PITTSBURGH — The dispute between bankrupt natural gas producer Rockdale Marcellus and its pipeline company, UGI Energy Services, spilled over into a hearing Monday afternoon over the details as to whether UGI could have access to the asset data room and a list of bidders when Rockdale Marcellus’ natural gas wells go up for auction in December.
Rockdale Marcellus, which is based in Canonsburg, filed for Chapter 11 bankruptcy protection in September. It’s seeking to either sell the assets outright or find a bidder that could take over them. The driller, which has about 110,000 million cubic feet of daily gas production in northeastern Pennsylvania, was squeezed by low natural gas prices and has said in court filings that even with the rise in gas prices it can’t stay as a going concern.
The gathering agreement — the price that Rockdale Marcellus pays to UGI to move the gas from the wells to market via pipeline — is a sticking point that has so far been unresolved during months of negotiations. And it bubbled up again during the nearly three-hour bankruptcy court hearing that had attorneys for Rockdale, UGI and others involved in a dispute in front of Judge Gregory Taddonio.
Read more in the Pittsburgh Business Times.
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