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Sempra Energy affiliate successfully completes new LNG facility and resolves all contractor claims under EPC contract

August 2009

Client(s) Sempra Energy affiliate

Jones Day represented a Sempra Energy affiliate, the owner of a liquefied natural gas regasification facility in Louisiana, in arbitration proceedings with the EPC contractor who sought to recover more than $200 million in alleged damages. The contractor based its claims on various theories, including changes in OSHA regulations related to hexavalent chromium released during welding, force majeure claims based upon Hurricanes Katrina, Rita, Ike and other named storms, and various delay and lost productivity/cumulative impact claims. The contract provided for all disputes to be arbitrated before the AAA and arbitrations were filed in both Texas and California. After an extensive audit and investigation of the contractor's claims, a confidential settlement was reached during mediation.

Aker-Kvaerner/IHI v. Cameron LNG, LLC, 73-158Y-06771-07-MAVI (AAA)

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