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

Summary

The Texas Supreme Court affirmed the Court of Appeals' reversal of the trial court's declaratory judgments, holding that the gas purchase agreement unambiguously does not permit Kachina Pipeline to deduct compression costs nor to extend the contract term for an additional five years. The Court applied de novo review to the contract construction and remanded for further determination of attorney's fees and costs. Chief Justice Hecht, joined by Justices Green and Devine, filed a partial concurrence and dissent, agreeing with the majority on the term extension but disagreeing on the compression‑cost issue.