Details for OPAD MEDIA SOLUTIONS LLC

LEGAL NOTICE
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

In re: CHAPARRAL ENERGY, INC.,1 Reorganized Debtor.
Chapter 11 Case No. 16-11144 (LSS)
In re: CHAPARRAL ENERGY, INC., et al.,2 Debtors.
Chapter 11 Case No. 20-11947 (MFW) (Jointly Administered)
If You Are or Were a Royalty Owner in an Oklahoma Oil and Gas Well Operated by
Chaparral Energy, L.L.C., You Could be a Part of a Proposed Class Action Settlement
Go to www.naylorchaparralfundsettlement.com for more information, including the entire Settlement Agreement with its
exhibits (the “Settlement Agreement”). Exhibit F to the Settlement Agreement contains a list of the Class Wells subject to
the Settlement. All capitalized terms not defined herein have the same meaning as set forth in the Settlement Agreement.
The Settlement Class includes:
All non-governmental royalty owners who own or owned mineral interests prior to the Petition Date
covering wells operated by Chaparral in the State of Oklahoma, or in which Chaparral markets production,
that produced natural gas and/or natural gas constituents or components, such as residue gas, natural gas
liquids (or heavier liquefiable hydrocarbons), gas condensate or distillate, or casinghead gas and which is
or was subject to a marketing arrangement including a percentage of proceeds, percentage of index and/or
percentage of liquids arrangement and whose lease or leases with Chaparral include Mittelstaedt Clauses,
with such Settlement Class commencing on June 1, 2006 through August 16, 2020.
The litigation which is the subject of the Settlement seeks damages for Defendant’s alleged improper payment of royalty.
Defendant has adamantly denied, and continues to deny, all claims asserted in the litigation and has vigorously defended
against them. Nothing contained in this notice should be construed as suggesting the Bankruptcy Court’s (as defined
below) view as to which side might prevail should this matter proceed to class certification and trial on the merits.
On August 27, 2020, the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”)
preliminarily approved the Settlement. Pursuant to that agreement, the Defendant has agreed to allow Claim #1316
(subsequently amended as Claim #2179), a class proof of claim filed in the prior bankruptcy cases involving certain
of the Debtors, which are captioned In re Chaparral Energy, Inc., Case No. 16-1114 (Bankr. D. Del. 2016) (the “Prior
Bankruptcy Cases” and the class proof of claim filed therein, the “2016 Class Proof of Claim”), thereby entitling the
2016 Class Claimants to receive payment (if any) under the 2020 Plan as though they had received, in aggregate,
1,432,300 shares of Class A common stock of Chaparral Energy Inc. immediately prior to the commencement of the 2020
Bankruptcy Cases; to pay $2,500,000.00 (Two Million Five Hundred Thousand Dollars) in cash to the Settlement Class
(the “Settlement Cash Proceeds”) with respect to claims arising in connection with the Royalty Class Action Lawsuit
after May 9, 2016 (the “Royalty Class Action Claims”); to pay $850,000.00 (Eight Hundred Fifty Thousand Dollars) to
Settlement Class Counsel on account of fees, costs, and expenses; and to pay $150,000.00 (One Hundred Fifty Thousand
Dollars) to the Class Representative, subject to the conditions and qualifications set forth in the Settlement Agreement.
Complete information about the Settlement can be found in the SettlementAgreement. In exchange for the consideration
being provided by the Defendant under the Settlement Agreement, Settlement Class Members will release Defendant
and other Released Parties identified in the Settlement Agreement from all Released Claims.
The Released Claims (as defined in section 1.25 of the Settlement Agreement) include all claims, demands, actions,
causes of action, allegations, compulsory or permissive counterclaims, credits, off-sets, defenses, rights, obligations,
costs, fees, losses, and damages of any and every kind or nature, known or unknown, whether in law or equity, in tort
or contract, or arising under any statute or regulations, that are associated with the marketing, movement, treatment,
processing, sale, trade, calculation, reporting, allocation, payment, and similar acts/activities relating in whole or in
part to royalty on gas and its constituents produced from the Class Wells (including residue gas, natural gas liquids,
fuel gas, casinghead gas, drip condensate, condensate, helium, nitrogen, and any other forms of hydrocarbon gas
production or products therefrom) and on-lease and off-lease use of such gas during the production periods of the Class
Wells through August 16, 2020 (the “Released Period”). The Released Claims specifically include, but are not limited
to, those claims that arise from or in connection with acts or omissions of any of the Released Parties (including, but
not limited to, all intentional or negligent misconduct), which were or could have been asserted, made, or described in
the operative petition, complaint, or amended complaint, and the answers or counterclaims in the Royalty Class Action
Lawsuit, and shall also include and release any alternative theories of recovery for the same claims, actions, or subject
matter that could have been asserted in the Royalty Class Action Lawsuit, even if not asserted.
Without limiting the generality of the foregoing, Released Claims additionally means and includes: all claims within
the Released Period for greater, additional, lesser, unpaid, late paid, or overpaid amounts of royalty and/or interest
arising from any alleged breach or breaches of express royalty clauses or implied covenants in oil and gas leases;
alleged failure to obtain the highest or best price; alleged violations or breaches of the Oklahoma Production Revenue
Standards Act; alleged improper or unlawful deductions (of any kind) of/for production and postproduction costs
from royalty (and/or based upon the direct and/or indirect factoring of such costs into the computation of royalties),
including without limitation, use of gas for fuel, line loss, shrinkage, compression, use of gas for processing, gathering,
dehydration, blending, treating, fractionation, transportation, and storage fees, alleged claims for royalty or other
payments for or based on Btu content of gas, natural gas liquids, casinghead gas, residue gas, helium, sulfur, and all
other substances found in, or extracted or manufactured from, natural gas. Such Released Claims shall additionally
include any and all claims for interest, statutory interest, penalties, attorneys’ fees and other litigation expenses related
to the Released Claims, and by way of clarification shall include and subsume any form of claim, allegation and/or
cause of action asserting that the check stubs or royalty statements were in any way wrong, incorrect, inaccurate,
incomplete, misleading, fraudulent, or were in any other manner improper.
The Released Claims shall include all claims with respect to all volumes of hydrocarbon gas production from Class
Wells during the Released Period for which the Defendant (including its affiliated predecessors and affiliated successors
and affiliated operators) are or were the operator (or a working interest owner who marketed its share of gas and
directly paid royalties to the royalty owners). This includes the gross working interest of the Defendant in Class Wells,
and shall also extend to and release all of the claims against the Defendant with respect to volumes of hydrocarbon
production attributable to other persons and entities who sold their share of such production in Class Wells through
the Defendant, with the Defendant having computed and distributed royalties on behalf of such third party working
interest owners. For the avoidance of doubt, the Released Claims do not include claims by the Settlement Class
Members to ordinary course royalty payments, consistent with the Debtors’ past practice, as to which there is no
dispute and the payment of which has been authorized by the Bankruptcy Court.
The Settlement Class Members agree that, in consideration of the benefits they are receiving under the Settlement
Agreement, under no circumstances will they seek to recover or receive, directly or indirectly, any further amount of
money from either the Defendant, its attorneys, or any other Released Party for any of the Released Claims. By way of
example, but without limitation of the generality of the foregoing, the Settlement Class Members agree that they will
not seek to recover from any outside operator(s) of any of the Class Wells the alleged royalty underpayments and other
sums which are alleged to be owing by the Defendant and which are part of the Released Claims. For the consideration
stated in the Settlement Agreement, each Settlement Class Member additionally covenants not to sue the Defendant
or any other person or entity for any part of the production volumes associated with Defendant’s interest in the Class
Wells, or for any monetary relief or other relief associated with such volumes of production; rather, such matters are
released as part of the Released Claims.
The releases set forth in the Settlement Agreement are intended to release known and unknown claims as described
therein. The Parties know that presently unknown or unappreciated facts could materially affect the claims or defenses
of the Parties relating to the issues being settled in the Settlement Agreement and the desirability of entering into the
Settlement Agreement. It is nevertheless the intent of the Parties to give the full and complete releases set forth in the
Settlement Agreement.
The lawyer that represents the Settlement Class as Settlement Class Counsel is Conner L. Helms of the Helms Law
Firm and representative of Helms & Underwood, previously known as Helms, Underwood & Cook, in Oklahoma
City, Oklahoma. You may hire your own attorney if you wish; however, you will be responsible for your attorney’s
fees and expenses.
What Are My Legal Rights as a Settlement Class Member?
• Do Nothing, Stay in the Settlement Class, and Receive Benefits of the Settlement: If the Bankruptcy Court
approves the proposed Settlement, you will receive the benefits, if any, provided in the Settlement Agreement after
the Effective Date.
• Stay in the Settlement Class, but Object to All or Part of the Settlement: You can file and serve a written
objection to the Settlement and appear before the Bankruptcy Court. Your written objection must contain the
information described in the Notice of Settlement found at www.naylorchaparralfundsettlement.com and must be
filed with the Bankruptcy Court no later than November 9, 2020. If you stay in the Settlement Class, you will be
bound by any Judgments entered by the Bankruptcy Court.
• Opt-Out of the Settlement Class: To exclude yourself from the Settlement Class you must submit a written
opt-out to the Settlement Administrator at the following address: CHAPARRAL ENERGY, INC., c/o JND Legal
Administration, P.O. Box 91308, Seattle, WA 98111. Your opt-out must contain the information described in the
Notice of Settlement that can be found at the website listed above. You cannot opt-out yourself on the website, by
telephone, or by e-mail.
• Opt-Out of Voluntary Releases in the Proposed Plan of Reorganization: You have the option to not grant
the voluntary release of claims contained in the proposed plan of reorganization filed by the Debtors in the 2020
Bankruptcy Cases (the “Proposed Plan”) regardless of whether you choose to opt-out of the Settlement Class. To
opt out of such releases, you must complete the 2020 Plan Release Opt Out Election Form, which you can find
at the website listed above. Opting out of such releases will not affect your ability to receive a distribution under
the Proposed Plan. However, the Proposed Plan provides that granting these releases is a condition to receiving a
distribution on account of the allowed 2016 Class Proof of Claim.
IN ORDER TO BE VALID, YOUR OPT-OUT MUST BE RECEIVED BY THE SETTLEMENT
ADMINISTRATOR ON OR BEFORE 5:00 P.M. PREVAILING EASTERN TIME ON NOVEMBER 9, 2020.
The Bankruptcy Court will hold a Settlement Fairness Hearing on December 9, 2020 at 3:00 p.m., prevailing Eastern
Time in the United States Bankruptcy Court for the District of Delaware, 5th Floor, Courtroom 4, 824 North Market
Street, Wilmington, Delaware, 19801.
At the hearing, the Bankruptcy Court will consider whether the proposed Settlement is fair, reasonable, and adequate.
The Bankruptcy Court will also consider the request for Class Fees and Expenses. Please note that the date of the
Settlement Fairness Hearing is subject to change without further notice. If you plan to attend the hearing, you should
check with the Bankruptcy Court and www.naylorchaparralfundsettlement.com to confirm no change to the date and
time of the Settlement Fairness Hearing has been made.
This notice provides only a summary of the Settlement Agreement. For more detailed information regarding
the rights and obligations of Settlement Class Members, read the Settlement Agreement and other documents
posted on the website above, or contact the Settlement Administrator at Chaparral Energy, Inc. c/o JND Legal
Administration, PO Box 91308, Seattle, WA 98111.
1

The reorganized debtor in this chapter 11 case, along with the last four digits of the reorganized debtor’s federal tax
identification number, is Chaparral Energy, Inc. (0941). The reorganized debtor’s address is 701 Cedar Lake Blvd.,
Oklahoma City, OK 73114.

2

The Debtors in these cases, along with the last four digits (or five digits, in cases in which multiple Debtors have the
same last four digits) of each Debtor’s federal tax identification number, are: CEI Acquisition, L.L.C. (1817); CEI
Pipeline, L.L.C. (6877); Chaparral Biofuels, L.L.C. (1066); Chaparral CO2, L.L.C. (1656); Chaparral Energy, Inc.
(90941); Chaparral Energy, L.L.C. (20941); Chaparral Exploration, L.L.C. (1968); Chaparral Real Estate, L.L.C.
(1655); Chaparral Resources, L.L.C. (1710); Charles Energy, L.L.C. (3750); Chestnut Energy, L.L.C. (9730); Green
Country Supply, Inc. (2723); Roadrunner Drilling, L.L.C. (2399); and Trabajo Energy, L.L.C. (9753). The Debtors’
address is 701 Cedar Lake Boulevard, Oklahoma City, OK 73114.
Published in the Tulsa World, Tulsa County, Oklahoma, (11/09/2020)

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