Tulsa Judge rules against proposed settlement in royalty fight

A Tulsa federal judge has again stood by his decision not to allow two of 10 leaseholders to proceed with a settlement of their lawsuit that accused several energy companies of unauthorized and unlawful deductions from royalty payments.

U.S. District Judge Terrence C. Kern ruled this week against some of the defendants who had been sued by 10 lease holders. The suit had been filed by Kevin and Joe Jeter and others against Bullseye Energy, CEP Mid-Continent LLC, KRS and K, Gashoma, Inc., Purgatory Creek Gas, Redbird Oil, Wild West Gas, LLC, White Hawk Gas, LLC, Foundtainhead, LLC, Robert Kane, Louise Roark, Anne Kane Seidman, Mark Kane, Pamela Brown and Gary Grown.

In the original ruling made last summer, Joe and Kevin Jeter sought to get court approval of a $700,000 settlement but 8 of the remaining lease holders objected, arguing the settlement was not fair, reasonable and adequate. Judge Kern agreed that the settlement wasn’t fair.

The energy companies challenged his ruling but this week, Judge Kern ruled against them.