Contract Interpretation Principles Govern Exclusive-Use Storage and Ship-or-Pay Deficiency Calculations in Crude-Oil Terminal Dispute

In DK Trading & Supply v. Wink to Webster Pipeline, the Texas Business Court granted partial summary judgment on cross-motions, holding that a terminal services agreement unambiguously requires exclusive allocation of two tanks for the plaintiff's use, that a ship-or-pay clause permits crediting all crude oil shipped when calculating deficiency payments regardless of payment method, but that claims for the earliest disputed invoices are barred by the plaintiff's failure to satisfy a contractual condition precedent requiring timely written notice. The decision applies foundational Texas contract-construction principles to resolve disputes over storage exclusivity, deficiency-payment calculations, and notice requirements in midstream energy agreements.