General Ernest 0: Thompson, 

Railroad Commission of Texas 

Commissioner 

Austin, Texas 

Opinion No. WW-542 

Re: Whether a company furnishing 

natural gas to a farm housefor household use is a public 

utility as defined In Article 

6050, V;C.S. and.related .._ 

questions. 

Dear General'Thompson:, 

This ~1s ln.response to your letter of September 24.; 

1958, requesting a;rullng from this office on the following: 

(1) Does the language in Sets. 4 and &a 'of Article 

6050~V.C.s. (Acts ~53rd.Leg., lst.CiS;~.p~. 70, 

Ch; 31;.Sec. 1) .except.from the definition of 

Public Utlllties set forth in the preceding portlons'of.Artlcle 6050 companies furnishing gas 

for household purposes to farmers? 

(2) In the event a gas company should become a utility 

by reason of serving farm housesgas for heating 

and cooking purposesi but should not serve IncoY?:. 

porat&d towns or villages, .would it then.be~the 

duty of the Railroad Commlsslon to regulate the : 

rates on sales of'gas made to' farmers both'for 

Irrigation wells and for household use? 

The.deflnitlon of public utilities made subJect: to. 

regulation by the Railroad Commissionof Texas 'under Article. 

6050., V.C.S. (Acts 1920, 36th Leg., 3rd C.S.; Ch. .14, Sec. 1) 

as originally passed, was sufflclently.broad to Include sales 

of gas to th$:publlc for domestic or other uses, whether agrlcultural or not. See Article 605O,.Sec. ~1, V.C.S. 
General Thompson, page 2 (WW-542) 

In 1954, the Legislature addi:d .zcctions !j~ and Iia to 

Article 6050, which are as follows: 

":;cx . II , Provide:l, however, that tho al:t :>I' 

acts of~transportlng, delivea:ng, selling or 

otherwise making ava,llnhlo na-i;ul,ai gas for fuel, 

either directly or 1ridlrectly, to the OWIVX~S of 

Irrigation wells or the sale, transportation or 

delivery of natural gas for any other direct use 

in agricultural activities shall not be construed 

within the' terms of this law as constituting any 

person, association, corporation, trastee, receiver 

or partnership as a 'gas utility,' 'public utility' 

or 'utility1 as hereinabove defined so as to make 

such person, association, corporation, '.trutitee, 

receiver or partnership subJect to the JurlnQiction, 

control and regulation of the Connntsaion as a gas 

utility. (RnphaslKthroUgh6ut.M .s!zDpJleg.) 

. 

"Sec. 4a. .The natural gas made available under the 

provlelona of:thls Act shall be usedLex6lutilvely 

for pumping *t&r for f+n and other.agrlcUltural 

purposes In order ,for the petison;~astioclatlon, or 

corporation ftirnlshing sucb'natural gas to be 

exempt from the provisions of, s&Id Article 6050 

of the Revised Clvll Statutes~of Texas of 1925. 

The provislofis of this act shall be oonsldered 

only as cumulative of other laws and shall not 

have the effect of:repealipg or amending any.substantlve or. statutory law except as herein specifically provided." (Added acts .1954, 

lst~C.S., p. 70, Ch. 31, Sec. 1) 

53rd Leg., 

It has been suggested that becau~se of the words "other 

agricultural purposes' ~c~ntaincxl in the above quoted sections 

of Artlole 6050 that the furnishing of gas for domestlo purposes 

to farm houses might be oonslslored 88 another agricultural purpose within the moanlnf: rr!.' !;I!:: .:T+ ~.a,tj 01) rx~i~ta~.nc:d in the 

statute becauuc: QJ~' t.11~: t':ra::, :,i,:?1; i? .~'x.:LI h(:41::~! .I 0II ma1,l.y an 

Integral part of J!almi.n[.; ~.i,,~.:~acl;I.c~l~;i. 

In our oplnl.011, 1;11:* II:~:: o< t;ilc: rrordn "for, any c)theJ? 

direct use In agrlaultural. a&Ivll.ic!s", as oontalned Ln ficctlou 

-precludes suoh a construction of the statute. This language Is pr,eceded hy a reference to the use of gas for lrrigatlon purposes, a us0 that act3 dl~cctly on a farming opcratlon, 

the furnishing of water for the growing of crop&. It in on1.y 

reas0nahl.c to RD::IUIIi: that the legi i;lat~m: I ntt:ndeA to Ilmit 

the exemption tn II:ICI:: l;hal; ::,I'.: 1:ovq~a1~:~1~1 t: III l,leSr "directncs:i", 
General Thompson~, page 3, (WW-5Li2) 

such asfuel for stationary farm machinery, the use ofgas for 

the dehydration of crops, and other like.uses. See the discussion of the doctrine,of ejusdem genei-ls ins 39~Tex. Jur. 

Statutes, Sec. ,109, pp.202-204, which we deem applicable here; 

There is no case law nreciselv in nolnt. Comnare 

Northwestern Casualty v. Earzune, -42.S:WL2d^100, 103 (err. 

dismlssed~lg31) In whlc.h:the word.~"directiy", as used in an 

Insurance policy, was defined in its ordinary~ sense as meaning... "without anything intervening; not by~.secondary.but by. 

direct means." : In the~,absence:.of-something the legislation indicating a contrary legislative purpose,, words used 

by the legislature are ~ordinarily given their plain meaning. 

Tex. Jur. Statutes;Sec.. 103, p.~ 195... The. word3 "'direct use" 

can only have been intended as a restri.ction.on the exemption 

granted. 

The~exemptlon Is therefore limited to a "direct use 

in agricultural activities.'! .We cannot ignore these limiting 

words but must give meaning and effect to each and every phrase 

and word contained Insofar as this canbe done consistently 

with the object and purposes of the legislature.. 39 Tex. Jur. 

Statutes, Section 112, p. 208. 

We have examined the capt~lon of the legislation and 

have found nothing that would i,ndicate ban. intent to.grant an' 

exemption any broader,than that~ speclflcal~ly stated in'the 

language of the act. Your .flrst question 1s therefore answered 

in the negative. 

In answering your second questions, we are once a ain 

tM;;:,b 

s 

the lanqu$ge contained in section 4 of Article.. 2 050.. 

provid.cs . ..that the act or acts~of transporting, 

delivering, selling or otherwise makSng.available natural gas, 

for fuel,... to.the owners of irrigation wells..~.shall not be 

construed within the term3 of this. law as constituting any 

person, association,, corporation, ,trustee, receiver or partnership as a ~lgas utlllty,l 'public utillty,'..or 'utilltyl'as 

hereinabove defined so as to make such person,...aubject to 

the jurisdiction, 

a gas utility." 

control and regulation of the Commission as 

Since it is the activity of furnishing gas for irrigation or other direct agricultural uses that is exempt from 

regulation, such activity would be exempt even if engaged In 

by a company which by reason of otheractlvlties~mightbe 

classed as a public utility. Therefore, if a gas company should 

become a gas utllity.by reasonof serving~farm houses for 

heating and cooking purposes, but should not.-serve Incorporated 
General Thompson, page 8 (W-542) 

town3 or villages, 1 . It would then be the duty of the Railroad 

Commission to regulate the ra.tes on sales of gas made to farmer3 

for domestic use. Sales for irrlgatlon wells or for other 

direct agricultural uses would still remain exempt from regulation by theCommi,ssion. 

We do not mean to imply, however, that the .Commlssion 

could not or should not consider the economic aspects of.the 

exempt activity when promulgating rates for an activity that 

is not exempt. We do not pass upon this question. 

SUNMARY 

The exemption from public utility regulation provided 

for sales of gas to farmers for irrigation fuel and other direct 

use In agricultural activities provided in Sets: 4 and &a of 

Art. 6050 V.C.S. does not extend to sales made to farmers for 

domestic use. 

The activity of furntshlng gas for irrigation or for 

other direct use In agricultural. activities would remain 

exempt from regulation under Article 6050 V.C.S. even If a 

company engaged in such activities should become a public 

utility by virtue of furnishing gas for domestic use to farmers. 

Very truly yours, 

WIL; W;LSCN 

Attornev General of Texas 

Houghton Brownlee, Jr. 

Assistant 

HB/gr 

APPR&D: 

OPINION COMMITTEE: 

Gee. P. Blackburn, ChaLrman 

Miiton IXchardson 

Jack Goodman 

Dean Davis 

John Webster 

REVIRWRD FCR THE ATTORNEY GENERAL 

BY: W. V. Geppert 

1. See Articles 1119, et seq. V.C.S. conferring powers on certain citles.and towns to prescribe rates.under the conditions 

there outlined.