Monday, June 27, 2011

The Todd Cone Law Office joined with Brad Barron on May 15, 2009 and filed a lawsuit on behalf of several Nowata royalty owners against certain oil and gas company and affiliates, operated under various “Quest” names.

The lawsuit alleged that Quest had been wrongfully deducting and overcharging the Nowata royalty owners for various costs associated with producing, transporting and gathering natural gas. On March 22, 2010, the judge entered an order consolidating the lawsuit with a similar one filed by Dennis Caruso. The various quest affiliates were previously run by Jerry D. Cash, who has seen his share of trouble over the last several years.

The Petition was later amended to include PostRock Energy Corp and other PostRock affiliates, the successor in interest to Quest. “My royalty check had been cut almost in half by Quest”, complained one Nowata royalty owner. The case was set for jury trial in October 2011.

On June 14 of this year, the Todd Cone Law Office, Brad Barron and Dennis Caruso filed a similar petition, as a class action, on behalf of all Oklahoma royalty owners against PostRock and Quest. On June 20, the court entered an order preliminarily approving certification of class action for settlement purposes, settlement agreement, approving form of notice to class members and setting date for settlement fairness hearing. Notice of a proposed settlement was filed on June 23.

PostRock issued a press release on June 20: PostRock Energy Corporation today announced that the District Court of Nowata County, Oklahoma, has preliminarily certified a class and approved settlement. . ."