OKLAHOMA CITY (AP) — Oklahoma’s landscape is in constant motion with the activity of oil wells, their seesaw-like movements pumping oil and natural gas to the surface and fueling the state’s economy.
Oil wells also are a source of income for hundreds of thousands of Oklahomans who own royalty and mineral rights.
Those who profit from their operation say legislation awaiting Gov. Brad Henry’s signature could affect their ability to recoup royalties withheld by unscrupulous
producers.
The legislation concerns class-action lawsuits and is part of a massive civil justice measure that also caps non-economic damages, also known as pain and suffering, in negligence lawsuits, provides liability protection to educators and makes other changes in Oklahoma’s civil justice system.
Royalty owners are concerned about a small change the measure would make to require litigants to “opt in” to a class-action lawsuit to become eligible to recoup unpaid royalties.
Under existing law, class members are automatically included in a class-action lawsuit and must formally notify the court if they want to “opt out.”
Supporters of the rule change say that means residents can become involved in a class-action lawsuit without their knowledge or consent.
The change would make Oklahoma the only state in the nation with an “opt in” provision for class-action lawsuits.
Royalty owners and the attorneys who represent them say it could dramatically affect their ability to take oil and gas producers to court when they improperly withhold royalty payments.
“These people are going to drive a stake through class-action lawsuits,” said Butch Whitten, a petroleum landman in Duncan who also is a royalty and mineral owner.
“The ultimate impact is that people will not be able to seek redress in the courts,” Whitten said.
“It’s a way to prevent people from going to the courthouse,” said Robert Barnes, an oil and gas attorney in Oklahoma City who has represented hundreds of royalty owners in class-action lawsuits against oil and gas
producers.
Barnes said the measure is an attempt by large oil companies to head off lawsuits in which they could owe millions of dollars in unpaid royalties.
“There are probably many good oil companies that have absolutely nothing to hide,” Barnes said.
“I don’t want to give the guys who cheat an unfair economic advantage over those who don’t.”
Royalty owners are urging Henry to veto the bill in letters and telephone calls.
The bill was approved by the House and Senate largely along party lines, with Republicans voting for it and most Democrats voting against.
“We’ve been getting a lot of calls on tort reform and a lot of them have been royalty owners,” said Henry’s communications director, Paul Sund.
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Royalty owners support ‘opt-in’ rule
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