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CorEnergy Responds to UPL Chapter 11 Filing

KANSAS CITY, Mo., May 02, 2016 (BUSINESS WIRE) -- Ultra Petroleum Corp. (“UPL”) filed on April 29th a voluntary petition to reorganize under Chapter 11. The filing includes Ultra Wyoming LGS, LLC (“Ultra Wyoming”), the operator of the Pinedale Liquids Gathering System (“Pinedale LGS”) and tenant of the Pinedale Lease Agreement (the “Pinedale Lease”) with CorEnergy Infrastructure Trust Inc. (“CorEnergy”).

The bankruptcy filing of both the guarantor, UPL, and the tenant and circumstances prompting the filing constitute defaults under the terms of the Pinedale Lease. The bankruptcy filing serves as a stay of CorEnergy’s ability to exercise remedies for certain of those defaults. However, Section 365 of the Bankruptcy Code requires Ultra Wyoming to comply on a timely basis with many provisions of the Pinedale Lease, including the payment provisions. The only exception to that requirement is if Ultra Wyoming takes specific action to reject the Pinedale Lease. In its Form 10-Q, also filed on April 29th, UPL stated that, “A termination of the Pinedale Lease Agreement would significantly disrupt our ability to produce oil and gas...


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