Pan American Petroleum Corp. v. El Paso Natural Gas Co.

OPINION

SISK, Justice.

Defendant El Paso Natural Gas Company appeals from a declaratory judgment in favor of plaintiff Pan American Petroleum Corporation, which judgment found and concluded that natural gas had been “manufactured” and “materially changed” in El Paso’s gas processing plants. The parties will be referred to as El Paso and Pan American.

Between 1948 and 1963, El Paso, as buyer, and Pan American, as seller, entered into a series of gas purchase agreements, each of which provided:

“In the event that any tax now in force and levied or assessed on or against the gas delivered hereunder…