Eastland Court Applies Statute of Frauds to Gas Processing Agreement, Enforces Damage Limitation Clause Against Lost Profit Claims

ETC Texas Pipeline sued XTO Energy for breach of an exclusivity clause in their gathering and processing agreement, alleging XTO sold gas to third parties without compensation, but the Eastland Court of Appeals affirmed summary judgment after holding that a dedicated acreage map satisfied the statute of frauds' writing requirement and that the contract's damage limitation clause precluded recovery of lost profit damages. The court determined the agreement was a service contract rather than a mineral interest transfer, but still required compliance with the statute of frauds as a contract requiring performance beyond one year through July 2029.