2nd Circ. Urged To Seek Texas Justices' View On Sabine Case

Law360 (June 11, 2018, 8:15 PM EDT) -- Nordheim Eagle Ford Gathering LLC urged the Second Circuit on Monday to reconsider its ruling that Sabine Oil & Gas Corp. could reject gas-gathering contracts after filing for bankruptcy, arguing the Texas Supreme Court must first decide whether such contracts are linked with drilling lands under state law.

The appeals court affirmed May 25 a New York federal judge's ruling that Sabine could reject contracts it inked with Nordheim and HPIP Gonzales Holdings LLC because the contracts were “personal obligations” and not “covenants that run with the land,” as interpreted under Texas law. Like U.S. District Judge Jed S. Rakoff before them, a...

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