Texas Keystone and Falcon Partners win dismissal in Marcellus Shale contract dispute

Client(s) Texas Keystone, Inc.

Jones Day successfully obtained the dismissal of breach of contract claims lodged against Texas Keystone, Inc., a natural gas production company, and Falcon Partners, an entity that owned affiliated Marcellus Shale leasehold interests. PetroEdge Energy, LLC alleged that Texas Keystone breached a letter of intent to enter into a joint venture to farm out acreage located in West Virginia. Texas Keystone and Falcon Partners argued that the letter of intent, the parties' drafting history, the structure of the letter, and the letter's reference to additional terms conclusively indicated that the letter was not binding. The court agreed and dismissed PetroEdge's claims with prejudice. The decision became final when the West Virginia Supreme Court of Appeals denied PetroEdge's petition for appeal in November 2010.

Petroedge Energy, LLC v. Texas Keystone, Inc., et al., No. 08-CV-204 (Cir. Ct. of Marion County, W. Va.)