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IN RE FRONTIER INSURANCE COMPANY

27 A.D.3d 274 (2006)

813 N.Y.S.2d 56

In the Matter of the Rehabilitation of FRONTIER INSURANCE COMPANY. CALLON PETROLEUM, Appellant, v. NEW YORK STATE DEPARTMENT OF INSURANCE, as Rehabilitator of Frontier Insurance Company, Respondent.

Appellate Division of the Supreme Court of the State of New York, First Department.

March 14, 2006.

In assigning mineral leases, Callon Petroleum required the lessee to agree to cap certain oil and gas wells and obtain a $2.7 million performance bond from Frontier Insurance. When the lessee failed to cap those wells, Callon sued Frontier on the bond in May 2001 in United States District Court in Louisiana. On August 17, 2001, Callon moved for summary judgment in that action. On August 27, the Superintendent of Insurance commenced the instant proceeding for rehabilitation...

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