Chieftain Royalty Company v. SM Energy Company (including predecessors, successors, and affiliates), EnerVest Energy Institutional Fund XIII-A, L.P., EnerVest Energy Institutional Fund XIII-WIB, L.P., EnerVest Energy Institutional Fund XIII-WIC, L.P., EnerVest Operating, L.L.C., and FourPoint Energy, LLC.

Answer:

In a class action, one or more people, called Plaintiffs, sue on behalf of people who have similar claims.  All of the people with similar claims comprise the “class” and are referred to as “class members,” except for those who choose to exclude themselves from the class. 

Answer:

The Litigation seeks damages for the alleged underpayment of royalties to the royalty owners in the Class on wells operated by SM and/or the Settling Parties in Oklahoma or on Oklahoma wells where SM and/or the Settling Parties separately marketed gas as non-operators.  Plaintiff alleges SM and/or the Settling Parties made various deductions and reductions from royalty payments that should not have been made, including, but not limited to, the following:

(1) deducting direct and indirect fees for marketing, gathering, compression, dehydration, processing, treatment, and other similar services before gas was “marketable;”

(2) not paying royalty on wellhead gas that was used off the lease premises or in the manufacture of products; and

(3) not paying royalty on condensate that dropped out of the gas stream.

SM and the Settling Parties deny Plaintiff’s claims, and deny any liability to Plaintiff and to any members of the Class.

The Court has made no determination with respect to any of the parties’ claims or defenses.

Answer:

You have been sent a Notice because you may be a member of the Class.  SM’s and/or the Settling Parties’ records reflect that you have been paid royalties on natural gas and its constituents produced from the Class Wells at issue.

The Notice describes the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

Answer:

All non-excluded persons or entities who are or were royalty owners in those Oklahoma wells acquired by one or more EnerVest and/or FourPoint entities from SM pursuant to a Purchase and Sale Agreement dated November 4, 2013, and where an EnerVest, FourPoint and/or SM entity is or was the operator (or where anEnerVest, FourPoint and/or SM entity separately marketed gas as a non-operator). The Class Claims relate only to payment for gas and any of its constituents (e.g., helium, residue gas, natural gas liquids, nitrogen and condensate) produced from the Class Wells, and not to payment for gas and any of its constituents produced from the SM-Retained Properties.  The Class does not include overriding royalty owners or other owners who derive their interest through the oil and gas lessee.

Answer:

Unless you exclude yourself from the Class, if the Settlement is approved, you will be a Class Member.  As a Class Member, you will receive your portion of the Net Settlement Fund and will be bound by all orders and judgments entered by the Court regarding the Settlement.  If the Settlement is approved, you will no tbe able to sue, continue to sue, or be part of any other lawsuit against any of the Released Parties concerning any of the Released Claims.

Answer:

·        You may participate in the Settlement. To participate, you do not need to do anything if you were notified of the Settlement.

·        You may exclude yourself from the settlement. If you do not wish to participate, you must send a letter by mail to the Settlement Administrator stating that you want to be excluded from the Settlement Class in Chieftain Royalty Co. v. SM Energy Company, et al., and it must be received no later than 5:00 p.m. CST on November 9, 2015.

·        You may object.  If you wish to object, you must send a written statement to the Court, Class Counsel, and Counsel for the Settling Parties saying that you object to the proposed Settlement. Your objection must be filed in and received by the Court and received in the hands of counsel for each party no later than November 9, 2015 at 5:00 p.m. CST.

·        You may attend the Final Fairness Hearing.  If you are a Class Member who has not requested to be excluded from the Class, you may ask the Court for permission to speak at the Final Fairness Hearing.  To do so, you must send a letter or othe rpaper called a “Notice of Intention to Appear at Fairness Hearing in Chieftain Royalty Company v. SM Energy Company, et al.”  Your letter must be received by the Court, Class Counsel and Counsel for the Settling Parties no later than November 9, 2015 at 5:00 p.m. CST.

·        Do nothing. If you do nothing and you are a Class Member, you will still receive payment in connection with the Settlement and you will still be bound by the Settlement.  Even if you receive no payment, you will not be able to start a lawsuit or arbitration, continue a lawsuit or arbitration, or be part of any other lawsuit or arbitration against any of the Released Parties based on any Released Claims unless you exclude yourself. 

Answer:

To exclude yourself from the Class, you must send a letter by mail to the Settlement Administrator stating that you want to be excluded from the Class in Chieftain Royalty Co. v. SM Energy Company, et al.  Your letter must include your name, address, telephone number, and notarized signature, and must be received no later than 5:00 p.m. CST on November 9, 2015.  Your letter must be sent to:

Chieftain-EnerVest Settlement
c/o Rust Consulting, Inc., Settlement Administrator

PO Box 2405

Faribault, MN 55021-9100

To be effective, your written request for exclusion must be RECEIVED at the above address no later than November 9, 2015 at 5 p.m. CST. You cannot exclude yourself on the website, by telephone, facsimile or e-mail.  The letter must be signed by you under oath and acknowledged by a Notary Public. In the letter, you must identify your interest in any Class Well(s) by identifying each Class Well (by well name, SM, EnerVest, or FourPoint well number, and legal location).  Any such letter also should state generally:

“Dear Judge, I want to exclude myself from the Class in Chieftain Royalty Co. v. SM Energy Company, et al., Case No. CIV-11-177-D, United States District Court for the Western District of Oklahoma.  I understand it will be my responsibility to pursue any claims I may have, if I so desire, on my own and at my expense.”

If you do not follow these procedures—including meeting the date and time fo rexclusion set out above—you will not be excluded from the Class, and you will be bound by all of the orders and judgments entered by the Court regarding the Settlement, including the release of claims.  You must exclude yourself even if you already have a pending case against any of the Released Parties based upon any Released Claims.

Answer:

To object, you must send a written statement to the Court, Class Counsel, and Counsel for the Settling Parties saying that you object to the proposed Settlement.  You must include in your written statement:

a.      a heading referring to Chieftain v. SM Energy Company, et al., Case No. CIV-011-177-D and to the United States District Court for the Western District of Oklahoma;

b.     a statement as to whether you intend to appear at the Final Fairness Hearing, either in person or through counsel, and, if through counsel, counsel must be identified by name, address and telephone number (such statement must also comply with the requirements for sending a “Notice of Intention to Appear at Fairness Hearing in Chieftain Royalty Company v. SM Energy Company, et al.” (see Notice));

c.      identification of your interest in Class Wells by identifying each Class Well (by well name, SM,EnerVest, or FourPoint well number, and legal location).

d.     a detailed statement of the specific legal and factual basis for each and every objection;

e.     a list of any witnesses you may call at the Final Fairness Hearing, together with a brief summary of each witness’ expected testimony;

f.       a list of and copies of any exhibits you may seek to use at the Final Fairness Hearing;

g.      a list of any legal authority you may present at the Final Fairness Hearing;

h.     your current address;

i.        your current telephone number;

j.       your signature executed before a Notary Public; and

Your written objection must be filed in and received by the Court and received in the hands of counsel for each party at the addresses listed below no later than November 9, 2015 at 5:00 p.m. CST:

By the above date and time, your written objection must be RECEIVED by and ON FILE with the Clerk of the Court and Counsel:

Unless otherwise ordered by the Court, any Class Member who does not object in the manner described in the Notice will be deemed to have waived any objection and shall be forever foreclosed from making any objection to the proposed Settlement and the application for attorneys’ fees and expenses and case contribution award and will not be allowed to present any objections at the Final Fairness Hearing.

Answer:

Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you are a Class Member.  Excluding yourself is telling the Court that you do not want to be part of the Class.  If you exclude yourself, you have no basis to object because the Settlement no longer affects you.

Answer:

No. Retaliation against Class Members for exercising their rights under a class action settlement is strictly prohibited by state and federal law.

Answer:

The Settling Parties have agreed to pay $52,000,000.00 in cash. If you do not exclude yourself, you do not need to take any action whatsoever to receive your portion of the Net Settlement Fund.

Answer:

With the Court’s approval, the Settlement Administrator will first allocate the Net Settlement Fund proportionately to each Class Well based on (1) the production marketed by SM and/or the Settling Parties on behalf of themselves and/or other well owners from the well, (2) the amount of claimed royalty underpayment to Class Members for the well, and (3) the time period when the claimed underpayment occurred. 

Thereafter, subject to review and approval by Class Counsel and the Court, the Settlement Administrator will allocate the Net Settlement Fund for each Class Well proportionately among all Class Members based on their respective royalty decimal interest in such well using SM’s and/or the Settling Parties’ July 2015 royalty pay deck (or a relatively recent and available royalty pay deck) or, in the case of Class Wells not currently operated by SM and/or the Settling Parties, the July 2015 or other reasonably available royalty pay deck to be obtained from the operator.  The Settlement assumes that current royalty owner Class Members in Class Wells are entitled to receive the entire cash payment.

Answer:

Your claim will be paid after the Court grants final approval of the Settlement, and all rights to appeals or further appeals are exhausted.

Answer:

The law firms of Barnes & Lewis, LLP and Nix, Patterson & Roach, LLP represent Plaintiff and all other Class Members in the Litigation.

Answer:

Class Counsel intends to seek an award of attorneys’ fees of 40% of the Settlement Cash Amount, to be paid out of the cash proceeds. Class Counsel has been litigating this case for over four years without any payment whatsoever.  At the Final Fairness Hearing, Class Counsel will also seek reimbursement of the expenses incurred in connection with the prosecution of this Litigation, and which will be incurred through final distribution of the Settlement, which amount will not exceed $900,000.00, to be paid out of the cash proceeds. The costs of administration, distribution, notification and other fees referenced in paragraph 1.1 of the Settlement Agreement will also be paid out of the Settlement Cash Amount.

Answer:

Plaintiff, Chieftain Royalty Company, is the Class Representative.

Answer:

The Class Representative intends to seek a Case Contribution Award for its representation of the Class, which will not exceed one percent (1%) of the Settlement Cash Amount.

Answer:

The Court will hold a Final Fairness Hearing on November 9, 2015, at 1:30 p.m. CST, at the United States District Court for the Western District of Oklahoma, 200 NW 4^th Street, Oklahoma City, Oklahoma 73102.

Answer:

No. Class Counsel will answer any questions the Court might have. But you are welcome to come at your own expense.

Answer:

If you are a Class Member who has not requested to be excluded from the Class, you may ask the Court for permission to speak at the Final Fairness Hearing.  To do so, you must send a letter or other paper called a “Notice of Intention to Appear at Fairness Hearing in Chieftain Royalty Company v. SM Energy Company, et al.”  Be sure to include your name, address, telephone number, and signature.  Your Notice of Intention to Appear must be served on and received by Class Counsel and Counsel for the Settling Parties and must be filed with the Clerk of the Court at the address in the Notice on page 9, no later than November 9, 2015 at 5:00 p.m. CST.  If you object to the Settlement or any part thereof and you or your attorney wish to be heard at the Final Fairness Hearing, you must file a Notice of Intention to Appear as outlined in the Notice in order to present your objection at the Hearing.  You cannot speak at the Final Fairness Hearing if you exclude yourself from the Class.

Answer:

You can visit the website at www.chieftain-enervest.com, where you will find answers to common questions about the Settlement plus other information to help you determine whether you are a Class Member and whether you are eligible for payment.  You can also call1-877-522-0448 toll free or write to Chieftain-EnerVest Settlement, c/o Rust Consulting, Inc.,Settlement Administrator, PO Box 2405, Faribault, MN 55021-9100.  Email: info@chieftain-enervest.com

All inquiries concerning the Settlement should be directed to the Settlement Administrator.

PLEASE DO NOT CONTACT THE COURT FOR INFORMATION.