HECI Exploration Co. v. Clajon Gas Co.

POWERS, Justice.

Appellant HECI Exploration Company sued appellees Clajon Gas Company, Clajon Gas Company, L.P., and Clajon Gas Management, Inc. 1 for breach of a take-or-pay contract. Clajon counterclaimed for a declaration of its rights and obligations under the contract. After a series of summary judgment hearings and orders, the trial court rendered final summary judgment for Clajon. HECI appeals. We will reverse the judgment and remand the cause to the trial court.

THE CONTROVERSY

On May 31, 1982, Clajon Gas Company entered into a Gas Purchase Contract (the “Contract”) 2 with Humble…