- District Court Sabine Ruling: Bad News For Midstream Companies
- April 4, 2017 | Authors: Stephany Olsen-LeGrand; Mark D. Sherrill
- Law Firms: Eversheds Sutherland (US) LLP - Houston Office; Eversheds Sutherland (US) LLP - Washington Office
On March 10, 2017, the U.S. District Court for the Southern District of New York has affirmed that Sabine Oil & Gas Corporation can reject a number of its gathering contracts with midstream energy companies for lack of valid covenants running with the land.
In their article for Law360, Eversheds Sutherland (US) attorneys Mark Sherrill and Stephany Olsen LeGrand discuss that the ruling is another unfavorable result for midstream firms dealing with distressed oil and gas producers.