Oklahoma Earthquake Class Action Settled
A $2.6 million class-action settlement has been reached in a lawsuit concerning earthquakes in Oklahoma. The suit alleged that wastewater disposal wells operated by certain companies contributed to seismic activity that caused property damage.
This isn't the first time energy companies have settled over induced earthquakes in Oklahoma; similar class-action lawsuits have been settled for amounts ranging from $850,000 to $7.5 million in recent years. This latest settlement involves companies such as Freedom Energy, Montclair, and New Dominion. The lawsuit alleged a link between the companies' wastewater disposal operations and a 5.1 magnitude earthquake that occurred near Prague, Oklahoma, on February 2, 2024. The funds from the settlement are designated for individuals who suffered property damage from earthquakes in the state between January 29, 2019, and the effective date of the settlement. The connection between seismic activity and wastewater injection has a long history in the state. Scientific studies, including research from Stanford University, have shown a correlation between the injection of "produced water" (briny water that comes up with oil and gas) into deep formations and the increased frequency of earthquakes. Oklahoma experienced a dramatic surge in earthquakes, at one point surpassing California in frequency. In response to the spike in seismic events, the Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has implemented various measures over the years. These have included requiring seismic monitoring, reducing the volume of wastewater injected underground, and in some cases, shutting down disposal wells entirely. These regulations have had a noticeable impact. For instance, in 2015, Oklahoma recorded 887 earthquakes of magnitude 3.0 or greater. By 2018, following the OCC's interventions, that number dropped to 154. The legal landscape has also shifted. A key Oklahoma Supreme Court ruling in 2015 established that lawsuits seeking damages from man-made earthquakes could be heard in district courts, rather than being exclusively under the jurisdiction of the OCC. This decision paved the way for numerous lawsuits, including the one that led to the current settlement. Homeowners eligible for a portion of this $2.6 million settlement must file a claim by July 28, 2026. The settlement resolves allegations without the companies admitting wrongdoing.
