July 29, 2021
While many are talking about new commitments to push forward sustainability and the fight against climate change, it is still hard to kick old environmentally dirty habits.
For example, Goldman Sachs Group Inc. and JPMorgan Chase & Co. have stated that they are targeting admirable environmental goals, they continually invest in less-than-green energy companies, the Wall Street Journal reports.
The banks have to weigh ongoing commitments to protect their investments in troubled energy companies against new pledges to address sustainability in environmental, social, and governance, or ESG, policies.
Specifically, Goldman Sachs is set to take control of a bankrupt oil driller, Nine Point Energy Holdings Inc., which has been flaring natural gas or burning excess natgas in North Dakota at rates that exceed state guidelines – natural gas is an excess byproduct from crude oil drilling operations and sometimes are produced in such large quantities that it is cheaper to
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US Bankruptcy Judge Mary F. Walrath of the District of Delaware entered an order on April 21 in
In re Nine Point Energy Holdings, Inc., Case No. 21-10570 (MFW) (Bankr. D. Del. Apr. 21, 2021), finding that Caliber Measurement Services LLC, Caliber Midstream Fresh Water Partners LLC, and Caliber North Dakota LLC (together, Caliber) violated the automatic stay by sending “reservation of rights” letters to third parties that were providing services allegedly in violation of agreements between Caliber and Nine Point Energy Holdings, Inc. and certain of its affiliates (collectively, NPE).