VALERO PARTNERS <VLP> WINS TAKE OR PAY CASE
Valero Natural Gas Partners
LP, 49 pct owned by Valero Energy Corp <VLO>, said a jury in
Sutton County, Texas, district court has found that it had no
liability for 21 mln dlrs in take-or-pay claims that had been
alleged by Lively Exploration Co.
    Take-or-pay claims involve allegations that natural gas
supply contracts require volume of natural gas to be paid for
even if not taken. As a result of declining markets, most
pipelines, like Valero, do not have customers for all the gas
that could be delivered by producers, such as Lively.
    Valero said it used as its primary defense the Texas
Railroad Commission's rules that require intrastate pipelines
to take ratably from their producers and in times of surplus
take gas in accordance with priority categories set by the
commission.
 Reuter
