Sabine Decision Affirmed

The United States Court of Appeals for the Second Circuit affirmed U.S. District Judge Jed S. Rakoff’s decision that the gas gathering contracts that Sabine Oil & Gas Corporation entered into with two midstream service companies were personal obligations, and not “covenants running with the land” under Texas law, which, therefore, could be rejected under Section 365 of the Bankruptcy Code. For further information about this bankruptcy decision and its consequences, please see our previous client alerts on this topic, found here and here.

View the decision.