$2.6M Settlement in Oklahoma Earthquake Suit
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 defendants contributed to causing seismic activity, including a 5.1 magnitude quake, since 2019.
This particular settlement is the latest in a series of legal actions against energy companies in Oklahoma concerning induced seismicity. For years, residents have pursued litigation alleging that the underground injection of wastewater, a byproduct of oil and gas extraction, is responsible for the state's dramatic increase in earthquakes. The defendants in this case—Freedom Energy, Montclair, New Dominion, and H&P—are accused of operating wells that contributed to a 5.1 magnitude earthquake near Prague, Oklahoma, on February 2, 2024. While they have agreed to the settlement, the companies have not admitted to any wrongdoing, a common feature in such class-action resolutions. Property owners who suffered damage from Oklahoma earthquakes between January 29, 2019, and the present may be eligible for a payment. The deadline to file a claim is July 28, 2026, with requests for exclusion or to object to the settlement due by March 30, 2026. This is not the only recent settlement of its kind. In a separate case, three other oil and gas companies—Spess Oil Co., Circle 9 Resources, and Culbreath Oil & Gas Co. Inc.—agreed to a $555,000 settlement for similar claims of property damage from induced earthquakes during roughly the same period. The history of these lawsuits extends back further. In 2022, Eagle Road Oil LLC agreed to an $850,000 settlement for its part in a lawsuit related to the record-setting 5.8 magnitude Pawnee earthquake and a 5.0 magnitude quake near Cushing in 2016. Following the Pawnee quake, regulators shut down 32 disposal wells and placed restrictions on 35 others. Another significant case involved a $5.9 million settlement with New Dominion, LLC, concerning earthquakes near Prague in 2011. Legal battles have also been fought in federal court, with the Sierra Club suing major companies like Chesapeake Energy and Devon Energy in 2016 over the widespread seismic activity. The legal landscape has also involved insurers. In 2021, Farmers Insurance settled for $25 million over allegations that it had improperly denied or underpaid more than 1,000 earthquake damage claims from Oklahoma homeowners.
