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Rejection of unexpired oil and gas leases in bankruptcy proceedings: in re J. H. Land and Cattle Co

Journal Article · · Public Land Resour. Law Dig.; (United States)
OSTI ID:6836854

The United States Bankruptcy Court for the Western District of Oklahoma recently held in In re J.H. Land and Cattle Co. that an unexpired oil and gas lease is within the meaning of section 365(a) of the Bankruptcy Code. The court concluded that the trustee may reject one unexpired oil and gas lease in favor of another preferable oil and gas lease. The court also held that a Kansas oil and gas lease is personal property, and therefore, the nondebtor-lessee's sole remedy for rejection of the unexpired lease is a claim for damages. This article addresses the effect of In re J.H. Land and Cattle Co. on Oklahoma oil and gas lessees. It also explores the circumstances by which a trustee's decision to reject a nondebtor-lessee's oil and gas lease might be approved by a court, examines the nature of an oil and gas lease in Oklahoma, and suggests various options attorneys may consider in protecting the rights of a nondebtor oil and gas lessee.

OSTI ID:
6836854
Journal Information:
Public Land Resour. Law Dig.; (United States), Journal Name: Public Land Resour. Law Dig.; (United States) Vol. 21:1; ISSN PRLDD
Country of Publication:
United States
Language:
English