Oklahoma Reaches Earthquake Settlement
A $2.6 million class action settlement has been reached for Oklahomans who suffered property damage from earthquakes linked to wastewater disposal wells. The settlement covers damages from early 2019 to the present, potentially setting a precedent for industrial environmental liability.
This latest settlement is part of a larger trend of litigation targeting energy companies for earthquake-related damages. In a separate case, Spess Oil Co., Circle 9 Resources, and Culbreath Oil & Gas Co. Inc. agreed to a $555,000 settlement to resolve claims that their wastewater disposal wells caused property damage. Another significant settlement saw several oil companies agree to pay $7.5 million to resolve allegations that their wells caused earthquakes in 2016, including a 5.8 magnitude temblor near Pawnee, which was the strongest in Oklahoma's history. The scientific basis for these lawsuits stems from research linking the deep injection of wastewater from oil and gas production to a dramatic rise in seismic activity. Oklahoma experienced a surge in earthquakes starting in 2009, increasing from an average of less than two 3.0+ magnitude quakes per year to hundreds annually in the following years. Some studies suggest that most significant earthquakes in Oklahoma during the 20th century may have been induced by oil production activities. The defendants in the $2.6 million settlement, Freedom Energy, Montclair, New Dominion, and H&P, were alleged to have operated wastewater disposal wells that contributed to a 5.1 magnitude earthquake near Prague, Oklahoma on February 2, 2024. This continues a history of legal action in the state, including a 2017 settlement involving New Dominion LLC and Spess Oil Co. over a 5.7-magnitude earthquake in 2011 that injured a Prague resident. In response to the earthquake swarms, the Oklahoma Corporation Commission (OCC), the state's oil and gas regulator, has implemented measures to mitigate the seismic risk. These actions have included issuing directives to shut down or reduce the volume of wastewater injected into disposal wells, particularly those injecting into the deep Arbuckle formation, which is believed to pose the highest risk. These regulatory efforts have shown some success in reducing the frequency of induced earthquakes. Studies have indicated that both reducing injection volumes and plugging back wells to shallower depths have been effective strategies in lowering the state's seismicity rate. Despite these measures, the ongoing legal battles and recent settlements show that the issue of liability for earthquake damage remains a significant concern.
