• Pennsylvania Oil and Gas Law and Section 365 of the Bankruptcy Code — Can an oil and gas lease be rejected in bankruptcy?
  • October 11, 2011 | Authors: Gregory D. Cribbs; Erica L. Koehl; David W. Ross
  • Law Firm: Babst Calland - Pittsburgh Office
  • The recent boom in gas drilling in Pennsylvania due to the development of the Marcellus Shale would seem to be a windfall to landowners who have signed leases for the development of gas reserves on their property. When such a landowner becomes a debtor in a bankruptcy case, however, the value of such a lease can be put at issue. The anticipated royalties under such a lease could mean the difference between a fully funded plan and an unfortunate liquidation.