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Home My WebLink About20100633 EXCO GAS ROYALTIES SETTLEMENT ADMINISTRATOR PO BOX 98 MINNEAPOLIS MN 55440-0098 IMPORTANT INFORMATION ENCLOSED !��D I ID 456 a o 4 5 6 5 WELD COUNTY BRD OF COMM PO BOX 758 GREELEY CO 80632-0758 DISTRICT COURT,CITY AND COUNTY OF DENVER, COLORADO 1438 Bannock Street Denver,CO 80202 Plaintiffs: TED AMSBAUGH,and GREGORY BROWN, on behalf of ♦ COURT USE ONLY • themselves and all others similarly situated. Defendants: EXCO RESOURCES, INC.A Foreign Corporation Case No.: 09CV2601 Div.: 3 EXCO RESOURCES,INC.CLASS ACTION SETTLEMENT HEIRSHIP/BENEFICIARY INFORMATION FORM The information in this form is solicited in order to assist the Settlement Administrator in the allocation and distribution of monies attributable to the interests of persons included in the Settlement Class definition who are now deceased ("Deceased Class Members"). If you are an heir or beneficiary of a Deceased Class Member and thereby believe you are entitled to receive all, or some portion, of the Initial Settlement Payment allocable to a Deceased Class Member under the Settlement Agreement's Plan of Allocation, then you are requested to provide the information set forth below and mail the completed form in a postage-prepaid envelope, to the Settlement Administrator listed below, postmarked no later than May 21, 2010. You should send your completed form to EXCO Gas Royalties Settlement Administrator P. O. Box 98 Minneapolis,MN, 55440-0098 If you have any questions about this form, please write the Settlement Administrator at the address above, or call the Settlement Administrator at 1-866-680-3352. The provision of an Heirship Form is requested as an aid to the Settlement Administrator in the distribution of the Initial Settlement Payment, but shall not constitute a required proof of claim form. In the absence of an Heirship Form, the Settlement Administrator may review records in EXCO's possession, including division orders, transfer orders, probate records, payment records, and like documents, and reasonably attempt to allocate and distribute Initial Settlement Payment monies attributable to a Deceased Class Member's interests, to the person, or persons,who received Royalty payments from EXCO as a successor-in-interest to the Deceased Class Member in the ordinary course of business. The Settlement Administrator may also allocate and distribute Initial Settlement Payment monies attributable to a Deceased Class Member's interests to the estate of the Deceased Class Member, with any such payment to be made payable to the estate of the Deceased Class Member and sent to such mailing address for the estate as may be readily ascertainable by the Settlement Administrator. ' 7.977‘ 2010-0633 Requested Information A. Provide the following information about the person submitting this form: 1. Current Name: 2. Any different name under which you may have received gas royalty payments from EXCO: 3. Current Address: 4. Current Telephone Number: ( ) - 5. Social Security Number: B. Provide the following information about the Deceased Class Member to whom this Heirship Form pertains: 1. Name: 2. Social Security Number (if known): - - 3. The approximate date of the Deceased Class Member's death: __/__/ 4, If known by you, the name of each well operated by EXCO and in which the Deceased Class Member owned a mineral or royalty interest. 5. Identify each oil and gas lease under which the Deceased Class Member received royalty payments on gas produced by EXCO (if you know). C. List the name and address of each person and/or entity who is an heir or beneficiary of the Deceased Class Member and succeeded to the Deceased Class Member's mineral or royalty interests and specify the fractional share (e.g., 1/2, 1/3,etc.) of the Deceased Class Member's interests to which each such person or entity succeeded: D. Attach copies of documentation, such as probate documents, transfer orders, division orders, and like documents,which evidence that the undersigned and the persons identified in paragraph C, above, succeeded to the Deceased Class Member's interests. Your signature on this Heirship Form constitutes a representation that the information contained in this form and the documents provided with the form, are true and correct,to the best of your knowledge, information,or belief. Date Signature 7 DISTRICT COURT,CITY AND COUNTY OF DENVER There is a Proposed Settlement in a class action brought against EXCO Resources, Inc. on behalf of certain royalty owners. You may be able to obtain benefits A court authorized this notice. This is NOT a solicitation from a lawyer. • A Proposed Settlement has been reached in a class action lawsuit against EXCO Resources, Inc. The lawsuit is about the alleged underpayment of royalty payments made by or on behalf of EXCO Resources, Inc. and its predecessors and affiliates (together"EXCO") on the production of natural gas. • You are a member of the Settlement Class if: o You received a royalty payment from or on behalf of EXCO for natural gas produced between January 1, 2003 and December 31, 2006 from wells in Colorado; and o You are not excluded from the Class for one or more of the reasons set out in paragraph 3,below. A SUMNIARY OF YOUR RIGHTS AND CHOICES To remain a member of the Settlement Class, you do not need to take REMAIN A any action. Class Members will be able to get money from the SETTLEMENT CLASS Proposed Settlement as outlined in Question 5. MEMBER Due Date: NONE You can exclude yourself from (opt out of) the Proposed Settlement EXCLUDE YOURSELF and not be bound by the Court's rulings. You will also not share in the FROM THE PROPOSED distribution of monetary relief. You may bring your own lawsuit. See SETTLEMENT Questions 7 and 8. Due Date: Post-marked on or before May 21, 2010 If you are a Class Member, you can appear and object to or comment OBJECT OR COMMENT on the Proposed Settlement in the lawsuit on your own or through your ON THE PROPOSED own lawyer. See Question 13. SETTLEMENT Due Date: Post-marked on or before June 4, 2010 - 1 - QUESTIONS?CALL 1-866-680-3352 OR VISIT W W W.EXC0SETTLEMENT.00M 1. Why did I receive this notice? Records show that you (or someone in your family) may have received a gas royalty payment from or on behalf of EXCO on gas produced between January 1, 2003 and December 31, 2006 from wells in the State of Colorado. The Court sent you this notice to inform you of a Proposed Settlement of a class action lawsuit styled Amsbaugh v. EXCO, Case No. 09-cv-2601. This case will sometimes be referred to in this notice as "the Lawsuit" or "class action." This notice outlines the terms of the proposed Settlement, who is a Settlement Class Member, your right to remain a member of the Settlement Class, how Settlement monies will be paid, how to comment on or object to the Proposed Settlement, and how to exclude yourself from the Settlement Class. Judge Morris Hoffman, is overseeing this class action. The persons who brought the Lawsuit are the "Plaintiffs," and the party being sued is the "Defendant." The term "royalties" in this notice includes both royalty and overriding royalty interest payments. 2. What is this lawsuit about? The Plaintiffs claim that EXCO has underpaid royalties relating to gas produced from wells in Colorado. The Lawsuit claims that EXCO inappropriately deducted from royalties certain costs EXCO incurred to place the gas in a marketable condition and location. The deductions taken include certain post-wellhead expenses, such as gathering and processing costs. The Plaintiffs asked EXCO to pay monetary damages. EXCO contends that the subject gas is marketable at the wellhead, and that EXCO properly calculated and paid royalties based upon all proceeds received from the sale of the gas. EXCO denies the Plaintiffs' claims but has agieed to settle the class action based on the time, risk, and expense of continuing the lawsuit. A more complete description of the Lawsuit is available in the file for the Lawsuit maintained by the Court. See Question 17, below. Additionally, should you have questions regarding the Lawsuit, such questions can be submitted in writing to Class Counsel at the addresses provided under Question 13 of this Notice. 3. How do I know if I am part of the Settlement Class? Receiving this notice does not guarantee that you are a Settlement Class Member and can get money from the proposed Settlement. The Settlement Class includes: All individuals and entities, private or public, to whom EXCO has paid (either on its own behalf or on behalf of Other Working Interest Owners) under Leases on Natural Gas and Liquids produced, since January 1, 2003 from wells located in Colorado, according to the business -2- QUESTIONS?CALL 1-866-680-3352 OR VISIT WWW.EXCOSETTLEMENT.COM W.EXCOSETTLEMENT.COM records maintained by EXCO. Excluded from the Settlement Class are: (a) Persons whose royalties are paid only under leases and/or overriding royalty instruments that expressly permit deductions for post-wellhead expenses; (b) EXCO and its predecessors, subsidiaries, and affiliates; (c) The federal government; (d) Legally recognized Indian tribes; (e) Persons and entities that own a working interest in any well in Colorado operated by EXCO since January 1, 2003; and (f) Any person who serves as a judge in this case and that judge's spouse. Certain members of the Class have interests in different types of Leases and are excluded from the Settlement Class only as to their interests in the Leases that expressly permit deductions for post-wellhead expenses. Some persons included in the Settlement Class definition may be deceased ("Deceased Class Members"). In order to assist the Settlement Administrator in the allocation and distribution of monies attributable to the interests of Deceased Class Members, this Notice is accompanied by an Heirship/Beneficiary Information Form ("Heirship Form"). If a Settlement Class Member believes that he or she is entitled to receive all or some portion of the Settlement monies allocable to a Deceased Class Member, then the Settlement Class Member is requested, but not required,to mail to the Settlement Administrator a completed Heirship Form. Some corporations, partnerships, or other entities included in the Settlement Class definition may now be dissolved. If you have succeeded to the interest of such a dissolved corporation, partnership, or other entity, you should immediately contact the Settlement Administrator at the following address and/or phone number: EXCO Settlement Administrator P.O. Box 98 Minneapolis, MN 55440-0098 1-866-680-3352 If you are a Settlement Class Member and the Judge approves the Proposed Settlement, you will be bound by all orders and judgments of the Court and by the Court's final resolution of the Settlement Class claims in the Lawsuit. See Question 13 for your right to comment on or object to the proposed Settlement. 4. How do I know if my well or lease is included in the Proposed Settlement? If you have any questions about whether you are part of the Settlement Class, please call (toll-free) 1-866-680-3352 or contact the following Class Counsel: George Barton at (816) 300-6250, or via email at gab@georgebartonlaw.com. Please do not contact the Court. -3 - QUESTIONS?CALL 1-866-680-3352 OR VISIT W W W.EXC0SE Il LEMENT.00M 5. What does the proposed Settlement provide? The proposed Settlement provides monetary relief for post-wellhead deductions on production from January 1, 2003 through December 31, 2006 (excluding certain production from December 31, 2006). All eligible Class Members who have not opted out of the Class will receive a pro-rata distribution of the Settlement Fund, which is $1,333,500 before the deduction of Court-awarded attorneys' fees, expenses, and class representative payments. If this Lawsuit did go to trial, the possible ranges of the verdict could have been between zero dollars and $2,381,722. In exchange for the benefits received by the Settlement Class, EXCO and the Other Working Interest Owners will be released from any and all claims the Settlement Class Members may have against EXCO and the Other Working Interest Owners based on EXCO's calculation, payment and reporting of royalties on gas produced by EXCO from Colorado. 6. What do t need to do to remain a Settlement Class Member? If you want to remain a Settlement Class Member, you do not need to take any action whatsoever. Class Counsel will represent your interests as a member of the Settlement Class. 7. Can I get out of the Settlement Class? If you don't want to be in the Settlement Class and you want to keep the right to sue EXCO about the same claims on your own, you must take steps to get out of the Settlement Class. This is called excluding yourself from or "opting out of' the Settlement Class. By excluding yourself, you keep the right to file your own lawsuit. If you exclude yourself from the Class, you will not receive any monetary or other benefits from the Proposed Settlement. 8. How do I get out of the settlement? To exclude yourself from ("opt out of') the Settlement Class, you must send a letter personally signed by you that includes all of the following: • Your name, address, and telephone number; • The following Case Number: 09-cv-2601; • A statement that you want to be excluded from the Settlement Class. Your request for exclusion letter must be mailed first class, postage pre-paid, postmarked on or before May 21, 2010, to: EXCO Settlement Administrator P.O. Box 98 Minneapolis, MN 55440-0098 You cannot exclude yourself from only part of the Settlement or Settlement Class. You must either remain a Settlement Class Member or exclude yourself from the entire Settlement. Also, -4- QUESTIONS?CALL 1-866-680-3352 OR VISIT WWW.EXCOSE1TLEMENT.COM please remember that you cannot exclude yourself by phone or by sending an email. 9. Do I have lawyers representing my interests in the ease? The Court has appointed the following law firms to represent the Class: • Law Offices of George A. Barton, P.C., 4435 Main Street, Suite 920, Kansas City, MO 64111 • Spoja& Morton, P.C., 600 Grant Street, Suite 201,Denver, CO 80203 These lawyers are called "Class Counsel." You do not have to pay Class Counsel. If you want your own lawyer, and to have that lawyer appear in court, you may hire one at your own expense. 10. How will the lawyers be compensated? Class Counsel will request that the Court award attorneys' fees of approximately one-third of the gross Settlement Fund and expenses. The Court, at its own discretion, may award less than these requested amounts without further notice to the Settlement Class Members. Any attorneys' fees and expenses awarded by the Court will be paid from the Settlement Fund. Again, if you choose to hire your own attorney,you will be responsible for that attorney's fees and expenses. 11. Should I get my own lawyer? If you want your own lawyer to speak for you or to appear in Court, you must file a Notice of Appearance. (See question 16 to find out how to submit a Notice of Appearance). If you hire a lawyer to appear for you in the lawsuit, you will have to pay that lawyer on your own. 12. Who are the Class Representatives and how are they compensated? The Court has appointed the Plaintiffs as Class Representatives. The Class Representatives work with Class Counsel on behalf of all Settlement Class Members to present the views of typical Settlement Class Members to Class Counsel and the Court. The Court may award an incentive payment to the Class Representatives in this case. Class Counsel will request the Court to award an amount not to exceed $8,000 as a payment to the Class Representatives in this Proposed Settlement. The amount awarded by the Court would be paid from the Settlement Fund. 13. Can I object or comment on the proposed settlement? If you have comments about, or disagree with, any aspect of the Proposed Settlement you may express your views to the Court through a written response to the Proposed Settlement. Only Settlement Class Members who have not opted out can object or comment. The written comment or objection should include your name, address, and telephone number. In addition, any objection must include (a) a written statement of your objection, (b) a written -5- QUESTIONS?CALL 1-866-680-3352 OR VISIT W W W.EXC0SETTLEMENT.00M statement of the grounds or reasons for your objection, and (c) copies of any papers, briefs, or other documents supporting your objection. The document must be signed to ensure the Court's review. In order to be considered by the Court, your comment or objection must be postmarked on or before June 4, 2010, and mailed to: Clerk of the Court Second Judicial District Court, City and County of Denver 1437 Bannock St., Room 256 Denver, Colorado 80202 Your comment or objection must clearly state that it relates to the following Civil Action Numbers: 09-cv-2601 The comment or objection must also be mailed to the following attorneys: Counsel for the Class: Counsel for EXCO: George A. Barton Michael J. Gallagher Stacy A. Burrows Andrea Wang Law Offices of George A. Barton, P.C. Davis Graham & Stubbs, LLP 4435 Main Street, Suite 920 1550 Seventeenth Street, Suite 500 Kansas City,MO 64111 Denver, Colorado 80202 14. Will there be a Hearing on the Proposed Settlement? The Court will hold a Final Approval Hearing on June 24, 2010, to consider whether the Proposed Settlement is fair, reasonable, and adequate. The Hearing will be at Second Judicial District Court, City and County of Denver, 1437 Bannock St., Denver, CO 80202 at 8:30 am in Division 3. At the Hearing, the Court will decide whether to approve the Proposed Settlement and will consider the motion for attorneys' fees and expenses and Class Representative incentive awards. If comments or objections have been received,the Court will consider them at this time. Note: The Hearing may be postponed to a different date without additional notice. 15. Must I attend the hearing? Attendance is not required, even if you properly mailed a written objection or comment. Class Counsel are prepared to answer the Court's questions on your behalf. If you or your lawyer want to attend the Hearing, you are more than welcome to come at your expense. If you filed an objection to the Settlement, as long as the objection was postmarked before the deadline, the Court will consider it. 16. May I speak at the Hearing? -6- QUESTIONS?CALL 1-866-680-3352 OR VISIT WWW.EXCOSEITLEMENT.COM W.EXCOSETTLEMENT.COM If you want to speak or have your own lawyer speak at the Final Approval Hearing instead of Class Counsel, you or your lawyer must give the Court a paper that is called a "Notice of Appearance." The Notice of Appearance must state that you or your lawyer wish to enter an appearance at the Fairness Hearing. It must also include your name, address, telephone number, and signature. Your"Notice of Appearance"must be postmarked no later than June 4, 2010. You cannot speak at the Hearing if you asked to be excluded from the Proposed Settlement Class. The Notice of Appearance must be filed with the Court at the address provided under Section 13 above and also mailed to the attorneys listed in Section 13 above. In addition, your document must clearly state that it relates to the following Civil Action Numbers: 09-cv-2601 17. How do I get more information about the Proposed Settlement? This notice summarizes the Proposed Settlement and your rights and options as a Settlement Class Member. To find out more information, call 1-866-680-3352, visit www.excosettlement.com, or write to: EXCO Settlement Administrator P.O.Box 98 MINNEAPOLIS,MN 55440-0098 If you have a question about whether or not you are in the Settlement Class, or about your rights and options as a Settlement Class Member, you may contact the Class Counsel at: George Barton, (816) 300-6250, gab@georgebartonlaw.com Stacy Burrows, (816) 300-6253, stacy@georgebartonlaw.com All court records, including the Settlement Agreement and other documents for the Lawsuit, may be examined in person and copied at Second Judicial District Court, City and County of Denver, 1437 Bannock St.,Denver,CO 80202. PLEASE DO NOT TELEPHONE THE COURT,THE CLERK OF THE COURT,OR EXCO. -7- QUESTIONS?CALL 1-866-680-3352 OR VISIT W W W.EXCOSETTLEMENT.COM Hello