OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Mr. 

Oil 

John It. Taylor, Chief supemlsor 

k 0ai1 Di~ia10~ 

Railroad Commlsal~n oi Texas 

Austin, Texan 

Dear Mr. Taylor; 

9, 19&O, rsquee 

has the author 

or not thr Commlsolon 

head gar to be burned 

without such gas 

line Content, protidrd 

plant is avallabla in 

on has arisen, no doubt, by maeon 

d (I), Saetion 3 cr drtiala 6006, 

Tha production of natural gaa 

in oxcees of transportation or market 

faallltlee, or raaoonabla market demand for 

the type of gaa produaed." (One of the 

enumerated purposelr tor which the production 

of gas is prohibited.) 
Mr. John E. Taylor, pags 2 

Ths aseumsd finding on the part o f the Railroad Comrsission that, as to tbs aubjsat gas, there would br no 

adequate trsnaportation or market facilities, mkss it 

nsosasary to deterstins whethdr them limitations operate 

on production for othar purpoaes; that is, if the gas 

cannot bs transported or sold, do the llmltatlone 

prevent its production for othsr purposes? Othsr.provisions of the aat warrant uasa of gaa by ths owner 

other than for transporting or selling the sane on ths 

mark&. Aocordlngly, subdsotlon (h) of Ssction 3 is 

a?plicabls as a llnitatlon only whers the owuer is sn- 

*aged in transporting or selling the gsa on ths market. 

There can be no produotion In axcsss of ths ncsd ror 

tranaport or sala except that ths sxcsss bs used ror 

soms othsr lawful purposa. Tha limitation contained 

in any ons subsaotlon of the act aannot reasonably be 

interpreted to preoluds other lawful use and we do not 

consider that the limnitation of this ssotlon operates 

to pr;aoluds the manufacture of carbon black without 

rirat extracting the gasoline content. Ws next sxamins 

subasotlon (1) of Ssotion 3, Article 6006: 

“(1) The use or natural gas ror 

the manuraaturs ot carbon black without 

first having extraotsd the natiral gaaoline content from such gas.” (Ona of the 

enumerated purposes for whish the produotion of gas la prohlbltsd.) 

WI lntsrprst this’ subsootion to smbraos a limltatlon on 

produotlon of gas for a partloular ass; that like subsection (h), It ia not lnoluaivs of other ussa. wh6rs 

ths owner puts hla gas primarily to ths use of manufaoturing carbon black, the natural gasoline content mat be 

flrst rsaonored. 

Hers the subjeot gas Is casinghead‘ gas and 

itB production i3 Only Incident t0 the production Or 

oil, not primarily ror the manufacture of carbon black. 

T’:e do not consider subssotion (1) of Section 3, Article 

6008, as a limitation on it13 use. 
’ 

hr. John E. Taylor, pegs 3 

In examining the whole of Article 6008, ws 

find other rsaaona for arriving at this conclusioa. 

Casinghead gas Is by subsection (i), Section 2 

of Article 6008 dsfined to be ‘*any gas and/or vapor indigenous to an oil stratum and pr@duced from such stratum 

with 011.” Inasmuch aa br aubseatlou (d) of Ssation 2 

any well producing in sxcsss of a gas/all ratio of 100,000 

cubic fset of natural gas to each barrel of oruds petroleum 

oil aonstltutsa a gas well, than ths prcductlon cb gas In 

any well of less ratio oonstltutes an 011 well utisr sub- 

-sotion (s) OS Section 2, and ths gas from an 011 well 

is naosasarily casinghead gas. 

Xs find in aubssation (m), Section 3, Articls 

6008. by implication, gas from a well producing a gas/oil 

ratlo of leas than 100,000 to 1 may be put to any use, 

because it la only gaa produced in excess of that ratio 

$a:sz;t be put to one or mora of the uses authorized. 

: 

%xctLon~ (ml.. The production of 

mars than one hundred thousand ‘(1uZ: ,UUoj 

-cubic feet of gas to each barrel of crude 

petroleum unless such gas Is put to one 

or more of tbv uass authorized for the 

typs of such gaB so produced under nllocations made by the Commission. IQ 

Thia provision Is one of a nunber defining 

*waste”. By it oasinghead gas say be produced In quantltiea 

of less than 100,000 cubic rest for 1 barrel of 011, and 

not further utilized, without committ?ng statutory waete. 

Accordingly, should we have given subsection (i) of 

this section an Interpretation other than excluslvs In 

ahsraatsr It v:ould hsvs bssn at variance with ths permlasivs rssults of subsection (a). That gas not in exCeBS of the prohibited ratio of 100,000 cubla feet of 

gas to 1 barrel of oil may by virtue of subssotion (m) 

be ellovsd to esaaps free into ths air without committing 

statutory waste, it follovs that no reasonable li~aitation 

could be placed upon the use of that gaa if not allowed 

to escape. T2e prevention of waste is the foundation or 

the poyrer of this governmental regulation arrd if complets 

liberation of the gee withcut use is not wcste, than no 

particular US4 of the gas could reasonably be determined 

to be waste. 
Mr. John B. Taylor, paga 4 

For furthar light _ 

on the intendmant of tha ~. .~. Lagialatura, we rarer to subaeation (31 of Section 7, 

Article 6008, for speclrlo authorization tar tha 

uses of casingheed gaa. It reads: 

*Subsection (a). Caainghaad gaa 

may be used for eny benafiolal Durpcaa, 

which includes the manuracture of 

nstural gasollne.w oQaphasla oura) 

P;a interpret this provlalon undoubtedly to 

include the sanufactura of carbon block, without the 

in oaition cl the Ilaitatlons provided in subsections 

(h7 and (1) of Section 3 of Article 6008. 

Tour aeaond quaation 13 as ioll0ws: 

aDoes the ~Conuaisslon have the authority to parnit a gaaolina plant, -&lch vents 

a portion of Its residue gas to the air 

end operntaa iii a field which doea not 

produce both sweat and 8our gas to take 

Into its gathering linea and comaingle 

in auoh lines and in the plant meet or 

aour gas with casinghead gas if a volume 

of reelduo gas eqaivalant to or in axcasa 

of the total intake rrrvp gas walla, laes 

shrinkage resulting rrom gasoline exLraotion, ie utilized for tha purpoa6 

permitted for awaat and aour gas by Artiols 

6008. ” 

You hays quotad subsection (k) of Seatlon 3, 

Article 6006, and aubaaotiona (1) and (2) of Saotlon 

7, Article 6008. prammably‘aa provisions of the law 

rafalng doubt as to the power of the Commiaalon to allow the venting, of dry gas, lrreapaotivs of the circumatancea sat out in your qunation. The atatad alrcumatanoes would indicate that aaid dry gaa would be 

handled in such !na~er as aifactually to avoid waste. 

It seam to us, howaver, that even though the manner 

in which the dry gas may be handled would afiactually 

avoid naata, yet neoerthalaaa, if in direct contravention of the provisions of the statutes, the ealaa cannot be sanct ioaad. Subsection (k) OS Section 3 providaa: 
A!r. John l3. Taylor. pagr 5 

%ubsectlon (k) . Permitting any natural 

gas produced iron a gas wall to escape into 

the air before or after such gas has bean 

processed for its gaeolina content.* (Ona of 

savaral provlslons darining mwaaten. ) 

Also Section 7 of Artiole 600e provides that 

no gas from a gas wall shall be pemitted to escape 

Into tha air, excopt that it be utilized for certain 

purposes. 

In the faoa of these two express statutory 

prohibitions against the ralaasa of dry gas, that is, 

awaet or sour gas irom a 

ft 

as well, wo ara of the belief 

that it cannot be done. f there is a way of kindling 

the gas so as to avoid praotioal waata with the venting 

of a commingled mixture, containing in part dry gas, the 

same will have to beg authorized by the Legislature. 

RQB :BBB 

Yours vary truly 

Hugh &. Book 

Assistant