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BridgeTex wins $299mn take-or-pay default case

30 Nov 2017 20:40 GMT
BridgeTex wins $299mn take-or-pay default case

Houston, 30 November (Argus) — A former shipper on the 400,000 b/d BridgeTex crude pipeline from west Texas to Houston must pay $299mn in damages for defaulting on a 30,000 b/d take-or-pay commitment, a Texas district judge has ruled.

Stampede Energy breached its contract to ship crude on the line, judge Randy Wilson ruled at the end of a bench trial on 14 November. Stampede's law firm declined to comment today and BridgeTex operator Magellan Midstream Partners also did not comment. Magellan co-owns the line with Plains All American Pipeline.

Stampede began missing its quarterly minimum volume commitments in March 2015, according to the BridgeTex lawsuit filed in August 2016. It also violated a May 2015 settlement over a dispute over its original transportation service agreement in which Stampede disputed some details in the original deal, BridgeTex said at the time.

Stampede's attorneys at the time denied all of BridgeTex's allegations.