ALLIANCE ENERGY SERVICES, LLC V. KINDER MORGAN COCHIN LLC, ET AL.

We represented various affiliates of Kinder Morgan (the largest midstream and fourth largest energy company in North America) in a multi-million dollar contract dispute with Alliance Energy Services, LLC (a propane trading and supply company that shipped propane on Kinder Morgan’s international “Cochin” pipeline).  In an effort to avoid a $5.3 million contractual deficiency fee owed to Kinder Morgan, Alliance filed suit against Kinder Morgan in May 2014 in Minnesota state court, alleging nine causes of action for declaratory judgment and damages, including various claims that the lien Kinder Morgan had asserted on approximately 127,000 barrels of propane in the Cochin pipeline, was improper.  Kinder Morgan subsequently asserted counterclaims against Alliance for the $5.3 million deficiency fee, among other damages.  In April 2015, the parties reached an amicable settlement that resolved all claims between them.