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TERRY OILFIELD SUPPLY CO., INC. v. AMERICAN SEC. BANK, N.A.

Civ. A. No. H-91-2926.

195 B.R. 66 (1996)

TERRY OILFIELD SUPPLY CO., INC., et al., Plaintiffs, v. AMERICAN SECURITY BANK, N.A., et al., Defendants.

United States District Court, S.D. Texas.

April 10, 1996.

Attorney(s) appearing for the Case

W. Mark Cotham, Houston, Texas, for Terry Group.

Jacks C. Nickens, Houston, Texas, for Bank Group.

John C. Nabors, Dallas, Texas, for TransAmerican Group.

OPINION ON LIABILITY & DAMAGES

HUGHES, District Judge.

1. Introduction.

Operating as a debtor in possession, a gas producer conveyed to a drilling contractor an interest in gas to be produced from and in a gas purchase agreement with a transmission company. The conveyance was consideration for two multiple-well drilling contracts. As it emerged from bankruptcy, without consulting Terry the producer canceled the contract rights with the...

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