ABC Trucking vs. BIG OilHauling Agreement • August 22nd, 2022
Contract Type FiledAugust 22nd, 2022A billing dispute has arisen between a commercial trucking firm, ABC Trucking (“ABC”) and a crude oil production company, BIG Oil (“BIG”). BIG contracted with ABC to haul crude oil from the many BIG oil-well lease sites in South Texas to various delivery sites (or, delivery stations). Typically, these types of agreements specify a base rate per barrel of oil hauled depending on the one-way distance (mileage) between the lease site and the delivery site and the cost of diesel fuel. However, because many of the BIG lease sites required travel over unpaved county and ranch roads, ABC sought (and thought it had obtained) a modified rate agreement that specified a base rate per barrel hauled depending on a classification system of “lease difficulty” and the cost of diesel fuel – a type of “point-to-point” rate system.