Impact of Winter Storm Uri lingers in courts

 

Four years after Winter Storm Uri left Oklahomans with billions of dollars in long-term utility payments, the storm is still with us.

One of the latest examples is a lawsuit between HF Sinclair Refining and Marketing, LLC and NextEra Energy Marketing LLC. Their fight stems from a natural gas contract dispute arising from the 2021 winter storm. NextEra had a contract to provide Sinclair with natural gas at the OGT Pool, a pipeline system in Oklahoma. The gas was to be used in the operation of the Sinclair refinery in Tulsa.

After Uri hit the state, NextEra declared a force majeure and did not fulfill its delivery obligation to Sinclair for three days. Sinclair went to court. A North Texas Federal Judge recently ruled that Sinclair had to produce materials available for discovery, including the sources of gas it had available to power the Tulsa Refineries during the storm. Sinclair was also ordered to include the volume of gas available on each day the company has alleged damages in its lawsuit against NextEra.

The case also centers on the cost of the natural gas at the time of the storm and it is included in the order of U.S District Judge Brantley Starr.

NextEra in its actions learned that Sinclair “ramped down” the Tulsa Refinery at the time of the storm and reportedly could have used other sources of fuel for the operation at the refinery.