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The Fifth Circuit Allows Debtor Mineral Lessee to Avoid Breached Settlement Agreement with Mineral Lessor

Posted in Bankruptcy, Mineral Leases

The Fifth Circuit’s recent ruling in Fallon Family, L.P. v. Goodrich Petroleum Corp. reinforces that parties to mineral leases should be very careful when drafting documents to be recorded in public records.  The case stems from a 1954 mineral lease between the Fallon Family L.P.’s predecessor in interest, as lessor, and Goodrich Petroleum, as lessee. … Continue Reading

Another Possible Chip Away from the Finality of Confirmed Bankruptcy Plans

Posted in Bankruptcy, Oil and Gas Operations, Oil and Gas Production

A Texas court has recently carved out an exception to the Supreme Court’s ruling in United Student Aid Funds, In. v. Espinosa, 559 U.S. 260 (2010), on the finality of confirmed bankruptcy plans.  In Oklahoma State Treasurer v. Linn Operating, the United States District Court for the Southern District of Texas held Espinosa’s rule that… Continue Reading

Noble Energy Gets More Than It Bargained For in Bankruptcy Purchase

Posted in Bankruptcy

A recent case from the Texas Supreme Court emphasizes the importance of doing due diligence before purchasing assets from a debtor in bankruptcy. The case, Noble Energy, Inc. v. ConocoPhillips Company, held that Noble, through its predecessor and without realizing it, purchased a $63 million liability when, in addition to purchasing the bankrupt entity’s assets,… Continue Reading

Supreme Court Makes It Easier to Show “Actual Fraud” in Bankruptcy Dischargeability Actions

Posted in Bankruptcy

For individual debtors, obtaining a discharge of their debts in bankruptcy is a prime objective.  That discharge is, however, subject to a number of exceptions designed to prevent abuse of the bankruptcy process. Among those exceptions is 11 U.S.C § 523(a)(2)(A) which states that an individual debtor is not discharged of any debt – “… for… Continue Reading

Gordon Arata Spotlights Its Bankruptcy Practice

Posted in Bankruptcy

Long recognized for the strength and breadth of its oil and gas practice, Gordon Arata’s bankruptcy practice is equally notable.  We highlight it today. Core Team Gerald (Jerry) Schiff served over a decade as U.S. Bankruptcy Judge for the Western District of Louisiana while occasionally sitting in the Shreveport and Alexandria Divisions as well as… Continue Reading

“New York City?? Get a Rope!” Considering Chapter 11 Venues for Distressed Oil and Gas Companies

Posted in Bankruptcy, Legal Updates, News

For distressed mid-sized E&P and oil field service companies in Louisiana, the thought of filing a petition for chapter 11 bankruptcy relief in New York or Delaware may leave as bad a taste in the mouth as that poor cowboy who got a jar of salsa made in New York City*—and for good reason. As… Continue Reading

NGP Capital v. ATP

Posted in Bankruptcy

We recently had the opportunity to speak at the 61st Mineral Law Institute on the topic of “trending risks on the Outer Continental Shelf (OCS).”  One interesting topic we discussed was the increasingly common practice of conveying non-cost bearing interests (for example, overriding royalty interests, net profit interests or production payments) to working capital lenders… Continue Reading