The massive natural gas bills taken out during the freezing of Texas have sparked a spate of lawsuits across the state, with companies arguing over who is responsible for the sheet.
At least 30 lawsuits involving natural gas contracts have been filed in four states since the February storm that wiped out power for millions of Texans and caused gas prices to rise to the highest level in years. Billions of dollars are at stake together.
The lawsuits have exposed the tremendous pressure the financial consequences of the storm have placed on natural gas suppliers and customers, including public utilities and others. The bulk of the case is in Texas courts and involves some of the world’s largest energy companies and dealers, including Exxon Mobil Corp., Koch Industries Inc., BP PLC and Vitol.
Some of the lawsuits claim that gas suppliers keep their prize money from overloading utilities during the storm. Some providers like ConocoPhillips are suing their services and others due to unpaid bills.
Other lawsuits deal with whether businesses should be released from their contractual obligations to supply gas during parts of February, when icy temperatures shut down much of Texas’ energy infrastructure. Legal analysts expect more lawsuits to be filed in the coming weeks.