LENAPE RESOURCES v. TENN. GAS PIPELINE

No. 94-0278.

925 S.W.2d 565 (1996)

The LENAPE RESOURCES CORPORATION d/b/a Pomfret Production Company, Inc., and d/b/a Enercorp Resources, Inc., Tesoro Exploration and Production Company, Gulf Energy Pipeline Company and Coastal Oil & Gas Corporation, Petitioners, v. TENNESSEE GAS PIPELINE COMPANY, Respondent.

Supreme Court of Texas.

Decided April 18, 1996.

Rehearing Overruled August 16, 1996.


Attorney(s) appearing for the Case

Jane M.N. Webre, Austin, William T. Armstrong, III, San Antonio, Rudy A. England, Houston, Dwight A. Dalrymple, Houston, Emerson Banack, Jr., San Antonio, Charles R. Roberts, San Antonio, Ernest E. Smith, III, Austin, Frank Douglass, Austin, Elizabeth N. Miller, Austin, Steve Selby, Austin, for petitioners.

Thomas H. Watkins, Austin, C.A. Davis, Austin, Elizabeth G. Bloch, Austin, John R. Hathaway, Austin, Theodore R. Tetzlaff, Chicago, IL, Donald R. Cassling, Chicago, IL, Norman M. Hirsch, Chicago, IL, Ralph H. Duggins, Fort Worth, Sloan B. Blair, Fort Worth, H. Carter Burdette, Fort Worth, for respondent.


ENOCH, Justice, delivered the opinion of the Court on Motion for Rehearing, in which CORNYN, SPECTOR, BAKER, and ABBOTT, Justices, join.

We grant Petitioners' motions for rehearing. We withdraw our opinion and judgment of August 1, 1995 and substitute the following opinion.

The principal issue in this case is whether the good faith and proportionality restrictions of section 2.306 of the Uniform Commercial Code, TEX.BUS. & COM.CODE § 2.306, apply...

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