Item 7.01Regulation FD Disclosure.
Catarina Midstream, LLC ("Catarina Midstream"), a wholly-owned subsidiary of
Evolve Transition Infrastructure LP (together with Catarina Midstream,
"Evolve"), is a party to that certain Firm Gathering and Processing Agreement,
effective as of October 14, 2015, by and between Catarina Midstream and SN
Catarina, LLC ("SN Catarina"), a wholly-owned subsidiary of Mesquite Energy,
Inc. (together with SN Catarina, "Mesquite") (as amended by Amendment No. 1
thereto, effective as of April 1, 2017, the "Gathering Agreement").
As previously disclosed, on June 24, 2021, Evolve increased the tariff rate for
interruptible throughput volumes (the "Increased Rate") from the undedicated
eastern portion of the acreage position of Mesquite in Dimmit, La Salle and Webb
counties, Texas ("Eastern Catarina"). Notwithstanding the Increased Rate,
Mesquite short-paid the invoice for July 2021 production and elected to pay the
tariff rate in effect prior the June 24, 2021 increase. Evolve has been in
discussions with Mesquite in an attempt to reach a commercial resolution for
Eastern Catarina but the parties have not been able to reach a commercial
resolution.
On August 30, 2021, Evolve filed for arbitration against Mesquite under the
Non-Administered Arbitration Rules of the International Institute for Conflict
Prevention and Resolution alleging breach of the Gathering Agreement and seeking
a declaration confirming Evolve's ability to set the tariff rate for
interruptible volumes from Eastern Catarina.
The information included in this Item 7.01 shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934 ("Exchange Act")
or otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as expressly set forth by specific
reference in such a filing.
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