QuarterNorth Energy LLC v. Valero Mktg. & Supply Co. (In re Fieldwood Energy LLC)

Full title: IN RE: FIELDWOOD ENERGY LLC, et al., Debtors. v. VALERO MARKETING AND SUPPLY COMPANY, Defendant. QUARTERNORTH ENERGY LLC AND CERTAIN OF ITS AFFILIATES, Plaintiff,

Court: United States Bankruptcy Court, Southern District of Texas

Date published: Dec 10, 2021

Facts

In June 2018, Valero, a refiner and marketer of petroleum products, entered into a contract to purchase crude oil from Fieldwood, an upstream oil and gas operator and producer. (ECF No. 1-1 at 2). The parties agreed that: (1) Fieldwood would deliver approximately 10, 000 barrels of crude oil per day with a “tolerance” of “per actual production about 49.5 percent of Noble’s share” of the Big Bend and Dantzler fields; (2) the price is variable according to various market rates for crude oil; (3) the contract continues until one party cancels with thirty days’ written notice; and (4) Texas law governs. (ECF No. 1-1).

Issue

Decision

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