- See McCormick, “Legal Issues in Project Finance,” (1983) 1 JERL 23.
- Restatement (Second) of Contracts, § 261 comm. f (1981).
- 275 F. 2d 253 (2d Cir. 1960).
- 18 Williston, The Law of Contracts (3rd ed.,1978) § 1961. See also P.N. Gray & Co. v. Cavalliolis, 276 F. 565 (E.D.N.Y. 1921); Restatement (Second) of Contracts (1981) § 261, comm. F and illustr. 16.
- 5 Corbin on Contracts (2nd ed., 1964) § 1070.
- No. 79-C-2866, Slip Opinion (N.D. 111. February 25, 1986).
- See Ashland Oil and Refining Co. v. Cities Service Gas Co., 462 F. 2d 204 (10th Cir. 1972); Superior Oil Co. v. Transco Energy Co., 616 F.Supp. 98 (W.D. La. 1985); international Minerals and Chemicals Corp. v. Llano Inc., 770 F.2d, 879 (10th Cir. 1985).
- This sweeping generalisation calls for the caveat that each contract contains its own terms, and this variety of terms and factual contexts can create a variety of legal results.
- D.C. N.D., Civil No. Al-85–237, decided January 14, 1986.
- Mainline Investment Corp. v. Gaines, 407 F.Supp. 423, 427 (N.D. Tex. 1976).
- No. CJ-83–5884 (D. Ct. Okla. Cty. 1983).
- Restatement (Second) of Contracts § 261 (1981).
- Eastern Airlines Inc. v. Gulf Oil Corp., 415 Supp. 429 (S.D. Fla. 1975).
- Iowa Electric Power & Light Co. v. Atlas, 467 F.Supp. 129 (N.D. Iowa, 1978) rev'd for lack of jurisdiction, 603 F. 2d 1301 (8th Cir. 1979).
- Missouri Public Service Co. v. Peabody Coal Co., 583 S.W. 2d 721 (Mo. App. 1979).
- J. White and R. Summers, Uniform Commercial Code 113 (2nd ed., 1980).
- 18 Williston, The Law of Contracts § 1935 (3d ed. 1978).
- 23 N.Y. 2d 275,296 N.Y.S. 2d 338,244 N.E. 2d 37, 41 (N.Y. Ct. Ap. 1981).
- Mineral Park Land Co. v. Howard, 172 Cal. 289, 293 (1916).
- Transatlantic Financing Corp. v. United States, 363 F. 2d 312 (1966).
- 363 F. 2d at 315–16.
- Leaseco Corp. v. Taussig, 473 F.2d 777 (2d Cir. 1972).
- 499 F. Supp. 53 (W.D. Pa. 1980).
- 571 F.Supp. 440, 457 (E.D. Va. 1981).
- In the early stages of declining sales to U.S. customers, Canadian gas sellers made some accommodations to the U.S. market. In later stages, a combination of U.S. government pressures to change unfavourable terms of import contracts and the absence of counter- pressures by the Canadian government resulted in further renegotiation of Canadian gas export contracts.
- Notwithstanding $3.5 billions in settlements, there was an estimated buyers’ take-or-pay exposure of $6.5 billions at the end of 1985, including an estimated $1.4 billions is in litigation or Court-ordered arbitration. An additional $7.2 billions exposure was estimated to accrue in 1986. FERC has indicated that it intends to address pass-through of settlement payments to gas consumers on a case-by-case basis, but has not stated the policy to be applied. (Interstate National Gas Association of America, Take-or-Pay: A Growing Industry Problem, Washington, D.C, October, 1986).
- See Maryland People's Counsel v. Federal Energy Regulatory Commission, 761 F.2d 768 (D.C. Cir. 1985). Subsequently; these special marketing programmes were ended after rulings that they discriminated against certain classes of consumers. Recent press reports, however, indicate that the new regulatory thrust towards pipelines acting as transporters of gas for others can play a role in encouraging and implementing settlement of take-or-pay claims. At the end of July 1986 Transcontinental Gas Pipe Line (“Transco”) announced that the pipeline would become an open access carrier. According to World Gas Report (August 11, 1986):
- “Transco has good reason to want transportation deals, and the sales that go with them, to begin quickly. The pipeline is now taking nearly three quarters of the gas tendered to the company by producers who have settled take-or-pay issues with Transco, while it is taking less than 5% of contract volumes from non-settling producers. The pipeline reasons that producers in urgent need of cash flow (as many in the Southwest are today) will be much more eager to settle than ones with ready markets. The availability of transportation programmes makes this bargaining tool that much easier to use on recalcitrant suppliers.”
- Natural Gas Prospects, p. 29 (Paris, 1986).
- Ibid., p. 30.
Journal of Energy & Natural Resources Law
Volume 5, 1987 - Issue 1