Tucker v. BP America Production Co.

278 F.R.D. 646, 81 Fed. R. Serv. 3d 269, 175 Oil & Gas Rep. 857, 2011 U.S. Dist. LEXIS 138745, 2011 WL 6018406
CourtDistrict Court, W.D. Oklahoma
DecidedDecember 2, 2011
DocketNo. CIV-08-619-M
StatusPublished
Cited by5 cases

This text of 278 F.R.D. 646 (Tucker v. BP America Production Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tucker v. BP America Production Co., 278 F.R.D. 646, 81 Fed. R. Serv. 3d 269, 175 Oil & Gas Rep. 857, 2011 U.S. Dist. LEXIS 138745, 2011 WL 6018406 (W.D. Okla. 2011).

Opinion

ORDER

VICKI MILES-LaGRANGE, Chief Judge.

The Court has before it for review and consideration the following: Plaintiffs Amended Motion for Class Certification, filed October 25, 2010, the Response in Opposition to Amended Motion for Class Certification by Defendant BP America Production Company, filed November 23, 2010 and plaintiffs reply, filed December 21, 2010. The Court also heard testimony and received a variety of evidentiary materials at a multi-day evi-dentiary hearing held June 2, 3, 7 and 9, 2011. The parties’ proposed findings of fact and conclusions of law were filed September 30, 2011.1 On October 21, 2011 the parties’ objections were filed.

Upon careful review of the parties’ submissions as well as the testimony and evidence presented during the evidentiary hearing, the Court finds, for the reasons that follow, that plaintiffs Federal Rule of Civil Procedure 23 motion for class certification should be denied.2

1. INTRODUCTION

BP America Production Company, a Delaware corporation, (“defendant”) is the exploration division of BP, PLC, an oil and gas exploration, drilling, and marketing company based in the United Kingdom. This lawsuit concerns calculations of royalty payments by BP under hundreds of individual oil and gas lease provisions with hundreds of royalty owners over the last decade in the N.E. Mayfield production area in western Oklahoma.

Plaintiff Stanley F. Tucker, individually and as Co-Trustee of the Tucker Living Trust, and on behalf of others similarly situated (“plaintiff’), requests an order certifying claims against defendant as a class action. Plaintiff further requests an order appointing him as Class Representative and appointing his counsel as Class Counsel.

In his amended complaint, plaintiff has alleged that defendant engaged in a course of conduct to deprive the proposed class members of royalty payments by (1) making improper deductions for productions costs, (2) selling gas to affiliated companies, (3) failing to properly account for fuel use, line loss and condensation, (4) breach of its fiduciary duty, [649]*649(5) violating the Production Revenue Standards Act (PRSA), (6) actual/eonstructive fraud, and (7) improperly charging royalty to purchase equipment. In his amended motion, plaintiff limited the claims asserted to 28 oil wells producing into the NE Mayfield production area, and to the time period from 2001 to November 1, 2008. However, plaintiffs recent class description submission removes November 1, 2008 as the ending period for the proposed class.

II. PLAINTIFF’S PROPOSED CLASS

In his Petition on October 4, 2007, then plaintiff Billy B. Tucker, who appeared herein both in his individual capacity and as Trustee of the Tucker Living Trust (hereinafter the “Plaintiff Trust”), sought certification of a class, under Okla. Stat. tit. 12, § 2023, et seq.3 Three years later on October 25, 2010, in his amended motion before this Court, Stanley F. Tucker4 sought certification of a class defined as:

All persons who own or owned minerals subject to an oil and gas lease in the State of Oklahoma (except agencies, departments, or instrumentalities of the United States of America or the State of Oklahoma, and/or persons whom plaintiffs’ counsel are, or may be, prohibited from representing pursuant to the Rules of Professional Conduct, and/or overriding royalty owners and unleased mineral owners who have elected under an OCC forced pooling order to take the bonus/royalty option) from 2001 to November 2008 who received royalty on the sale and disposition of gas produced from properties linked to the Northeast Mayfield gathering system that was marketed and/or sold by BP America Production Company and/or its affiliates.

(Plaintiffs Amended Motion for Class Certification, Doc. No. 67, p. 1.) Eight months later, during the course of the evidentiary hearing on plaintiffs amended motion, plaintiff moved to amend his class definition. Over defendant’s objections5, the Court allowed plaintiff to amend the class definition. Thus, plaintiff requests the Court to certify the following class:

All persons and entities who own or owned minerals subject to an oil and gas lease in the State of Oklahoma (except agencies, departments, or instrumentalities of the United States of America or the State of Oklahoma, and/or persons whom plaintiffs’ counsel are, or may be, prohibited from representing pursuant to the Rules of Professional Conduct, and/or overriding royalty owners and unleased mineral owners who have elected under an OCC forced pooling order to take the bonus/royalty option) since BP’s acquisition of Vastar in 2001 who received royalty on the sale and disposition of gas and all other hydrocarbon byproducts produced from properties linked to the Northeast Mayfield gathering system that was marketed and/or sold by BP America Production Company and/or its affiliates.

(Plaintiffs Proposed Class Definition, Doc. No. 134, p. 1.)

III. DISCUSSION

A. Applicable Law

The class action is “an exception to the usual rule that litigation is conducted by [650]*650and on behalf of the individual named parties only.” Califano v. Yamasaki, 442 U.S. 682, 700-701, 99 S.Ct. 2545, 61 L.Ed.2d 176 (1979). In order to justify a departure from that rule, “a class representative must be part of the class and ‘possess the same interest and suffer the same injury’ as the class members.” East Tex. Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 403, 97 S.Ct. 1891, 52 L.Ed.2d 453 (1977) (quoting Schlesinger v. Reservists Comm. to Stop the War, 418 U.S. 208, 216, 94 S.Ct. 2925, 41 L.Ed.2d 706 (1974)). Rule 23(a) ensures that the named plaintiffs are appropriate representatives of the class whose claims they wish to litigate. The Rule’s four requirements — numerosity, commonality, typicality, and adequate representation — “effectively ‘limit the class claims to those fairly encompassed by the named plaintiffs claims.’” General Telephone Co. of Southwest v. Falcon, 457 U.S. 147, 156, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982) (quoting General Telephone Co. of Northwest v. EEOC, 446 U.S. 318, 330, 100 S.Ct. 1698, 64 L.Ed.2d 319 (1980)).

Wal-Mart Stores, Inc. v. Dukes, — U.S. -, 131 S.Ct. 2541, 2550, 180 L.Ed.2d 374 (2011).

In Vallario v. Vandehey, 554 F.3d 1259 (10th Cir.2009), the Tenth Circuit summarized several rules that govern this Court’s decision under Rule 23.

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278 F.R.D. 646, 81 Fed. R. Serv. 3d 269, 175 Oil & Gas Rep. 857, 2011 U.S. Dist. LEXIS 138745, 2011 WL 6018406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tucker-v-bp-america-production-co-okwd-2011.