EP Energy Restructuring - Bankruptcy

[T_Alsterlind]

Has anyone had EP Energy’s attorney’s call them? I just did last week.

1. EP Energy has not paid us since March - May, 2020 any Royalties. Not sure if it is because of their Bankruptcy. We always get paid on the 1st of the month.

2. The last letter I received was saying EP Energy was going to restructure (October/2019).

3. In May of this year I received a booklet saying EP Energy is doing a Chapter 11. I looked at all the names in the booklet and it showed my name and all my cousins.

4. In the booklet it said if you had an issue to contact the Courts before approximately February 20, 2020.

5. I did by writing a letter to them pleading my case to the Chapter 11 Bankruptcy Court.

6. The reason is the royalties help to pay for my mom’s necessities in life.

7. I was not happy as it said in the Chapter 11 booklet if there was an issue you needed to contact the Courts before February 20, 2020. How can I contact the Courts if it did not get the Chapter 11 Bankruptcy book until May - 2020. That was also a reason I wrote the Courts was I felt it was unfair to receive the info after the fact. On the envelope it was not dated as it must of been sent by the attorneys office as it had a label that was preprinted w/o the date it was sent.

8. The Courts have now put an injunction against EP Energy according to their attorneys.

9. Apparently the Court sent the letter and photocopies I sent to them to the attorney representing EP Energy.

10. EP Energy’s attorney has now contacted me wanting to talk.

11. Do I need legal counsel? I am not sure if the injunction was done because of my letter to the Courts or if it was because a lot of the mineral owners contacted the courts.

12. Did EP Energy break the Contract/Lease because of claiming bankruptcy?

13. Will I get paid for Royalties not paid?

14. From what I read on the internet the companies that wanted to help EP w/restructuring pulled out because of the oil crisis and Coronavirus 19.

15. The EP Energy attorney said I misunderstood the Chapter 11 Bankruptcy book when they called to try and set-up a time to talk to me.

16. Can someone give me some legal advice on what to do? I have a conference call w/the attorney for EP Energy this Tuesday at 10:30 ET time.

[Brandon_Herrmann]

From your post, I’m finding it difficult to understand who received an injunction against whom. I think you might be referring to automatic stay in § 362 of the Bankruptcy Code. Generally speaking, a landowner’s royalty is not part of a bankrupt operator’s estate. Admittedly, I’m not familiar with EP’s bankruptcy. After quickly looking at the docket on Prime Clerk, it looks like the debtor (EP) filed a first day motion to pay the pre-petition amounts owed to royalty owners [Document 7] and the court entered an order granting said motion [Document 67]. Do you know if any other royalty holders are receiving payments? You should definitely seek the advice of counsel if debtor refuses to recognize your property rights–whether now or in the future.