A years-long legal battle between Wyoming landowners and Occidental Petroleum Corporation has resulted in a $12 million settlement, Gillette News Record reports.
The dispute centered on allegations that Occidental and its subsidiary, Anadarko Petroleum Corporation, engaged in practices that limited landowners’ access to their mineral rights.
The class-action lawsuit, filed in November 2019, accused Anadarko of anti-competitive behavior, including hoarding drilling permits and inflating royalty rates on mineral leases to as high as 30%, well above the market standard of 18-20%. These practices, the plaintiffs argued, discouraged competition and deprived landowners of income opportunities tied to their mineral rights.
The case was led by landowners such as Carrie Deselms and Ron Rabou, whose families have farmed in Wyoming for generations. For them, mineral rights serve as a critical financial buffer in an industry fraught with unpredictability.
“That bonus payment for people with mineral rights is almost like an extra paycheck,” Deselms explained. “Anadarko cut a lot of us out of that with their internal policies.”
Rabou echoed her sentiments, emphasizing the importance of standing up to corporate practices that he believed harmed independent landowners.
In August, the day the case was set to go to trial, the parties reached a verbal settlement. While the $12 million agreement awaits finalization and distribution among the 2,300 members of the class-action suit, landowners noted it falls short of covering their financial losses from missed leasing opportunities.
Despite this, Rabou expressed pride in the coalition of plaintiffs and their legal team.
“This case was about more than getting a check,” Rabou said. “It was about ensuring free enterprise and the free marketplace can survive and thrive. I hope this settlement sends a message to companies to think twice before engaging in similar practices.”
Wyoming’s land and mineral rights system dates back to policies that split ownership between surface land and subsurface mineral resources. For landowners, access to mineral rights is an essential tool for sustaining their agricultural businesses, especially given the financial challenges of farming.
The plaintiffs hope the settlement sets a precedent to protect future generations from corporate practices that could restrict access to these rights.
“We wanted to do what is right,” Rabou said. “Our resources, our land, and the work we put into it matter. This case was about defending that.”
While the settlement did not include a formal acknowledgment of fault by Occidental, it underscores the importance of vigilance and unity among landowners. For Deselms, Rabou, and others, the fight was a testament to the resilience of Wyoming’s farming families and their commitment to preserving their livelihoods.
“We’re not doing this because we’re getting rich,” Rabou said. “We do it because it’s fulfilling and because it’s our contribution to the American economy and feeding families. That work matters, and so does standing up for what’s right.”
