Opinion ID: 471616
Heading Depth: 2
Heading Rank: 2

Heading: The Meaning of Upper Tier Price

Text: 21 Contrary to Tenneco's assertions, the record reveals that the meaning of the term upper tier price was virtually undisputed. The upper tier price was the price charged for crude oil that was subject to the upper tier ceiling price. The upper tier price was less than or equal to the upper tier ceiling price, depending on market conditions. Crude oil that was not subject to the upper tier ceiling price was sold at the lower tier price or the uncontrolled price, depending on the type of oil. New crude oil that was not subject to the upper tier ceiling price was sold at the uncontrolled price. Crude oil from a particular field would normally have two or three different prices because the oil would be subject to different regulations. 22 The district court made the following finding of fact: 23 The term upper-tier price, as used in the May 19, 1977 agreement, is unambiguous. Upper-tier ceiling prices are specific ceiling prices established by DOE regulations and computed by a formula set forth in those regulations. 10 C.F.R. Sec. 212.74(b) (1977 and 1980). Posted upper-tier prices are prices at or below upper-tier ceiling prices, published in price bulletins issued by major oil companies. The term upper-tier price does not mean uncontrolled market prices posted for crude oil released by the government from price controls. The district court's finding was correct. 3