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  5. 582 S.W.2d 477 (1979)
 

SABINE OFFSHORE SERV., INC. v. CITY OF PORT ARTHUR

No. 8239.

582 S.W.2d 477 (1979)

SABINE OFFSHORE SERVICE, INC., Appellant, v. The CITY OF PORT ARTHUR et al., Appellees.

Court of Civil Appeals of Texas, Beaumont.

Rehearing Denied April 5, 1979.

Attorney(s) appearing for the Case

Harry P. Wright, Port Neches, for appellant.

George B. Wikoff, Port Arthur, James L. Weber, Beaumont, for appellees.

DIES, Chief Justice.

On May 15, 1978, the City of Port Arthur, a home rule city, annexed a certain area which included the territory comprising the Jefferson County Fresh Water Supply District No. 1. Thereafter Port Arthur abolished the water district and assumed its assets, liabilities, and responsibilities. One of its water customers in the Sabine Pass area is Sabine Offshore Service, Inc., a company which services offshore drillers, including selling them large...

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