OFFICE OF THE AmORNEY GENERAL OF TEXA8 AUSTIN

,oalamolay frnom You8 r8Qtl8rt Mad8

t **8ltuatlon8** to tho appUcm80all Ho. 8, -88VOdih bgirla-. 

### 501

Honoroblo ffoorgo

ii.aheppiml,page a

"XS the Swogolng qwrtion ia anmrored in the nogstivo, then 3.8 auah aampanyroQulrod to pay the tax provided In Beqtion **8** ofArtiolo XI of the Omnlbw ‘fax Lav?

‘I? thir **00rmpany** r8Quil'Od to~A'O&?O&

bnd pSy thb~ta On th0 gOr &woduoed in bAi8iUl@?

?&no. 1. (1) There is hereby levied en oooupajaon tax aO.thobwinors or oooupatiari of ~J~‘oduo~ gor:

Within thl8 IWate, somputod 88 .fO~OU8~:

hbrd $U~Oduood and raved 4 thill thi.8Statb, and Of 8&l Ra8 80&d **if Dl** **’ OdUO**  d in .SnOther &i%te and iamrtod .intothis State. at thoa@rket **V&U.** thWbO& '88and lthen produoed, w a8 and;‘. / . 

### 502

Honorable Oeo~ge Ii. ~sheppard,pagti3

800lr l¶8tural.88 #h&l IIOYW **be** &OW th8n blbYCu&

fi one hwdrbd f ftiethr (ll&O) of one (1) oont pbr qae thoudad (1,000) oubio reet cm 'mot snd #our a8tur8l gw -sold w produoed aad 8ared in thlr 8tPatb, urd,not thbroaftor lawfully injeoted into the oa~th ia the the touovips p tat0 OS 'P&8, for oIe*1 ~'. (b. noyol.%n& 3 ta) rtor8go~ thbrborl ,P~O88Ui'~j (d).U.@& and not .thermftor~ (0) Uwfully vented w &wed in oormootiozk with the'poduotion cf Oili

~. poduatr **extpaatodi** reprated and **8sYed from**  8WbgMi "b a&b ge is 8old.fw 088kthO t8X 8-1 bb Oolliput8d

on~thwprodwerr* grorr reoeipt8 of rush 8-j and in Q88e tho,uhale qz.6 part of tho oowideration ror then8818 or &u is sng. port%on of the prodwtr extmoted ~fiwm81mh g.88, the tu.aha$l be craqputed on~tb -88 velue of the pMduata reoelvedpltu all **other** thing8 of value reoeivod by thoproduoer, exohpt In ,awe of @So **proaerred** by roayolsng opecsciowi
“Xn ilet- themarket value of gas the tax due **there Of**  **re8ldue &8**  **hW iQt0**  qlb outh in the state or tbxw fort&b folle pur 08e9: thbieof (b) repzetaruringj P (8) storage a80 (dJ o) lifting oili aud ,I: .:. aan la~f'ully vented or flared In oon- : neotion vith tho produotion of oil; aavtu andEonwabh Qom&e H. 6hhoppara, pago 4

oxaepthowovw, 3.f auy gu 80 injeoted

### Into ths ssrrti&18

aold~fex 8UO.bgurpoaoa, aen the aarkbt Ytiti~,bf?tk&b 888 80 '8Old rball XiO$b@ bIolUdbd In oaaput* thb tu. All l+qtidhydrootibcw th8t 8re 

### rbaOvbrbd fwm ar*a%ymbdnq 0s a 80 bo.t8gbd at the .Mme rate a8 0l.l **a8** lbvled 68 AvtlOlb t or turn Aat. "(2) The tsf heroby levied a&U bo 8 li8bllity of thb **produoer** 0s ga8 am~it8lxUl be tb duty of'ewih auoh preduaer to'koop.aaourote raowda ku 'Pexaaof 8lJ gee p&dwed,~aaking mmhly rypwta under iiath I+ hweiwftor providckd. "(3) Pho pureh8aw org88ahtu+8ytho tru,DP-8aa 888 pwohMed and deduot thb t;ar 80 peid l'rm.;the

p8ymmt dub the 

### prodwbrok other intOs'O8t

hohl+'8, SJ8kU@ 8Wh w-t8 @d deduotod to tho 

### OoiaptroUer Of FtablZO &?OOpnt8 by

pepa **dub**produaera rw .ahap8yuent 0s tuti tu~bob416'bpthegttrr~a,intrlratror thb we prtd bedat **0s** the a8t? of 9~ w shall not be oomalnglodwith hal&by

l oid &W'Oh88Ol', Studaiii%%?=d to tha State Zrouuror in woord8we with thb trrma 8nd pr0*;l*10na of tbi8 Art&bled* (Underoowing oura)
"600. 2.' (1) FOP thb pm8b Of thi8 bt 'produo0P,r(ahal meal My pbraon oluluq; ooptrOlling, 8llW@h& 0s 1W8ing 8D$ &or YOU. O&O? w &3OP8W YhO ~0dUOO8 &Iiw SMUW my g88 by t&lag it from thb eaoth 

### or **oator** %n thUBtate, utd 

### ah8ll inoludaany 

### pb'ion ovn%hg 8uyroyttlty

or othw 

### intereat in anygarr or ita,vdluewhbthbr pwduoed by him, 

### or by 801~ other person onhi8 beh8lf, elthorbylotue, contrmt, **or** 

### othwviao. "(2) 'Firrt

### purohuor ahal mean any perronpur0liaa*g08 framthbprodwer., 

### 504

Eonorrble @eorgo.8. **$heppsrd,** page 5



### “(3) **~8Ub8OQWJIt: &W@l880~'**  **Shd& MM**  iany pbra who purch8aea gu' for 8ny pup080 % ThEttSOOYe.~,

ThOn 88ld.

ga8 $8

### purahraodfrrO~ any 

### por8on o+tr th8n the~producw.~ "bbo. 28. (1) 2ho tu hokn impoaod On thb ~OdU~~Ot; &jIUSh8llb8 tbo ~prS.mWy;uabXUty of the

### producer 88 

### hbrblnboforo dbrbbd, 8Ud OYOPJ wP8OU 5XlFahcr8%llf4 g88 fPOE ~OdWOO thweoi 

### .8ndtrLing dbUverythoroof rt **or** 

### aear the prom%aeavhwb produood ah8ll oolloot 8ai.d tax inpored by thir &%iCle fmm the produoor. 

### BYorypurch8aor lnCludIJq:thCfir8t@F@8OP~ u&d tha SubreQuent

### puroh88er, ~oqulawd to ool-~ ~lootany tax 

### underthi8Ast1010, 8&&l mClKCl wh oollootlonby deduot+lrg end vlthboZd@~ t.Iw anounti

0s 

### awh tat rmm 8ny payi8aaa made by 8yh puroh8aw to thepmduo8r, and remit-8aaa as herein plrovhlad.

. e .*

giGa of aatd a88 w*thin thl8 **St8te..*** (bdbrrow&q our*) : Thla statute letio8,

### l UL oceup8tioa'tu op tho buaiI, -88 0s 

### produclq fgma **It** i8 I 853OOia8 Oi bXOi8b t8X knOTSI .$a al oocqprtion tax. **.A** 8tcrtMMt In rbgurd to thb c~888ifio8- '. : tbn Of tub8 i8 found in 2fi ~Idiaig

aMb, UT 34, 88 fOuQU8a
*'Pam8r8.u n8twolly ~hto tar00 ol888e8, 

### -4, C8&9%t6tiOn Or POU. tlUe8, t&XC8 CR prowl'tp, Md bXOi8~8." ~h~bX#M8tiOZl Of OXdEb taZe8 i8 iU%dOin tho S@lBO **diSOU88iOll** kr 26 Rullq Oeao L8v 34, 88 follwar

I... v bxcias incrlude8 every r0m al?ohm60 %mpoledbTfPUbllC SUthOP%tJT fOl' the pWRO8e Of 

### rsia%ngrisvonue

upon thb 

### perfarnranoe 0s an act,

### QoorgoIi.ahsppard,poee **6,'** 

### 505

the enJoy0ent of.8poi~&loge, 

### or the ongngi,zq in an oootipWi%on~ The ob=r tion ,to pay 8n

., . 

### axoiaoi8 

### b8abd upa the TO UntMy 

### 8otion **0s**

the pOP8Ol3 taxed %n pb*fWmiX~g th8. 8Ot, en- ’ :joy3.q thb prLv%lego, w on$agine in the ~ao~upcrtrlon

*hiah $8 the 8UbjOOt O?.thO bXd80 and the elOmOnt o? abrolute and~wuwoibable degmymhnt of,tho tiax evbm whbw the 8ot is pbrfwmod by ROMOSidOIlt8 Of th. SibtOYith PerpOt to property llhloh h88 MYW been Ylthln It8 bowdMt.8, prorid. t&b Ut Yhioh 18. 8LIbjOOt to **tho** tar **is potrormed** **wa.n the**  8tste, and oonYor8oly an oxoiae OauucA oon8tltutlonaly be lmpo8ed upmthe pw?ormMe e of an 8ot out81d8 the UrnitS O?.thO ~oYOrW@Ikt~ **Wit** by. uhbh the exwtse Uleviod.

. . ."1by talcbq,lt fwea the us* OR v8tora %a this **pt8ter** . . ."

**Thw,** ***I** au **an inapprl~tc)pay**  **In the**  **statute.** '31 

### v*tue of **tho** I8atth8t&6tlan~fqpaa*a upontru~%mdu6br thoaeta.ma **hued Qp** **w ~Ofhl@ti~~**  **WiO#L@? St&t&,**  **Y&i.& FkOtiOIb**  **2 ut8**  

### 8 produ4príto

lpUpty~whoprodwb8 -8 la thi8 **ml8tPO.** xf +668&6~ 4 18 6onaPuod to.mtlplirCt,~$+ t8U 08 th6,'BNdWbr,' &&d thb ~2WBdUOW,-i8 dbbMd th&@Wty +ha t#kM.thb gor,Hera the eurth or thb puty ,* owns w bontr618 thb egoswel3 rbgbrdlua 0s tb def2.nlti~~'-*o da **not aw~hov-t;lu**  **tax bared**  **Q~L** Usd **lawortbd g8a**  **08n bo**  **bafaobd, ~bboawo** **the** prodwer might J&Ot **bb YfthfEl**  **thb** jWf#diatiW Ot'thf8 8t8tOr **%W @S**  **ni&h$ h8ve**  -8Od through the hands Ot.UYWr;l 8waaa.8lveoIw]pI 

### by thWthOitFOWhO8 %X6SMd8ifl'8t~b 06OWS fIifbX88.. FOP th.~OMOM &Y&tn thb tWb WtOf t#L%8'Opini~tOt,h0 

### eff*ot th8t.astate 

### oauna$imps* a tas 

### on86t8~

### beyoodit* bound8vloa, **ro:do~wt~aie** hov thamwda of tmtion 1, 

### b.aorsr i8 It Qonoeraa g88 predwbd la ""thy 'rtatq,, oas,be given or-‘ f$a~~,Uo~otrwdabe~th8tthetox &8llbe@dbytho

%hOYWdS Of 8bOtiOB 1 d0.I.WtjWJ~iEQ08iIl& on, uhyaab.

0th~ than the **'prodwor"** the t8x beied on gar prodwed outride of the Btato. We do.-not800hov Baotlon 1 rill 8U&QMXt th8 1Oty Of 8 t&X hued On 688 produord bbyond the bOWdWib8 Of thb 

### 8t8tbOf tOXB8,

**‘ !&o**  **8&y 08hW**  **oplrt Of**  **th0 8tatUta~**  **that** d&8 **rith** .@a prodwed outaldo of TU8a la ~&otlon 8, qoo$ed ebove. Bobs it levy 8 tar th8t oen b0 en?oMod? If0chlqlr it doer not. &laid

Sbotloa 8 povldor 

### th8t in thb oreat ‘the bssir to be-urrdlna8loill8ting 8t8x onpa importodlnto thla Btatobe dooWod top soy re88on to be

. . .lr&Ud' then there ah8llbb glk~Wl on all @a fmpwtod into this Stat0 8 tax of fir0 (5~)

per 0-t of th, mukot v8lw of aisfd 688 upon the ffF8t sole **0s** raid g88 dthfa this st8to.’ **Fh8t** la 8ll 0s thy provision,,,

- it d0O8~IWk 88y MJtbing 818,O. im0 (Uh8t m80Il) 18 E;hi8t~.2O~iOdO+Mt?. yho 18 8uOporOd t0 pm 

### it, thO

.‘rrl?crr 

### or tho buyor? The statute do08 aot 8aj. Uo think aud aeotlon 8 la ?rtUy defootlve, and thw8fQre vholly ln

### operatim, beomne 0s meld roflure 

### onthe prt 0s the laglrlaturetopreroribevho -pay 8ridtu.

our 

### 8Mvbr to YOU' first quertlon 18 th8t tho ocapsn~ you Mk 8bOut i8 **not** X'bQUfUd by YirtUb Of said &tiol8 7047, **VJ.C.&,** to oolleot '8tw on, or by rirtue **or,** thega8 ltbUy8thatW8piOdUOOdin&VU%ri8W%0l'in~OthO~ 8t8tO OUt8ldO 0s Tox88j mhd 2lkwl80 rud 00mpsny is not rowirbd w virtue of l

8ld statute to pay awh 4 W&x l? the gra m8 prodwed outllde Of 'feu8. BOUeYOF, 88fd w 18 

### requlrodto

### 508

xonorf4ble

**Qeorgb**FL Bhommrd, p8ge **9**

oolloot **8Wh** 8 tar if the gSs **rci8** produoed in Pezsa,by deduotingthe slpoupt~o? the tcU ?rom the puraheroprloo sndpaylng 8eld tar to th0 &SU@SO=Or in the Mnuer grO8Oribedby 8t8t

### ute, ii the 8aabhab not alrea@ been paid;

**our** anavor **to your**  **aotoond QW8tiOU**  **i8 that**  **the ooa**  pany yiiu

88k about Is not reqalr~sd by **Virtue Of**  said 8t8tuteto rb&mrtMd~~t8XOm, OrbyY%S'tue OfgOr podwedin **bUi8-** f8m **0~** in MY **othw 8trte**  6iitaido 0s **Texa8.**

**Your8** 

### very **truly** ATTORHXYQ-Qf~-

.-