August 17, 2020

Oil and Gas

Oil and Gas

Oil and Gas Rights in Bankruptcy: Beware the Many Pitfalls for Interest Holders and Creditors
     Richard L. Epling, 74(1) 127-150 (Winter 2018/2019)
Lenders, vendors, pipelines, storage facilities and other businesses that lend money to or do business with the working interest owner/lessors of oil and gas properties often assume that their contractual bargains will prevail over the rights and claims of other participants in the hydrocarbon production process. Such persons often fail to take into account the varied local and state laws affecting the definitions of what is real and personal property, the requirements for perfection and certain overriding priorities granted to field operators, suppliers and vendors in certain cases. Bankruptcy is the crucible for testing these conflicting rights and claims, and there have been some instructive recent developments in several key court decisions.