Arbitration Not Required Over Bill In $106M Texas Energy Deal

By Michael Phillis (November 5, 2019, 8:17 PM EST) -- A Texas energy company that bought $106 million worth of Wyoming oil and gas assets can't force arbitration in a dispute with seller Denver-based Liberty Resources over Liberty's obligation to pay an outstanding bill from a pipeline services company, a Texas appeals court said Tuesday.

The First Court of Appeals held the arbitration agreement between Rebellion Energy II LLC and two Liberty Resources entities is too narrow to cover a disputed $750,000 bill from midstream services company Thunder Creek Gas Services LLC. Rebellion's agreement to buy the Wyoming oil and gas leases and other mineral rights from Liberty provides for arbitration...

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