Oklahoma Earthquake Settlement Reached
A $2.6 million class action settlement has been reached for Oklahomans who suffered property damage from earthquakes between 2019 and the present. The lawsuit alleged that wastewater disposal wells operated by certain energy companies contributed to causing the seismic activity.
The science linking Oklahoma's earthquake swarms to wastewater injection from oil and gas operations is well-established. Before 2009, the state averaged about two low-magnitude earthquakes per year. Since then, it has experienced a dramatic increase, at times surpassing California in the frequency of seismic events. This isn't the first time energy companies have settled with Oklahomans over earthquake damage. In 2022, Eagle Road Oil LLC agreed to an $850,000 settlement for damages from two 2016 earthquakes, one of which was a state record 5.8 magnitude tremor near Pawnee. Another settlement in 2018 involved three other oil companies paying $925,000 to residents affected by quakes in 2011 near Prague. The Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has taken steps to address the issue. The agency has issued directives to shut down or reduce the volume of wastewater injected into underground disposal wells, particularly in seismically active areas. In 2015, the OCC began requiring some operators to "plug-back" wells to inject wastewater at shallower depths, a measure that has been shown to reduce the rate of induced earthquakes. The latest $2.6 million settlement involves allegations against Freedom Energy, Montclair, New Dominion, and H&P for their operation of wastewater disposal wells. The lawsuit specifically cited their alleged contribution to a 5.1 magnitude earthquake near Prague on February 2, 2024. Property owners in designated counties like Lincoln, Payne, Logan, and Oklahoma who suffered damage have priority in the distribution of settlement funds. Homeowners in other Oklahoma counties are also eligible but will draw from a smaller portion of the fund. The deadline for affected residents to file a claim for this recent settlement is July 28, 2026. Beyond lawsuits against energy producers, insurance companies have also faced legal challenges. In a major 2021 settlement, Farmers Insurance agreed to pay $25 million after an investigation revealed the company had improperly denied or failed to pay approximately 1,000 earthquake claims.
