A judge on Tuesday ruled an oil and gas producer that recently filed for bankruptcy can reject contracts with two pipeline operators. Via Bloomberg, the decision could set a precedent that would endanger other transportation agreements that have protected midstream firms from the oil market crash.
Judge Shelly Chapman ruled that Sabine Oil & Gas Corp. can break contracts with pipeline operators HPIP Gonzales Holdings and Nordheim Eagle Ford Gatherings. Bloomberg notes that many pipeline partnerships have seen their market values decline in the past year.
SEE ALSO: Industry trends every pipeline project engineer should know
