January 2021

How Midstream Providers Must Respond to Latest Exploration and Production Bankruptcies

Pratt's Energy Law Report
Keith N. Sambur | Seth R. Belzley | Andrew Thomas Gillespie
Election Impacts on Transportation & Infrastructure with Transportation themes

Attorneys Keith Sambur, Seth Belzley and Andrew Gillespie co-authored an article in Pratt's Energy Law Report on a recent bankruptcy case affecting how the midstream industry operates and obtains financing. In their article, the authors analyze the bankruptcy case of Colorado-based Extraction Oil & Gas, in which the U.S. Bankruptcy Court for the District of Delaware ruled that midstream agreements did not create "covenants running with the land" under Colorado law and were therefore able to be rejected under Section 365 of the Bankruptcy Code. They contend that the ruling challenges the principles on which midstream companies rely when constructing and financing midstream infrastructure, concluding that as more exploration and production (E&P) companies file for bankruptcy, midstream companies may have to review and rethink their legal documentation.

READ: How Midstream Providers Must Respond to Latest Exploration and Production Bankruptcies

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