Enserch Corp. v. Houston Oil & Minerals Corp.

LEVY, Justice.

The issue presented here is whether the trial judge correctly determined that the price term in the parties’ gas purchase contract provides for the buyer’s payment of severance taxes and the buyer’s payment of monthly escalations allowed under the Natural Gas Policy Act [“NGPA”]. We hold that, under the particular facts of this case, the trial judge was correct in concluding that the buyer, Lone Star, a division of Enserch Corporation, was contractually responsible for payment of the monthly NGPA price, but incorrect in concluding that Enserch was contractually obligated for…