$2.6M Settlement for OK Earthquakes
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 certain companies operated wastewater disposal wells that contributed to causing seismic activity, including a 5.1 magnitude quake.
The settling companies, which include Freedom Energy, Montclair, New Dominion, and H&P, have not admitted to the allegations but agreed to the settlement terms. This case centers on the assertion that their operation of wastewater disposal wells was a contributing factor to seismic events, including a notable 5.1 magnitude earthquake that struck near Prague, Oklahoma, on February 2, 2024. The February 2024 earthquake was felt across a significant portion of Oklahoma and even in neighboring states like Kansas. While no serious injuries were reported, the shallow quake caused damage such as cracked building exteriors, broken windows, and items shaken from shelves. The epicenter of this event was remarkably close to the location of a damaging 5.7 magnitude earthquake in 2011, also linked to wastewater injection. Scientific studies have established a strong connection between the underground injection of wastewater from oil and gas operations and the dramatic increase in Oklahoma's earthquakes. Research has specifically pointed to the depth of these injection wells as a critical factor, with those reaching the Arbuckle formation—a deep geological layer—posing a higher risk of triggering seismic activity on nearby faults. In response to the surge in earthquakes, the Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has implemented various measures over the years. These include the "traffic light" system to manage disposal well permits and directives ordering the shutdown or reduction of injection volumes in seismically active areas, particularly for wells deep enough to reach the basement rock. Following the February 2024 quake, the OCC ordered all disposal wells injecting into the Arbuckle formation within a 10-mile radius of the epicenter to begin shutdown procedures. This settlement is one of many legal actions taken by Oklahomans against energy companies concerning induced seismicity. A landmark 2015 decision by the Oklahoma Supreme Court affirmed the right of property owners to sue oil and gas companies in district court for damages and injuries caused by earthquakes linked to their operations. Property owners within the settlement class who suffered damage from Oklahoma earthquakes between January 29, 2019, and the effective date must submit a claim form by July 28, 2026, to be eligible for a payment. The settlement resolves all claims against the named defendants related to earthquakes in Oklahoma during this period.
