Got a letter from some attorneys telling me that Ovintiv has agreed to pay well royalty holders for wells in McClain Co. Ok. Anyone know what this is about. The attorney letter was less than forthcoming about any details. We have received royalty checks from Ovintiv for some time.
Did the letter mention a court case? If so, then you can look the case up online. You will probably get notices from the case and can read up on the details. These sorts of letters usually deal with late payments of royalties, failure to pay interest in a timely fashion or something like that. Not having the letter, cannot really say much else.
Hello Gary and Martha - My wife and I have both received the notice. Our mineral interests relevant to this case are in Hughes and Pittsburg Counties.
The case website is https://www.swafford-ovintiv.com Many presentations at OK-NARO conferences over the past few years have focused on the issues raised in this case related to the Marketable Condition Rule in Oklahoma law. If you are interested, see the Important Documents on the website, Stipulation and Agreement of Settlement, Exhibit 6 at page 84 of the document, and especially beginning at item 15, page 87 and following. I include the following short quote.
“15. The questions of fact or law common to Plaintiff and the Class include, without limitation, one or more of the following: a. Whether the Trust and members of the Class are beneficiaries of the implied Marketable Condition Rule (MCR), which requires Ovintiv to sever the gas from the ground and to prepare the gas for market at Ovintiv’s sole expense…”
In the remainder of the Exhibit is discussion of GAS INDUSTRY BACKGROUND, The Lessor-Lessee Relationship, Residue Gas, Helium, Nitrogen and Natural Gas Liquids Production, Wellhead (Basic Separation and Gas Measurement), Midstream Services (GCDTP) Deductions, Natural Gas Processing, Marketable Condition for the Products, Sale of Products, Different Ways Ovintiv Underpays Royalty Owners, CAUSE OF ACTION BREACH OF LEASE, and PRAYER FOR RELIEF.
This settlement seems to illustrate why the offending companies will try at almost any cost to avoid a trial verdict which might establish case law upholding the rights of mineral owners. I am not an attorney, only a mineral interest owner.
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Laws are made by lawyers to benefit lawyers.
The Swafford/Ovintiv case is moving along, and the court very recently approved the class action settlement. The settlement provides for actual cash payments to mineral rights owners where Ovintiv was doing the production. If you dig into the plan of distribution, you can look up how much approximately you should get paid, you just need to know your Ovintiv owner number.
I’ve already been paid.
Todd – When did you get paid on the Swafford settlement? I’m assuming a check just showed up to whatever address that Ovintiv had on file for you?
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