To be clear, we do not represent any of the representative plaintiffs in the Demchak Partners case, and were not involved in the negotiation, execution or request for preliminary approval of the settlement. We do represent many individual royalty owners who have Market Enhancement Clauses in their leases, and who therefore fall within the definition of the Settlement Class. As a result, our clients, like all members of the Settlement Class, wil need to decide whether to remain in the Settlement Class or to opt-out by submitting a request to be excluded from the Settlement Class by the December 17 deadline.
We will be sending a letter this week to those of our clients who have Market Enhancement Clauses in their leases scheduling a conference call to discuss the Demchak Partners settlement. The letter will include a form of request for exclusion from the Settlement Class, along with instructions for completion and submission of the form. If you can't make the call, feel free to call us directly.
We have our own opinions about the proposed Class Settlement in the Demchak Partners case, which we will be sharing with our clients. Publicly, we are neither recommending the proposed Class Settlement in the Demchak Partners case nor encouraging royalty owners to opt-out of the Settlement Class. We believe that every royalty owner who has a Market Enhancement Clause in his lease need to make an informed decision as to whether the proposed settlement is in his best interests. We also believe that, in order to make an informed decision, you need to understand the details of the proposed settlement and your alternatives. We encourage royalty owners to consult with an attorney for assistance in evaluating the proposed settlement and their alternatives.
The bottom line is that we are offering an ALTERNATIVE approach to the Class Settlement in the Demchak Partners case. If you have a Market Enhancement Clause in your lease, and are by definition a member of the Settlement Class, you need to decide whether it is in your best interests to remain in the Settlement Class or to opt-out and pursue your claims separately. You cannot do both. Choose wisely.