It's been reported that the new CBS drama series 'Chaos' has been killed off before it even left the starting gate. According to Deadline, the game of brinkmanship between the network and the producer/distributor 20th Century Fox Television was still ongoing when the options on the actors' contracts expired at midnight Wednesday.

The breakdown in negotiations has been described as "a classic example of political gamesmanship between two companies that don't trust each other."

'Chaos' was due to star Freddy Rodríguez ('Six Feet Under') as a naive C.I.A. agent who wants to make the world a better place. It was written by Tom Spezialy ('Reaper,' Desperate Housewives') and the well-received pilot was directed by Brett 'X Men' Ratner, who was also in line to executive-produce the series with Spezialy.

News of the show's demise came as a shock to insiders as it was apparently popular at both the network and studio. Other stars attached to the project included Stephen Rea ('The Crying Game'), Eric Close ('Without a Trace') and Carmen Ejogo ('Kidnapped').

CBS announced in late May that it was picking up the show as a midseason replacement for the fall season but then only ordered eight episodes instead of the usual 13. Having fewer episodes meant the series was harder for 20th Century Fox Television to sell to foreign distributors and so they turned down CBS's offer. The two sides were moved further apart by the network asking for re shoots on the pilot without confirming that it would split the cost with the studio.

As with many stories coming out of CBS recently, budgetary issues with this project have been prominent. Although CBS had already ordered 13 episodes of its new 'Criminal Minds' spinoff, 'Criminal Minds: Suspect Behavior,' and execs didn't feel they needed the same number from 'Chaos,' they eventually agreed to up the 'Chaos' order to 13 in exchange for a lower license fee. Again, Fox turned them down, and CBS then agreed to reinstate the original license fee.

All of the protracted wrangling meant that the studio missed its window to sell the series to several foreign buyers, so 20th Century said it would aim to recoup some of its losses by reducing the show's budget. This set off alarm bells at CBS as executives worried that the series wouldn't then be able to live up to the high quality of the pilot, and that Spezialy's vision would be undeliverable with less money. When talks broke down for the last time Fox had agreed to produce a high quality show but hadn't committed to an exact figure per episode.

Another big change that 20th Century wanted was to move production out of California so they could take advantage of local tax breaks. (Although the pilot was shot in Los Angeles, it was actually set in Cambodia and Sudan.) Locations considered included Dallas, Toronto and Vancouver. Spezialy is reported to have been in favor of Toronto as it offered a more European-looking city in line with his artistic vision, but execs balked at the potential logistical problems posed by the winters there.

In the end Vancouver -- shooting home of such series as 'Battlestar Galactica' and 'Fringe' -- seemed to win the location war. CBS, keen to preserve the feel of the pilot, asked to take over production of the series but were turned down. And to cap it all, while talks were dragging on Spezialy was losing his writers to other shows. 'Reaper' creators Michele Fazekas and Tara Butters, for example, dropped out after signing on to Fox's new blockbuster series 'Terra Nova.'

So at the end of five weeks the two companies couldn't reach an agreement and they ran out of time. The chaos surrounding 'Chaos' is officially over. For now anyway.