Termination of a Natural Gas Pipeline Transportation Contract
In Rockies Express Pipeline LLC v. Department of the Interior, we submitted an expert report on behalf of the defendant that estimated the damages to Rockies Express Pipeline resulting from the termination of a long-term pipeline transportation contract by the US Department of the Interior (Minerals Management Service). We analyzed the revenues the pipeline would have received from the shipper had the contract not been terminated, as well as the opportunities the pipeline had to mitigate by re-selling the pipeline capacity to other shippers. We also recommended appropriate discount rates to use for future damages given the risk associated with the future cash flows under the contract.
