Texas Force Majeure and Natural Gas Supply Certification

This episode details a contractual dispute between MIECO L.L.C. and Targa Gas Marketing L.L.C. regarding the delivery of natural gas during Winter Storm Uri. The central conflict involves whether a gas supplier must purchase expensive fuel from the spot market to satisfy its obligations when a regional disaster triggers a force majeure clause. While a lower court initially excused the supplier's performance, the Fifth Circuit Court of Appeals ultimately decided to certify the question to the Supreme Court of Texas. This decision stems from the potential for the ruling to significantly impact settled expectations and standard business practices across the entire Texas energy industry. The court specifically seeks guidance on how to define "gas supply" and what constitutes "reasonable efforts" for a non-producer to maintain performance during an emergency.