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Proposed Settlement for Landowners with Diversified Energy

Recently, a significant legal development has emerged regarding landowners connected with Diversified Energy's oil and gas wells across several states including West Virginia, Ohio, Kentucky, Pennsylvania, Virginia, and Tennessee. A proposed settlement from the lawsuit McEvoy v. Diversified Energy and EQT has been put forth, which may have extensive implications for those affected.

The Lawsuit Overview

The lawsuit, filed in the Northern District of West Virginia, alleges that Diversified Energy and its partner EQT engaged in questionable practices involving the management and transfer of certain oil and gas wells. Key points of contention include claims that Diversified failed to properly manage non-producing wells, failing to plug them as required. While both defendants have denied any wrongdoing, they have opted to settle to avoid the risks and expenses associated with prolonged litigation.

Who Will Be Affected?

The terms of the proposed settlement extend to individuals and entities that owned a surface interest in lands with a Diversified Energy oil and gas well between July 8, 2022, and November 4, 2024. This group will include a wide range of stakeholders who may now have rights or remedies as a result of this legal resolution.

Benefits of the Settlement

A core aspect of this settlement involves the commitment from Diversified to plug 2,600 non-producing wells throughout the affected states by December 31, 2034. If residents in these areas have any health, safety, or environmental concerns due to the wells, they may apply for the plugging services at no cost. For more information on the benefits and procedures, interested parties can visit the provided website, www.DECSettlement.com.

Your Rights and Options

As a class member in this settlement, landowners can choose from several options:
1. Do Nothing: Remaining a member of the class allows individuals to benefit from the planned well-plugging initiative while relinquishing the right to sue Diversified Energy until January 1, 2034.
2. Opt-Out: Those who prefer to retain their right to sue can opt-out of the settlement. This preserves their right to bring forth claims but excludes them from the settlement’s benefits. The deadline for opting out is February 18, 2025.
3. Object: Class members dissatisfied with the settlement may object while remaining in the class. Objections must be submitted to the Court by March 17, 2025, detailing specific disagreements with the proposed terms.

Court Hearing

A Fairness Hearing will be held on April 11, 2025, at the US District Court for the Northern District of West Virginia. This hearing will consider the approval of the settlement, including up to $6,500,000 in payments towards attorneys' fees and expenses, and provide awards of $3,000 to Class Representatives.

All motions filed by Class Counsel will be available for review before the hearing date, and stakeholders can attend at their own expense or hire legal representation if they choose.

This summary serves as a preliminary overview for interested parties. More detailed information regarding this settlement, including methods for opting out or filing objections, can be found at www.DECSettlement.com or by contacting the designated helpline at (833) 627-3696.

Navigating this legal landscape can seem complex, but understanding these developments is crucial for landowners potentially impacted by the decisions of Diversified Energy and EQT.