Quicksilver Resources Inc.’s bid to tear up pipeline agreements ahead of the sale of its oil-and-natural gas drilling operations raised novel and perplexing legal questions that a bankruptcy judge wants time to consider, the Wall Street Journal reported today. “I will do my best” to decide the issue, a condition of Quicksilver’s pending sale, by the company’s March 31 deadline to close the $245 million deal, Bankruptcy Judge Laurie Selber Silverstein said on Friday. Pipeline operators and midstream operators are closely watching Fort Worth, Texas-based Quicksilver and other oil exploration and production bankruptcies out of fear that rulings letting these companies exit their contracts — negotiated before oil prices took a nosedive, and therefore favorable to pipeline companies — could spur a mass exodus. More importantly to Quicksilver, buyer BlueStone Natural Resources II LLC said that it would walk away from its $245 million cash offer if there is a risk it would be bound by Quicksilver’s pipeline agreements with Crestwood Midstream Partners LP. Read more. (Subscription required.)
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