Newco Energy v. EnergyTec, Inc., et al.

Energytec, owner and operator of gas pipelines, filed for bankruptcy relief under Chapter 11 in 2009. The bankruptcy court authorized a sale of a pipeline system to Red Water Resources, but reserved for later determination whether the sale was free and clear of Newco's right to certain fees and other interests in the pipeline. A year after the sale, the bankruptcy court ruled that Newco's rights were not covenants running with the land and that the sale of the pipeline system was free and clear of Newco's interests. The district court affirmed. The court vacated, however, concluding that Newco's interests, including a transportation fee, security interest, and right to consent to assignments, were covenants running with the land. The court remanded for further proceedings. View "Newco Energy v. EnergyTec, Inc., et al." on Justia Law