Pan American Petroleum Corp. v. Cities Service Gas Co.

The opinion of the court was delivered by

Hatcher, C.:

This appeal stems from an action to determine the price at which natural gas is to be purchased under the terms of a gas purchase contract.

The plaintiff, The Pan American Petroleum Corporation, is a major producer of natural gas from extensive leasehold acreage in the Kansas-Hugoton gas field.

The defendant, Cities Service Gas Company, is a natural gas pipeline company, purchasing natural gas in producing fields and transporting it for sale to its customers. Defendant’s customers include distribution companies which resell the gas to…