District Court Rules for Pioneer in Winter Storm Uri Force Majeure Dispute Over Firm Gas Delivery Obligations

Following remand from the Fifth Circuit, the Northern District of Texas conducted a bench trial on whether Pioneer Natural Resources properly invoked force majeure to excuse non-delivery of 20,000 MMBtu/day of Permian Basin gas during Winter Storm Uri's February 2021 freeze-offs. The court found Pioneer did not breach its NAESB Base Contract Firm delivery obligations to gas trader MIECO, resolving disputed material facts regarding whether performance was actually prevented and whether Pioneer exercised due diligence under Section 11 of the parties' contract.