A bankruptcy court had authority to approve Ultra Resources’ reorganization plan without a federal energy regulator’s review of the natural gas driller’s pipeline contract, the Fifth Circuit ruled.
The Englewood, Colo.-based company also isn’t bound by public policy to honor the 2008 pipeline contract it had with Rockies Express Pipeline LLC, the U.S. Court of Appeals for the Fifth Circuit held Monday.
The Federal Energy Regulatory Commission has authority to review pipeline contracts, while bankruptcy law allows debtors to wipe out certain debts and payment obligations. The “question concerns a clash of two congressionally constructed titans, FERC and the bankruptcy ...
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