OFFICE OF THE ATTORNEYGENERAL OFTEXAS AUSTIN

Honorable Cleorge?I. She?,perd Comptroller of Yubllc &mounts Austin, Texas Dear Sir:

nmeawning or a pipe 1iM oprrtmeotlon rlth the produatlon 0r (01 Whether lnaloe attaob.8 or

doolelon ln de oaae of Ool-Fox
toBruoe Hart et al, 144 S. V. 2nd intangible values, nearositates @yrequerting en opinion on the paints set forth belowx *Companyf3dpsratea a private pipe line in oonnarotlon with **1tB** oil praduaiap; buslaeer. In addition it gathers for other produoers In the ma8 field, on whioh a gatherfnp: ohargo is made, agalnet the other producers of ilve oenta Per barrel,.or they am &owed ta iriakea ilve oentjHonorable George H. Sheppard, **Page** Q

proilt whenthe oil is delivered to a aommon acrrier pipe llne. Without th@ gathering spetem the Dommon

oarrler pips llno would have aharged Site oentr per barrel ior thi6 serviae. yCompanyDoperates a gathering eyetern, in oonmotlon with lta refinery, **but it**  8011~1 part of the oil to a aoaaon aarrler pipe llnr. Thlr **servlae** would have oort fltr **aentr per**  barrel, &oald the o0nmo.noarrler gathered the 011, as in the oase of Goapmy C. %ompany Eoperates a pipe line under leaa8 rgreement. Theproprrtle~~ are ownedby a retin817, but the operating ooapany is lnoorporatstl as an 011 pipe line Ooapakly. Orthey maybur 011 in the field and eel1 it to the rsflnery and/ or other reilnerirr and oom8onoam%ors, with no oontraat to roll, but the reloo are madewithout anypro-determlnrd profit. Thepipa line and/ or markotlng aompanynar make more or lrrr than the gathering oharge. Theloaclr egr**ment mY rtlpulate, (a) that all ad valorem taxer are to br paid by the owner (reflaery) or (b) that all advalorem taxer ara to ba borae by thr lrra~ oompuly

. Alro it mayrtfpulate, (s) that the rental be paid on a qlat rate pe=wnth or annum, or (d) that the rental be bared on a per barrel rate, **for** Wumple the rats would be three osntr par barrel on all oil gathered. *Themainquertlonr involved maybe ataamarIsed as followr:

“1. WhatIr gross inaom0, a6appliOd 

### to apipe fine with no publlshod trrlfS@t I8 ail trading profits an 5.naoaeIn the oeao of Companlee Cend Dt Ape aavlnga on their own011 to be oonsiderod in arriving at their total grow lnoomet *2. 11 them anyyard-at&ok to be ~sr6 In m0aeurIng or alas~ifyi~ a pipe line operated In oonneotlon wxth the reilnlng or prb’-

### RonorabU Worge 

### B. Sheppard, PM- 3

duotIon of arude ail0

“3. Doee an lntanglble veluo, as found, lttaoh itself to the pQalaa1 prepert~ea, or to the buaineaa of transporting oil br plpe lIne7 It aa7 be presumed that **Qompanr** Ewill hsve offioe furniture and other propmrtr that wI11 be used in their narketlng andpipe 1Ine buelneas however the 1ntaagIble valur **would** ordinarl~y be apportloned to the counties through whlah the plpa llnem are altuatad. *Arttale 6019 rOa48, In part a8 iollowar

“‘Xt la declare4 that the operatloa of commonoarrlcr pipe lines la a bualneaa in whloh the publlo 16 intsreetrd and Is aubJeot to regulation by law. Thebuaineaa or a, or of mrahaslna ml relllnp; orude=I

M in 06 aestion with e-oh bualneae q ef the’alaaa eubJect to thle law to transport the **wudo** petroleum SObought or sold, sat11 not be oondwted, unleso such pipe llnr 80

### urea la 

### aoommonoarrler wlthln the purvlrw of thla law.

. . .8 (Underaomlag ours)

“Onthepnrumptloa that Co-lea Dmd E arm ‘Omlng, operating or nanaging’ a pip* lIn0 that oomeewithin the above statute, or that they are ‘Doing buaIneas a? the same**oharaoter** ln this Btate’l la their ravanue to be predlQete6 on a tariff, where one la ratabliahad and **pub** lished by a oammonoarrler pipe llnet Or

### Is thalr lnoama **to** be **oonaldi8red** the eameas that 011 trading profit iron buying, tranaportlng and aelllng ollt Proma praotlaal standpoint, It w ara conflne4 to oil trading profltia thara wIl1 be no lntanglble value. Onthe other hand, ii tarlftr lro eet up on all 011 tramported, a hp pothetloal, or earning aapaalt~ o? the prop8rty as dlatlngulahe4 from the actual errninga, la the baa1 eof an intangible value. *ilntll tha Qol-Tax eare was beoibed the pip@ line **industry** had taken the praottoal oonatx%otIon%aorablo Qeorge 8. Sheppard, Pago 4

of that part of Art1010 0018 reading aa follrluer 'The pr0tl6lon6 Ofthir law 6hall notapply to those pips lines whloh am llmlted **in** their u6e t0 the W8116, 6t6tiOnE, **plant6 6n4**  **lVfin6l ’** **i86** Ofthe Owner.

. . .* to meanthe pipe line6 of the produoere of ail from the wella to the lea68, or rettlbag tank6; 6ndthe lines from the lea68 tank6 to the **trunk** liner 66 being a part o? a gathering 6JIt6pL. **AS60 Chore**  linca running **from** refinery t6nk farm6 to 6tlll6, and/or loading **radk6 Or**  **WhRI ’** **V66,** 6trtlOns bto., withln the 26- 'finery grOI.ind6m6being p.p6rt of the refinery 

### l qulpment~ rhile those pips lines that brought ,oil to th6 tank farm6 were a part of tranrportatlon equipment. TheJudge, in the above oa68, widently did not oonsider the oonrtruotion br th6 industry, In arriving **at** hi6 dsoialen. *Seotlon **4** of Arttole 6019 read8 a6 follw6~ *Owning, operating or 6un6glng or partlolpatlng In Wnerahip, operation or WUgWWnt, m

, oontraot * of pufohare, mrment to bw

or ether agreement or arrangement of any inh what6oever, ally pipe line or plpe liner, 

### orpart of engrpipe IlaO, for tranrportatloa fr0m 6ny o$.XflsZd or pla06 of prodtaatlon withla thir **8tate~** f&'any di6trlbItiAg, rqflnlng or aarketlag oentrr or reehipplng point thWeDf, within thlr State, or 0-e petmleua bought **of** other68 A160in this 0oanrotloa Artlele '7lO6 6ho&itdb6 Haa, **srpeoitil~** that part reading a6 **fO11OW6 t** 

**“ ‘** **EaOh** bpaoroarsteU.

. . . 011 pipe line oompany, and 6ll oommonoarrler pipe line eoc panlee.

. ;
. 6nfc6p:8 Lnth6~mrD~f &.

. . ln a&ditrZn to the ad raGrem tuer on tangible propertler whlah are or lag be ISpooed upon themrerpeotlvely, by la+: ahall 'By an annual tax ta the State.

. . 011thric it%- tangible 6669t6 andprO@Ortf, andlOOa t&X86 thereon to the eowties la whloh it6 bo6iR866 la carried an.f Theundersoored **uor46 a6y**  **bcr** applied to GompanrE.

***It rholauld**  Bepointed out her6 that non6 **of** the68 oompaaie6 **i!mvr** deeland th8#681+66 t0c

1. Iionorable George 8. ahrppard, Page 6

**be** Qommoa

oarrler pipe llne6, nor have thej aftempted to exerolae the prIvllege6 und6r Articles 6020, 6022 0r 6043. However, they do ill8 all report6 with the Comptroller of Pub110Aocount6 and with th6 Hallroad aoui66ion OfmXa6, that are require& of aouon puroharerr and traneporter6 of **ortad8** petroleum. They are elthar Delaw6re oorperations, or they 6~6 **inOOrpOrct&d under**  Artlol86 1496, 1496, 1497 end 1833. nShoul4 thL6 not be enough information aeoerrary for you to **deoid6** the68 quertiens 1 rhall be glad to go into **more** detail, persoaall~.* Youhave verbally amplified the foregoing rtatement la ommeotlon rlth *CemganyD*by PdvIsiag ue that, **a6** la **th6** oa6Qof 

### l OempanPC', part of the oil handled wa6 either purcbaeed from or **transported** for ether produoer6 :a tha fleld red-6 not confined to the produst~+ of **raid** 

### l o omp6ny D.. In anowering your **fIr6t** quertlon we **point out**  that under prlnelpltr hereafter **disoaseed,** we **hold t&t**  Oomprales *Cd, 'IV and *g*, above **tle6orIbeQ,** are engagrd, Lapub **in bU6lne6686**  **of** euoh ilature a6to bring Qaohof them'ti&n the apppllostlen of Article 7106, ~vl,tml Civil Btatutes, provldlag for the 666e*ament, for taxation of the lntanglble values of eaah *oil pipe line Qompanyi

**“ common**  earrler pipe line aompanywor *other LndlviduL oompany, oorporotIon or 66sociatlan doing buhinera of the 66mecharaat6r In thi6 State.* tiewater, It dare not follow from this oonalu6ion that cl1 ero6e lncoae reaelved by each of theet oomp6nIe6, iron every 6ource, o6n be properly oonsidered by the 8tate Pax **%Arb** In asmpatlng the lntanglble v61UQSe? th6 bnef?AQ6ses8nmeratea in the **6t&Ute,** under the establl6hed prlnoiple of *oapltaliratIon of net eamlngr*, b6CaU6e6uoh oompanIe6, pcrrtioukrly companies nC*and 

### l D*, are also engaged in the groduofng ml refining bu6lne68, **re** 6peotIvely, and such bu6inerse6 are notwithin raid Aot. It i.6our 6n6wer to your flret quertlon thct the Board m6yoonalder at3groe6 Income for these pku730666,only such Inoome as **AOOPub6,** 4Ireotly or lndireatly, from the buriness of transporting orude ell for others for hire or for profit. '&IN, If oruda 011 is tranoported by the aempanIe6 in que6- tion for other produoer6, from the point of produetlon toHonorable George H. Sheppard, Page 6

reflnerl8e owned by others, or to oonneoting pipe line oarrime, for a oharge or consideration of iire. oents per barrel, tautah

grooa lnoome, along with other Inoome traoeable to the buslnerr a? transporting oil for hire, would **be** properly oonrldered by the Board In determining Intangible Value under l

stabli8hed formulae, whether rush Inoome is amaarrylng, gathering or rerrloe oharge or tarI?f. deelnatsd formal publloation o? a tari?? under regulation8 o? the Railroad CommIseIon (Artlole 6649, Xevleed 01~11 Statutea) la no oondltlon prerequlslte to bringing the oompanIe6 here within the Intendment o? the Aot taxing Intanglblec

But I? (Iaeho? the deeorlbed oompanler purohaee euoh orude oil outright iron produoerr andtraneport laem through their gathering rpetem or pipe 1Ine ryetern to another refinery or to a oonnoo8ing pipe line, where it ke cold ?or a profit, then, under the oaae of Reagan County Purohaelng Companyv. State, ll0 8. W. (2d) 794, tha Board may oonrlder In aeseeelng intangible valuea, only auohportion of the total oonrideration or greee Inoome reoelved **by** euoh aoqmlee as repreaent6.a IaIr, Just andreaaonabla oharge for the oarrlaga or traaeportattioa o? euah oil. ‘Ihe balanaa, I? any, over and above ruoh traaeportatlon ohargO6, would be ooneldered a8 trading pro?Ite or Inoome iror the purohare and sale o? orudr 011, andwould not be lnoome derived 

### fromthe bualneee offtraneportlng oil?or hire. Gorporatione ahartered under Chapter 15, Title 32, XevIeed Civil Statutea, suoh ar these are lndloated to be, are authorired to pursue bath burlneeser; I.e., tranrport orude 011 by pips llne for hire and buy and rell orude oil.

Uponthle point of oxoludIag trading profltr In aeeesring Intangible value6 o? l uoh aompanlee, the trial oourt, in the oaee a? Reagan County PurahaaLng Companyv. State, aupra, foundI

I, Said value wanaeseseod and fixed by the && Tax Board by a prooeas o? *capital+ icing* what it underetood od belleved to be the entire net revenue OSthe dmietiant for the year 1934, taking into ooneideration earnIng6 o? said defendant from all o? its a~tlvitlee, that is to say, earnings from the purohdlse and sale of oil, amwell as eerninga that might b*Honorable Qsorge 8. Sh@ppard, Page 7

properly attributed to the traneportatlon o? oIl$ the oo@Mistlons o? said Board being baaed upon a groes earning of 20 oents per barrel from eeoh and every barrel a? 011 bought, transported aM mold by the said purohaelng oompanyduring the oelendar year 1934.@. Thetrial Judge oonoluded that the l eeeeament was l xaseslve beoauee the State TaxBoard toof Into ooaeldsratlon the proiltr earned by the oorpazby?rom the buelBass of buying and selling 011, mad**uRd8rtook** to drtermlnr what part o? the net earnlnge o? said Oompeaywarnattrlbutable to traneportation of oil, eo amto SIXthsrefrom the total taxable value of Its ollgbpe line bueIneee b> the approved method knownas *oapItalitation o? net inoow*.

Uponthis point the flndlngs of the oourt are as rollo3re i (I* (7) I find that only one-fourth (l/4) of the gross earnings of ths defendant on 011 bought, transportad and moldby it during the ysar 1954, Is properly l ttrlbutsble to end sbeuld ba allooatod to~grors eernInge 66 from pipe line transportation Instead of t& entire 20 oante per barrel used by the raid **Tnx**Boa&. While, 66 round above, notrnneportatlon or tarltr ohargoe era madeor published by the defendant, f find am a faot that **5** oents par barrel would **be**and oonl titutss a fair andreaeoAable aharge for,the transportation of euoh 011 if it had been traneported for others for hire, andthat 5 ornts **warn** the traneportatlon rate detormIned nndueed **by** the deiendant emthe basis **!?or** ooewatat~lon of the Federal Exolee Taxon the traneportatlon o? 011 by plpa line under Federal etatutes exietlng at the tlms said Intangible aeseeement wee made. Onthe basis of a gross earning of I) **omts** psr barral ?or all 011 transportsd durl

“p the year 1954, and applying thereto the iormu a adopted andueed by the Sate Tax Board for determInIng the intangible value of the de?endant for the taxable year 1955 I find that 60par oant o? ths intangible vahae of the defsndant, ettrlbutable to its pips line eystam **and** operations- -- 

## 288

Honorable tiorge H. Sheppard, **Page** Q

ae of the year 1936, is $769,408.00.

. . .* Although, in the absence of a aroma-aeslgnment of error by ths State, the Court of Civil Appeal6 pointed out that It wasunneoeessry to determine the queetlon, nevsrthelees, said oourt r~fueed to dletorb the aIsaretIon of the t&Al oourt In revlewlng and adjudging the oorreot aeseeementwhloh ehould have been msdsby the State Tu Board In thle asee. Underthe esmereasoning, wedo not believe that the Board oan properly consider, In oomputlng lntanglbls vnluee of the companies involved here, the worth 

### orvalue at their pipe lines In the earinga effeoted by them (1) In traneportlng oil produced by themor purchaesd 

### fromother6 **to** the refinery **owned** by them (CompanyD) 

### or, (2) trane**porting** oil produoad by thsa co a oonneotiig ooamon oarrlrr truak line (Ooapany C). Underthe holding oi Col-Tar Fte- ?InIng Co. v. Hut, 3.446. Y. (26) QOQ,euoh,u60of a plpa line to traneport crude oil would 

### beas a *private pipe line’, Inoldental to the refining buelnees or to the 011 produalng bueIneee, andthe value of **euol?** pipe lInse, 

### whenaerd In the refining or produolng bualneee, to dIepenee with the hiring of oommono*rrIer pips lines, cannot be ooneldsred amInoome Uerlved froa the buelness of tranebortlnu 011 for hire wlthIn the meaning a? Artiole 7105, Revlsod Clvll Btatutes: as Interpreted by said oase.

In thle oonnsotlon, however, wepoint out that the State Tax Board, in 

### l seesslng these desorlbed ooapanlee for intangible valuee, mayconsider the eamlng oapsolty of the property as d~stlngulshed 

### fromthe actual aarnlnge. Under the ~oapItallsatlon of net lnoomsmmethod of valuatIoa, deolared by the court to be partloularly 

### l deptabla to pipe line oompanlee andvsrlous other pub110 utility oompanlet?, the earnings are merely treated ama guide to the aapltal value, beoause the tax 10not levied upon the earning6 a6 euoh. Therefore, in anypartloular oase, the go158 reoeipts to be ooneldered for suoh purposr are not neosssarIly the aotual rsoeipte but auahas would be reoelved Andor a reaeonably 

### l oonomloal andprudent management; and the rxpanroe to be deducted, In order to determIne the net inoome, are not nsoeeearlly the sxpenees which were in fact inourred, buthonorable Oeorgs H. Sheppard, Page 9

suoh expenses as would be Incurred under a reasonably eoonomlo andprudent management. 26 R. C. L. 367; State v. Nevada Cent. R. Oo., et al, 61 Pao. 99.

Byyour eeoond question you ark I? there Is any *yard-•tlok to be ueed In meaeurlng 

### orolaealfylng a pipe line operate4 in oonneotlon with the reflnlng 

### orproduotloa or orude Oil.” This 

### l yardstick* hambeen de?InItely laid downby the dcoleion of the Court of Clvll Appeals in the case of Col-Tex Refining Co. v. Bruos Hart, et al, supra, andthe pertinent statutes. Art1010 5018, RevIeed CIvIl Statutes, aitcr giving iour broad de?lnItIons o? a uoumon oarrlsr pipe line Eospany, provides that%he provleIone of thle law ehall not apply to thoce pipe llnee vhloh are llslted In their use to the wells, statlone, plant6 and rsflneriee of the owner andwhich are not a part of the pip0 line traneportatlon eysten of an7 commonoarrler as above de?lned.* In Chapter 15, Title 38, Revised Clvll Statutes, governing the oi-aatlon andoperation of oorporstlone ror the storing, traneportlng, buying and selling of 011, gas, malt brine and other mineral eolutIons, etc., wefind Artlole 1505, pr4vldIngi 

### ‘Hothingin thIe chapter ehall preolude the ownership or operation by any oorporetlon, of private pipe lines In end about its r4?Inwlee, fleldm or etatlons, even though much corporation6 say be engaged In the producing buslnees. a It waBheld in the oase s? Col-Tax Reflnlng C0mp.w v. Hart, et al supra, that a refining ooapany, oting and uelng a pipe line exoluelvely for the purpose a? tramporting 011 bought by the oospany from other produasrs to the re- ?Iner~r ownedby It, was not an *Inoorporated oI,l pipe line oompany*, a *commoncarrier pil pipe line oompanyRor ‘doing bueinese a? the sameoharaoter* within the tOr4s of Artlole 7105, Revised Civil Statutes, andhenoe was not subJeot to the tax on Intangibles thereby assseead. 

### hip h0lain.g warn upon the theory ana oonetruotlon that the IntangIble tax

. etatute was Intended to embraoe only such property or faolllties amproduoed for the owner within ana a? It64lf And apart from any other busInsss of the owner, a tanglbie revenueBonorable Qeorge H. Sheppard, Paoe 10

or lnoome, andhenoe oarryln;y rystem OSpipe lines owned by reflnlng companyfor use in transporting 011 Iron produetlon to such rerlnery, did not hnve a tangible value to uhioh the lntanglble tax measure attached.

Butweare not willing to extend thlr decision to cover and exennt pertsom, rlrms or oorporatlons uelng pipe liner for the tranoportatlon oi ormde011 IOr hire, even though euoh pipe line ryetem ia called a gathering ayrtem and la also used in oonneotion wlth the rtrflnlnc or produolng buelneer or suoh person, firm or oorporation. In other worde, totrlng the owner, leseea or operator of such gathe.rlng or pipe llne system within the prlnolple announoed **by** the Col-Tex oare, it mustbe used exolueiveu (1) to tranrport oil produaed. by l uch owner or operator, andnot bought of others, to a connecting oommonoarrler to it or further traneporation by It, or, PE.~"t~'~ili~;O~;~:ll produood or purohaeea by such owner, operator, or leaeee to a refinery ownedand operated by the sameperson, rirm or oorporatlon ror prooeselng.

11, on the other hand, such pipe line or gathering 

### l y#tem I8 urea, Jn addition to the vuroores ret out above (1) for the purpore or traneporting, for hire, oharge, tailif, or other consideration, arude oil for other produoere from the plaoe of produotlon to a oonneotlng ?lpe line for sale or further tranaportatlon, **or** to a rerlnery owned andoperated by another person, rlrm or corporation for prooeaalng, or (2) for the purpose of transporting 011 purchased by the owner, operator or lessee of euoh pipe line or gathering syotem, from others, to a oonneotlng pipe line oompanf ior sale or further transportation or to the rrflnery of **an** other pereon ilrm or oorporation for sale then in eaoh of these situations, exemplified by the oompa&es deaorlbed in your letter, it is our opinion that you maylawrully a8sess an lntawible vnlue, for taxation purposes, by oapltalizlng the profit or lnoome whloh aocrues from suoh trrznsoortatfon, subJeot to the above dlsoussed.llmitations.

Byyour third questton you ask if ‘an intangible value, as found, attaohee Itself to the physIoa1 properties, or to the birelnese of transporting 011 by pipe line”, pointingBonorable Qeorge Ii. Sheppard, Page 11

out that *CompanyEnwould have offioe furniture andother property use6 in thrlr marketing andpipe line bu8lne8s but lntanglble value would ordlnarlly be apportioned to the counties through whloh the pipe line8 were eltuatea. AL though an intangible tmlur could not exi8t in any given care without the pre8enoe o? tangible or phyaloal properties noed in or devoted to the buslnere out of whloh the lntmglble value 

### l

rlme8, lnoludlng ofrloe furniture andequip

### mentin the instant oa8e, if neoerrarlly inoldent to the proper oonduot or the business of engaging in the tran8portatLon by pipe line of orude 011 for hire, neverthelers, it 18 our opinion that 8uoh intangible value need not by the Baaedbp apportioned and oertlrled to the oounty or oountler uhere suoh offioe furniture, **and** equipment or other tangible property ir rltuatea, but the praotloe, long followed by the %oerd, of apportioning l uoh intangible falue8, on a allaage value, tol aoh of the oountieo through uhloh the plpe line run8, Is proper, and may be oontinue&

In the ease of Reagan County Puroharlng Company v. St&e, ll0 S. W. tza) 1196, the court ralai

*Intangible raluea ordlnerlly rertalt from the profit of a business a8 aotuallj oonduoted. They Inhere to it a8 a 'going oonoern,' in nany oa8e8 tar exceeding the tangible valuem to whleh they adhere.* Thu8, although intangible value oannot exlet, for purpore8 or taxation, wlthout the exlatenoe or tan@- ble or phyclloal propertleo to whlah euoh intangible value8 adhere and out~oi which they grow, it i8 not teehnloally accurate to naythat intangible value attaohes ltrelf to euoh phyetoal or tangible properties, 80as to hate a situ8 ror taxation in the oountlea where ruch pro-3ertles are looated, beoause the intangible value aought to be assearea for advalorem taxer under Artlole 7108, Rerl8sa Civil Statutes, 1s the over-all value of the buslner8 oonduoted a8 a *going concerng, which buslnera ha8 avaluation in exoe86 of the valuation of the physloal or tsnglble property urrad in such buclneee.HonorableGeorgeH. LUleppard, Page 12

Artlole7111,RevisedCivil Statutes,provide8that theBoard *shall apportion the sumOr the saidtotaltaxable valuee within this Stateto the oountleeinwhioh auohlndlvldti oompany,oorporatlonor arsoolatlondoe8business, Inproportionto the amountof businessdone lnand the reoelptrderivedfro* eaoh 8Uohoompany,exoept, that In ease oia railroadoompany,the apportionmentto eaoh oount~ shall be Inproportionto the line or llnsr 0r rush lndlrldual, ooma4 *corporationor associationtherein."

Saidartlolefurther provides that the Boardmay oonrlderl

rldenoeupon the questionoi apportionment,and may oertlfy an4 apportion 8Uoh lntanglblevalues aooordlng 80 any methodof oaloulationwhioh Itbelleveetobebest oaloulated "tobringabouta Jurt,fair,equitableand lawful

### l pPo rtlonment*.

Advertingto bhir rtatutorrauthorltf Oonferredupon the Board,the Court of 01~11AppealeIn the oaeeof Texas PipeLine Oouip~ V. AndarsOn,100 9.W. tea) 764, upheld thenlleagebarieOf apportloment of the kntangtblevaluerof a **ooamon** aarrlerpipe llne companyaa a method 

### l

pwored by the oourts and calculatedto reacha Just 

### ma fair result.

Trustlagthe foregoingruiifanswers we are Your8very

ATTORNEY

GENERAL Your InquirJr,

truly

ASSi.&nt