Jay-Bee Oil & Gas $38.4 Million Settlement for Royalty Deductions

If you were a royalty owner and received or were owed a payment from Jay-Bee Production Company, JB Exploration I, LLC, and/or BB Land, LLC beginning May 21, 2010, for a West Virginia natural gas well, you may be eligible to claim a settlement amount from a class action settlement.

Jay-Bee Oil & Gas, Inc. has agreed to pay $38,467,289 to settle a class action lawsuit for alleged improper deductions of post-production expenses from royalty payments.

Who are the class members?

• You own a royalty interest in a lease covering land in West Virginia.
• Your lease does not contain an arbitration clause.
• You held a royalty interest between May 21, 2010, and December 31, 2023.
• Natural gas or natural gas liquids were produced on the leased land during the specified period.
• You received or were due royalty payments from the lease.
• You received or were due royalty payments from Jay-Bee.

If you have multiple leases, each lease is eligible for a separate settlement payment.

How much can class members get?

The settlement provides two main payouts:

• Jay-Bee Settlement: $38,467,289 distributed based on the improper deductions from royalty payments.
• Estate Settlement: Between $4,200,000 and $5,000,000, depending on the payment timeline.

The exact amount each class member receives will be calculated based on their share of the deductions. For example, if a class member had $1,000 in deductions, their payout would be proportional to this amount relative to the total deductions claimed by all class members.

Class members do not need to file a claim to receive compensation.

Minimum Payment

Under both settlements, class members whose calculated settlement payments are less than $100 will receive a minimum payment of $100.

$38,467,289 Settlement Fund Breakdown

The settlement fund of $38,467,289 will cover:

• Payments to class members based on their share of deductions.
• Attorneys' fees, which will be no more than one-third of the settlement fund.
• Incentive awards to named plaintiffs, up to $25,000 each.
• Administrative expenses for managing the settlement.

Important dates

• Opt-Out Deadline: October 18, 2024
• Deadline to Dispute Settlement Amount with Special Master: November 1, 2024
• Final Fairness Hearing: December 12, 2024, at 2:00 p.m.

When is the Jay-Bee Settlement payout date?

Payments are expected to be distributed approximately thirty days after the final approval hearing, assuming no appeals delay the process.

The next step is the fairness hearing on December 12, 2024, where the court will decide whether to approve the settlements. If approved, payments will be distributed shortly thereafter.