March 28, 2015
Arbitration: Agrium U.S., Inc. v. Union Oil Company of California
Agrium purchased a fertilizer manufacturing plant located on Alaska’s Kenai Peninsula from the defendant in 2000. The purchase agreement included dedication of some of the defendant’s natural gas reserves in Alaska to the fertilizer plant. Soon after Agrium took possession of the plant, the defendant announced that the reserves dedicated to the plant contained less natural gas than originally certified. Subsequently, the defendant began to curtail natural gas deliveries to the plant. This forced Agrium to curtail fertilizer production and shut down some production facilities. As the damages expert for Agrium, Jeff Leitzinger provided an expert report, deposition testimony and both direct and rebuttal testimony during the recent arbitration proceedings.
