(Tulsa-AP) -- Williams Companies says today it has agreed to pay $117.5-million cash to free itself from any liability that may stem from assets it sold to its former limited partnership.
Williams will make four annual payments to Magellan Midstream Partners, which it controlled until selling its interest to three investment firms last June.
The liability relates primarily to a 6,700 mile refined petroleum products pipeline that Williams sold to Magellan in April 2002 for $1-billion in cash and equity.
Under that agreement, Tulsa-based Williams was required to pay for any environmental damage the pipeline had caused before the sale. Now, Magellan is responsible for the pipeline's entire history.
As of March 31st, Williams owed $27-million in liability because of the pipeline.