First Nat. Bank of Borger v. Phillips Petroleum Co., 74-2230
| Decision Date | 22 May 1975 |
| Docket Number | No. 74-2230,74-2230 |
| Citation | 513 F.2d 371 |
| Parties | FIRST NATIONAL BANK OF BORGER, as Independent Executor of the Estate of A. L. Robinson, et al., Plaintiffs-Appellants, v. PHILLIPS PETROLEUM COMPANY, Defendant-Appellee. PHILLIPS PETROLEUM COMPANY, Plaintiff, v. ALSTAR PRODUCTION CORPORATION, Defendant-Appellant, v. First National Bank of Borger, as Independent Executor of the Estate of A. L.Robinson, et al., Defendants-Appellees. |
| Court | U.S. Court of Appeals — Fifth Circuit |
John E. Morrison, Borger, Tex., R. A. Wilson, Amarillo, Tex., for Alstar Prod. Corp.
R. C. Hamilton, Amarillo, Tex., for First Nat. Bank and others.
C. J. Roberts, T. L. Cubbage, II, Jack Ritchie, Amarillo, Tex., for Phillips Petroleum Co.
Appeals from the United States District Court for the Northern District of Texas.
Before TUTTLE, GEWIN and GOLDBERG, Circuit Judges.
This case presents questions similar to those involved in Phillips Petroleum Co. v. Adams, 5 Cir. 1975, 513 F.2d 374, and Phillips Petroleum Co. v. Riverview Gas Compression Co., 5 Cir. --- F.2d ---. Here, as in Adams, there is a dispute between assignor-claimants and assignee-claimants over entitlement to suspense money constituting partial payment for gas produced under casinghead gas contracts and sold to Phillips Petroleum Company (Phillips). The district court awarded the principal sum of the suspense money to the assignor-claimants, the Robinson family, and refused to award the Robinsons interest on those funds at Phillips' expense. The assignor-claimants, the assignee-claimants and Phillips all appeal. Since this case is in no way distinguishable from Adams, we rely upon the reasoning of that decision to affirm the judgment of the district court with respect to entitlement to the principal sum, and to reverse the lower court's resolution of the interest issue.
On May 1, 1956, July 13, 1956, and May 18, 1964, the Robinson family entered into various contracts with Phillips whereby the Robinsons agreed to sell casinghead gas produced on five leases held by them in Carson and Hutchinson Counties, Texas, for which Phillips agreed to pay a price based on the average price of Panhandle Field gas obtained by Phillips in sales to third parties. From May 1, 1956, until January 1, 1965, Phillips purchased gas from the Robinson family pursuant to these contracts, making monthly payments based on the "firm proceeds" of its own sales to third parties, and withholding suspense money collected pending the FPC's approval of increased prices charged by Phillips to its customers. On January 9, 1965, the Robinson family assigned their mineral interests in the five leases to Alstar Production Company (Alstar). In the assignment, the Robinsons agreed to "BARGAIN, SELL, TRANSFER, ASSIGN and CONVEY" their five "oil, gas and mining leases" to Alstar, with the further provisions that:
The above leases are assigned subject to such valid and subsisting casinghead gas contracts as are currently in force and effect.
TO HAVE AND TO HOLD said leases, and all rights thereunder or incident thereto, together with all personal property used or obtained in connection therewith, to (Alstar), its heirs and assigns, forever.
(The Robinsons also convenant that they are) the lawful owners of said leases and rights and interests thereunder and of the personal property thereon, or used in connection therewith, to the extend covered by this assignment; that the (Robinsons) have good right and authority to sell and convey the same, and that the rights, interests and properties are free and clear of liens and encumbrances. . . .
Notwithstanding the date of execution hereof, this Assignment is effective January 1, 1965, at 7:00 A.M.
After the FPC issued...
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...GOLDBERG, Circuit Judge: In this case of first impression, and in two similar cases also decided today, First National Bank v. Phillips Petroleum Co., 5 Cir. 1975, 513 F.2d 371 ( , 1975, No. 74-2230), and Phillips Petroleum Co. v. Riverview Gas Compression Co., 5 Cir. 1975, 513 F.2d 374, we......
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