Mediation in energy disputes is an alternative to litigation. It can be used in a variety of cases, including in cases in which damages need to be assessed due to service interruptions, grid issues, explosions or environmental violations. Mediation may be used when only private parties are involved, a regulatory agency is a named party or when companies are in dispute. This method can successfully resolve issues related to supply contracts, royalty interests, international manufacturers, joint venture agreements, defective products and more.

This method is a preferred way to resolve many energy-related problems because it allows parties to craft creative solutions to resolve their legal issue. These solutions are often much more creative and personalized than litigation affords. Parties often modify agreements, adjust leases, agree to be partners in future transactions or trade certain coverage areas as a way to resolve their dispute while protecting their monetary investment. These solutions often provide for the interests of the parties far better than any money damages in a contentious court case may.

Another important aspect of mediation in this industry is that disputes often involve people with high levels of understanding of technical information. In a court case, much time may have to be devoted to educating the judge or jury. However, in mediation, the parties can select a mediator who has a knowledge of the industry so that the parties can get into the heart of the matter as quickly as possible.

Mediation also keeps the power and control of the outcome of the case in the hands of the parties. If the law is unsettled or an adverse ruling may impact either party in a substantial way in other business dealings, the parties may prefer to reach an out-of-court settlement that is not binding on their other interests. The process is also private, so the parties do not have to disclose information that can be publicly followed.