City of Austin, Texas and Lower Colorado River Authority v. Decker Coal Company, a Joint Venture, Wytana, Inc. And Western Minerals, Inc.

E. GRADY JOLLY, Circuit Judge:

I. INTRODUCTION

This case comes before this court from a decision by the district court for the Western District of Texas, Bunton, J., in favor of the plaintiffs — the City of Austin, Texas, and the Lower Colorado River Authority.1

We are presented with a question of allocation of costs under a coal procurement contract entered into between the plaintiffs and Decker Coal Company.2 Specifically, the issue involved is whether, pursuant to the contractual provision allowing Decker to pass costs on to the plaintiffs for “any new legislation, regulation, judicial action…