Oklahoma Earthquake Class Action Settles for $2.6M

This settlement is the latest in a series of legal actions against energy companies in Oklahoma for earthquake-related damages. Previous class-action lawsuits have resulted in settlements of varying amounts, including one for $7.5 million and another for $850,000, as residents seek compensation for property damage. The companies involved in this specific $2.6 million settlement include Freedom Energy, Montclair, New Dominion, and H&P, all of whom deny the allegations. The lawsuit is tied to the dramatic increase in earthquakes in Oklahoma, which researchers have linked to the underground injection of wastewater, a byproduct of oil and gas extraction. Before 2009, Oklahoma experienced roughly one or two low-magnitude earthquakes per year, but since 2014, that number has jumped to one or two per day. This surge in seismic activity has positioned Oklahoma as one of the most earthquake-prone states in the country, even surpassing California at times. The 5.1 magnitude earthquake mentioned in the lawsuit struck near Prague, Oklahoma, on February 2, 2024. The shaking was felt across the state and even in neighboring states like Arkansas, Missouri, and Kansas. The quake was shallow, which can intensify the shaking, and resulted in damage such as cracked drywall, shattered brick exteriors, and broken household items. In response to the increased seismic activity, the Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has taken steps to mitigate the problem. These measures have included creating new seismicity guidelines, restricting wastewater injection volumes, and even shutting down some disposal wells entirely. These regulatory efforts have reportedly been effective in lowering the state's induced earthquake rate from its peak in 2015.