Opinion · Court of Appeals for the Fifth Circuit

Sun Oil Company v. Federal Power Commission

266 F.2d 222

Type
Opinion
Court
Court of Appeals for the Fifth Circuit
Jurisdiction
Federal
Date
1959-06-03
Topic
general

JONES, Circuit Judge. Sun Oil Company, herein called Sun, made a contract bearing date August 26, 1947, with Southern Natural Gas Company, herein referred to as Southern, for the sale to the latter of natural gas to be produced by Sun from the Gwinville Field in Mississippi. The contract provided that it should be in effect for ten years commencing on the date of the first delivery of gas by Sun to Southern. This date was September 3, 1947. The contract provisions as to price were in these terms: “Subject to the provisions of Article VI hereof, providing for a possible adjustment in price, Buyer agrees to pay Seiler for all gas purchased hereunder a price (1) of seven and one-half cents (7%?0 for each one thousand (1,-000) cubic feet of gas during the first five (5) years of the term hereof; (2) of eight cents (8‡) for each one thousand (1,000) cubic feet of gas during the second five (5) years of said term.” Immediately following the foregoing was this proviso: “In this connection, it is understood that by this agreement Seller is not dedicating to Buyer, or to Buyer’s market outlet, any portion of Seller’s gas reserves in the Gwinville Gas Field or any portion of the gas produced by Seller from its wells in said field, but that Seller is simply selling and Buyer is purchasing the quantity of gas called for *224in this agreement on the terms specified in this agreement and for the price set out above; * * Subsequent to the Phillips Petroleum case,1 decided on June 7, 1954, t…

Citator

UpLaw has not yet analyzed Sun Oil Company v. Federal Power Commission. The absence of a flag is not a finding that it is good law.

Authority status
pending
Cited by
28 opinions