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Corporations Keyed to Rhee
Energy Transfer Partners, L.P. v. Enterprise Products Partners, L.P.
Citation:593 S.W.3d 732 (Tex. 2020)
Enterprise approached ETP about converting a pipeline called Old Ocean into one that could move oil south from Cushing. ETP owns the pipeline, but Enterprise holds a long-term lease on it. The parties agreed to explore the viability of the project, which they dubbed “Double E.” In three written agreements, they reiterated their intent that neither party be bound to proceed until each company’s board of directors had approved the execution of a formal contract. The confidentiality agreement recited that Enterprise and ETP had entered into discussions with each other in connection with a possible transaction involving a joint venture to provide crude oil transportation from Cushing to Houston utilizing the Old Ocean Pipeline.
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