OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable Cleorge ?I. She?,perd 

Comptroller of Yubllc &mounts 

Austin, Texas 

Dear Sir: 

n meawning or 

a pipe 1iM oprrtmeotlon rlth the 

produatlon 0r 

(01 Whether lnaloe attaob.8 or 

doolelon ln de oaae of Ool-Fox 

to 

Bruoe Hart et al, 144 S. V. 2nd 

intangible values, nearositates 

@y requerting en opinion on the paints set forth 

below x 

*Company f3 dpsratea 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 iriake a ilve oent j 
Honorable George H. Sheppard, Page Q 

proilt when the 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. 

yCompany D operates 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.n oarrler gathered the 

011, as in the oase of Goapmy C. 

%ompany E operates a pipe line under leaa8 

rgreement. The proprrtle~~ are owned by a retin817, but the operating ooapany is lnoorporatstl 

as an 011 pipe line Ooapakly. Or they may bur 

011 in the field and eel1 it to the rsflnery and/ 

or other reilnerirr and oom8on oam%ors, with no 

oontraat to roll, but the reloo are made without 

any pro-determlnrd profit. The pipa line and/ 

or markotlng aompany nar make more or lrrr than 

the gathering oharge. The loaclr egr**ment mY 

rtlpulate, (a) that all ad valorem taxer are to 

br paid by the owner (reflaery) or (b) that all 

ad valorem taxer ara to ba borae by thr lrra~ 

oompuly . Alro it may rtfpulate, (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. 

*The main quertlonr involved may be ataamarIsed as followr: 

“1. What Ir gross inaom0, a6 appliOd to 

a pipe fine with no publlshod trrlfS@t I8 ail 

trading profits an 5.naoae In the oeao of Companlee C end Dt Ape aavlnga on their own 011 

to be oonsiderod in arriving at their total 

grow lnoomet 

*2. 11 them any yard-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 

duot Ion of arude ail0 

“3. Doee an lntanglble veluo, as found, 

l ttaoh itself to the pQalaa1 prepert~ea, or 

to the buaineaa of transporting oil br plpe 

lIne7 It aa7 be presumed that Qompanr E will 

hsve offioe furniture and other propmrtr that 

wI11 be used in their narketlng and pipe 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 

common oarrlcr pipe lines la a bualneaa in 

whloh the publlo 16 intsreetrd and Is aubJeot 

to regulation by law. The buaineaa 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 SO bought or sold, 

sat11 not be oondwted, unleso such pipe llnr 

80 urea la a oommon oarrler wlthln the purvlrw 

of thla law. . . .8 (Underaomlag ours) 

“On the pnrumptloa that Co-lea D md E 

arm ‘Omlng, operating or nanaging’ a pip* lIn0 

that oomee within 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 published by a oammon oarrler pipe llnet Or Is 

thalr lnoama to be oonaldi8red the eame as that 

011 trading profit iron buying, tranaportlng and 

aelllng ollt Prom a praotlaal standpoint, It w 

ara conflne4 to oil trading profltia thara wIl1 

be no lntanglble value. On the other hand, ii 

tarlftr l ro eet up on all 011 tramported, a hp 

pothetloal, or earning aapaalt~ o? the prop8rty 

as dlatlngulahe4 from the actual errninga, la 

the baa1 e of 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 Of thir law 6hall not apply to 

those pips lines whloh am llmlted in their u6e 

t0 the W8116, 6t6tiOnE, plant6 6n4 lVfin6l’i86 

Of the Owner. . . . * to mean the pipe line6 of 

the produoere of ail from the wella to the lea68, 

or rettlbag tank6; 6nd the 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.ind6 m6 being p. p6rt of the refinery 

l qulpment~ rhile those pips lines that brought 

,oil to th6 tank farm6 were a part of tranrportatlon equipment. The Judge, 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, 

or part of engr pipe 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 A160 in this 0oanrotloa Artlele '7lO6 

6ho&itd b6 Haa, srpeoitil~ that part reading a6 

fO11OW6 t 

“‘EaOh bpaoroarsteU. . . . 011 pipe line 

oompany, and 6ll oommon oarrler pipe line eoc 

panlee. . ; . 6nfc6p: 8 Ln th6~mrD~f 

&. . . ln a&ditrZn to the ad raGrem tuer 

on tangible propertler whlah are or lag be ISpooed upon them rerpeotlvely, by la+: ahall 'By 

an annual tax ta the State. . . 011 thric it%- 

tangible 6669t6 and prO@Ortf, and lOOa t&X86 

thereon to the eowties la whloh it6 bo6iR866 

la carried an.f The undersoored uor46 a6y bcr 

applied to Gompanr E. 

*It rholauld Be pointed out her6 that non6 

of the68 oompaaie6 i!mvr deeland th8#681+66 t0 
c 

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 Pub110 Aocount6 and with th6 Hallroad aoui66ion Of mXa6, 

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~.* 

You have verbally amplified the foregoing rtatement la ommeotlon rlth *Cemgany D* by PdvIsiag ue that, 

a6 la th6 oa6Q of l OempanP C', 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 o mp 6D.. ny 

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, 

La pub in bU6lne6686 of euoh ilature a6 to bring Qaoh of 

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 aompanyw or *other LndlviduL 

oompany, oorporotIon or 66sociatlan doing buhinera of the 

66me charaat6r 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 

v61UQS e? th6 bnef?AQ6ses 8nmeratea in the 6t&Ute, under 

the establl6hed prlnoiple of *oapltaliratIon of net eamlngr*, 

b6CaU6e 6uoh oompanIe6, pcrrtioukrly companies nC* and l D*, 

are also engaged in the groduofng ml refining bu6lne68, re6peotIvely, and such bu6inerse6 are not within raid Aot. It 

i.6 our 6n6wer to your flret quertlon thct the Board m6y oonalder at3 groe6 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 to 
Honorable 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 

am aarrylng, 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? (Iaeh o? the deeorlbed oompanler purohaee 

euoh orude oil outright iron produoerr and traneport 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 Company v. State, ll0 8. W. (2d) 794, tha Board 

may oonrlder In aeseeelng intangible valuea, only auoh portion of the total oonrideration or greee Inoome reoelved by 

euoh aoqmlee as repreaent6.a IaIr, Just and reaaonabla 

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, and would not be lnoome 

derived from the bualneee off traneportlng 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. 

Upon thle point of oxoludIag trading profltr In 

aeeesring Intangible value6 o? l uoh aompanlee, the trial 

oourt, in the oaee a? Reagan County PurahaaLng Company v. 

State, aupra, found I 

I, Said value wan aeseseod and fixed 

by the && Tax Board by a prooeas o? *capital+ 

icing* what it underetood od belleved to be 

the entire net revenue OS the 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, am well 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 oompany during the 

oelendar year 1934.@. 

The trial Judge oonoluded that the l eeeeament 

was l xaseslve beoauee the State Tax Board 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 Oompeay warn attrlbutable to traneportation of oil, eo am to SIX thsrefrom the 

total taxable value of Its ollgbpe line bueIneee b> the 

approved method known as *oapItalitation o? net inoow*. 

Upon this 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 mold by 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, no trnneportatlon or tarltr ohargoe 

era made or published by the defendant, f find am 

a faot that 5 oents par barrel would be and oonl titutss a fair and reaeoAable aharge for,the 

transportation of euoh 011 if it had been traneported for others for hire, and that 5 ornts warn 

the traneportatlon rate detormIned nnd ueed by 

the deiendant em the basis !?or ooewatat~lon of 

the Federal Exolee Tax on the traneportatlon o? 

011 by plpa line under Federal etatutes exietlng 

at the tlms said Intangible aeseeement wee made. 

On the 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 

and ueed by the Sate Tax Board for determInIng 

the intangible value of the de?endant for the 

taxable year 1955 I find that 60 par 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 was unneoeessry to determine the queetlon, nevsrthelees, said oourt r~fueed to dletorb the aIsaretIon of the 

t&Al oourt In revlewlng and adjudging the oorreot aeseeement whloh ehould have been msds by the State Tu Board In 

thle asee. 

Under the esme reasoning, we do not believe that 

the Board oan properly consider, In oomputlng lntanglbls 

vnluee of the companies involved here, the worth or value 

at their pipe lines In the earinga effeoted by them (1) In 

traneportlng oil produced by them or purchaesd from other6 

to the refinery owned by them (Company D) or, (2) traneporting oil produoad by thsa co a oonneotiig ooamon oarrlrr 

truak line (Ooapany C). Under the holding oi Col-Tar Fte- 

?InIng Co. v. Hut, 3.44 6. Y. (26) QOQ, euoh ,u60 of a plpa 

line to traneport crude oil would be as a *private pipe line’, 

Inoldental to the refining buelnees or to the 011 produalng 

bueIneee, and the value of euol? pipe lInse, when aerd In the 

refining or produolng bualneee, to dIepenee with the hiring 

of oommon o*rrIer pips lines, cannot be ooneldsred am Inoome 

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, we point out that the 

State Tax Board, in l seesslng these desorlbed ooapanlee for 

intangible valuee, may consider the eamlng oapsolty of the 

property as d~stlngulshed from the actual aarnlnge. Under 

the ~oapItallsatlon of net lnoomsm method of valuatIoa, deolared by the court to be partloularly l deptabla to pipe 

line oompanlee and vsrlous other pub110 utility oompanlet?, 

the earnings are merely treated am a guide to the aapltal 

value, beoause the tax 10 not levied upon the earning6 a6 

euoh. Therefore, in any partloular oase, the go158 reoeipts 

to be ooneldered for suoh purposr are not neosssarIly the 

aotual rsoeipte but auah as would be reoelved Andor a reaeonably l oonomloal and prudent management; and the rxpanroe to 

be deducted, In order to determIne the net inoome, are not 

nsoeeearlly the sxpenees which were in fact inourred, but 
honorable Oeorgs H. Sheppard, Page 9 

suoh expenses as would be Incurred under a reasonably eoonomlo and prudent management. 26 R. C. L. 367; State v. 

Nevada Cent. R. Oo., et al, 61 Pao. 99. 

By your eeoond question you ark I? there Is any 

*yard-•tlok to be ueed In meaeurlng or olaealfylng a pipe 

line operate4 in oonneotlon with the reflnlng or produotloa 

or orude Oil.” This l yardstick* ham been de?InItely laid 

down by the dcoleion of the Court of Clvll Appeals in the 

case of Col-Tex Refining Co. v. Bruos Hart, et al, supra, 

and the 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, stat lone, plant6 and rsflneriee 

of the owner and which are not a part of the pip0 line traneportatlon eysten of an7 common oarrler as above de?lned.* 

In Chapter 15, Title 38, Revised Clvll Statutes, governing 

the oi-aatlon and operation of oorporstlone ror the storing, 

traneportlng, buying and selling of 011, gas, malt brine 

and other mineral eolutIons, etc., we find Artlole 1505, 

pr4vldIngi 

‘Hothing in 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 waB held 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 owned by It, was not an *Inoorporated oI,l pipe line 

oompany*, a *common carrier pil pipe line oompanyR or ‘doing 

bueinese a? the same oharaoter* within the tOr4s of Artlole 7105, Revised Civil Statutes, and henoe 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 am produoed for the owner within ana a? It64lf And 

apart from any other busInsss of the owner, a tanglbie revenue 
Bonorable Qeorge H. Sheppard, Paoe 10 

or lnoome, and henoe oarryln;y rystem OS pipe lines owned 

by reflnlng company for use in transporting 011 Iron produetlon to such rerlnery, did not hnve a tangible value to 

uhioh the lntanglble tax measure attached. 

But we are not willing to extend thlr decision to 

cover and exennt pertsom, rlrms or oorporatlons uelng pipe 

liner for the tranoportatlon oi ormde 011 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, to trlng the owner, leseea or operator of such gathe.rlng or pipe llne system within the prlnolple announoed by 

the Col-Tex oare, it must be used exolueiveu (1) to tranrport oil produaed. by l uch owner or operator, and not bought 

of others, to a connecting oommon oarrler 

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 owned and operated by the same person, 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 and operated 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 another 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 may lawrully a8sess 

an lntawible vnlue, for taxation purposes, by oapltalizlng 

the profit or lnoome whloh aocrues from suoh trrznsoortatfon, 

subJeot to the above dlsoussed.llmitations. 

By your 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”, pointing 
Bonorable Qeorge Ii. Sheppard, Page 11 

out that *Company En would have offioe furniture and other 

property use6 in thrlr marketing and pipe 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 and equipment in 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 Baaed bp 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, to l 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 nay that intangible value attaohes ltrelf to 

euoh phyetoal or tangible properties, 80 as to hate a situ8 

ror taxation in the oountlea where ruch pro-3ertles are looated, beoause the intangible value aought to be assearea 

for ad valorem taxer under Artlole 7108, Rerl8sa Civil Statutes, 1s the over-all value of the buslner8 oonduoted a8 a 

*going concerng, which buslnera ha8 a valuation in exoe86 

of the valuation of the physloal or tsnglble property urrad 

in such buclneee. 
Honorable George H. LUleppard, Page 12 

Artlole 7111, Revised Civil Statutes, provide8 that 

the Board *shall apportion the sum Or the said total taxable 

valuee within this State to the oountlee in whioh auoh lndlvldti oompany, oorporatlon or arsoolatlon doe8 business, 

In proportion to the amount of business done ln and the reoelptr derived fro* eaoh 8Uoh oompany, exoept, that In ease 

oi a railroad oompany, the apportionment to eaoh oount~ shall 

be In proportion to the line or llnsr 0r rush lndlrldual, 

ooma4 * corporation or association therein." 

Said artlole further provides that the Board may 

oonrlder l rldenoe upon the question oi apportionment, and 

may oertlfy an4 apportion 8Uoh lntanglble values aooordlng 

80 any method of oaloulation whioh It bellevee to be best 

oaloulated "to bring about a Jurt, fair, equitable and lawful l p P o r tlo nmeAdverting nt*. to bhir rtatutorr authorltf 

Oonferred upon the Board, the Court of 01~11 Appeale In the 

oaee of Texas Pipe Line Oouip~ V. AndarsOn, 100 9. W. tea) 

764, upheld the nlleage barie Of apportloment of the kntangtble valuer of a ooamon aarrler pipe llne company aa a 

method l pwored by the oourts and calculated to reach a Just 

ma fair result. 

Trustlag the foregoing ruiif answers 

we are 

Your8 very 

ATTORNEY GENERAL 

Your InquirJr, 

truly 

ASSi.&nt