FERC-OUT CLAUSE

By SovConn | November 25, 2015

FERC-out clause.Oil & gas. A provision in a contract to sell natural gas specifying that if a

regulatory agency does not allow the price paid to the producer to be passed on to consumers,

either the contract price will be reduced accordingly or the contract will be terminated. — Also

termed regulatory-out clause.[Blacks Law 8th]

Posted in Law Dictionary Definitions