Honorable Clint %8lev 

Direotor Gas Utilitiee Division 

Railroad Comis8ion of Texas 

Atmtin, Texas 

Dear Sir: Opinion Ro. O-1646 

Re: bre gas companies who purchase 

gas under various faotual situations 

gas utilities within~the purview of 

Article 6060, Revised Civil Statutes, 

1926. 

We aoknowledge reaeipt of a letter dated October 4, 1939, under 

the signature of Honorable Olin Culberson, then Director of Gas Utilities 

Division of the Railroad &nusissfon of Texas, requesttig an opinion conoerning the status of the Iiueoes Corporation andthe Riohardson Petroleun Campany, a8 gas utilities within the purview of Article 6060, R.C.S., 1925. 

It is our opinion that the Rueces Corporation is a gas utility 

within the purview of said statute. Referring to its letter to you of 

September 26, 1939, copy of whioh you have furnished us, it is noted that 

it is engaged in the purchase of gas from an affiliated company; Riohardson Petrolemu Company, and, in turn, sells the same to "other operator8 

for jetting and drilling purposes and to one Ice Plant.. Following July 

20, 1939, The Nueoes Corporation beoame engaged in the sale of gas to a 

municipality, and rural oustomrs betmen Clarkmod and Robstown, Texas. 

It is our opinion that the company should make its quarterly return on 

your *GUS0 form. for the payment of the tax imposed by Article 6060 on 

all sales made both pregious to July 20, 1939, and subsequently. For a 

definition of the term gas utility" a8 used in said Artiale 6060, ~18 

turn to Article 6050 defining same.. It is our opinion that the aotivities of this company bring it within the purview of Subsection l(a), 

whioh covers the production, transportation, oonveyanoe, distribution, 

or delivery of natural gas "for public u8e of serrrioe for oaapensation." 

dsd also of Subseotion l(b), covering the production, transportation, 

ocmveyanae, distribution, or delivery of natural gas "for sale or delivery of nature.1 gas ix the public for domestic or other use." Unqueationably the tens "other use" is all inclusive. 

Regarding the oompany*s aotivities subsequent to July 20, 1939, 

when in addition to the above activities the campany undertook to sell gas 

to the oity of Robstwin, and to additional rural customers. Suoh activities undoubtedly come within the purview of Subseotion l(a), and Subseation l(b), abovereferred to, and also Subsection l(o), which cover8 
Honorable Clint %8ley - Page 2 (O-1646) 

oomp8nies distributing or delimring n8tunl gas "for sale or deliwry 

of natural g6a to any peraon or firm or corporation operating under 

franchise, or a oontraot with any munioip8llty or other legal auMivi8ion of thia Stata. 

Regarding the atatua of Richardson &trolusm Ormpany, m refer 

to its letter to you of September 26, lQS9, copy of nhioh you hav8 furnished ~8. 

PreViOUS to July 20, '1999, If appemathat the role aalea of the 

Biohardron Petroleum Compuor mr8 to it8 affiliate, The &~eosr Corporation, 

whioh previous to July 20, 19S9,~~adr l alea mly to rural ouatcmera. Such 

activity on the part of the Riohardaon Petrolem Sknnpany up to July 20, lQS9, 

in not, In our opinion deaorib8d R8 that of a gnr utility whithin th8 pur 

view of the 8tatute. iionwer, aubaequenf to July 20; lQSQ,'tha aole ouatom8r of the Richardson P8trolem Company being Th8 Maeo88 Corporation, cammenoed deliveries of gas to the city of Robstom, and to certain other rural 

oustomera thereabouts. This activity, we beliavs, was such aa to constitute 

the Riohard8on company a gas utility nithin the purvieWI Article 6060, Subsection 5, providingm follower 

Vroduoing orpuroharing aaturalga.8 andtranaporbirtg 

or oauriag the amr to be fmnqorted w pipe lima to 

or near hho limita of any municipality, in which raid 

gas ia reoeivwd md diatrilxMd, or aold to th8 public 

by mother public utility or %y arid muplioipality, in 

all 08881 where 8uoh buainear ia in fao+j tie only or 

praoti~lly exolurivs agenoy of supply of Mtuml gas 

to auoh utility or mrmi~ipality ia hereby declared t0 

be a virtual monopoly in the buainsra calling affeoted 

the publio intereat, . . .8 

This 808~8~ l hould, th8refor8, m8ke it8 qUaX-t-83’~ Z'OpOti On yOUr 

fom *GE48 ptmsuax&to Article 6060 for it8 aotivitisr aubarqu& to July 20, 

lSS9, only. 

Very truly your8 

ATTORNEY bBN8RAL OF TXA8 

mBcFO:egw 

WCWED DEC 6, 1999 

/s/Qsrald C. tian 

ATTORNEY GR?EML OF TEXAS