NCL Appalachian Partners resolves litigation of certain leasehold interests in connection with $400 million sale of oil and gas properties in Marcellus Shale formation
Clients NCL Appalachian Partners, L.P.
Jones Day successfully represented NCL Appalachian Partners, L.P. in connection with multiple contract claims as well as misrepresentation claims in its $400 million sale of oil and gas properties in the Marcellus Shale formation. Ultra Resources, Inc., the buyer, refused to close on an additional working interest of a specific leasehold interest alleging that NCL breached certain contractual obligations and committed fraud and/or negligently represented the location of the leasehold interest. NCL contended that Ultra was fully aware of the location of the leasehold interest and was contractually obligated to purchase the additional leasehold interest before it closed on the original working interest and executed another contract to purchase the additional working interest. NCL also contended that, as a matter of law, the negotiated and duly executed purchase and sales agreement prohibits Ultra’s claims of fraud and negligence. Jones Day filed a summary judgment motion arguing that as a matter of law the purchase and sales agreement prohibited Ultra’s fraud and negligent contract claims. The court granted the motion and denied Ultra’s motion for reconsideration. Just before trial, NCL successfully resolved the dispute with Ultra and closed on the sale.
Ultra Resources, Inc. v. NCL Appalachian Partners, L.P., Cause No. 2010-65008 (Harris County (Tex.) District Court)