Denbury agreed to deliver helium to APMTG but failed to meet delivery obligations. Denbury claimed two force majeure events excused its non-performance: a contractor's failure to complete a processing plant and well failures from sulfur deposits. The Wyoming Supreme Court upheld the lower court's decision, finding force majeure applied for only 36 days out of the entire contract period. Denbury was ordered to pay APMTG over $35 million in liquidated damages and interest for the breach.
Force majeure clauses are narrowly interpreted—you must prove the specific event directly caused your inability to perform, not just that problems existed during the contract period
Contractor delays or equipment failures by third parties typically don't qualify as force majeure unless the contract specifically names them or they're truly unforeseeable acts of nature
Liquidated damages clauses will be enforced even for large amounts if the court finds them reasonable; don't assume a judge will reduce them just because they're substantial