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Brenham sues largest pipeline in Texas, citing 'take-it-or-leave-it' prices: Officials

Posted at 12:29 PM, Apr 05, 2022
and last updated 2022-04-05 15:20:59-04

BRENHAM, Texas — The City of Brenham has filed a lawsuit against one of the largest pipelines in Texas, citing "take-it-or-leave-it" prices, officials said.

On Monday, the city filed a formal complaint against Oasis Pipeline, L.P. at the Railroad Commission of Texas, according to a press release.

The city is asking the Railroad Commission to help set a "reasonable rate" for the transportation of natural gas by Oasis to the Brenham municipally-owned gas distribution system.

The city claims that on Nov. 1, 2021, Oasis had "dramatically" increased the rate for transportation of gas to Brenham by "hundreds of thousands of dollars per year."

The city is claiming they did so without following the steps required under the Texas Utilities Code and that the increase was "patently unreasonable."

The lawsuit states that due to Oasis being the only gas transporter to Brenham, the city had "no effective choice" but to sign the contract.

Adding they did so “in order to avoid a disruption in gas deliveries as winter arrived.”

Brenham Mayor Milton Tate has since stated that Oasis "presented the contract basically on a take-it-or-leave-it basis."

“While we had no choice but to seek the assistance of the Railroad Commission, we are hopeful that in light of the complaint Oasis will sit down with us and agree to a reasonable rate,” Mayor Tate said.

Under the Texas Utilities Code, the Railroad Commission is charged with ensuring that gas utility rates are just and reasonable.

A full copy of the lawsuit can be read here.