Nuverra Environmental Solutions Inc. said Dec. 23 it will terminate its Bakken Shale water gathering contract in McKenzie County, N.D., with XTO Energy Inc.
The termination was mutually agreed upon due to the “dramatic change in market conditions since the contract was executed in November 2014,” the release said.
“We believe this is the most prudent decision and allows Nuverra to continue working with its customers, including XTO, as we structure water midstream agreements that reflect more current market conditions,” said Mark Johnsrud, chairman and CEO of Nuverra, in a statement.
Nuverra, based in Scottsdale, Ariz., remains committed to its long-term water midstream growth strategy, the release said.
XTO Energy is a subsidiary of ExxonMobil. The company owns about 40,000 producing oil and gas wells across the U.S., according to its website.