Proposed Liability Language in Texas Gas Tariff Is Subject to Scrutiny and Protests from Producers, Marketer and End Users

摘要

The American Forest & Paper Association (AF&PA), the Independent Petroleum Association of America (IPAA), and the Process Gas Consumers Group (PGC) (collectively, the Associations) lodged a protest on 9/14/09 to tariff language submitted to FERC by Texas Gas Transmission, LLC (RP09-1009) that proposes new liability language and adds a mutual waiver of "consequential damages" provision. Under this provision, both Texas Gas and its customer would waive the right to recover consequential damages from the other for damages arising out of breach of contract, negligence, tort, and strict liability. The protest alleges the Texas Gas provision fails to make clear that each party remains liable to the other for direct damages. Therefore, the Associations requested that Texas Gas' proposed provision be amended to include certain missing language approved by the Commission for ANR Pipeline Co. that Texas Gas had cited as a model for its own language.