What is this lawsuit about?

The Litigation seeks damages for Defendant’s alleged failure to pay statutory interest on allegedly Late Payments and failure to provide the information required on Check Stubs under Wyoming law. Defendant expressly denies all allegations of wrongdoing or liability with respect to the claims and allegations in the Litigation, but has agreed to the proposed Settlement to avoid the uncertainty, burden, and expense of continued litigation. The Court has made no determination with respect to the merits of any of the parties’ claims or defenses.

Who is included?

The Settlement Classes in the Litigation consist of the following individuals and entities:

Class 1

All non‑excluded persons or entities owning interests in Wyoming oil and gas wells who:

1. received Late Payments from AEC during the Claim Period for proceeds of Wyoming oil or gas production, or whose proceeds for Wyoming oil or gas production were Late Payments sent to escrow by AEC during the Claim Period; and
2. such Late Payments did not include 18% interest.

A “Late Payment” for purposes of this Class 1 definition means payment or escrow by AEC after the statutory periods identified in W.S. § 30‑5‑301.

Class 2

All non‑excluded persons or entities owning royalty, overriding royalty, or other non‑working interests in Wyoming oil and gas wells who:

1. received a Check Stub from AEC during the Claim Period for proceeds of Wyoming oil and gas production; and
2. the Check Stub failed to include information as provided in W.S. § 30‑5‑305.

A “Check Stub” for purposes of this Class 2 definition means a check stub or an attachment to the form of payment, which required the royalty information provided in W.S. § 30‑5‑305(b).

The Claim Period means Late Payments for Class 1 dated between and including February 22, 2017, through October 28, 2025, and for Check Stubs for Class 2 dated between and including February 22, 2017, through February 28, 2026, subject to the terms of the Settlement Agreement regarding Released Claims.

What does the Settlement provide?

In settlement of all claims alleged in the Litigation, Defendant has agreed to pay Ten Million Seven Hundred Fifty Thousand Dollars ($10,750,000.00) in cash (“Gross Settlement Fund”). In exchange for payment of the Gross Settlement Fund and other consideration outlined in the Settlement Agreement, the Settlement Classes shall release the Released Claims (as defined in the Settlement Agreement) against the Released Parties (as defined in the Settlement Agreement). The Gross Settlement Fund, less Plaintiff’s Attorneys’ Fees and Litigation Expenses and Administration, Notice, and Distribution Costs, Case Contribution Award, and any other costs approved by the Court (the “Net Settlement Fund”), will be distributed to final Class Members pursuant to the terms of the Settlement Agreement.