USG's $2 million natural gas assets sale approved

By Caroline Salls

Pittsburgh, Aug. 23 - USG Corp. obtained approval of its $2 million non-auction sale of natural gas assets, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The assets to be sold include debtor United States Gypsum Co.'s 75 natural gas well leases, located in western Pennsylvania, as well as some related pipelines and mineral rights and assets.

According to the company's motion, the gas wells are not located close enough to any of U.S. Gypsum's plants to allow it to directly use most of the natural gas produced from those wells. As a result, U.S. Gypsum generally sells the gas that it produces from the wells.

Therefore, since U.S. Gypsum does not directly use the gas from the wells, and given current favorable prices for such assets, U.S. Gypsum has determined that it should sell the natural gas assets.

USG, a Chicago-based building materials company, filed for bankruptcy on June 25, 2001. Its Chapter 11 case number is 01-02094.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.