ND Caps Flaring Class Actions Against Gas Companies

Law360, New York (June 6, 2014, 3:12 PM EDT) -- A North Dakota federal judge recently dismissed a group of proposed class actions alleging certain oil and gas companies operating in the state underpaid royalties on natural gas flared from their operations.[1] Plaintiffs alleged the companies continued to flare long past the time period permitted by state law and sought payment of royalties on the flared gas.

After a consolidated hearing on the companies’ motions to dismiss, the court held that plaintiffs had filed suit before properly exhausting their administrative remedies before the North Dakota Industrial...
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