July 30, 2015

Fracking Risks To Secured Oil And Gas Lenders

Currently, the biggest legal and regulatory challenges for oil and gas industry participants and their lenders relate to the hot-button issue of hydraulic fracturing (or “fracking”), where a number of recent developments put credit risk front and center.

Faegre Baker Daniels associate Matthew Clark and partner Colin Deihl recently co-authored an article for Law360 where they explain that commodity prices are not the only source of risk. Clark and Deihl say the Office of the Comptroller of the Currency Oil and Gas Production Lending: Comptroller’s Handbook 11 identifies seven categories of risk that financial institutions must manage when lending to exploration and production companies. One of these risk categories—credit risk—takes into account threats to an operator’s ability to find, develop and profitably bring to market extracted hydrocarbons posed by changes to law and regulations governing the operator’s activities.

Full Article

Services and Industries

The Faegre Baker Daniels website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Baker Daniels' cookies information for more details.