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Texas Supreme Court Holds Producer Not Required to Share in Natural Gas Pipeline Compression Costs

The Energy Law

In Kachina Pipeline Company, Inc. 13-0596 , the Supreme Court of Texas interpreted a natural gas-purchase contract and held that a producer was not required to share in the costs of compression, even though that compression helped yield a higher re-sale price. Factual Background Kachina Pipeline Company, Inc. Lillis, No.

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COVID-19 as a Force Majeure? The Texas and Louisiana Perspectives

The Energy Law

1977), where a federal court applying Louisiana law found that a 500% increase in the price of natural gas was “likely to qualify as a force majeure event” under a take-or-pay gas contract, and thus excuse non-performance. A counter-example is Continental Oil Co. Crutcher , 434 F.

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