Connect with us

Hi, what are you looking for?

Stock

Exxon sues Energy Transfer over charges from pipeline dispute

Stock Markets46 minutes ago (Apr 05, 2021 05:25PM ET)

(C) Reuters. gFILE PHOTO: An Exxon sign is seen at a gas station in the Chicago suburb of Norridge

By Liz Hampton

(Reuters) – Exxon Mobil Corp (NYSE:XOM)’s XTO Energy shale unit filed a breach of contract lawsuit against Energy Transfer (NYSE:ET) LP over disputed payments for the Dakota Access Pipeline, according to a Texas state court filing.

The suit alleges the pipeline operator hit XTO with deficiency charges and revoked other credits after the oil producer shifted some oil to other outlets last August. Exxon took the actions after a U.S. court ordered Dakota Access Pipeline (DAPL) shut, it said.

Exxon asked a state court in Houston last week to award it damages exceeding $1 million, a return of its revoked credits, attorneys fees and other costs.

Energy Transfer declined to comment. Exxon had no immediate comment.

In July 2020, a U.S. District Court suddenly ordered the crude pipeline with a capacity of about 570,000 barrels per day to be shut and gave Energy Transfer 30 days to empty the line, prompting Exxon to scramble to find other ways to move its oil. DAPL is the main artery for shipping crude from North Dakota’s Bakken oilfield.

Exxon lined up alternatives that were dwindling “by the hour” as other DAPL shippers sought outlets, and to avoid violating a potential court order, it told the court.

At about that time, a U.S. Gulf Coast hurricane forced Exxon’s Beaumont oil refinery offline, prompting it to declare force majeure on pipeline volumes over four days. Energy Transfer rejected Exxon’s force majeure claim.

The refinery is a major consumer of Exxon’s DAPL oil.

Shortly after the DAPL shutdown, an appeals court reversed the decision, allowing the pipeline to temporarily continue operations. By then, Exxon had shifted 40% of its promised DAPL volumes to other suppliers, according to the lawsuit.

A federal court hearing is set for Friday on whether the pipeline can continue to operate without a crucial permit while the U.S. Army Corps of Engineers conducts an environmental review of line.

Exxon sues Energy Transfer over charges from pipeline dispute

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved