The principal issues in this dispute over a gas-purchase agreement are (1) whether a pipeline company breached its contract with a gas producer by charging for downstream compression services at a plant that predated the contract and (2) whether the producer breached the contract's first-refusal option by building his own pipeline to deliver gas to a processing plant (bypassing the pipeline company). Lillis, the producer, sued Kachina Pipeline for contract breach, alleging Kachina improperly charged Lillis for compressing Lillis's gas before delivering it to the processing plant. The contract allowed Kachina to charge for installing, repairing, maintaining and operating its compression unit, plus additional costs, if Kachina installs compression equipment necessary to deliver Lillis's gas. Kachina countersued, claiming that Lillis's agreement to sell gas directly to the processor violated a contract provision that gave Kachina a right to notice of and to meet the terms of the new agreement between Lillis and the processor. The trial court granted summary judgment for Kachina, but the appeals court reversed.