Perlman v. Pioneer Limited Partnership
Texas Court of Appeals, Fifth Circuit
918 F.2d 1244 (Tex. App. 1990)
William Perlman (plaintiff) held an oil and gas lease with a force majeure clause excusing his performance if hindered by an inability to obtain necessary government permits, and requiring him to use reasonable efforts to remove any such hindrance. When Perlman's gas-production method, which produced substantial wastewater, drew a standard request from the Wyoming Oil and Gas Conservation Commission to study whether his wells needed water-well permits, Perlman treated this request itself as a force majeure hindrance rather than complying, and sued for a declaratory judgment that the lease was canceled; the district court ruled against him, and Perlman appealed.
Whether government regulations must present an actual, material hindrance to a party's contractual performance in order to excuse that performance under a force majeure clause.