Midstream & Transport Monitor - March 11, 2016
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On March 8, U.S. Bankruptcy Judge Shelley Chapman of the Southern District of New York authorized Sabine to reject certain gathering and processing agreements with Nordheim Eagle Ford Gathering LLC and HPIP Gonzales Holdings LLC. Sabine had argued that it was no longer able to deliver minimum amounts of natural gas and condensate and was subject to deficiency payments that would cost the company $35 million. Drilling an uneconomic well to avoid payments could cost it between $2.5 million and $80 million.