General Ernest 0: Thompson,

Railroad Commissionof Texas Commissioner Austin, Texas Opinion No. WW-542
Re: Whether a company furnishing natural gas to a farm housefor householduse is a public utility as defined In Article 6050, V;C.S. and.related .._ questions.
Dear General'Thompson:,

This ~1sln.responseto your letter of September 24.; 1958, requestinga;rullng from this office on the following: 

### (1) Does the language in Sets. 4 and &a 'ofArticle 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 precedingportlons'of.Artlcle

6050 companies furnishinggas 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, .wouldit then.be~the duty of the Railroad Commlsslonto regulate the : rates on sales of'gas made to' farmers both'for Irrigationwells and for household use? The.deflnitlonof public utilitiesmade subJect: to. regulationby the Railroad Commissionof Texas 'under Article. 6050., V.C.S. (Acts 1920, 36th Leg., 3rd C.S.; Ch. .14,Sec. 1) as originallypassed, 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 Legislatureaddi: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 otherwisemaking 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 agriculturalactivities shall not be construed within the'

terms of this law as constituting any person, association,corporation,trastee, receiver or partnershipas a 'gas utility,' 'publicutility' or 'utility1

as hereinabovedefined so as to make such person, association,corporation, '.trutitee, receiver or partnership subJect to the JurlnQiction, control and regulationof the Connntsaion as a gas utility. (RnphaslKthroUgh6ut.M .s!zDpJleg.)

. "Sec. 4a. .Thenatural gas made availableunder the

provlelonaof:thls Act shall be usedLex6lutilvely for pumping *t&r for f+n and other.agrlcUltural purposes In order ,for the petison;~astioclatlon, or corporationftirnlshing 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 cumulativeof other laws and shall not have the effect of:repealipgor amending any.substantlveor.statutory law except as herein specificallyprovided." (Added acts .1954, lst~C.S.,p. 70, Ch. 31, Sec. 1) 53rd Leg.,

It has been suggestedthat 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 agriculturalpurpose within the moanlnf: rr!.' !;I!:: .:T+ ~.a,tj 01) rx~i~ta~.nc:d

in the statutebecauuc:

QJ~' t.11~: t':ra::, :,i,:?1; i? .~'x.:LI h(:41::~! .I 0 II ma1,l.y an Integralpart 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 constructionof 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 furnishingof 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 stationaryfarm machinery, the use ofgas for the dehydrationof crops, and other like.uses. See the discussion of the doctrine,ofejusdem genei-ls ins 39~Tex. Jur. Statutes, Sec. ,109, pp.202-204,which we deem applicablehere;
There is no case law nreciselv in nolnt. Comnare NorthwesternCasualtyv. Earzune, -42.S:WL2d^100,

103 (err. dismlssed~lg31)

In whlc.h:the

word.~"directiy",

as used in an Insurancepolicy, 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 indicatinga contrary legislative purpose,,

words used by the legislatureare ~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~exemptlonIs therefore limited to a "direct use in agriculturalactivities.'! .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 legislationand have found nothing that would i,ndicate ban. intent to.grant an' exemptionany broader,thanthat~ speclflcal~ly

stated in'the language of the act. Your .flrst question 1s therefore answered in the negative.

In answeringyour second questions, we are once a ain tM;;:,b s the lanqu$ge contained in section 4 of Article.. 050.. 2 provid.cs

...that the act or acts~of transporting, delivering, selling or otherwisemakSng.available natural gas, for fuel,... to.the owners of irrigationwells..~.shall not be construedwithin the term3 of this. law as constitutingany person, association,, corporation,

,trustee,

receiver or partnership as a ~lgas

utlllty,l 'publicutillty,'..or 'utilltyl'as hereinabovedefined so as to make such person,...aubject to the jurisdiction, a gas utility." control and regulationof the Commissionas

Since it is the activity of furnishinggas for irrigation or other direct agriculturaluses 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~farmhouses for heating and cooking purposes, but should not.-serve IncorporatedGeneral Thompson,page 8 (W-542)

town3 or villages,

1

. It would then be the duty of the Railroad Commissionto 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 exemptionfrom public utility regulationprovided for sales of gas to farmers for irrigationfuel and other direct use In agricultural activitiesprovided in Sets: 4 and &a of Art. 6050 V.C.S. does not extend to sales made to farmers for domesticuse.

The activity of furntshlnggas for irrigationor for other direct use In agricultural. activitieswould remain exempt from regulationunder Article 6050 V.C.S. even If a company engaged in such activities should become a public utility by virtue of furnishinggas 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 REVIRWRDFCR THE ATTORNEY GENERAL BY: W. V. Geppert
1. See Articles 1119, et seq. V.C.S. conferringpowers on certain citles.andtowns to prescribe rates.underthe conditions there outlined.