Emerge Energy Services LP (NYSE:EMES) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On May 19, 2017, Superior Silica Sands LLC (“SSS”), a wholly owned operating subsidiary of Emerge Energy Services LP (“Emerge Energy”), and Liberty Oilfield Services, LLC (“Liberty”) entered into a Sand Supply Agreement (the “Supply Agreement”), effective as of February 1, 2017. The Supply Agreement is structured as a volume requirements agreement with penalties for shortfalls to which SSS will supply sand and proppants to Liberty at a price per ton that may be adjusted on a quarterly basis by mutual agreement.
The Supply Agreement has an initial term expiring on February 1, 2019. Thereafter, the Supply Agreement will be renewed automatically for additional one-year periods unless either Liberty or SSS provides written notice of non-renewal at least 90 days prior to the expiration of the initial term. The Supply Agreement may be terminated prior to the end of its term by mutual agreement of SSS and Liberty or upon the occurrence of certain specified events including, without limitation, an uncured breach of the Supply Agreement.
Emerge Energy intends to submit a FOIA Confidential Treatment Request to the Securities and Exchange Commission to Rule 24b-2 under the Securities Exchange Act of 1934, as amended, requesting that it be permitted to redact certain portions of the Supply Agreement. The omitted material will be included in the request for confidential treatment. The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the Supply Agreement, redacted copies of which will be attached as exhibits to Emerge Energy’s Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2017.
