SHALE Oil & Gas Business Magazine
In an article published on May 19, 2021 in SHALE Oil & Gas Business Magazine, Kelley Duke and Benjamin Larson discuss what companies that do business in the oil and gas industry can do to put their company in a better litigation position.
“While oil prices have been steadily recovering and shale output is on the rebound, 2020 left the industry with plenty of disputes, many related to contractual performance obligations,” explain Duke and Larson. “Implied or ambiguous provisions in contracts and a general lack of precision often lead to litigation when business slows.”
Duke and Larson further explain that the number one contract issue seen by the oil and gas industry in the past year is the force majeure defense, “which can negate contractual obligations and related liability because of unforeseeable, catastrophic events. While many contracts exclude pandemics from force majeure clauses, some courts may not recognize this defense and this clause will not release businesses from other contractual obligations.
“Inevitably, litigation will continue, and perhaps even increase, as the economy opens up again. ”Kelley Duke and Benjamin Larson
To read the article in full, click here.
This piece was originally shared on SHALE Oil & Gas Business Magazine on May 19, 2021 and is republished here with permission from the publication.