Oklahoma Earthquake Settlement Finalized
A $2.6 million settlement has been finalized in a class action lawsuit over damage from Oklahoma earthquakes linked to wastewater disposal wells. Residents affected by seismic activity since January 2019 may be eligible for compensation. The case is part of a larger legal reckoning over the environmental side effects of energy extraction.
The science linking Oklahoma's earthquake swarms to wastewater disposal from oil and gas operations has been building for over a decade. Before 2009, the state averaged fewer than two earthquakes of 3.0 magnitude or higher per year; by 2015, that number had skyrocketed to over 900. This recent settlement is one of several holding energy companies accountable for seismic activity. Previous class-action lawsuits followed major events like the 5.7 magnitude quake near Prague in 2011 and the state's strongest recorded earthquake, a 5.8 magnitude tremor near Pawnee in 2016. A landmark 2015 decision by the Oklahoma Supreme Court was pivotal, establishing that lawsuits against energy companies for earthquake damage could be heard in district courts. Previously, these cases were dismissed, with arguments they fell under the jurisdiction of the Oklahoma Corporation Commission, the state's oil and gas regulator. In response to the seismic surge, the Oklahoma Corporation Commission (OCC) and the Environmental Protection Agency (EPA) have taken steps to mitigate the problem. Following the 2016 Pawnee earthquake, for instance, regulators ordered the shutdown of 37 disposal wells in the vicinity and placed restrictions on dozens more. State regulators have implemented a "traffic light" system for injection well permits and have required operators to reduce injection volumes, particularly in the deep Arbuckle formation. These actions have correlated with a decrease in the frequency of earthquakes in recent years. The lawsuits have not been limited to property owners. The Pawnee Nation also filed a lawsuit against several energy companies, seeking compensation for damage to tribal buildings, after the 2016 earthquake was centered near their land. One of the defendants in the current $2.6 million settlement, New Dominion, was also a defendant in litigation related to the 2011 Prague earthquake. That earlier case resulted in an undisclosed settlement with an injured resident and set a precedent for future claims.
