"Bankruptcy allows the sale of real property free and clear of certain liens and interests. A covenant running with the land, however, is likely not affected by a sale in bankruptcy. Whether a right is a covenant running with the land is thus a crucial issue, especially when a debtor in bankruptcy seeks to strip the right without the owner’s consent. The Fifth Circuit recently held in Newco Energy v. Energytec, Inc. (In re Energytec, Inc.), that a right to a transportation fee in connection with a pipeline and a right to consent to the assignment of the pipeline were covenants running with the land."
So begins a recent post by my colleagues Mitchell Ayer and Evelyn Breithaupt on Thompson & Knight's Oil and Gas Update blog. In the post, Mitchell and Evelyn summarize and analyze the case and its impact on oil and gas contracts. They conclude with the suggestion that in "agreements such as participation agreements, joint venture agreements and joint operating agreements[, t]o improve the chances that a purchaser’s obligations will survive bankruptcy (i) characterize the obligations as covenants running with the land and (ii) file the agreement of record by referencing the agreement in the assignment (assuming you are in a state like Texas that allows record notice by reference)."
The case, and their suggestions, are relevant to real estate contracts as well. I encourage you to read their post for more information. Click here to read more.
 No. 12-41162 (Dec. 31, 2013), available at http://www.ca5.uscourts.gov/opinions/pub/12/12-41162-CV0.pdf