Force Majeure Definition
(Midstream Energy)

Summary

A force majeure definition (midstream energy) clause is often overlooked when negotiating a gas processing agreement. However, a robust, detailed, and wide-ranging definition is important, in that it limits a party's obligations in the case of unforeseen circumstances that disrupt that party's business operations. This clause contains practical guidance and drafting notes. The gas processing agreement template is an agreement between the producer and processings parties for natural gas and natural gas liquids processing. The agreement has provisions for definitions, dedication and services, delivery points and pressure, gas quality, measurement, fees, fuel, and consideration, price and allocations, residue gas redelivery procedures, plant products redelivery procedures, payments, audit rights, force majeure, indemnification, title, royalty and taxes, notice and payment instructions, dispute resolution, term, miscellaneous, and exhibits including dedicated area, delivery points and redelivery points, fees and FL&U, gas quality specifications, take in-kind terms, allocation methodologies, form of memorandum of agreement, form of memorandum of release, form of transferee agreement, and form of joinder agreement. This clause can be found in the Gas Processing Agreement template.