Kevin L. Jeter, et al. v. Bullseye Energy, Inc., et al.
Jeter v Bullseye Energy
Case No. 12-CV-411-TCK-PJC

Frequently Asked Questions

 

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  • A class action is a type of lawsuit in which a group of people collectively assert a common claim against a Defendant. The named Plaintiffs initiate the Lawsuit on behalf of other "similarly situated persons," also known as the "Proposed Class." The class action lawsuit permits damages and other relief to be considered without the necessity of each person incurring the expense of filing a separate lawsuit or joining in the Lawsuit. The orders and judgments in the case are then binding on all Class Members.

  • Defendants’ records reflect that you have been paid royalties on natural gas produced from a well(s) located in the counties of Nowata or Washington, State of Oklahoma. You were therefore sent the Notice of Settlement because you may be a member of the Class. The Notice of Settlement explains the Lawsuit, the Settlement, and your legal rights.  To view the detailed Notice of Settlement, please visit the Important Documents page.

  • The Class Representatives claim that the Defendants have underpaid royalties from wells located in the Counties of Nowata and Washington, State of Oklahoma. The Class Representatives assert that Bullseye and CEP breached the lease: contracts, including the implied duty to market the gas, and breached a fiduciary duty allegedly owed to its royalty interest owners. The Class Representatives further claim that Bullseye has not reported royalty payments correctly, in violation of the Oklahoma Production Revenue Standards Act (“PRSA”), and has misrepresented certain information related to its royalty payments. The full and other allegations made against the Defendants are set out in the pleadings available to view on the Important Documents page.

    Defendants deny the Class Representatives' claims, and deny any liability to the Class Representatives or to any members of the class. Defendants contend that royalties were calculated in conformance with the terms of the applicable oil and gas leases and that they complied with the PRSA and all other applicable law. Defendants claim that many of the claims are a barred by the statute of limitations. The full contentions and other defenses of the Defendants are set out in the pleadings available to view on the Important Documents page.

  • After a thorough analysis of all claims and defenses, and after extensive negotiations between the parties, the Class Representatives and Defendants agreed to settle and release the released claims as to the released parties under the terms set forth in the Settlement Agreement. The purpose of the Settlement Agreement is to compromise and settle protracted, complicated, and expensive litigation. In reaching this Agreement, the Class Representatives in no way conceded the viability of their claims, and Defendants in no way admitted liability. By giving notice, the Court is not expressing any opinion regarding the merits of either the Class Representatives' claims or Defendants’ defenses.

    The Court entered a Preliminary Order approving the Settlement Agreement on March 21, 2018. Within twenty (20) business days after the Court's Preliminary Order, Bullseye and CEP were required to deposit the settlement amount of $700,000.00 (seven hundred thousand dollars) into the Jeter Settlement Account. Following notice, the Fairness Hearing, and a final and non-appealable order, the ultimate distribution of the settlement amount shall be in accordance with the Plan of Allocation and Distribution attached to the Settlement Agreement and approved by the Court, at which time the Lawsuit will be concluded as to the claims and defenses between Class Representatives and the Defendants. To view the Settlement Agreement and Preliminary Approval Order, please visit the Important Documents page.

  • Some of the primary terms of the Settlement Agreement, which the court is being asked to approve, are as follows:

    Bullseye and CEP will pay the settlement amount of $700,000.00 (seven hundred thousand dollars) as consideration for all Class Members releasing the Released Claims against the Released Parties and entering into a covenant not to sue (all as defined in the Settlement Agreement). In addition, Bullseye has agreed to calculate royalties payable to Class Members in the future, for a period of ten (10) years, based upon a substantial reduction in the fuel, compression and gathering fees previously being deducted when arriving at the price upon which royalties had been paid in the past.

    To view the Settlement Agreement in its entirety, please visit the Important Documents page.

  • Yes, excluded from the proposed Class are:

    1. Overriding royalty owners or other owners who derive their interest through the oil and gas lessee;
       
    2. Persons or entities who have settled or released the claims covered by the Petition and Complaints, as amended, filed with the Court;
       
    3. Federal, state and local governments, including agencies, departments, or instrumentalities of the United States of America or State of Oklahoma;
       
    4. Oil and gas exploration, production,and/or marketing and refining companies, and their affiliated entities; and
       
    5. Persons or entities that Plaintiffs' counsel is, or may be, prohibited from representing under the Oklahoma Rules of Professional Conduct; provided, however, that the term "Settlement Class" shall not include any putative members of the Settlement Class who timely and properly elect to opt-out of this settlement.
  • Class Counsel will seek (a) attorney fees in an amount not to exceed thirty percent (30%) of the total settlement value, (b) one Class Representative’s fee of no greater than twenty-one thousand dollars ($21,000.00), and (c) expert fees and litigation costs of no greater than one hundred seventy thousand dollars ($170,000.00). If the Court approves this request (in whole or in part), the amounts allowed by the Court will be deducted from the Settlement Amount. The Net Settlement Amount will then be distributed to the Class according to the Plan of Allocation and Distribution.

  • Subject to the Court's order approving the Settlement Agreement, including but not limited to the Plan of Allocation and Distribution, becoming Final and Non-Appealable, the Net Settlement Amount will be allocated to Class Wells based on a formula developed by Class Counsel's experts, and agreed to by Defendants, whereby the Net Settlement Amount will first be allocated to each of the Class Wells based in primary part upon consideration of (a) the type of royalty clause and lease language, if any, contained in the leases that addresses whether deductions are allowed or not, (b) the asserted monetary damages for each individual Class Well based on an adjustment for lease type, and (c) the total of all asserted monetary damages for all the Class Wells. The manner of allocation is based on the assumption that the alleged monetary damages attributable to the varying theories and claims for relief in the Lawsuit are in the same proportion, as to each Class Member, as the claims for alleged royalty underpayments, adjusted for lease type, in the Lawsuit. The individual Class Well portion of the Net Settlement Amount for each Class Well shall be allocated and distributed among Class Members owning royalty interests in the Class Well according to their respective royalty ownership, as adjusted for lease type. Distribution shall be pursuant to checks issued to the Class Members and payable out of the Jeter Settlement Account, subject to fair inquiry and correction.

  • If the Court does not approve the Settlement Agreement, or if the Court's order does not become Final and Non-Appealable, then the Settlement Agreement shall become null and void. If, for any reason, the Settlement Agreement becomes null and void, the parties will be restored to the positions they occupied prior to signing the Settlement Agreement, and the case will proceed as if the Settlement Agreement had not occurred.

  • If you choose to remain a Class Member, you do not need to take any action whatsoever. Class Counsel will continue to represent your interests as a member of the Class. You will not be charged for their services or costs, other than as may be deducted from the Settlement Amount, as approved by the Court. If you remain a Class Member, you may participate in any relief obtained on behalf of the Class by way of the Settlement Agreement. For this reason, you should notify Class Counsel (in writing at the address provided in question 14, below) of any corrections to, or changes in, your name or address.

    By taking no action, you will be bound by the Settlement Agreement, if approved by the Court. You are advised that the Class Representatives and Class Counsel believe that the proposed Settlement is in the best interest of the Class and, therefore, they intend to support the Settlement Agreement at the Fairness Hearing.

  • If you are a member of the Class, you may elect to be excluded from the Class ("opt out"). By opting out, you are electing not to participate in the Settlement Agreement. To opt out of the Class, you must notify Class Counsel and Counsel for the Defendants in writing no later than twenty (20) days before the Fairness Hearing. If you do not opt out of the Class in writing in a timely fashion, you will remain a Class Member and will be bound by any rulings, decisions, or judgments affecting the Class.

    To opt out of the Class, your letter must be postmarked or hand-delivered no later than twenty (20) days before the Fairness Hearing to both Class Counsel, c/o Robert Burton, the Burton Law Firm, First Place Tower, Suite 4022, 15 E. Fifth St., Tulsa, OK 74103, and Counsel for Defendants, c/o J. Kevin Hayes, Hall Estill, 320 South Boston Ave., Suite 200, Tulsa, OK 74103. Your letter should generally state as follows:

    I do not want to be a member of the Class in Kevin L. Jeter, et al., v. Bullseye Energy, Inc, et al., Case No. 12-cv-411-TCK (PJC), consolidated with Case No. 15-cv-455-TCK (PJC), in the United States District Court for the Northern District of Oklahoma. I understand that, by opting out of the Class, I will not share in the Settlement Amount. I further understand that it will be my responsibility to pursue any claim I may have, if I so desire, on my own and at my expense.

    Your letter must also state your full name and mailing address where you currently reside and, if available, where you received your royalty checks. The letter must be signed by you in order for your opt out of the Class to be effective.

    Note, you cannot opt out and object. If you attempt to opt out and object, the Court will disregard your objection and give effect to your opt out, so that you will no longer be able to participate in the Settlement. By opting out, you are electing not to participate in the Settlement.

  • You may remain a Class Member but still object to the proposed Settlement and/or the requested fees and costs as set forth above. If you object, you may retain your own attorney to represent you, at your own cost.

    In order to object, you must file a statement with Mark McCartt, Court Clerk of the United States District Court for the Northern District of Oklahoma within twenty (20) days before the Fairness Hearing. The statement should contain the following information:

    1. A heading referring to Kevin L. Jeter, et al., v. Bullseye Energy, Inc, et al., Case No. 12-cv-411-TCK (PJC), consolidated with James D. Enloe, et al., v. Bullseye Energy, Inc., et al., Case No. 15-cv-455-TCK (PJC), in the United States District Court for the Northern District of Oklahoma;
       
    2. Your name, address, telephone number, and the same information for your attorney (if any);
       
    3. A statement as to whether you intend to appear at the Fairness Hearing, either in person or through counsel, and, if through counsel, identifying counsel by name, address and telephone number;
       
    4. Your interest in the Class Wells and, if applicable, your owner number;
       
    5. A detailed statement of the specific legal and factual basis for each and every objection;
       
    6. A list of any witnesses you may call at the Fairness Hearing, together with a brief summary of each witness' expected testimony;
       
    7. A list and copies of any exhibits you may seek to use at the Fairness Hearing;
       
    8. A list of any legal authority you may present at the Fairness Hearing; and
       
    9. Your signature.

     

    Your statement must be received by the Court for filing no later than 4:30 p.m., at least twenty (20) days before the Fairness Hearing. You must also mail a copy of your statement to both Class Counsel, c/o Robert Burton, the Burton Law Firm, First Place Tower, Suite 4022, 15 E. Fifth St., Tulsa, OK 74103, and Counsel for Defendants, c/o J. Kevin Hayes, Hall Estill, 320 South Boston Ave., Suite 200, Tulsa, OK 74103.

    The Court will consider all valid written objections. If you fail to follow the specified procedure for objecting to the Settlement, or fee and expense requests, as set forth immediately above, you shall not be permitted to raise or pursue an objection at the Settlement Fairness Hearing.

  • The Fairness Hearing will be held on the 8th day of November, 2018 at 9:30 a.m., Judge Terence C. Kern presiding. The Fairness Hearing will be held in Courtroom No. 245 of the United States District Court for the Northern District of Oklahoma, located at 224 South Boulder Ave., Tulsa, Oklahoma 74103. You may be required to present a valid photo id and/or pass through a metal detector in order to enter the Courthouse. Additional information about the United States District Court for the Northern District of Oklahoma may be found at the following website: www.oknd.uscourts.gov.

  • Any questions concerning the Notice or the Lawsuit should be directed to Class Counsel:

    Robert Burton, OBA #14195
    The Burton Law Firm
    First Place Tower, Suite 4022
    15 East Fifth Street
    Tulsa, OK 74103
    (918) 607-4891
    robtburton@aol.com

    In any written correspondence with the Class Counsel, it is important that the envelope and any documents inside contain the following case name and identifying numbers for the Lawsuit: Kevin L. Jeter, et al., v. Bullseye Energy, Inc, et al., Case No. 12-cv-411-TCK (PJC), consolidated with Case No. 15-cv-455-TCK (PJC), United States District Court for the Northern District of Oklahoma. In addition, you should include your full name, Bullseye owner number(s) if known, address, email address, and telephone number.

    If you believe that you are a Class Member, but you did not receive a copy of the Notice by mail, you should contact Class Counsel concerning your claim. You may also seek the advice of your own attorney, at your own expense.

    Do not write or telephone the Court Clerk's office if you have any questions about the Notice or the Lawsuit.

For More Information

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Mail

Jeter v Bullseye Energy
c/o JND Legal Administration
PO Box 91349
Seattle, WA 98111