Fifth Circuit Rules That Chapter 11 Debtors May Reject Filed-Rate Contracts without FERC Permission

Summary

This article discusses a recent decision by U.S. Court of Appeals for the Fifth Circuit on the rejection of a filed-rate contract. In FERC v. Ultra Resources, Inc. (In re Ultra Petroleum Corp.), 2022 U.S. App. LEXIS 6522 (5th Cir. Mar. 14, 2022), the Fifth Circuit issued a long-awaited ruling on an appeal from a bankruptcy court order authorizing Chapter 11 debtor Ultra Resources, Inc. (Ultra) to reject a filed-rate gas transportation contract as part of its Chapter 11 plan.