Oklahoma Earthquake Lawsuit Settled for $2.6M
A $2.6 million class-action settlement has been reached in a lawsuit concerning earthquakes in Oklahoma. The suit alleged that certain energy companies operated wastewater disposal wells that contributed to causing seismic activity, including a 5.1 magnitude quake.
This recent settlement is part of a larger history of legal battles over induced seismicity in Oklahoma. Since 2009, the state has seen a dramatic surge in earthquakes, with the rate of magnitude 3 and larger events exceeding California's from 2014 to 2017. The majority of these quakes have been linked by scientists to the underground disposal of wastewater, a byproduct of oil and gas production. The legal precedent for such lawsuits was solidified in 2015 when the Oklahoma Supreme Court ruled that energy companies could be sued in district court for earthquake-related damages, rather than having cases handled by the Oklahoma Corporation Commission (OCC), the state's oil and gas regulator. This decision opened the door for numerous lawsuits filed by residents who suffered property damage. Previous settlements have involved several energy companies. In 2018, Spess Oil Co., Equal Energy US Inc., and Fairfield Oil and Gas Corp. agreed to a $925,000 settlement related to the 5.7 magnitude earthquake that struck near Prague in 2011. Another settlement in 2022 saw Eagle Road Oil LLC agree to pay $850,000 for damages from two 2016 earthquakes, including a 5.8 magnitude event in Pawnee, the strongest in state history. In response to the seismic activity, the Oklahoma Corporation Commission has taken regulatory action. Starting in 2015, the OCC began implementing new rules, including directives to shut down or reduce the volume of wastewater injected into deep disposal wells, particularly in the Arbuckle formation. These measures have been followed by a significant decrease in the number of earthquakes in the state.
