SANTA FE INTERN. v. TRANSCONTINENTAL GAS PIPELINE

Civ. A. No. B-88-01167-CA.

728 F.Supp. 435 (1989)

SANTA FE INTERNATIONAL CORP. v. TRANSCONTINENTAL GAS PIPE LINE CORPORATION.

United States District Court, E.D. Texas, Beaumont Division.

July 6, 1989.


Attorney(s) appearing for the Case

Daniel K. Hedges, Porter & Clements, Houston, Tex., for plaintiff.

Thomas R. McDade, William R. Pakalaka, Murray J. Fogler, William P. Maines, Fulbright & Jaworski, William G. Rosch, Rosch & Ross, Houston, Tex., for defendant.


MEMORANDUM OPINION

COBB, District Judge.

I.

During the 1970s and early 1980s, gas pipeline owners set out to acquire large volumes of natural gas. It was common practice for the pipeline owners to contract with the producers of the gas for regular deliveries of their product. If the gas pipeline owner was unable to take the gas, for whatever reason, the producer was to get paid as if the pipeline had taken the gas. The system worked well as long...

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