Bankruptcy case could challenge acreage dedications

摘要

A bankruptcy proceeding involving an upstream company may result in a ruling that challenges acreage dedications for midstream operators. Judge Shelley Chapman of the Southern District of New York said that she was "inclined" to permit the rejection of gathering and processing agreements between Houston-based Sabine Oil & Gas Corp. and two counterparties. The decision could save the independent E&P a significant amount in ongoing payments.