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March 28, 2015

Linville Shockey, et al. v. Chevron U.S.A., Inc.

Chevron operated plants in Colorado, New Mexico, Oklahoma, and Texas that processed natural gas production. Landowners in those states filed this class action lawsuit alleging that Chevron underpaid royalties owed to them by engaging in affiliate transactions and by making improper deductions for production-related activities. The class period ran from 1980 to 2004 and included production processed at approximately two dozen plants located in the four states.

Econ One was retained by counsel for the plaintiffs. Barry Pulliam served as the damages expert and testified at the class certification hearings. The class of approximately 15,000 royalty owners was certified and upheld upon appeal. The parties ultimately settled with the defendant agreeing to pay $60 million to the plaintiffs. Mr. Pulliam also testified at a hearing to determine the fairness of the settlement.

Industries: Oil and Gas

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