Force Majeure literally means “greater force”. FM clauses in contracts excuse a party from liability if some unforeseen event beyond the control of that party prevents it from performing its obligations under the contract.

In natural gas contracts, Force Majeure can be defined as events beyond the reasonable control of a party acting as a Reasonable and Prudent Operator. Occurrence of Force Majeure will suspend the obligations of the Party affected by the event. Events of political FM affecting a GSA contract can include, but are not limited to war (declared or not), civil strife, riot, expropriation etc., strikes, go slows etc., changes of law, embargoes, blockades etc.; any danger to life or property; failure to receive any consent; withdrawal of any consent; attachment of additional conditions to any consent. Excuses non performance and suspends performance under a contract where the failure to perform is due to circumstances out of the control of the defaulting party.

An event or circumstances which are beyond the buyer’s or the seller’s control, and which a reasonable and prudent person could not have prevented or overcome, and which resulted from him being unable to consume the natural gas that he bought within the framework of the nomination which can include, but is not limited to war, military action, act of terrorism, earthquake, strikes, a failure or problem with any of the facilities or systems required to realize the consumption of the gas.