Tesoro Alaska Company, Appellant and Cross-Appellee v. Union Oil Company of California, Unocal Pipeline Company…

Summary

The court held that the contracts used a netback pricing formula tied to interstate pipeline tariffs and the West Coast market, rather than the actual intrastate tariff paid on each barrel. Because no genuine dispute of material fact supported Union Oil's interpretation, the court reversed summary judgment for Union Oil and remanded for entry of judgment for Tesoro. The court did not reach Union Oil's cross-appeal concerning interest on the tariff refund.