Gulfport Energy Corp.‘s Chapter 11 bankruptcy allows the natural gas company to reject regulated energy contracts without Federal Energy Regulatory Commission permission, an appeals court found.
FERC didn’t have authority to issue four orders that tried to bind Gulfport into continuing contracts to transport gas even if those contracts were rejected in bankruptcy, the US Court of Appeals for the Fifth Circuit found on Tuesday. The court vacated the orders, finding them unlawful.
“FERC cannot countermand a debtor’s bankruptcy-law rights or the bankruptcy court’s powers,” the appeals court said.
The Fifth Circuit opinion is part of a string of ...