State of Emergency: Vital oil pipeline damaged by snow storms

Force majeure declared. Not totally shut down but restricted flows due to damage.


17 Oct 2019 – “Due to the recent storm in Manitoba over the weekend, we did declare force majeure as the province declared a state of emergency. We are currently operating at reduced flows,” a spokesperson for TC Energy told Reuters in a statement.

The Keystone pipeline has a capacity to carry 590,000 bpd of Canadian crude to the United States refineries, but it is unclear exactly how much the flow has been reduced.

“The Keystone pipeline is one of the few vital outlets for Canadian crude and any disruption in its operation is bound to affect prices sharply due to the lack of alternative outlets.”

According to Wikipedia, force majeure, which means “superior force”, “chance occurrence, unavoidable accident”, is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (hurricane, flood, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract.

Thanks to Laurel for this link

6 thoughts on “State of Emergency: Vital oil pipeline damaged by snow storms”

  1. smart move to save insurance and other hassles, and they at least kept it flowing
    unlike the Cuomo fool who banned new gas connections and then is taking the gas co to task for not providing services, and did a turnround on connections that the gas co TOLD him they do not have the gas to supply anyway.

    its Farce on a grand scale!

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