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Pipeline & Easement

Freeport LNG Marketing, LLC v. Kinder Morgan Texas Pipeline LLC

Texas Court of Appeals, Fourteenth District 14-22-00864-CV resolved

The Fourteenth Court of Appeals reversed summary judgment in favor of Kinder Morgan in a natural gas supply dispute with Freeport LNG, finding disputed fact issues regarding whether Winter Storm Uri and related governmental actions excused the midstream operator's refusal to honor sell-back obligations under a NAESB Base Contract. The court held that Kinder Morgan failed to establish as a matter of law the causation element required under the contract's force majeure provisions, which excluded economic hardship and loss of gas supply except as specifically enumerated.

Analysis