Oklahoma Reaches $2.6M Earthquake Settlement

The lawsuit names several defendants, including Freedom Energy, Montclair, New Dominion, and H&P. The companies are alleged to have operated wastewater disposal wells that contributed to a 5.1 magnitude earthquake near Prague, Oklahoma on February 2, 2024. That recent 5.1 magnitude quake was felt across Oklahoma, from Lawton to Tulsa, and was followed by at least eight smaller aftershocks. The shallow depth of the earthquake, just 1.8 miles below the surface, likely intensified the shaking felt by residents. This is not the first time Prague has been the epicenter of significant seismic activity linked to injection wells. A 5.7 magnitude earthquake struck the same area in 2011, causing considerable damage and leading to prior lawsuits. For years, scientists have linked Oklahoma's dramatic rise in earthquakes to the underground disposal of wastewater from oil and gas production. The state's earthquake rate surged from just a few per year before 2009 to hundreds, surpassing California's frequency for a period. The Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has taken steps to address the issue. Over the years, the OCC has ordered the shutdown or reduction in volume of hundreds of disposal wells, particularly those injecting into the deep Arbuckle formation. This legal action follows a history of similar settlements. In 2018, three other oil companies settled a class-action lawsuit for $925,000 related to the 2011 Prague earthquake. In a separate case, Farmers Insurance paid $25 million in 2021 to settle claims it had improperly denied or underpaid over 1,000 earthquake damage claims. Residents who suffered property damage from Oklahoma earthquakes between January 29, 2019, and the present have until July 28, 2026, to file a claim for a portion of the $2.6 million settlement.