Hondo Oil and Gas Co. v. Texas Crude Operator, Inc.

JERRE S. WILLIAMS, Circuit Judge:

Texas Crude Operator, Inc. and Atlantic Richfield Company entered into three operating agreements for oil properties in Texas. Many years later, the companies began disputing whether they had modified the accounting procedure of the contract. Atlantic Richfield withheld money that it considered it was overcharged. Atlantic Rich-field subsequently sold its interest to Hon-do Oil and Gas Company. Hondo Oil and Gas brought suit when it realized Texas Crude was withholding money from it to offset the money Atlantic Richfield withheld. Texas Crude then filed a…