The Notice of Pendency was sent pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Eastern District of Oklahoma (“Court”) to inform Class Members: (a) of a class action lawsuit that is now pending in the Court under the above caption (the “Action”) against Sunoco, Inc. (R&M) and Sunoco Partners Marketing & Terminals, L.P. (“Sunoco” or “Defendants”); and (b) that the Action has been certified by the Court to proceed as a class action on behalf of the Class. The Notice was not a settlement notice, and you were not being asked to submit a claim.

If you received the Notice, it is because you may be a member of the Class. If you are a member of the Class, your rights are affected by this Action. If you do not meet the Class definition, the Notice does not apply to you. If you are uncertain whether you are a member of the Class, contact Class Counsel listed in Question 11 below, or your own attorney.

The Notice of Pendency was not an admission by Defendants or an expression of any opinion by the Court as to the merits of the Action, or a finding by the Court that the claims asserted by the Class Representative in this Action are valid. The Notice was intended solely to inform you of the pendency of this Action and of your rights in connection with it, including the right to request exclusion from the Class.

A class action is a type of lawsuit in which one or several individuals or entities prosecute claims on behalf of all members of a group of similarly situated persons and entities to obtain monetary or other relief for the benefit of the entire group. Class actions avoid the necessity of each member of a class having to file his, her, or its own separate lawsuit to obtain relief. Class actions are used to decide legal and factual issues that are common to all members of a class.

This is an oil and gas class action against Defendants for alleged violations of Oklahoma law as set forth in the interest provisions of the Oklahoma Production Revenue Standards Act, 52 OKLA. STAT. § 570.10 (“PRSA” or the “Act”). The PRSA requires oil and gas companies to pay production proceeds to owners within certain time periods. With some exceptions, the first purchaser or holder of proceeds must pay statutory interest if it does not pay the proceeds on time. The payor must pay 6 percent or 12 percent interest, depending on the cause of the delay in payment. Class Representative alleges Defendants violated the PRSA by failing to pay statutory interest on late payments under this provision unless an owner makes a demand. Class Representative alleges Defendants’ conduct constitutes violations of the PRSA and fraud. Defendants denied the allegations of wrongdoing asserted in the Action, denied they have done anything wrong, and denied any liability for the claims alleged by Class Representative and members of the Class. Defendants also asserted various defenses.

On July 7, 2017, Plaintiff initiated this Action by filing his Original Petition in the District Court of Seminole County, Oklahoma against Defendants.

On August 14, 2017, Defendants filed a Notice of Removal, removing this Action to federal court under the Class Action Fairness Act.

On August 21, 2017, Defendants filed their Answer to Plaintiff’s Original Petition.

Thereafter, the parties engaged in substantial discovery, including the filing of multiple motions pertaining to various discovery issues.

On June 14, 2019, Plaintiff filed his Motion to Certify Class, to Appoint Class Representative, and to Appoint Class Counsel and Brief in Support, to which Defendants responded on August 14, 2019. The Court, by Order dated October 3, 2019, granted Plaintiff’s Motion to Certify Class. The Court’s Order certifying the Class didnot guarantee Class Members would receive money or benefits.

On August 8, 2019, Defendants filed a Motion to Dismiss for Lack of Subject Matter Jurisdiction and Brief in Support, to which Plaintiff responded on August 22, 2019. The Court, by Order dated October 3, 2019, denied Defendants’ Motion to Dismiss.

On August 27, 2020, the District Court entered judgment against the Defendants and awarded damages in the total amount of $155,691,486.00 (the "Judgment Fund").

On August 3, 2023, the Tenth Circuit Court of Appeals allowed an appeal by Defendants regarding the finality of the District Court's Judgment and remanded the case for further proceedings.

On October 19, 2023, the District Court entered a Rule 58 Judgment Order against the Defendants awarding damages in the total amount of 178,873,002.50.

By Order dated October 3, 2019, the Court certified the following Class:  

All non-excluded persons or entities who: (1) received Untimely Payments from Defendants (or Defendants’ designees) for oil proceeds from Oklahoma wells on or after July 7, 2012, and (2) who have not already been paid statutory interest on the Untimely Payments. An “Untimely Payment” for purposes of this class definition means payment of proceeds from the sale of oil production from an oil and gas well after the statutory periods identified in OKLA. STAT. tit 52, §570.10(B)(1) (i.e., commencing not later than six (6) months after the date of first sale, and thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold). Untimely Payments do not include: (a) payments of proceeds to an owner under OKLA. STAT. tit 52, §570.10(B)(3) (minimum pay); (b) prior period adjustments; or (c) pass-through payments.

The Class definition may be subject to change by the Court pursuant to Rule 23 of the Federal Rules of Civil Procedure.

The persons or entities excluded from the Class are: (1) agencies, departments, or instrumentalities of the United States of America or the State of Oklahoma; (2) publicly traded oil and gas companies and their affiliates; (3) persons or entities that Plaintiffs counsel may be prohibited from representing under Rule 1.7 of the Oklahoma Rules of Professional Conduct; and (4) officers of the court.

If you (1) received Untimely Payments (as that term is defined in paragraph 1 of the Notice) from Defendants (or Defendants’ designees) for oil proceeds from Oklahoma wells on or after July 7, 2012, and (2) have not already been paid statutory interest on the Untimely Payments, and you are not excluded by definition from the Class, you are a member of the Class. If you are a member of the Class, you had the right to decide whether to remain a member of the Class. If you are a member of the Class and wished to be excluded from the Class, you had to request exclusion in accordance with the procedures set forth in Question 9 below. You did not need to do anything to remain a member of the Class. Your decision was important for the following reasons:

1. If you chose to remain a member of the Class, you are bound by all past, present and future orders and judgments in the Action, whether favorable or unfavorable. You may be eligible to receive a share of the Judgment Fund. However, if you remain a member of the Class, you may not pursue a lawsuit on your own behalf with regard to any of the issues in this Action. Pursuant to Rule 23(e)(4) of the Federal Rules of Civil Procedure, it is within the Court’s discretion whether to allow a second opportunity to request exclusion from the Class if there is a settlement or judgment in the Action after a trial and appeal. Please note that if you remain a member of the Class, you will not be personally responsible for Class Counsel’s attorneys’ fees or costs. Class Counsel agreed to represent the Class on a contingent fee basis, which means that they will be awarded fees and costs to be approved by the Court based on obtaining a recovery from one or more Defendants. Any attorneys’ fees for Class Counsel will be awarded by the Court from the settlement or judgment, if any, obtained on behalf of the Class. As a member of the Class, you will be represented by Class Counsel. Alternatively, you could have remained a member of the Class and elected to be represented by counsel of your own choosing. If you did retain separate counsel, you will be responsible for that attorney’s fees and expenses and that attorney had to enter an appearance on your behalf by filing a Notice of Appearance with the Court and mailing it to Class Counsel at the addresses set forth in paragraph 11 below on or before December 9, 2019.
2. If you chose to be excluded from the Class, you are not be bound by any orders or judgments in this Action, nor will you be eligible to share in any recovery that might be obtained in this Action. You retain any right you have to individually pursue any legal rights that you may have against any Defendants with respect to the claims asserted in the Action.

Members of the Class will be eligible to participate in any recovery that might be obtained in the Action.

The deadline to exclude yourself from the Class has passed. To exclude yourself, you had to send a letter by first-class mail stating that you “request exclusion from the Class in Cline v. Sunoco, Inc. (R&M), et al., Case No. 17-cv-313-JAG.” Your request had to state your full name, address and telephone number and be signed if mailed. If you were acting on behalf of a Class Member (such as an estate, corporation or partnership), you had to indicate your full name, your title indicating the basis of your authority to act on behalf of the Class Member. You had to mail your exclusion request, postmarked no later than December 9, 2019, to:

Cline v. Sunoco, Inc. (R&M), et al.
c/o JND Legal Administration
PO Box 91342
Seattle, WA 98111

Alternatively, you could have emailed your request for exclusion with the same information listed above (without handwritten signature) to the Class Administrator at info@cline-sunoco.com. Emails requesting exclusion also had to be sent by December 9, 2019.

You could also have used the “Request for Exclusion From Class” form to exclude yourself from the class by filling in the information required and mailing it or emailing it to the Class Administrator, by December 9, 2019.

You were not able to exclude yourself from the Class by telephone or facsimile. Requests for exclusion that did not comply with the above requirements were invalid, unless otherwise accepted by the Court, subject to any objections of the parties to be resolved by the Court.

No. If you properly requested exclusion from the Class, you will not be bound by any orders or judgments in this Action, and you will be entitled to pursue any individual lawsuit, claim or remedy, if available, which you may have, at your own expense. But, you are also not be eligible to share in any recovery that might be obtained in this Action.

The Court appointed the law firms of Nix Patterson, LLP; Ryan Whaley Coldiron Jantzen Peters & Webber, PLLC; and Barnes & Lewis, LLP as Class Counsel. If you have any questions concerning the matters raised in this Notice, you may contact Class Counsel, as follows:

If you wanted to be represented by your own lawyer, you had to hire one at your own expense. If you retained your own lawyer, such counsel had to enter an appearance on your behalf by filing a Notice of Appearance with the Clerk of the Court at the United States District Court for the Eastern District of Oklahoma, 101 North 5th Street, Room 208, Muskogee, Oklahoma 74401, on or before December 9, 2019. Your Notice of Appearance also had to be mailed to Class Counsel at the addresses set forth in Question 11, on or before December 9, 2019.

Class Counsel will seek attorneys’ fees up to 40% of the Judgment Fund. The amount of attorneys’ fees paid from the Judgment Fund may be offset by $4,500,000.00 in stipulated fees paid by Defendants. Class Counsel will also seek reimbursement of litigation expenses up to $850,000.00, and Administration, Notice, and Distribution Costs up to $650,000.00. The litigation expenses may be offset by up to $500,000.00 in stipulated costs paid by Defendants. Class Representative will also seek a case contribution award of up to $500,000.00. Class Counsel will submit these requests to the Court by no later than January 31, 2023. Unless you elected to retain your own personal lawyer, if you remained in the Class, you will not have any direct obligations to pay the costs of the litigation.

The remainder of the fund (the “Net Judgment Fund”) will be distributed to eligible Class Members based on a variety of factors as set forth in the Court’s Plan of Allocation Order.

The deadline to object to Class Counsel’s request for attorneys’ fees, reimbursement of litigation expenses, and/or administration, notice, and distribution costs, or to Class Representative’s request for a case contribution award has passed. Written objections had to be filed with the Court no later than February 14, 2023, at 5 p.m. CT.

The Court will hold a Hearing on February 28, 2023, at 10:00 a.m. CT via Zoom. At the hearing, the Court will consider the application for Attorneys’ Fees, Litigation Expenses, Administration, Notice and Distribution Costs, and Case Contribution Award. If objections have been submitted in the manner required, the Court will consider them, as well. Please note that the date of the Hearing is subject to change without further notice.

To assist the Court and the parties in maintaining accurate lists of Class Members, you are requested to mail notice of any changes in your address to:

Cline v. Sunoco, Inc. (R&M), et al.
c/o JND Legal Administration
PO Box 91342
Seattle, WA 98111

If the Notice was forwarded to you by the postal service, or if it was otherwise sent to you at an address that is not current, you should immediately contact the Administrator, JND Legal Administration, at the address above or toll free at 1-844-924-0848 and provide them with your correct address. If the Administrator does not have your correct address, you may not receive notice of important developments in this Action.

The Notice gives only a summary of the lawsuit and the claims asserted by Class Representative. For more detailed information regarding the Action, you may contact Class Counsel or review this website.

Complete copies of the pleadings, orders, and other documents filed in this Action are available at www.pacer.gov or at the office of the Clerk of the Court, United States District Court for the Eastern District of Oklahoma, 101 North 5th Street, Room 208, Muskogee, Oklahoma 74401, under Case No. 17-cv-313-JAG.

PLEASE DO NOT CALL OR WRITE THE COURT OR CLERK OF THE COURT REGARDING THIS NOTICE.