The “Peculiar” Lease: Powell and the Treatment of Oil and Gas Leases

The “Peculiar” Lease: Powell and the Treatment of Oil and Gas Leases
Adam H. Isenberg, Monique Bair DiSabatino
American Bankruptcy Institute Journal

Adam Isenberg, a partner, and Monique Bair DiSabatino, an associate, both in the Bankruptcy and Restructuring Practice, wrote this cover story that explores the factors that bankruptcy courts weigh in determining if an oil and gas lease is an executory contract or an unexpired lease subject to assumption or rejection under the Bankruptcy Code. A state’s status as a “non-ownership” state or “ownership-in-place” state tends to influence the court’s view, as was the case in In re Powell in the U.S. Bankruptcy Court for the Middle District of Pennsylvania.