Beer v. XTO:  Class Action Information

Notice to Class

IN THE UNITED STATES DISTRICT COURT OF THE

WESTERN DISTRICT OF OKLAHOMA

 

LADENE RAMSEY BEER, and KATHERINE K. BOECK,                                                                        
    Plaintiffs,


vs. 
 

XTO ENERGY INC. f/k/a CROSS TIMBERS OIL COMPANY,  a Delaware Corp.
    
Defendant.

)

)

)

)

)  Case No.:  CIV-07-798-L  

)

)

)

)

 

NOTICE OF CERTIFICATION OF CLASS ACTION

AGAINST DEFENDANT XTO ENERGY INC.

_______________________________________________________________________

TO: THE POTENTIAL MEMBERS OF THE CERTIFIED CLASS

 

            IF YOU HAVE RECEIVED ROYALTY PAYMENTS FROM XTO ENERGY INC. F/K/A CROSS TIMBERS OIL COMPANY (“XTO”) ON AN XTO-OPERATED GAS WELL LOCATED IN TEXAS COUNTY, OKLAHOMA, STEVENS OR SEWARD COUNTY, KANSAS CONNECTED TO THE TIMBERLAND GATHERING SYSTEM, THIS NOTICE MAY AFFECT YOUR RIGHTS.

 

            A CLASS ACTION HAS BEEN CERTIFIED IN A PENDING LAWSUIT AGAINST DEFENDANT XTO.  THE CLASS ACTION LAWSUIT (THE “LAWSUIT”) SEEKS AN ACCOUNTING AND, IF IMPROPER PAYMENT IS ESTABLISHED, DAMAGES AND OTHER APPLICABLE RELIEF ASSOCIATED WITH THE ALLEGED UNDERPAYMENT OF ROYALTIES BY XTO.  THE LAWSUIT IS PENDING IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA IN OKLAHOMA CITY, OKLAHOMA.  THE LAWSUIT HAS BEEN BROUGHT AGAINST XTO BY TWO ROYALTY OWNERS ACTING ON BEHALF OF THEMSELVES AND OTHER SIMILARLY SITUATED ROYALTY OWNERS.

 

            THE COURT HAS NOT RULED ON THE MERITS OF THE CLAIMS ASSERTED BY THE PLAINTIFFS, OR THE AFFIRMATIVE DEFENSES ASSERTED BY DEFENDANT XTO.

 

PLEASE READ THIS NOTICE CAREFULLY

 

            1.         Why Is This Notice Being Sent To You?

 

            You are being sent this Notice because you may be a member of the Class in the Lawsuit as described below.  XTO’s records reflect that you have been paid natural gas royalties on natural gas produced from an XTO-operated well(s) located in Texas County, Oklahoma, or Stevens or Seward County, Kansas connected to the Timberland Gathering System.  This 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 Complaint filed in this action.  This Notice explains the claims being asserted in the Lawsuit, and also explains your right to remain a member of the Class (as explained in Section 7 of this Notice), and your right to opt out of the certified Class (as explained in Section 8 of this Notice).

 

            2.         The Lawsuit:  Beer v. XTO

 

            The Lawsuit is pending in the United States District Court for the Western District of Oklahoma and is captioned as Ladene Ramsey Beer and Katherine K. Boeck v. XTO Energy Inc. f/k/a Cross Timbers Oil Company (Case No. CIV-07-798-L).  Judge Tim Leonard is overseeing the Lawsuit.  On March 20, 2009, Judge Leonard entered an Order certifying the Lawsuit as a class action.

 

            3.         The Class.     The Order certifying the Lawsuit as a class action defined the Class as follows:

 

Nongovernmental royalty owners who, during Relevant Times, received payments based on production from an XTO-operated well for which the production is processed in Timberland’s Tyrone natural gas processing plant.

 

a.         Kansas Subclass.  Members of the Timberland Class who receive royalties from at least one well located in Kansas.

 

b.         Oklahoma Subclass.  Members of the Timberland Class who receive royalties from at least one well located in Oklahoma.

 

As used in the class definitions, “Relevant Times” means the following: (1) for members of the Kansas Subclass, for a period at least as early as March 25, 1997 to present; (2) for members of the Oklahoma Subclass, (a) for a period from July 1, 2002 to present for those bound by the Booth settlement, and (b) for a period from March 25, 1997 to present for those who opted out of the Booth settlement.

 

            Judge Leonard’s Order certifying the Class appointed the attorneys for the Plaintiffs to act as the attorneys for the Class (“Class Counsel”).  The names and addresses of the Class Counsel are listed in Section 9 of this Notice.

 

            4.         What Is A Class Action?

 

            A class action is a type of lawsuit in which the named plaintiffs bring a suit on behalf of other similarly situated persons seeking to recover damages and other relief on behalf of other persons they represent, without the necessity of each person incurring the expense of filing a separate lawsuit, or joining in the lawsuit.  Class actions are brought when issues of fact or law are common, making it fair to bind all Class members to the orders and judgments in the case, without the necessity of litigating multiple lawsuits involving similar claims.

 

            5.         What Is The Lawsuit Against XTO About?

 

            The Lawsuit against XTO seeks an accounting and, if improper payment is established, damages and other applicable relief associated with the alleged underpayment of royalties by XTO to the Class on production from XTO operated wells located in Texas County, Oklahoma, and Stevens or Seward County, Kansas, and connected to the Timberland Gathering System  which is processed through a plant located near Tyrone, Oklahoma owned and operated by XTO’s wholly-owned subsidiary, Timberland.

 

            Plaintiffs claim that XTO has underpaid royalties by improperly basing royalty payments on a “sale” from XTO to its wholly-owned subsidiary, Timberland.  Further, plaintiffs claim XTO ultimately pays 15% or 20% less than the price its wholly-owned subsidiary, Timberland, received.

 

            XTO denies Plaintiffs’ claims, and denies any liability to Plaintiffs or to any members of the Class.  XTO contends: that it calculated and paid royalties in conformance with the terms of its leases, that the natural gas was and is marketable at the wellhead, and that it calculated, and that it paid royalties based upon all proceeds received by XTO from the sale of gas, without taking any deductions.

 

            A more complete description of the Lawsuit, its status, and the rulings made in the Lawsuit are available in the pleadings and other papers maintained by the United States District Court Clerk for the Western District of Oklahoma located at 1210 U.S. Courthouse, 200 NW 4th Street, Oklahoma City, OK 73102, in the file for Case No. CIV-07-798-L.  Information from Class Counsel is available at the web site www.xtoclass.com.  Should you have questions regarding the status, rulings or issues in the Lawsuit, such questions can be submitted in writing to Class Counsel at the addresses provided in Section 9 of this Notice.

 

            6.         Who is Included?

 

            If you are a Non governmental royalty owner who during “Relevant Times” (as defined in Section 3) received payments based on production from an XTO operated well located in Texas County, Oklahoma, or Stevens or Seward County, Kansas connected to the Timberland Gathering System, which is processed through Timberland’s Tyrone natural gas processing plant, you may be a Class Member.

 

            7.         Remaining A Member Of The Class.

 

            If you choose to remain a Class member, YOU DO NOT NEED TO TAKE ANY ACTION WHATSOEVER.  Class Counsel will 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 any settlement amount or judgment, as approved by the Court.  You also have the option of entering your appearance in the Lawsuit through your own counsel, at your sole cost, if you so desire.  However, you will be bound by the result of the Lawsuit, regardless of the outcome, even if no recovery is had.  Class members will be barred from bringing any separate legal action against XTO for the claims described in this Notice.  If you remain a member of the Class, you will receive notices of, and may participate in, any monetary damages or other relief obtained on behalf of the Class.  For this reason, you should notify Class Counsel (in writing at the addresses provided in Section 9 of this Notice) of any corrections to, or changes in, your name or address.

 

            8.         Requesting To Be Excluded From The Class.

 

If you are a member of the Class, you may elect to be excluded from the Class (“Opt Out”).  If you elect to be excluded from the Class, you will not be bound by the judgment and final disposition of the Lawsuit.  You will retain, and will be free to pursue, any claims, you may have on your own behalf against XTO.  XTO may assert any defenses or counterclaims it may have against you.  You may consult with your own attorney, at your sole cost, regarding your rights as well as any defenses and counterclaims available to XTO as to your claims.   To be excluded from the Class, you must provide a written election to be excluded from the Class to Edward L. White, P.C., 13924 Quail Pointe Drive, Suite B, Oklahoma City, Oklahoma 73134.  A Request for Exclusion is enclosed.  The Opt Out election must contain your full name, XTO owners number(s), if known, current address, telephone number and either your signature or the signature of a person authorized to request exclusion from the Class.  Your Opt Out must be postmarked no later than midnight on the 30th day of June, 2009.

            9.         Class Counsel

             If you do not exclude yourself as described in paragraph 8 above, your interest will be represented by the Class Representatives and their counsel, as counsel for the Class (“Class Counsel”), which are:

 

                        Edward L. White

                        Martin S. High

                        Edward L. White, P.C.

                        13924 Quail Pointe Drive, Suite B

                        Oklahoma City, Oklahoma 73134

                        Telephone: (405) 810-8188

                        Facsimile:   (405) 608-0971

                        Email: ed@edwhitelaw.com

                        Web Site:  www.xtoclass.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:  Ladene Ramsey Beer and Katherine K. Boeck v. XTO Energy Inc., Case No. CIV-07-798-L.  In addition, you should include your full name, XTO owner number(s) if known, address, email address, and telephone number.

 

            DO NOT WRITE OR TELEPHONE THE CLERK’S OFFICE if you have any questions about this Notice.  ANY QUESTIONS CONCERNING THIS NOTICE OR THE LAWSUIT SHOULD BE DIRECTED TO CLASS COUNSEL.

 

PLEASE DO NOT CALL XTO, THE COURT OR THE COURT CLERK

 

           

                                                                        Issued March 13, 2006

                                                                        By Order of Judge Tim Leonard

Web Hosting Companies