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PARAGON RESOURCES v. NAT. FUEL GAS DISTRIBUTION

No. 81-3813 Summary Calendar.

695 F.2d 991 (1983)

PARAGON RESOURCES, INC., Plaintiff-Appellee, v. NATIONAL FUEL GAS DISTRIBUTION CORPORATION, Defendant-Appellant.

United States Court of Appeals, Fifth Circuit.

Rehearing Denied February 22, 1983.

Attorney(s) appearing for the Case

Phillips, Lytle, Hitchcock, Blaine & Huber, Heino H. Prahl, Buffalo, N.Y., Cook, Yancey, King & Galloway, F. Drake Lee, Jr., Shreveport, La., for defendant-appellant.

Blanchard, Walker, O'Quin & Roberts, William T. Allen, III, Shreveport, La., Kavinoky, Cook, Sandler, Gardner, Wisbaum & Lipman, Allan R. Lipman, Buffalo, N.Y., for plaintiff-appellee.

Before CLARK, Chief Judge, POLITZ and HIGGINBOTHAM, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

We review an interpretation of an escalator provision in a gas purchase agreement between Paragon Resources, a natural gas producer, and National Fuel Gas Distribution Corp., a gas distributor. The escalator provision required Distribution Corp. to increase the price it paid Paragon for natural gas each year by the amount that "the average cost of gas" supplied by three pipelines to Distribution Corp. and related companies had...

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