Diamondback E&P Reaches $11.9 Million Settlement

The recent settlement involving Diamondback E&P LLC, Diamondback Energy, Inc., and Energen Resources Corporation has created a buzz among royalty owners who have leased their Texas wells to these entities. A substantial settlement fund has been established to compensate for alleged discrepancies in royalty payments. If you're one of the affected royalty owners, this article will guide you through the details of the settlement, how you may benefit, and the steps you need to take to claim your share.

Who Benefits?: Royalty owners who were paid by the Diamondback entities for Texas wells during the claim period.

How much can I get?: A portion of the $11,975,580 Gross Settlement Amount, subject to deductions for legal and administrative expenses.

Important Dates

• Fairness Hearing: Scheduled for March 27, 2024, at 3:00 p.m.
• Deadline to File a Claim: The official settlement website does not specify a claim deadline, indicating that the details may still be under development or pending court approval.

Identifying Eligible Class Members

The settlement class is defined by specific criteria, including the operation period of the Texas wells and the presence of particular clauses in the oil and gas leases. The class includes:

• Royalty owners in Texas wells operated by the Diamondback entities from April 1, 2011, to July 31, 2023.
• Those with leases containing the off-lease use of gas royalty clause or the on-lease free use clause.

Exclusions apply to certain entities such as government agencies, the Diamondback entities themselves, and others outlined in the official settlement notice.

Understanding the Settlement Awards

The settlement provides financial compensation to the affected class members. The Gross Settlement Amount will be reduced by legal fees, administrative costs, and an incentive award to the named plaintiff, resulting in the Net Settlement Amount for distribution.

• Tier 1: Royalty owners with specific lease clauses as per the settlement agreement.
• Tier 2: Other affected royalty owners who meet the qualifying criteria.

The Allegations Behind the Settlement

The litigation centers around the alleged improper handling of royalty payments for natural gas and related hydrocarbons. The Diamondback entities have denied wrongdoing, but the settlement aims to resolve these claims without further court proceedings.

• Natural gas production
• Natural gas liquids production
• Associated hydrocarbons production

Is Proof Required to Claim the Reward?

Claimants are typically expected to demonstrate their eligibility according to the Settlement Agreement. Specific requirements for proof may be detailed in the claim submission process.

How to Claim Your Award

To claim your award, you must identify yourself as a Settlement Class Member and follow the instructions on the official settlement website. This process may involve submitting a claim form or other necessary documentation.

For further guidance, regularly check the official settlement website or this page for updates.

Analyzing the Settlement Fund

The $11,975,580 Gross Settlement Amount represents the total fund available for distribution. This figure was negotiated between the parties and is subject to court approval. The allocation methodology will determine the exact distribution to each eligible class member.

The Rationale for the Class Action Settlement

The settlement is the result of a class action lawsuit intended to compensate royalty owners without continuing litigation. After the Final Fairness Hearing, if the court approves the settlement, the process will move forward to the claims stage and eventual distribution of funds to class members.