As demand for pipeline infrastructure climbs across North America, disputes tied to gas gathering and dedication agreements are becoming increasingly consequential for operators and midstream companies.
In a recent Hart Energy article, Yetter Coleman LLP partner Justin Rowinsky and senior counsel Audrey Hendricks examine how companies can reduce litigation and commercial risk in gas dedication contracts by addressing key issues during contract drafting rather than after disputes arise.
The article, “Mitigating Risk in Your Gas Dedication Contract,” explores issues including venue selection, statute of frauds compliance and bankruptcy exposure, all of which can significantly affect the enforceability and value of gathering agreements. Drawing on recent Texas court decisions and industry litigation, Hendricks and Rowinsky analyze how disputes involving gathering systems and dedicated acreage can quickly become complicated by jurisdictional questions, property law issues and financial distress in the energy sector.
The article also discusses the importance of carefully drafted forum selection provisions, sufficiently detailed property descriptions and contract structures designed to withstand potential operator bankruptcies.
Rowinsky’s practice focuses on high-stakes litigation involving the oil and gas industry and commercial contract disputes. Hendricks’ practice includes complex commercial litigation and tort matters, mainly in the oil and gas industry.
Read the full article in Hart Energy: https://www.hartenergy.com/midstream-energy-infrastructure/he-mitigating-risk-gas-dedication-contract/