The Buck Stops Where? Lessons Learned about Gas Contract Force Majeure Provisions after the 2005 Hurricane Season
April 27, 2007
This article explores the impact of the 2005 hurricane season on gas trading and the potential implications for force majeure provisions in energy contracts generally. Hurricanes Katrina and Rita evoked many force majeure declarations and a fair number of on-going disputes; nonetheless, the marketplace successfully avoided the widespread disruptions other traumatic events have spawned (such as the 2000 and 2001 power shortages in California). Examination of the forces that may have played a role in sparing the natural gas industry from those nightmarish effects, as well as the disputes that have arisen, provides important insight about best practices and pitfalls for the unwary.
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