KERR-McGEE CORP. v. NORTHERN UTILITIES, INC.

Nos. 80-2273 to 80-2275.

673 F.2d 323 (1982)

KERR-McGEE CORPORATION, a Delaware corporation, Plaintiff-Appellant, v. NORTHERN UTILITIES, INC., a Wyoming corporation, Defendant-Appellee. NORTHERN UTILITIES, INC., Plaintiff-Appellee, v. AMOCO PRODUCTION COMPANY, a Delaware corporation, and Phillips Petroleum Company, a Delaware corporation, Defendants-Appellants.

United States Court of Appeals, Tenth Circuit.

March 23, 1982.


Attorney(s) appearing for the Case

Peter J. Nickles of Covington & Burling, Washington, D.C. (Stephen H. Galebach of Covington & Burling, Washington, D.C., and William T. Schwartz of Schwartz, Bon, McCrary & Walker, Casper, Wyo., with him on the brief), for Kerr-McGee Corp.

John S. Pfeiffer of Gorsuch, Kirgis, Campbell, Walker & Grover, Denver, Colo. (Ann E. DeVine of Gorsuch, Kirgis, Campbell, Walker & Grover, and Robert H. Landt, Denver, Colo., with him on the brief), for Amoco Production Co.

Houston G. Williams of Williams, Porter, Day & Neville, P.C., Casper, Wyo. (Thomas M. Blume and Frank A. Ackerman, Englewood, Colo., with him on the brief), for Phillips Petroleum Co.

Wm. Bryce Arendt, of Northern Utilities, Inc., and Wm. H. Brown of Brown, Drew, Apostolos, Massey & Sullivan, Casper, Wyo. (Claude W. Martin of Brown, Drew, Apostolos, Massey & Sullivan, Casper, Wyo., with them on the brief), for Northern Utilities, Inc.

B. J. Zimmerman and Patrick F. Timmons, Houston, Tex., Joseph C. Johnson and Thomas Burton, Houston, Tex., and Robert C. Hawley and Gretchen A. VanderWerf of Dechert, Price & Rhoads, Denver, Colo., on the brief, for amici curiae for Conoco, Inc. and The Superior Oil Co.

David Crump, Professor of Law, University of Houston, Susan E. Waite of Legal Foundation of America, Keith Blinn, Professor of Law, University of Houston, Houston, Tex., on the brief for amicus curiae for Legal Foundation of America.

Steven F. Freudenthal, Atty. Gen. of Wyo., Cheyenne, Wyo., on the brief for amicus curiae for the State of Wyoming.

Before SETH, HOLLOWAY and SEYMOUR, Circuit Judges.


SEYMOUR, Circuit Judge.

In this diversity action applying Wyoming law, Kerr-McGee Corporation, Amoco Production Company, and Phillips Petroleum Company (hereinafter collectively referred to as "producers") appeal a trial court decision striking down an indefinite price escalation clause in a contract for the sale of intrastate natural gas. The district court found the clause to be against public policy and unconscionable.1 We reverse....

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