This is a class action about an earlier class action settlement. The earlier settlement set forth a way of calculating the royalties Noble Energy, Inc. would pay the settlement class. But the complaint for this new class action claims Noble did not stick to that agreement. It claims, first, that another company, DCP Midstream, LP, underpaid Noble, which in turn meant the settlement class was underpaid. Second, it claims that when Noble resolved that situation, it waived certain payments from DCP, leaving the settlement class still underpaid.
The class for this action includes (1) the members of the settlement class for another class action, styled Hofman et al. v. Noble et al., Case No. 03 CV 9, which was previously litigated against Noble in the District Court for Weld County, Colorado, which was resolved with a settlement agreement executed in February 2007, and (2) who have received any royalty payments from Noble since January 1, 2008, based on payments made by DCP to Noble under a percentage of proceeds gas purchase agreement.
The earlier class action was brought by Phelps Oil and Gas, LLC, which is also the plaintiff for this class action. The court approved the settlement agreement on June 11, 2007. The settlement agreement set forth a way of calculating future royalties for natural gas and natural gas liquids (NGLs) that Noble produces after January 1, 2008 in Adams, Boulder, Broomfield, Larimer, and Weld Counties in Colorado.
Under the agreement, in situations where Noble has a percentage of proceeds agreement with a party that provides post-wellhead services—such as DCP—Noble is to pay the class a royalty of 100 percent of the amount of the payments from the provider plus 50 percent of the amount of sales proceeds the provider keeps.
Noble’s agreement with DCP gives it the right to examine DCP’s records, the complaint alleges, to make sure it is being paid fairly. At one point, the complaint alleges, Noble discovered that DCP was breaching the terms of its percentage of proceeds agreements and underpaying Noble.
Noble and DCP then negotiated and came to a settlement agreement, the complaint claims, under which “Noble discounted the amounts DCP owed … and waived its right to any cash distribution of the amounts DCP owed and was required to pay Noble under the percentage of proceeds agreements.”
The complaint asserts, “Because DCP did not pay, and because Noble did not receive, the actual amount of sale proceeds owed under the percentage of proceeds agreements … Phelps and the class have not been paid the full amount of royalties they are owed” under the earlier class action settlement.
Article Type: LawsuitTopic: Contract
Most Recent Case Event
Noble Energy, DCP Midstream Underpayment of Royalties First Amended Complaint
October 7, 2022
This is a class action about an earlier class action settlement. The earlier settlement set forth a way of calculating the royalties Noble Energy, Inc. would pay the settlement class. But the complaint for this new class action claims Noble did not stick to that agreement. It claims, first, that another company, DCP Midstream, LP, underpaid Noble, which in turn meant the settlement class was underpaid. Second, it claims that when Noble resolved that situation, it waived certain payments from DCP, leaving the settlement class still underpaid.
Noble Energy, DCP Midstream Underpayment of Royalties First Amended ComplaintCase Event History
Noble Energy, DCP Midstream Underpayment of Royalties First Amended Complaint
October 7, 2022
This is a class action about an earlier class action settlement. The earlier settlement set forth a way of calculating the royalties Noble Energy, Inc. would pay the settlement class. But the complaint for this new class action claims Noble did not stick to that agreement. It claims, first, that another company, DCP Midstream, LP, underpaid Noble, which in turn meant the settlement class was underpaid. Second, it claims that when Noble resolved that situation, it waived certain payments from DCP, leaving the settlement class still underpaid.
Noble Energy, DCP Midstream Underpayment of Royalties First Amended Complaint