National Fuel Gas Distribution Corp. v. Paragon Resources, Inc.

Order unanimously modified in accordance with memorandum and, as modified, affirmed, with costs to respondent. respondent. Memorandum: Appellant National Fuel Gas agreed to buy natural gas from respondent Paragon Resources under a contract containing a "take-or-pay” provision. The provision requires that appellant must pay for all gas made available by respondent each month, whether or not used by it. Gas that is paid for but not taken, may be taken later at no further charge. In November, 1977 the parties amended the contract to provide a method for determining the amount of gas made…