Williams receives past-due payment of $112M from Chesapeake
Wednesday, December 23, 2020
Williams has received a past-due payment of $112 million from Chesapeake Energy Corp., following a court-approved resolution between the companies as part of Chesapeake’s bankruptcy proceedings, according to Natural Gas Intelligence.
The Tulsa-based pipeline giant reached a global resolution last month to continue treating and moving Chesapeake’s natural gas in the Lower 48. It received the $112 million payment for pre-petition and past-due receivables for midstream expenses per its existing contracts with Chesapeake.
Chesapeake filed for Chapter 11 bankruptcy protection in June to get rid of $7 billion of debt. Additionally, it has sold all of its Mid-continent assets in the process.
Learn more: Natural Gas Intelligence > Williams given approval to resolve Chesapeake midstream contracts
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.