Oklahoma Earthquake Class Action Settled for $2.6M
A class-action lawsuit concerning earthquakes in Oklahoma has reached settlements totaling $2.6 million. The lawsuit alleged that certain defendants operated wastewater disposal wells that contributed to causing a 5.1 magnitude earthquake. Residents who suffered property damage from quakes between January 2019 and the effective date may be eligible for a payment.
The recent settlement is part of a larger story of Oklahoma's dramatic increase in seismic activity, which saw the state's earthquake rate surpass California's between 2014 and 2017. Scientific studies have linked this surge to the underground injection of wastewater, a byproduct of oil and natural gas production. Before 2009, Oklahoma experienced maybe one or two low-magnitude earthquakes annually. The peak of this seismic activity occurred in 2015, with 888 earthquakes of magnitude 3 or larger. This included several larger, damaging quakes, such as the 5.7 magnitude earthquake near Prague in 2011 and a 5.8 magnitude event in Pawnee in 2016, which set a state record. These events led to property damage and a flurry of lawsuits against energy companies. In response to the alarming rise in earthquakes, the Oklahoma Corporation Commission implemented measures asking wastewater-well owners to reduce disposal volumes, particularly in seismically active areas. These regulatory efforts, combined with economic factors that decreased oil production, have been credited with a significant decline in the state's earthquake rate since its 2015 peak. The lawsuit specifically mentioned a 5.1 magnitude earthquake near Prague, Oklahoma, on February 2, 2024. The defendants in the various settlements included companies like Spess Oil Company, Circle 9 Resources, Culbreath Oil & Gas Co., Inc., Freedom Energy, Montclair, New Dominion, and H&P. This legal action is one of many, with another notable settlement in 2022 where Eagle Road Oil LLC agreed to pay $850,000 for its alleged role in the 2016 Pawnee and Cushing earthquakes.
