Bankruptcy: Assumption or Rejection of Oil and Gas Leases

摘要

In August 2006, the Debtor executes an oil and gas lease. Chesapeake and Statoil are the co-owners of the lease when the Debtor files a Chapter 12 petition seeking bankruptcy relief in July 2010. In May 2011, the Debtor seeks to terminate the lease because it is dramatically undervalued. The oil and gas lease grants the lessee an option to extend the primary term by two years through the tendering of a designated payment.