Youngren, et al. v. Amoco Production Company
(now BP America Production Co.)
Stevens County Kansas - Case No. 89-CV-22

On July 1, 2004, Judge Tom Smith of the District Court of Stevens County, Kansas approved the settlement of class action claims brought on behalf of approximately 6,000 royalty interest-owners against Amoco Production Company (now BP America Production Co.) in the case known as “Youngren v. Amoco.” The case was filed in 1989. In this class action, BP’s royalty owners whose royalty interests are located in the Kansas Hugoton Field, challenged BP’s practice of deducting gathering expenses from royalty payments. Fleeson, Gooing, Coulson & Kitch, L.L.C. and Kramer, Nordling & Nordling LLC, of Hugoton, Kansas, serve as Class Counsel for the plaintiff class of royalty owners.

Amoco has paid $49 million to settle claims that it wrongfully deducted “gathering expenses” from amounts received from the sale of gas before calculating the royalties which it paid to class members during the period from 1990 through June 2004. In addition, Amoco immediately reduced the amount of such deductions by 75 percent as of July 1, 2004. At the end of five years, it will cease taking the deductions altogether. When these prospective benefits are taken into account, the total value of the settlement to the royalty owners exceeds $80 million.