The court overseeing Chesapeake Energy Corp.'s Chapter 11 bankruptcy approved the shale producer's previously announced resolution of its midstream contracts with Williams Cos. Inc., according to a Dec. 17 news release from Williams.

Following the approval, Chesapeake paid Williams $112 million related to "pre-petition and past-due receivables associated with midstream expenses per the existing contracts."

The resolution, which was announced Nov. 23, stipulated that Chesapeake would pay all receivables associated with midstream expenses under the existing contracts and would not reject Williams' gathering agreements in the Eagle Ford, Marcellus or Midcontinent shale regions. Williams also agreed to cut its gathering fees in the Haynesville area in exchange for ownership of part of Chesapeake's South Mansfield producing assets, composed of about 50,000 net mineral acres.

In addition, Chesapeake agreed to enter into a long-term gas supply commitment for a minimum 100,000 Dth/d to 150,000 Dth/d for the Transco Regional Energy Access gas pipeline, which is under development.

On June 28, Chesapeake filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas in a bid to restructure its legacy obligations and strengthen its balance sheet.