AlLlnTnnr 11. .irExAs aomliw BEN 83 -PBnlRllD A-~ll#cw “ RN-A,- September 14, 19%

. Hon. Fmlest 0. Thcm;son, T Opinions s-140 Railroad

Ccuomission

of Tex .~ TribuneBucbUng Re: ,Jurisdiotion of the RaiYxosd Auetin,Texas Commission of Texas to control .< and regulatethe iu$pliers of naturalgas when such gas is used to pmnp water for agricultural

purposes

pursuantto Cbfzpter

31, Acts 53r;a

LegiaRear GeneralThompson: fatme, lst:cSS., 199.
You have requested that this office
,. .~ "advise by opinionas to whetheror not the Railipad Ccmrmlesion

can demand that the suppliers of ~uatural gas, by pipe line, for agriut&uraluses, as defined in H.B. Ro. 6k, ehall cmaplywith all of the article 6050 td 6066 imlusiiie,

~xceptArticle'6050 which is speotiioally exaluded

by H:B. Ro. 6b." i HOI& Bill &wasetiacted iuto law as Chapter 31,Acta 53rd - Legislature,

fst Calledseseion, 19%. Fu&hUr oommmications with this office estabUsh that ~yoti speoif~cally

wint to how thecharacter,of operations

oontemV&ated

by Chapter 31, necessary to exempt the supplier of natural

gas from the pk-ldms of Article 6050,Vernon's CivilStatutes; if suppliers of naturalgas for the purposesset out in Chapter 31 areex~empt from paying the gas utility taxlevied by Article 6060,V.C.S.; and whether a supplier

exempt from the tax will be subject to the safety rules md regulatiousof the RailxoadComaiasion of Texas.
At the outsetwe refex you to Attorney General's~Opiaion

Roe: S-123,writtenprior to the enaoivnent of Chapter 31. It was theke held~-~~ inter **alla,** that the Railroad Oonmissiou

aould not iesue an order,pxovid- -- iug that a suppller of naturalgas to a localized area for irrigation pmup fuel-would

not be a **“ gas**  .utility." The writer thereofobserved, however,

that "irrespective

of such detennina

tion, the statutorydefinltion of a 'gasutility' prescribed

by the Legislature

aould clearly

beg emendedto providea speaifio exception

**for** the operations

describedIn your request."Eon. Ernest 0. Thompson, page 2 (S-140)

We bellevethat Chapter31was enacted pursuant

to the above holdiug

aud observation. Chapter 31provides in part: *Section

1. Article 605Oof the RevisedCivil Statutes of'Texas,

1925, is herebyamended by adding theretotwo uew sections,

4 end 4a, to road as follows:
"'Sec.4. provided, however,

that the act or acts of transporting,

deUveriug, selling or othenvise

maldug available naturalgas for fuel, eitherdirectly or indirectly,

to the ownersof irrigation wells or the sale, transportation or delivery

of naturalgas for any other directuse in agrioulturalaativitiee shall not be construed within the tams of this law as ooustitutiug soy person,association, corpora- .tion, trustee,

reoeiver

or partnership

as a 'gas

utility,' 'public utility,'

or 'utility*

ae hereinabove

definedso ss to make such person,association, corporation,

truetee,

receiver or partnership

subjeot to the jurisdiction, control

and regulation of the CaPmission as a gas utility.
"'Sec.. 4a. Thq tit&al gas made available uuder the proviaion~

of: this Act shallbe used exclusively for pumping watez for fana end other agricultural purposesia order for the person,firm, association, or corporation

furnishing such natural

gas to be exemptfrom the provisions of said Article 6050 of the Revised CXvd.1 Statutee

of Texas of 1925. The provisious

of this Actshallbe oonsddered only as cmuulative of other laws and shallnot have the effect of repealing ox emending

any substantive

or statutory

law exoept as herein speoifically

provided.'~ Section4a deolaresthat the supplierof ziatuxalgas ie exempt .'~ from the provisions of Artlole 6050 swhan thegas supplied ie used.exclnsively"for~pumping water for fam and other'agrlculturalpurposes." Therefore,

lf the gas is used for anypurpoee other thauthepumpiug of water for agriculturalpmposes, the supplier

of such gas would not be exemptfrcm the provisions of Article 6050.

_ Article 6060,

V.C.S., 3mp6ses

a g&as reoeipts

tax on -every gasutilIty.* Ae the snppller of natural**gas** for the.~prescribed uee is not a~"gasutility” under the terms of Chapter 31,-suchsupplier..Is-t subjeotto thepaymentofthis tex. Of oourse, should suah~suppliei make, sales of naturalgas.to be used for a purposeother thau "pmup$u~watex?J for farm aud other egriculturalpurposea", then the reaeipte

f&mthose sales wouid be subjectto the tax levied by ArticledOo60,.

aud thesupplIer would be a "gas utility" within the purview of Article 6050 insofar as those sales are conaerned.L -

Eon. Ernest 0. Thompson, page 3 (s-140) : !

Itis furtherour opinionthat exemption,from the ~ovfsions of Article 6050,~which is merely a definitionand blassification

statute, &es n&t w** reamve the gqplier of gae uud~~~Xbaj&+ 3i~frum the jurisdiction

of the Railroad

Cosmiesion

of Texas. :: ~:.
It shouldbe noted that Chapter 31 is "cumulative of other .~ lava and sha~nothave the effectof repealiugoramanding tire or statutory

law" exqeptas specifically provided

therein. ==fsZ?Z).

. Article kbil,B.C.S.,provideat
. "The operation-of

gas pipe lines for buying,selling, ,.j transporting,

producingorothervlse dealing innaturalgas , 'ie a businesti

which in its nature asd according to the establlahsdmat~ofoonduotingthsbuainaaa is amonoRoly .,. and shallnotbe oonducted unless such gas pipe line so used in ccnneotionwithsuch business be subjectto the.jurisdlotion **herein** conferred upon the Covmission. The Attorney General shall enforce this provision by injunction

or.other; lkedy." ., '; '. The above article is not restricted in-itsoperation

to "gas utilities",

but affects "the operation of gas pipe lines for buying, se~ing,~port~,p~~ing,orothaRisedealinginnataralgae."

.

The operations

contemplated

by chapter 31 undoubtedlyoonstitute a "dealing

innatural'gas"

even though suchoperatious arenottkse **of** a "gas utility" (by virtue**of** the exemption contained

in Chapter 31). Section 2 of ArtiCle 6053;V.C.S., grsnts the Commission"full power and authority to prescribe

such rules and ragulations as in its wisdcaumay

be deemednecessary t0 carry out the purposee" of the Eatural Gas ht. As the protec.tion,~health,welfare and safetyofthepublio is an evidmit

R&pose of the Act (Art. 6053), we conclude

that the supplierof naturalgas uhdar the provisions of Chapter 31 is within~thejurisdiction'of

the Railroad

Commission

to the extent that he-mustcomplywith all valid rules and regulations of the C@ssion which are designedto promote the pzoteotion, health,

welfareand safetyof the public.

A supplier

ofnaturalgas;~~pureuant to the $rovisione of Chapter 31, ACk 53rd Le&ahture, latC.S, 1954, 16
. not a "gas utility"'within the povisionrj

of Article@C,,~- V.C.Si,

when the gas suppliedis used exclusively for pumping water for agriculturalpurpcees. Rot being a "gas utility" under such circumstsmes, the supplieris not subjectto the. .

Eon. Ernest Thmpson, page 4 (S-140)

@ose.reoeipts ti leviedagain& gas utilities bj'Article 606C;B.ti.S. Such &plier'& within the jarisdiction of the Ririlro~'Camis&n, however, to the extent that he mustqomplywithallaafetyrolss andregulations of that bo@.
APPROVED: Phil&~~bins;n Oil and Daa-~Division
L P. Lbllar Yours very truly,
JOI&& i3Blmih Attorney

Generalof Texas

Revviewer -~ _~ RI@% S. Ttitti FlrstAssistan~ " JolmBsnSheR+rd &to~~y General MS:hapJS ) * Mert Stkrnes Assistant