Pelto Oil Co. v. CSX Oil & Gas Corp.

OPINION

DUGGAN, Justice.

This appeal from a summary judgment centers on the appropriate remedy in a gas production misallocation case. Appellant, Pelto Oil Company (“Pelto”), brought this action for damages against appellee, CSX Oil & Gas Corporation (“CSX”). Part of Pelto’s share of gas production from an offshore platform for a 14-month period was sold to Texas Gas Transmission Corporation (“Texas Gas”), but was mistakenly allocated by the unit operator to CSX. Texas Gas paid CSX for the gas it bought, including the gas that should have been allocated to Pelto, and CSX refused to pay such…