Oil & Gas Litigation Analysis

Reese Marketos Energy Law

Oil & Gas Litigation · Case Analysis
Joel Reese, Attorney

Home › Cases › In re Alpine Summit Energy Partners, Inc.; Alpine Non-Op LLC, et al. v. HB2 Origination, LLC, et al.
Title Disputes

In re Alpine Summit Energy Partners, Inc.; Alpine Non-Op LLC, et al. v. HB2 Origination, LLC, et al.

U.S. Bankruptcy Court, S.D. Texas, Houston Division Case No. 23-90739; Adversary No. 23-3244 resolved

A Texas partnership claiming economic benefits from a 16.3446% working interest in Webb County and Fayette County wells through a nominee agreement lost critical ground when the bankruptcy court ruled that even if the nominee agreement created an express trust granting an equitable interest in the subject properties, that interest is avoidable under 11 U.S.C. § 544(a)(3). The court's ruling turned on the undisputed fact that no assignment of the subject properties to the partnership was recorded in real property records, allowing the GUC Trustee to exercise strong-arm powers as a hypothetical bona fide purchaser.

Analysis

Alpine Summit: Bankruptcy Court Applies § 544(a)(3) Strong-Arm Powers to Unrecorded Nominee Agreement Over Webb and Fayette County Oil and Gas Interests

A Texas partnership claiming economic benefits from a 16.3446% working interest in Webb County and Fayette County wells through a nominee agreement lost critical ground when the bankruptcy court ruled that even if the nominee agreement created an express trust granting an equitable interest in the subject properties, that interest is avoidable under 11 U.S.C. § 544(a)(3). The court's ruling turned on the undisputed fact that no assignment of the subject properties to the partnership was recorded in real property records, allowing the GUC Trustee to exercise strong-arm powers as a hypothetical bona fide purchaser.

Joel Reese  |  Jul 20, 2026
Working Interest Title Disputes Bankruptcy Nominee Agreement Strong-Arm Powers