Consequentially, gas transportation requires a near-direct pathway from the producing wellhead to the end-user. It will also discuss how dedication relates to a land manager’s role in negotiating the purchase and sale of leases and gas production. Terms of Service/ Commentary Rejecting Midstream Gathering Agreements in Bankruptcy—Yes, No, Maybe? Our Team Account subscription service is for legal teams of four or more attorneys. For example, in. Already have an account? Privacy Policy. *May exclude premium content As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. The legal requirements of a covenant running with the land vary slightly from state to state, but the dispositive attributes of the covenant wer… var pday = moment(myDate).format("MMMM DD, YYYY");
A note to our customers: Genesee Energy is continuing to monitor the ever changing circumstances of the COVID-19 virus. Gas from several wells is gathered through a series of small pipelines (“gathering lines”) and then The gathering system can transport over 450 MMcfd of raw gas. In re Sabine Oil & Gas Corp., Bankr. Genesee Energy Oil & Gas Furnace Maintenance Agreements Studies have shown that regularly scheduled maintenance may reduce your utility costs by up to 20%. All Rights Reserved. Legal Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms’ financials, staffing, clients, news and events. However, there can be important nuances in the challenged transaction that may provide a subsequent transferee with a substantial defense. GAS CONTRACTS AND AGREEMENTS GAS CONTRACTS AND AGREEMENTS Unlike oil, gas cannot be moved by truck or similar methods; it must be gathered and sent to a sales point. To manage this process, production companies negotiate complex gathering and processing agreements with midstream service providers. Both options are priced the same. Build Software Debate: Important Considerations to Explore, Follow Mintzer Sarowitz Zeris Ledva & Meyers LLP With Profound Sadness Mourn the Loss of Jason G. Wehrle. Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! The recent downturn forced these companies to enforce this language, drastically cutting into producer revenues. It passes through hundreds of miles of gathering lines, treaters, dehydrators, compressors, processing plants, and fractionators. Advertise With Us/
In a highly anticipated decision— Sabine Oil & Gas Corp. v. Nordheim Eagle Ford Gathering, LLC (In re Sabine Oil & Gas Corp.), 734 Fed. Extraction Oil & Gas ... agreements with Denver-based Platte River Midstream and its DJ South Gathering business, and with Rocky Mountain Midstream and Elevation Midstream covering oil gathering. Midstream companies invest substantial capital to construct the infrastructure needed to gather and process the producer’s gas. March 8, 2016, Bowers Oil & Gas, Inc. v. DCP Douglas, LLC, To protect themselves from having to operate an unprofitable asset and filing for bankruptcy, midstream companies frequently use vague or overly broad “uneconomic” clauses to force a renegotiation of an offtake agreements’ commercial terms. –Gas gathering/storage agreements & liquefied natural gas (LNG) –Pipeline contracts –Portions of joint operating agreements may “touch and concern” land • In some ways, analysis similar to “typical” executory contracts They recoup this cost and generate profit through guaranteed fees tied to the production itself for the life of the contract. The WIPL.UK Awards honors the industry standouts and rising stars who are making a mark within the profession. February 02, 2021 - July 14, 2021 This agreement promises to deliver 50% of the production from the wells in exchange for an upfront payment that was already paid to the predecessor. var pday = moment(myDate).format("MMMM DD, YYYY");
On a well by well basis, this is equally important on a small acquisition as a large one. In 2020, we’ve become all too familiar with the struggles of some of our most profitable retailers, airlines, movie theaters, and manufacturers, as well as the gas and oil producers upon which many of these industries rely. In your inbox. |
This agreement promises to deliver 50% of the production from the wells in exchange for an upfront payment that was already paid to the predecessor. Premier mid-sized firm seeks an associate with 2 to 6 years of experience to join its thriving Real Estate Practice Group. What's New for Interactive Electronic Signing in 2021? Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends. One of those nuances was recently identified by the U.S. Court of Appeals for the Tenth Circuit, Stephanie K. Rawitt | Failure to properly understand these contracts can lead to higher than expected cost through unidentified fees, poor economic performance through reduced profit margins, or increased downtime. }); Find out how B2B marketers in the legal, financial, insurance, and commercial real estate markets are using ABM to successfully drive leads and get business from key accounts. Amanda Bronstad | The services performed under a gas gathering agreement typically include treating the raw gas from the wellhead to remove hydrogen sulfide and carbon dioxide, dehydrating the gas to remove excess water, moving the gas from the wellhead to a processing plant, and compressing the gas. The result is an asset burdened with the equivalent of a 50% override, something that no amount of reservoir due diligence can overcome. Yearly regular tune ups also drastically reduce the likelihood of emergency Nothing on this site should be taken as legal advice for any individual Fantastic opportunity! $("#sub1").append( pday );
FAQ / Dan Kennedy has spent the last 8 years negotiating oil and gas agreements, including 5 years focusing on midstream agreements at ConocoPhillips Company. Customer Service / ALM Marketing Services var myDate = new Date(parseInt(1610638906000));
So, in the words of King George from the Broadway musical, "Hamilton," “What comes next?”. Two producers operate in neighboring sections in Oklahoma and each section is dedicated to a different midstream service provider. Similarly, inAlta Mesa, a Texas bankruptcy court recently ruled, applying Oklahoma law, that certain gathering agreements also created such real property covenants. In addition, maintenance tune ups will keep your system in peak condition which can significantly extend the life of your equipment. Judge Christopher Sontchi at the U.S. Bankruptcy Court for the District of Delaware ruled in October that none of Extraction Oil & Gas Inc.'s agreements with a number of gathering, processing and transportation firms satisfied the requirements for a real property interest "running with the land" per Colorado state law, as opposed to obligating the debtor or another party to fulfill its terms at a later date. Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. P.C. S.D.N.Y. 64, 2018 WL 2386902 (2d Cir. Touch and Concern Bruce L. Castor, Jr. to our ranks of trial lawyers. It is with great pleasure that we welcome the esteemed former supreme Court Justice Richard T. Aulisi to our legal team at Belluck & Fox, LLP. On September 30, 2019, the United States Bankruptcy Court for the District of Colorado (Bankruptcy Court) rejected a debtor’s attempt to sell assets free and clear of a Gas Gathering and Processing Agreement (GPA) and Agreement for Disposal of Salt Water (SWDA), … The Best Management Practices cover a broad variety areas, including locations of the wells, noise and visual mitigation of the operations, groundwater protection, and air quality protection. or viewing does not constitute, an attorney-client relationship. He now works as an Oil & Gas, Corporate, and Intellectual Property Attorney at Kearney, McWilliams & Davis, PLLC. Get the timely legal news and critical analysis you cannot afford to miss. var myDate = new Date(parseInt(1609277917000));
}); Webcast Date: Tuesday, January 26, 2021 | Expert panelists will weigh the typical pros and cons that come with buying or building solutions. Legalweek(year) will bring together thousands of legal professionals for a series of 5 innovative virtual legal events. Pennsylvania Accountants, Tax Attorneys, and other Tax Professionals: If you're gearing up for the tax season just ahead, make sure the state's top tax book is in your ... Girardi Keese’s Alleged $10M Debt to Lit Finance Co. Includes Loan to Pa.-Based Firm in NFL Concussion Litigation, 10th Circuit Narrows Scope of Subsequent Transferee Recovery, What Comes Next? The assets are anchored by a long-term gas gathering and processing agreement with XTO Energy Inc. The result is an asset burdened with the equivalent of a 50% override, something that no amount of reservoir due diligence can overcome. document.addEventListener('DOMContentLoaded', function() {
Sabine Oil & Gas Corp. (In re Sabine Oil & Gas Corp.) , 2017 BL 83510 (S.D.N.Y. As to the first element, Judge Isgur found that gathering agreements "touch and concern" the oil and gas leases because "both the benefits and burdens of the covenants … document.addEventListener('DOMContentLoaded', function() {
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The Pipeline Safety Act of 1992 gave PHMSA the authority to regulate rural gas gathering lines. |
The health and safety of our customers and Genesee team members and their families remain top priority as we are taking necessary proactive and preventative measures to … The contract itself is often the only tool that a producer has for asserting control over the value chain once production leaves their custody. Many of these are expired, however, one is a simple volumetric production payment, easily overlooked. var pday = moment(myDate).format("MMMM DD, YYYY");
Solving the Buy vs. In the Badlands case, a Colorado bankruptcy court applying Utah law found that the gas gathering and processing agreement at issue in the case created real property covenants that could not be rejected. The pertinent question from the bankruptcy hearing was at the forefront of this appeal: whether the aforementioned gas gathering agreements, in which Sabine dedicated to the appellants production from wells within a designated area where Sabine held leases, constitute covenants running with the land, a real property interest that cannot be rejected or accepted as an executory contract in bankruptcy. A weekly, curated selection of our international content from around the globe, across the business of law, in-house, regulatory, technology and more, with expert insights from our senior editors. Sponsored by: DocuSign
This article will introduce dedication, which is one of the primary components of these agreements and also raises awareness of related key legal and commercial issues. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team. These Oil Gas Processing Agreements are actual legal documents drafted by top law firms for their clients. Increases Gas Gathering and Processing Capabilities in Carthage Area. Site Map / With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. As gas and oil producers struggle to adjust to a new reality, transportation services agreements … About Us / Contact Us / My last example is not one for faint of heart and one that I hope no-one runs into after reading this article. Coronavirus-Related Leave After the FFCRA Expires, The Three Keys to a Successful B2B ABM Program. Law Offices of Gary Martin Hays & Associates Sponsored by: Accusoft
HOUSTON, August 19, 2019 – Elevate Midstream Partners, LLC (“Elevate”), a full-service midstream company headquartered in Houston, Texas, today announced that it has entered into an eight-year gas gathering and treating agreement with Sabine Oil and Gas … S.D.N.Y. By adding crude gathering, Blue Mountain can now provide our E&P customers a full suite of midstream services complementing our existing gas gathering and processing and water management services. May 25, 2018)—the U.S. Court of Appeals for the Second Circuit in a summary order upheld a 2017 ruling by district judge Jed S. Rakoff that … 9, 2017)—Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York affirmed 2016 bankruptcy court rulings authorizing chapter 11 debtor Sabine Oil & Gas Corp. ("Sabine") to reject certain gas gathering and handling agreements. As oil is transported and processed through its value chain into its component products, it can be stored, trucked, railed, or piped from one location to the next. The agreements are related to gas gathering systems, which include a network of small pipelines that carry gas away from wells for further processing. One producer force pools the other, drills a well on their portion of the pooled acreage, and connects the well to their gatherer. This infrastructure costs billions of dollars and disruption along any part of this system can severely impact profitability by curtailing production, shutting in both oil and gas from affected wells. We have millions of legal documents and clauses that you can search for free. Consider a situation where the sale of an asset comes with dozens of agreements, disclosed in the form of several dusty boxes (or more recently, hundreds of pages of illegible photocopies). 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