Kachina Pipeline Company, Inc., Petitioner v. Michael D. Lillis, Respondent

Summary

The Texas Supreme Court affirmed the Court of Appeals, holding that the gas purchase agreement unambiguously limits Kachina Pipeline’s right to deduct compression costs to compression installed to overcome working pressure and does not permit a five‑year extension of the contract term; consequently the trial court’s declarations and fee award were reversed and the matter remanded for further proceedings. Justice Hecht, joined by Justices Green and Devine, concurred in part and dissented in part, arguing that Kachina should be allowed to recover compression costs.