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 variousfaotualsituations gas utilities

within~the

purviewof Article 6060,RevisedCivil Statutes, 1926.

We aoknowledge

reaeiptof a letter dated October4, 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 statusof the Iiueoes Corporation

andtheRiohardson

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 purviewof said statute. Referring to its letterto you of September

26, 1939, copy of whioh you have furnished us, it is noted that it is engagedin the purchase of gas from an affiliated company;

Riohardson Petrolemu

Company,

and, in turn, sells the same to "otheroperator8 for jetting

and drilling

purposesand to one Ice Plant.. Following July 20, 1939, The NueoesCorporation beoame engagedin the sale of gas to a municipality,

and rural oustomrs betmen Clarkmod and Robstown, Texas. It is our opinionthat the companyshould 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 saidArtiale 6060, ~18 turn to Article 6050 definingsame.. It is our opinionthat the aotivities of this companybring it within the purview of Subsection

l(a), whioh coversthe production, transportation, oonveyanoe, distribution,
or delivery

of naturalgas "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 "otheruse" 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

comewithin the purviewof Subseotion l(a), and Subseation l(b), abovereferred to, and also Subsection l(o),which cover8Honorable Clint %8ley - Page 2 (O-1646)

oomp8nies

distributing

or delimring n8tunl gas "for sale or deliwry of natural g6a to any peraonor firm or corporation operating

under franchise,

or a oontraot

with any munioip8llty or other legal auMivi8ion of thia Stata.

Regarding

the atatuaof Richardson &trolusm Ormpany,

m refer to its letterto 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 &~eosrCorporation, whioh previous

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

on the part of the Riohardaon Petrolem Sknnpanyup to July 20, lQS9, in not, In our opinion deaorib8d

R8 that of a gnr utility whithinth8 pur view of the 8tatute. iionwer, aubaequenf

to July 20; lQSQ,'tha aole ouatom8r of the Richardson P8trolem Companybeing Th8 Maeo88Corporation,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 utilitynithin the purvieWI Article 6060, Subsection5, 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 publicutilityor %y aridmuplioipality, in all 08881

where 8uoh buainearia in fao+j tie only or praoti~lly exolurivs agenoy of supply of Mtuml gas to auoh utilityor mrmi~ipality ia hereby declared t0 be a virtual

monopolyin the buainsracalling 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