Range Resources says it’s settling Oklahoma class-action suit for $87.5 million

Posted Wednesday, Jun. 05, 2013  comments  Print Reprints

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Fort Worth-based Range Resources said Tuesday that it has taken steps to settle an Oklahoma class-action lawsuit for $87.5 million.

Plaintiffs in the suit, filed in 2010, had sought $160 million in alleged royalty underpayments on sales of natural gas. According to a filing with the Securities and Exchange Commission, the independent oil and gas producer said the suit was related to marketing costs and includes interest on the alleged underpayments.

In April, Range said it set aside $35 million in potential expenses related to the case. At that time, the company said that while Oklahoma law allowed the deduction of expenses after production, the extent of those deductions could be something a judge or jury must determine.

In Tuesday’s filing, Range said it reached a memorandum of understanding that sets forth a final settlement of $87.5 million. As a result, Range will take an additional charge of $52.5 million in the second quarter.

The company also said it expects to book an $87 million gain during the same quarter on an unrelated sale of properties in West Texas.

Jim Fuquay, 817-390-7552 Twitter: @jimfuquay

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