Texas Appeals Court Revives Suit Over Gas Delivery Deal

Law360, Houston (June 18, 2013, 6:55 PM EDT) -- A Texas appeals court on Tuesday revived an energy developer’s suit against Kachina Pipeline Co. Inc., ruling that the pipeline operator improperly tried to extend a contract to supply natural gas while withholding unauthorized marketing costs.

The Third District Court of Appeals overturned a trial court's judgment in favor of Kachina after finding that its agreement with well operator Michael Lillis neither allowed the pipeline to charge Lillis for compression costs it incurred selling his gas nor authorized Kachina to unilaterally extend the contract when Lillis...
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