Exhibit 5.1
|
|
|
|
|
|
|
2001 ROSS AVENUE
DALLAS, TEXAS
75201-2980
TEL +1 214.953.6500
FAX +1 214.953.6503
www.bakerbotts.com
|
|
ABU DHABI
AUSTIN
BEIJING
DALLAS
DUBAI
HONG KONG
HOUSTON
LONDON
MOSCOW
NEW YORK
PALO ALTO
RIYADH
WASHINGTON |
May 7, 2010
Crosstex Energy, L.P.
Crosstex Energy Finance Corporation
Subsidiary Guarantors Listed in the Form S-4
Ladies and Gentlemen:
As set forth in the Registration Statement on Form S-4 (the Registration Statement) filed on
the date hereof with the Securities and Exchange Commission (the Commission) by Crosstex Energy,
L.P., a Delaware limited partnership (the Partnership), Crosstex Energy Finance Corporation, a
Delaware corporation (Finance Corp., and together with the Partnership, the Issuers), and
certain of the Partnerships subsidiaries, under the Securities Act of 1933, as amended (the
Act), relating to the registration under the Act of (i) the offering and issuance of $725 million
aggregate principal amount of the Issuers
8 7/8% Senior Notes due 2018 (the Exchange Notes), to be
offered by the Issuers in exchange (the Exchange Offer) for a like principal amount of the
Issuers issued and outstanding 8 7/8% Senior Notes due 2018 (the Outstanding Notes) and (ii) the
guarantees (the Guarantees) of certain subsidiaries of the Partnership listed in the Registration
Statement as guarantors (the Subsidiary Guarantors) of the Exchange Notes and the Outstanding
Notes, certain legal matters in connection with the Exchange Notes are being passed upon for you by
us. The Exchange Notes are to be issued under an Indenture, dated as of February 10, 2010 (the
Indenture), between the Issuers, the Subsidiary Guarantors and Wells Fargo Bank, National
Association as trustee (the Trustee). At your request, this opinion is being furnished to you
for filing as Exhibits 5.1 and 8.1 to the Registration Statement.
In our capacity as your counsel in the connection referred to above and as a basis for the
opinions herein after expressed, we have examined (i) the Registration Statement, (ii) the
Indenture, (iii) the Sixth Amended and Restated Agreement of Limited Partnership of the Partnership
and the Certificate of Limited Partnership of the Partnership, each as amended to the date hereof,
(iv) the Agreement of Limited Partnership of Crosstex Energy GP, L.P., a Delaware limited
partnership and the general partner of the Partnership (the General Partner), and the Certificate
of Limited Partnership of the General Partner, each as amended to the date hereof, (v) the Amended
and Restated Limited Liability Company Agreement of Crosstex Energy GP, LLC, a Delaware limited
liability company and the general partner of the General Partner, and the Certificate of Formation
of Crosstex Energy GP, LLC, each as amended to the date hereof, (vi) the Certificate of
Incorporation of Finance Corp. and the Bylaws of Finance Corp., each as amended to the date hereof,
(vii) the limited liability company agreement or agreement of limited partnership, as applicable,
and other governing documents of each of the Subsidiary Guarantors, (viii) originals, or copies
certified or otherwise identified, of the corporate, partnership and limited liability company
records of the Partnership, the General Partner, Crosstex Energy GP, LLC, Finance Corp. and each of
the Subsidiary Guarantors, including minute books of Crosstex Energy GP, LLC and Finance Corp. as
furnished to us by Crosstex Energy GP, LLC and Finance Corp., (ix) certificates of public officials
and of representatives of the Issuers, (x) statutes and (xi) other instruments and documents. We
have assumed that the signatures on all documents examined by us are genuine, all documents
submitted to us as originals are authentic and all documents submitted to us as certified or
photostatic copies conform to the originals thereof. We also have assumed that (i) the Indenture
has been duly authorized, executed and delivered by the Trustee and constitutes the legal, valid
and binding obligation of the Trustee, (ii) the Registration Statement and any amendments thereto
(including post-effective amendments) will have become effective under the Act and the Indenture
will have been qualified under the Trust Indenture Act of 1939, as amended, and (iii) the Exchange
Notes will have been
duly executed, authenticated and delivered in accordance with the provisions of the Indenture
and issued in exchange for Outstanding Notes pursuant to, and in accordance with the terms of, the
Exchange Offer as contemplated in the Registration Statement.
On the basis of the foregoing, and subject to the qualifications and limitations hereinafter
set forth, we are of the opinion that:
|
1. |
|
The Exchange Notes, when issued, will constitute valid and legally binding
obligations of the Issuers, enforceable against the Issuers in accordance with their
terms, except as that enforcement is subject to (a) any applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or conveyance or other laws
relating to or affecting creditors rights generally, (b) general principles of equity
(regardless of whether that enforceability is considered in a proceeding in equity or
at law) or (iii) any implied covenants of good faith and fair dealing. |
|
|
2. |
|
The Guarantees of the Subsidiary Guarantors remain the valid and legally
binding obligations of the Subsidiary Guarantors, enforceable against the Subsidiary
Guarantors in accordance with their terms, except as that enforcement is subject to
(a) any applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer or conveyance or other laws relating to or affecting creditors rights
generally, (b) general principles of equity (regardless of whether that enforceability
is considered in a proceeding in equity or at law) or (iii) any implied covenants of
good faith and fair dealing. |
|
|
3. |
|
The discussion and the legal conclusions set forth in the Registration
Statement under the heading Material Federal Income Tax Consequences (except for the
representations and statements of fact of the Partnership, the General Partner and
Crosstex Energy GP, LLC, included in such discussion, as to which we express no
opinion) are accurate and complete in all material respects and constitute our opinion,
which is subject to the assumptions and qualifications set forth therein, as to the
material tax consequences of the exchange of the Outstanding Notes for the Exchange
Notes. |
The opinions set forth above are limited in all respects to matters of the laws of the State
of New York, the laws of the State of Texas, the General Corporation Law of the State of Delaware,
the Delaware Revised Uniform Limited Partnership Act, the Delaware Limited Liability Company Act
and applicable federal law of the United States of America, in each case as in effect on the date
hereof. We hereby consent to the filing of this opinion of counsel as Exhibits 5.1 and 8.1 to the
Registration Statement. We also consent to the reference to our Firm under the heading Legal
Matters in the prospectus forming a part of the Registration Statement. In giving this consent,
we do not hereby admit that we are in the category of persons whose consent is required under
Section 7 of the Act or the rules and regulations of the Commission thereunder.
Very truly yours,
/s/ Baker Botts L.L.P.
DMR/JSP