, fraud, deceit, constructive fraud, disgorgement, accounting, punitive damages, and injunctive relief.

Defendant denies any and all liability related to Plaintiffs’ allegations and further states that neither Plaintiffs nor any of the Class Members are entitled to the relief sought in the Litigation and further states that it would not be appropriate to award any type of damages (actual or punitive), an accounting, disgorgement, or injunctive relief to the Class Members. Defendant further denies it would be appropriate to certify a contested class based on the facts and claims at issue in the Litigation.

The Court has determined that Plaintiffs’ claims as royalty owners for Late Payments of Oklahoma Proceeds on gas or its constituents up through December 31, 2017, were released and precluded by the release and judgment in John Cecil v. BP America Production Co., No. 16-cv-410-KEW in the U.S. District Court for the Eastern District of Oklahoma.

A more complete description of the Litigation, its status, and the rulings made in the Litigation are available in the pleadings and other papers maintained by the United States District Court for the Northern District of Oklahoma, located at 333 W. 4th St., Tulsa, Oklahoma 74103, in the file for Case No. 18-cv-54-JFH-JFJ. Some of the relevant pleadings are located at the Important Documents page. Should you have questions regarding the status, rulings or issues in the Litigation, such questions can be submitted as set forth in FAQ 26.

In a class action, one or more plaintiffs sue on behalf of people who have similar claims.  All of the individuals and entities on whose behalf the plaintiffs are suing are class members. One court resolves the issues for all class members, except for those who choose to exclude themselves from the class. Here, United States District Judge John H. Heil, III, is presiding over the Litigation.

The Court has not reached a final judgment as to whether the Settlement Class could be certified as a contested class action or that Plaintiffs have proved or can prove their claims against the Defendant. It could take several more years before a contested class certification proceeding and trial on the merits could be held, final judgment entered, and appeals exhausted. Instead, Plaintiffs and Defendant have agreed to the Settlement in order to resolve the Litigation. In reaching the Settlement, both sides have avoided the risk, cost and time of a trial, and Plaintiffs have avoided any further delay in resolving the Litigation. In addition, as with any litigated case, Plaintiffs would face an uncertain outcome if this Litigation went to trial. On the one hand, a trial could result in a verdict greater than the Settlement. However, Defendant has asserted many defenses, and a trial could result in a judgment in favor of Defendant on class certification and liability or a verdict lower than the Settlement Amount that Plaintiffs have obtained, or even no recovery at all for Plaintiffs and the Class Members. Based on these factors and others, Plaintiffs and Plaintiffs’ Counsel believe the Settlement is best for all Class Members.

The Settlement Class consists of the following individuals and entities, subject to the exceptions listed in the answer to FAQ 7:

All non-excluded persons or entities:

1. who received during the Claim Period a Late Payment from Defendant (or Defendant’s designee) of Oklahoma Proceeds and whose payments did not also include the statutory interest prescribed by the PRSA;
2. whose Oklahoma Proceeds were, during the Claim Period, paid over by Defendant (or Defendant’s designee) to various state agencies as unclaimed or abandoned property without the payment of statutory interest prescribed by the PRSA; or
3. who, during the Claim Period, were legally entitled to Oklahoma Proceeds held by Defendant (or Defendant’s designee) in suspense accounts for more than the applicable time periods prescribed in the PRSA without the payment by Defendant (or Defendant’s designee) or earning/accruing of statutory interest prescribed by the PRSA for the benefit of such owners.

The persons or entities excluded from the Class are: (1) agencies, departments, or instrumentalities of the United States of America; (2) Commissioners of the Land Office of the State of Oklahoma (CLO); (3) publicly traded oil and gas companies and their affiliates; (4) persons or entities (and their affiliates) who are the Oklahoma Corporation Commission (OCC) designated operator of more than fifty (50) Oklahoma wells in September 2018; (5) persons or entities that Plaintiffs’ counsel ethically are prohibited from representing under Rule 1.7 of the Oklahoma Rules of Professional Conduct, which Plaintiffs affirmatively represent includes, but is not limited to, Charles David Nutley, Danny George, Dan McClure, Kelly McClure Callant, William L. Galbreath, Verdeen L. Slatten, Jack A. Slatten, Verdeen L. Slatten Family Limited Partnership, Neva M. Dorman, Ann Ellis Boles, Fischer-Jones, LLC, B.N. Taliaferro, Jr. individually and as Trustee of the B. N. Taliaferro Management Trust, Jack B. Searle, Tamara D. Searle, OGI, Inc., and their relatives; (6) officers of the Court; and (7) owners in regard to whom Defendant is required by the PRSA to pay proceeds annually for the 12 month accumulation of proceed totaling less than $100.00, provided however, this exclusion of so-called “minimum pay” owners does not apply to interest claims for other 12 month periods accumulations of proceeds when the same owner was entitled to $100 or more and thus not in a “minimum pay” status.

Also, you will not be a Class Member if you exclude yourself from the Settlement Class by submitting a valid and timely request for exclusion in accordance with the requirements set forth in the Notice and in the Settlement Agreement. The procedure for requesting exclusion from the Settlement Class is described below in FAQ 14.

If you are still not sure whether you are included, you can ask for help, which will be provided to you at no cost. You can call the Settlement Administrator at 1-855-918-6072, e-mail info@chieftain-bp.com, or write to the following address:

Chieftain-BP Settlement
c/o JND Legal Administration, Settlement Administrator
PO Box 91437
Seattle, WA 98111

In consideration of the Settlement, Defendant has agreed to pay $15,000,000.00 in cash.  See the Settlement Agreement for full details.

The Settlement, if approved, will result in the dismissal of the Complaint against Defendant and the release by all Class Members of all the Released Claims the Releasing Parties have or may have against the Released Parties, as defined in FAQ 13. The Net Settlement Fund will be distributed to the Class Members who are not excluded from the Settlement Class in accordance with the provisions of the Allocation Methodology and Final Plan of Allocation, which is explained in FAQ 10.

The Net Settlement Fund shall be allocated to Class Members on the following basis:

Plaintiffs’ Counsel shall, subject to Court approval, allocate the Net Settlement Fund to individual Participating Class Members proportionately based on the amount of statutory interest allegedly owed on the original underlying suspended proceeds or payment that allegedly occurred outside the time periods required by the PRSA, with due regard for the production date, the date the underlying payment was made, the amount of the underlying payment, the time periods set forth in the PRSA, any applicable statute of limitations, any previously granted releases or precluded claims, whether or not Defendant’s records provided in this Litigation identify a Late Payment of Oklahoma Proceeds caused by Defendant without payment of statutory interest, any additional statutory interest that Plaintiffs’ Counsel believes has since accrued, and the amount of interest or returns that have accrued on the Participating Class Member’s proportionate share of the Net Settlement Fund during the time such share was held in the Settlement Account.  No distributions will be made to Class Members who would otherwise receive a distribution of less than $10.00 under the Initial Plan of Allocation.  This allocation is subject to modification by Plaintiffs’ Counsel and final approval by the Court.

If you have questions about the tax consequences of participating in the Settlement, you should consult with your own tax advisor.

If you do not exclude yourself pursuant to the procedure set forth in FAQ 14, YOU DO NOT NEED TO TAKE ANY ACTION WHATSOEVER to receive your portion of the Net Settlement Fund (if any).

Payment to Class Members is contingent on several factors, including the Court’s approval of the Settlement and that approval becoming final and no longer subject to any appeal to any court, as set forth more specifically in paragraph 1.14 of the Settlement Agreement.

The Net Settlement Fund will be distributed by the Settlement Administrator as soon as reasonably possible after final approval has been obtained for the Settlement and any appeals are exhausted. The Settlement Agreement specifies deadlines for distributing the Net Settlement Fund. Any appeal of final approval could take well in excess of one year. It is not anticipated that any meaningful interest will accrue on the Net Settlement Fund. The Settlement may be terminated on several grounds, including if the Court does not approve or modifies material terms of the Settlement. If the Settlement is terminated, the Litigation will proceed as if the Settlement had not been reached.

Information about the progress of the Settlement will be posted on the front page of this website. You may also receive information about the progress of the Settlement by calling 1-855-918-6072 or writing to:

Chieftain-BP Settlement
c/o JND Legal Administration, Settlement Administrator
PO Box 91437
Seattle, WA 98111

Unless you exclude yourself from the Settlement Class, if the Settlement is approved, you will be a Participating Class Member. As a Participating Class Member, you will receive any portion of the Net Settlement Fund allocated to you and will be bound by all orders and judgments entered by the Court regarding the Settlement. If the Settlement is approved, you will not be able to sue, continue to sue, or be part of any other lawsuit against any of the Released Parties concerning any of the Released Claims.

Release

If the Court enters a final order approving the Settlement, all Class Members, on behalf of the “Releasing Parties,” will release any “Released Claims” they have or may have against the “Released Parties.” This means that if you remain a member of the Settlement Class, any and all claims related to underpaid and unpaid interest for oil or gas proceeds during the Claim Period will be released and discharged.

“Claim Period” means July 1, 1992, through March 31, 2021.

“Released Claims” means any and all claims and damages that were asserted in the Litigation or which could have been asserted in the Litigation relating to the transactions and occurrences which were the subject of the Litigation, including without limitation all claims (a) relating to payments of Oklahoma Proceeds made during the Claim Period (whether arising under oil and gas leases, pooling orders, unitization orders, and/or other agreements, and including royalty interests, overriding royalty interests, working interests, and/or any other type of interest) expressly including, Late Payments, suspended proceeds and unclaimed proceeds paid to various States; (b) for injuries, damages and/or PRSA or other statutory interest or remedies related to or arising from: (i) Late Payments of Oklahoma Proceeds to Class Members or any of their predecessors, successors, or assigns, during the Claim Period, (ii) Oklahoma Proceeds held in suspense by Defendant during the Claim Period, or (iii) Oklahoma Proceeds paid to various States during the Claim Period as unclaimed property, where such payments or suspended proceeds described above did not include the correct amount of interest under the PRSA or any other applicable statute or regulation, (c) that a Participating Class Member has or may have or be entitled to under the PRSA, and (d) for breach of duty to investigate and pay, fraud, deceit, constructive fraud, accounting, disgorgement, and injunctive relief. Released Claims includes those claims relating to such payments or holding of proceeds in suspense by Defendant, regardless of whether Defendant paid or held such funds on its own account or on account of third parties, but only as to statutory interest that was earned, accrued or became due during the time Defendant held such proceeds or at the time Defendant paid such suspended proceeds to a successor-in-interest. Released Claims do not include claims for statutory interest which accrue on suspended proceeds after the contractual date/time of Defendant’s transfer of the suspended proceeds to a successor-in-interest, i.e., for statutory interest which accrues on the suspended proceeds for the time period that the successor-in-interest holds such proceeds. As used in this paragraph, “claims” include without limitation any assertion, allegation, claim, demand, right, debt, request for payment, cause of action, liability, loss, damage (including without limitation incidental, consequential, exemplary, or punitive damages), deficiency, remedy, judgment, lien, injunction, penalty, cost, expense, attorney fee, interest, suit, or proceeding of every kind, at law or in equity, in contract or tort, regardless of whether any of the foregoing are asserted or unasserted, now known or hereinafter discovered, matured or unmatured, or accrued, contingent, or potential, and regardless of whether any of the foregoing have resulted now or could result in the future in the commencement of a lawsuit, filing of a claim, or legal proceeding of whatsoever kind, and regardless of whether any of the foregoing have resulted now or could result in the future in a final and appealable order, ruling, or judgment. The release of Released Claims will be effective as against a Releasing Party without regard to whether a Releasing Party actually received a payment from the Net Settlement Fund and without regard to whether any payment received was correctly determined.

Certain of the Released Claims may have already been released or precluded by the Cecil Judgment as noted in the Judgment and in the Settlement Agreement. This Judgment fully and finally releases all of the Released Claims regardless of whether or not such claims were or were not included in the Cecil Judgment.

“Released Parties” means Defendant, its parent, affiliated, and subsidiary companies, and each of their respective former and present officers, directors, shareholders, members, managers, owners, partners, employees, agents, servants, attorneys, insurers, predecessors, successors, and assigns. Defendant’s affiliated companies include but are not limited to the entities listed on the Settlement Agreement Exhibit 6.

“Releasing Parties” means Plaintiffs and all Participating Class Members and their heirs, successors and assigns, without regard to whether a Participating Class Member actually received a payment from the Net Settlement Fund, and without regard as to whether any payment was correctly determined.

The deadline to exclude yourself from the Settlement Class has passed. To exclude yourself from the Settlement Class, you had to send by mail a written statement that you wanted to be excluded from the Settlement Class so that it was received by the Settlement Administrator by no later than February 4, 2022.

No. Unless you excluded yourself from the Settlement Class in connection with the Litigation, you (and any other Releasing Parties) give up any right to sue any or all of the Released Parties for any Released Claims. If you have a pending lawsuit or arbitration against Defendant or any of its officers and/or directors or any other Released Parties, speak to the lawyer representing you in that case immediately. You must exclude yourself from this Settlement Class to continue your own lawsuit or arbitration against any of the Released Parties.

No. If you excluded yourself from the Settlement Class, you may be able to sue, continue to sue, or be part of a different lawsuit or arbitration against the Released Parties, but you will not receive any money from the Settlement discussed in the Notice.

The law firms of (a) Nix Patterson, LLP (b) Ryan Whaley Coldiron Jantzen Peters & Webber, PLLC; (c) Barnes & Lewis, LLP; and (d) Whitten Burrage, represent the Plaintiffs and all other Class Members in this Litigation. These lawyers are called Plaintiffs’ Counsel. You will not be charged directly by these lawyers. If the Court authorizes it, these lawyers will be paid in accordance with FAQ 18. If you want to be represented by your own lawyer, you may hire one at your own expense.

Plaintiffs’ Counsel intends to seek an award of attorneys’ fees of up to $6,000,000.00, to be paid out of the Gross Settlement Fund. Plaintiffs’ Counsel has been litigating this case for over three years without any payment whatsoever. At the Final Fairness Hearing, Plaintiffs’ Counsel will also seek reimbursement from the Gross Settlement Fund of the Litigation Expenses incurred in connection with the prosecution of this Litigation, and which will be incurred through final distribution of the Settlement, which amount will not exceed $600,000.00, and Administration, Notice, and Distribution Costs up to $400,000.00. Plaintiffs intend to seek Case Contribution Award(s) relating to their representation of the Settlement Class, taking into account Plaintiffs’ time, effort, risk and burden, up to $150,000.00.

The deadline to object to the Settlement has passed. To object to the Settlement, you had to file a written statement with the Court saying that you object to the proposed Settlement no later than February 4, 2022.

Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you are a Participating Class Member. Excluding yourself is telling the Court that 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.

The Court will hold a Final Fairness Hearing on February 25, 2022, at 1:30 p.m. CT, at the United States District Court for the Northern District of Oklahoma, 333 W. 4th St., Tulsa, Oklahoma 74103. Please note that the date of the Final Fairness Hearing is subject to change without further notice. If you plan to attend the hearing, you should check with the Court and this website to be sure no change to the date and time of the hearing has been made. At this hearing, the Court will consider whether the Settlement is fair, reasonable and adequate. If there are objections, the Court will consider them at that time. After the Final Fairness Hearing, the Court will decide whether to approve the Settlement, the Allocation Methodology, and the Plan of Allocation. The Court will also rule on the request for attorneys’ fees and litigation expenses by Plaintiffs’ Counsel and the request for Case Contribution Award for Plaintiffs relating to their representation of the Settlement Class. We do not know how long it will take the Court to make these decisions.

No. Plaintiffs’ Counsel will answer any questions the Court might have for the Settlement Class. But you are welcome to come at your own expense. If you timely and properly file and serve an objection (see Answer to FAQ 19), you do not have to come to Court to talk about it. As long as you properly file and serve your written objection on time, it will be before the Court when the Court considers whether to approve the Settlement as fair, reasonable and adequate. You also may pay your own lawyer to attend the Final Fairness Hearing, but attendance is not necessary. However, if you fail to timely and properly file and serve an objection, you will not be entitled to be heard at the Final Fairness Hearing regarding any objections.

If you are a Class Member who has not requested to be excluded from the Settlement Class, you may ask the Court for permission to speak at the Final Fairness Hearing. To do so, in addition to all of the requirements for objections set forth in FAQ 19, you must state in your objection that you intend to appear at the Final Fairness Hearing and that you request permission to speak at the Final Fairness Hearing, and you must provide the following additional information in your objection:

1. A list of any witnesses you wish to call at the Final Fairness Hearing, together with a brief summary of each witness’s expected testimony (to the extent you desire to offer expert testimony and/or an expert report, any such evidence must fully comply with the Federal Rules of Civil Procedure, Federal Rules of Evidence, and the Local Rules of the Court);
2. A list of and copies of any exhibits you may seek to use at the Final Fairness Hearing; and
3. A list of any legal authority you may present at the Final Fairness Hearing.

If you wish to speak at the Final Fairness Hearing the above information must be included in your objection and filed with the Court no later than February 4, 2022. You cannot speak at the Final Fairness Hearing if you exclude yourself from the Settlement Class.

You must also serve the above information on Plaintiffs’ Counsel and Defendant’s Counsel at the addresses shown in FAQ 19.

If you do nothing and you are a Class Member, you will receive payment in connection with the Settlement as explained in FAQ 10 if you are entitled to a distribution pursuant to the Allocation Methodology and Final Plan of Allocation, and you will be bound by the Settlement. Unless you exclude yourself from the Settlement Class, neither you nor any other Releasing Party will be able to start a lawsuit or arbitration, continue a lawsuit or arbitration, or be part of any other lawsuit or arbitration against any of the Released Parties based on any Released Claims.

The Notice summarizes the Settlement. The complete terms of the Settlement are set out in the Settlement Agreement and the documents referenced therein and attached thereto. You may obtain a copy of the Settlement Agreement, as well as other documents, from the Important Documents page or you may request copies by writing to Chieftain-BP Settlement, c/o JND Legal Administration, Settlement Administrator, PO Box 91437, Seattle, WA 98111. If you elect to obtain copies from a source other than this website, there may be a charge to you for copying and mailing such documents. The Settlement Agreement also is filed in Chieftain Royalty Co., et al. v. BP America Production Co., Case No. 18-cv-54-JFH-JFJ, with the Clerk of the United States District Court for the Northern District of Oklahoma, 333 W. 4th St., Tulsa, Oklahoma 74103, and may be obtained from the Clerk’s office directly. Further information regarding the Litigation and the Notice may be obtained by contacting Plaintiffs’ Counsel.

All inquiries concerning the notice or any other questions by Class Members should be directed to the Settlement Administrator as follows:

Chieftain-BP Settlement
c/o JND Legal Administration, Settlement Administrator
PO Box 91437
Seattle, WA 98111

Toll Free: 1-855-918-6072

Email: info@chieftain-bp.com

PLEASE DO NOT CONTACT THE COURT REGARDING THE NOTICE.