The Anadarko Basin lawsuit is a federal antitrust class action over alleged bid rigging on oil and gas leases in Oklahoma and Kansas. Landowners claim it pushed down the signing-bonus and royalty prices paid to them.
The case was filed in March 2016 in the Western District of Oklahoma. It named Chesapeake Energy, SandRidge Energy and Tom Ward. The defendants denied wrongdoing. A proposed $6.95 million class settlement was announced in September 2018.
Landowners and royalty owners in northwest Oklahoma and southwest Kansas were to share the money. The proposal is subject to court approval, and the claims remain allegations, not court findings.
- Case or litigation name: In re Anadarko Basin Oil and Gas Lease Antitrust Litigation (lead case Thieme v. Chesapeake Energy Corp.)
- Defendants: Chesapeake Energy Corporation, SandRidge Energy Corp. and Tom L. Ward
- Court and docket number, when available: U.S. District Court, Western District of Oklahoma (docket number not stated in the sources)
- MDL number, judge, and case count, when an MDL exists: No MDL
- Filing date: March 2016
- Main allegations: Alleged bid-rigging and price suppression on oil and gas leases in northwest Oklahoma and southwest Kansas
- Products or people involved: Landowners and royalty owners with oil and gas leases in northwest Oklahoma and southwest Kansas
Table Of Contents
Latest Anadarko Basin Lawsuit Updates
September 6, 2018: Class Settlement Announced
Landowners announced a $6.95 million settlement of the antitrust class action, Courthouse News reported [1]. The proposed settlement is subject to court approval.
The Associated Press said the motion for preliminary approval was filed September 5, 2018 [2]. Two all-day mediation sessions before a former federal judge came first.
March 3, 2016: Class Action Announced
A class of oil and gas royalty owners announced a civil antitrust lawsuit against Chesapeake, SandRidge and Tom Ward, according to the plaintiffs’ release [3].
The case is Thieme v. Chesapeake Energy Corp. It was filed in federal court. The plaintiffs said they were suing to recover damages.
What Is the Anadarko Basin?
According to the U.S. Geological Survey, the Anadarko Basin region is USGS Province 115 and covers parts of Kansas, Oklahoma and Texas, in its Open-File Report 88-450-W [4].
Who May Be Affected?
The case concerned owners of oil and gas leases or royalty interests in northwest Oklahoma and southwest Kansas. That includes individual and commercial property owners in the Anadarko Basin. They leased land to Chesapeake or SandRidge.
Those leases let Chesapeake drill. In return, owners got signing bonuses and later royalties. The AP reported that thousands of people in Oklahoma and Kansas were to share the settlement.
A claims administrator planned to contact people with claims. It would use mail, newspaper ads and news releases. Whether you qualify depends on your own lease records and needs an individual legal review.
Reported Injuries or Damages
The harm alleged was financial. No bodily injury was claimed. Landowners said bid rigging gave them lower signing-bonus and royalty prices for their leasehold interests.
The plaintiffs claim a conspiracy existed to “fix, stabilize and artificially suppress” those prices. The AP said the suit alleges Aubrey McClendon and Ward conspired from 2007 to 2012. Chesapeake and SandRidge were not to bid against each other.
These are allegations. The defendants denied any wrongdoing under the terms of the settlement. Plaintiffs’ counsel said Chesapeake admitted to potential isolated instances of anticompetitive conduct. That was their view. It is not a court finding.
McClendon, the former Chesapeake CEO, was indicted on a charge of conspiring to rig bids for natural gas leases. He died March 2, 2016. Natural Gas Intelligence reported that the Justice Department dropped the indictment [5].
Evidence to Preserve
Keep any record that shows what you were offered and paid for your oil and gas rights. Useful items include:
- Lease agreements and signing-bonus records
- Royalty and division-order statements
- Offers, notices and letters from Chesapeake or SandRidge
- Any class settlement notice you received
- Messages with landmen or operators
- Records of your acreage and mineral ownership
Keep paper and digital copies in one place. Include older files, since they may show when a lease was signed. Note the date on each record. Dates can show when payments began.
Filing Deadlines
Filing deadlines come from state law. They vary with where the landowner lives and when the leasing and payments happened.
A claim can end if a deadline passes, however strong the facts. A lawyer can tell you promptly which dates apply where you live.
Frequently Asked Questions
What Was the Anadarko Basin Lawsuit About?
The Anadarko Basin lawsuit was about claims that oil and gas companies agreed to hold down lease prices. The suits were consolidated one month later, in April 2016, after the first filing.
Who Was Sued in the Anadarko Basin Antitrust Lawsuit?
The Anadarko Basin antitrust lawsuit named Chesapeake Energy Corporation, SandRidge Energy Corp. and Tom L. Ward. The plaintiffs’ release described Ward as the former SandRidge CEO.
What Happened to SandRidge in the Anadarko Basin Lawsuit?
In the Anadarko Basin lawsuit, SandRidge filed for bankruptcy shortly after the April 2016 consolidation. The case was stayed and then reopened. Chesapeake and Ward were the remaining defendants.
How Was the Anadarko Basin Settlement Split Between Defendants?
The Anadarko Basin settlement is split between two defendants. Chesapeake is paying $2.65 million of the $6.95 million total. Ward is to pay the remaining $4.3 million, under the proposal filed in September 2018.
References
- https://www.courthousenews.com/chesapeake-energy-settles-antitrust-case-for-7m/
- https://www.foxbusiness.com/markets/proposal-would-settle-chesapeake-lawsuit-for-6-95-million
- https://boereport.com/2016/03/03/new-civil-antitrust-claims-filed-against-chesapeake-sandridge-energy/amp/
- https://pubs.usgs.gov/publication/ofr88450W
- https://naturalgasintel.com/news/chesapeake-ward-agree-to-7m-settlement-in-anadarko-basin-antitrust-lawsuit/