The Treatment of Energy Industry Contracts in a Bankruptcy Context – Issues Old and New

This session will examine how various contracts between parties in the energy industry are treated once one of the parties files for bankruptcy protection. Contracts such as State and Federal oil and gas leases, mortgages, joint operating agreements, gathering/dedication agreements, forwards, swaps and other derivatives will be discussed along with ORRIs, NPIs, VPPs, and platform use agreements from the perspective of the non-bankrupt, non-defaulting counterparty. Can these agreements be assumed or rejected? What unusual risks exist with these types of agreements? Are they garden variety executory contracts or interests in real estate? Do they implicate property of the bankrupt estate? Can they be terminated post-bankruptcy and, if so what are the consequences? These and other questions, several of which are grabbing recent headlines, will be reviewed. 1.5 hrs CPE - Finance, 1.5 hrs CLE, 1.5 hrs CE