The Lenape Resources Corporation D/b/a Pomfret Production Company, Inc., and D/b/a Enercorp Resources, Inc., Tesoro…

Summary

The Texas Supreme Court held that the Uniform Commercial Code §2.306 does not apply to the take‑or‑pay gas purchase agreement, affirming the trial court’s quantity provisions and reversing the appellate court’s decision on that issue; it also affirmed the appellate court’s finding that the price‑escalation clause in the agreement is ambiguous and that the parties intended a double‑factor escalation. Justice Phillips, in a concurring‑dissent, would have applied §2.306 and remanded for further fact‑finding on good‑faith and proportionality.