Williams Announces it Will Split, Exploration & Production Will Become Separate Company
Williams is one of the largest energy producers in the U.S. Their operations include exploration & production (E&P), as well as “midstream” – or processing, storage and transportation of gas, including an extensive network of pipelines. In fact, Williams owns three interstate natural gas pipelines totaling some 15,000 miles in length. We now get word that Williams is going to split the company.
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Many landowners in the Broome County, NY area who signed gas leases years ago are now receiving letters from the energy companies holding those leases that the landowner is “locked in” to the terms of the lease even though the original term has now expired. Why? The legal term is “force majeure,” which roughly means “due to circumstances beyond our control—the fact that New York State continues to prevent drilling—you have to stick with us for a while longer.” Because this involves contracts and interpretation of the terms of those contracts, it’s now in the hands of lawyers, or heading in that direction.