Lone Star Gas Co. v. McCarthy

WARREN, Justice.

This is an appeal from a judgment, rendered after a non-jury trial, awarding ap-pellees damages for a breach of contract by appellant and denying appellant recovery on its counterclaim.

The material facts are undisputed. The only question is whether under the gas sales contract appellant was entitled to be reimbursed for gas payments made under a pre-connection “take or pay” provision when it was unable to make up the gas in kind because of the depletion of the gas reservoir.

In the summer of 1972, appellees discovered a gas field in Montgomery and Grimes Counties. An “open flow…