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Chesapeake sues FERC to keep pipeline contracts from interfering with its Chapter 11 filing

Friday, July 10, 2020 by

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Chesapeake Energy has sued the Federal Energy Regulatory Commission to keep ETC Tiger Pipeline LLC and Gulf Southern from interfering in its Chapter 11 reorganization, according to Kallanish Energy.

Chesapeake Energy is seeking to reject certain negotiated contracts with the pipeline companies for transporting natural gas. The Oklahoma-based company said it had paid $890 million since early 2009 for pipeline transportation under existing agreements with the two companies and still owes $311 million for the remainder of the contracts.

Both companies petitioned FERC to protect their contracts with Chesapeake last month; however, Chesapeake wants the federal bankruptcy court to decide the issue, saying that to fulfill the contracts would endanger its negotiated reorganization plan to eliminate $7 billion in debt.

Learn more: Kallanish Energy > Chesapeake sues FERC over pipeline contracts

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