Kaiser-Francis Pays $35M To Settle Gas Royalty Suit

Law360, Los Angeles (July 30, 2013, 9:55 PM ET) -- An Oklahoma federal judge on Tuesday approved a $35 million settlement in a breach of contract class action accusing Kaiser-Francis Oil Co. of failing to pay adequate royalties.

The plaintiffs contended that Kaiser-Francis made improper reductions on its royalty payments for natural gas. The company countered that there was no fiduciary relationship as a matter of law.

Kaiser-Francis will pay the $35 million sum, and in turn it will be released from claims with respect to volumes of hydrocarbon production attributable to third-party working interest owners...
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