Case Details

Year Initiated/Committed

2002

Year Resolved

2002

Settlement Amount

$419,644 costs

Court

U.S. District Court for the Southern District of Texas (Houston Division); U.S. District Court for the Western District of Missouri (Southern Division)

Docket Number

H 02-3266 (Texas); No. 02-4190-CV-W-NKC

Lead State

MO, NM, TX

Participating States

CO, ID, MO, NM, OR, TX, UT, WA

Defendant(s)

Conoco, Inc., Phillips Petroleum Company

Case Description

Plaintiff States sought to enjoin Conoco and Phillips Petroleum from entering into a merger which they alleged would substantially reduce competition for natural gas gathering and for natural gas liquids fractionation within their States and would create a monopoly. In order to consummate the merger, Phillips Petroleum and Conoco agreed to divest certain assets in the States to maintain a viably competitive market. Further, the companies were enjoined for 10 years from attempting to reacquire ownership of those divested assets without giving the States 30 days prior written notification. The Defendant companies were also required to pay the States of Texas and New Mexico $419,644 in investigative costs and attorneys fees. The state of Missouri pursued its own, independent suit against the Phillips Petroleum and Conoco merger. (see entry for Missouri es rel. Nixon v. Conoco) In order to consummate the merger in Missouri, Defendant companies were required to divest assets, waive certain valued Switching Costs and pay the state $56,801 in investigative costs and attorneys fees. The Federal Trade Commission also participated in the investigation.