$2.6M Settlement in Oklahoma Earthquake Suit
A $2.6 million class action settlement has been reached for Oklahomans who suffered property damage from earthquakes between 2019 and now. The lawsuit alleged that wastewater disposal wells operated by certain defendants contributed to causing seismic activity, including a 5.1 magnitude quake.
This settlement is the latest in a series of legal actions against energy companies over the state's dramatic increase in seismic activity. Oklahoma's earthquake rate surged from an average of less than two 3.0+ magnitude quakes per year before 2009 to 903 in 2015 at its peak. Scientific studies have linked this increase to the underground disposal of wastewater, a byproduct of oil and gas extraction. The 5.1 magnitude earthquake on February 2-3, 2024, which is central to this lawsuit, was centered near Prague, Oklahoma. The shaking was felt across the state and caused damage including cracked foundations and shattered brick exteriors on homes. The epicenter of this event was notably close to the location of a damaging 5.7 magnitude earthquake in 2011. In response to the February 2024 quake, the Oklahoma Corporation Commission (OCC), which regulates the state's oil and gas industry, ordered the shutdown of all wastewater disposal wells operating in the Arbuckle formation within a 10-mile radius of the epicenter. The Arbuckle is the state's deepest geological formation, and wastewater injection into it has been frequently associated with seismic activity. One of the defendants, New Dominion LLC, was previously involved in a $5.9 million settlement for its alleged role in the damaging 2011 Prague-area earthquakes. Lawsuits have been a recurring feature of Oklahoma's earthquake story, with numerous energy companies facing litigation for property damage. The defendants in this case are Freedom Energy, Montclair, New Dominion, and Helmerich & Payne (H&P). While the companies do not admit wrongdoing, they agreed to the settlement to resolve the claims. State regulators have taken steps over the years to curb induced seismicity by ordering reductions in disposal volumes and shutting down wells in seismically active areas. These actions have been credited with a significant decrease in the number of earthquakes since the 2015 peak. The law firm Poynter Law Group, which has a history of filing earthquake-related lawsuits in Oklahoma, announced the settlement. Property owners in Oklahoma who suffered damage from earthquakes between January 29, 2019, and the present may be eligible for a payment and must file a claim by July 28, 2026.
