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Westlaw News

Energy regulator urges Chesapeake bankruptcy judge to pass on contract dispute

The Federal Energy Regulatory Commission is urging Chesapeake Energy’s bankruptcy judge to relinquish control over a $211 million gas transportation contract dispute, saying the matter should be handled in a non-bankruptcy setting.

The agency made its statements in court papers filed on Thursday in Houston bankruptcy court, where Chesapeake’s Chapter 11 case is proceeding, in support of ETC Tiger Pipeline’s request to transfer the contract fight to the U.S. District Court for the Southern District of Texas. U.S. Bankruptcy Judge David Jones will hear arguments on the jurisdictional matter, as well as Chesapeake’s motion to reject its contract with ETC, on Monday. ETC, represented by Akerman, is a subsidiary of Energy Transfer LP.

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