Mark Pfeiffer, Counsel in the Philadelphia office, recently penned an article for the American Bankruptcy Institute Journal, titled “Will the Pipeline Continue to Flow After Sabine?” Mark writes about the increase in oil and gas bankruptcies the fundamental and unresolved questions these bankruptcies raise regarding the interplay between rejection under § 365 of the Bankruptcy Code and covenants running with the land that expose a gap in § 365.

“The Sabine decisions do not resolve much, although they do point out the limitations to terminating oil and gas dedications using § 365.... Until the Bankruptcy Code is amended or the law is more firmly established, parties to midstream contracts will face uncertainty concerning their rights.” wrote Mark.

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