Force Majeure in Gas Contracts: The Winter Storm?
"Texas case law counsels prudent parties to undertake a careful evaluation of the force majeure clauses in their contracts and the events cited to justify nonperformance," writes Luke J. Gilman, partner with Jackson Walker.
February 07, 2022 at 06:31 PM
7 minute read
The Feb. 13-17, 2021, winter storm, referred to in news reports as Winter Storm Uri, was a proverbial "perfect storm" in a number of respects, not the least of which was the way it affected the natural gas industry in Texas. Many had renewed occasion for in-depth analysis of not only the force majeure provisions in their agreements, but also Texas and New York law, which govern many of the applicable agreements as well as the commonly adopted industry forms such as ISDA and NAESB. The winter storm prompted the discovery that there was more to these standard or boilerplate terms than many in the industry had previously assumed.
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