2. Background

Crystal asserts that there is a dispute between it and PG&E as to whether Crystal has breached its contract with PG&E, as that contract was amended on April 30, 1999. Crystal asserts that PG&E intends to disconnect Crystal's Durham Field from PG&E gas Line 156 because of the alleged breach, and that such disconnection would cause economic harm to Crystal.

PG&E responds that its relationship with Crystal is governed by a California Production Interconnection and Operating Agreement (CPIOA) dated May 30, 1997, as amended, and that the contract permits either party to terminate the CPIOA on 30 days' written notice after an initial one-year term. PG&E states that it exercised that option in a letter sent to Crystal on February 23, 2000, and that it has offered to continue receiving gas from Durham Field at another connection point.

Both parties agree that the dispute underlying this action dates to February 15, 2000, when a PG&E customer, Fenn Farms, reported a gas outage. Crystal interconnects with PG&E's system near Fenn Farms. PG&E claims that the February outage and other earlier outages were caused by Crystal's operation of a compressor located one mile from Fenn Farms. Crystal claims the outage was caused by PG&E's negligence in maintaining pipeline operations.