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OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Ktoar Slrr 

605.6 aaa 6060, mupra. 
Bononble HBZSIAXI Jams, Dlrsater, FA&Xe 2

9. lwxtucina: or obtaining, tmasporting, Boa- 

~0jh.g~ aim4buth.g or tmi~~drbg xbatttra gut (a) 

for publlo use or semiae for oapenwtlon; (b) for 

uAl* to smlciprlitles or persons or eprpanles, ia 

those 44848 mfbrrttd to in pSragrvph f h4H4f, Wt6A8Od 

In dlstrlbutltq or relllng natural gas to ths publie; 

(a) for sale or dollvs~ of aA?mrAl &as to Any pwsoxl 

or f?? or aorpomtioa opsmtlng under fraauhlse or a 

aaatraot vlth 4ny mmialp4llty or oth4r log81 subdlolslon of this State; or, (a) for sale or dsllwp~ of 

nstur~l GAB to t&e publ;lo for dcmestio or other use. 

"2. Ovnlag or 4pentlag ormm&ag 8 i~llae 

far the tmnsportatlon or 48rrlage of matma f gas, 

vbathor for publio him or not, lf urf p4rt of tlm 

right of upl for SAM llm bos been Aaqulnd, or ~LBJ 

hemAfter b8 AcrpUimd by the l xemi80 Of tba rl&ht Of 

rarinent cla5sla~ or if said line or Any part ?Aoreol 

is lrld weax, over or umde~ mj public! rood or hlgbv~y 

of t&la State, or street oc l Xl- of any mml8lpallt~, 

or the r%gbt of pat of ASW r~llroad or other publlo 

ut%llty1 ineludIng ~180 ~w nsttuwl -8 tMllty 8uthcarlmdby &vto uwalsetba rightoi Mnln~tda*¶.n. 

9. Prod\roicylorprrrohulng~ut\url~s8nd 

tmaxmporting or earulng the m to k tmnsportetl by 

plps lln48 to or near ths limits of uy mmlalpAllty 

in Vhhth BA%d $$&B tB FW4dV.d Atkd dlBttibRtO& OX’ SO&& 

to the public by Another pub114 utllitj or by uld 

~fai$7Alit~, in All GAB08 tth.Ptt St&t bVBf.WBB 18 ta 

IAct the Qnly Qr pzpstleell.7 ox4lusl.ro 4gewq of l U 

of nstursl gas to such utilltq or natataipcrl~t~, is EL 

bx dealaml to be vlrttwlly ~)Baop(llJ AM L bu~l~88 ~88% 

OAtli.tQ Affe0td vith A publia imtW'.Bt, rad th Uid 

buslness ro8 prepert;J ttmplQ@ themitt rlthla this StAti 

s&&l1 tm subjeot to the pr~vl81~~~ of this l~v aab to 

th4 Jurlsdlufloa ad fsgU@%tlaa of tba C~lsslon As A 

&ss UtlLlt~. 

Artlolo 60%, supm, prorId th4t eorpontlanr aaing 

vltbln ths p~ovl~ton~ of article 6050 shell take corta& mparts 

to aa RAllrQAd cQlriBBI0B of TexAB. 8Ald hrtie1e 60% rcPadB as 

follevs: 
Bvnorsble Eenmri Jonrr, D%rwtor, Pwcr 3 

“The Cm~le~fon My require of A?i pe~otm or 

4orporatlan6 opsmtlng, onziag or controlling 8uch 

jJfA6 pip l&6!, BYOX’Ii Z’tbpOPtB of th6 tot41 QUUltiti~B 

of @~a distributed by Btl4h pipe 1inw1 and OS thnt 

held by them in stemgo, snd also of their soums of 

supply, the nuszber of velln ftorn vhicb they drev their 

BlQplJ, the t4SOUBt Of FFWBUXW 84AttttAinOd, Wld w 

Am4utlt Ana ohrAt?ter aBd dttBorlpttoB of th6 equipPent 

emplqed, and such other matten, pertalrdng to the 

btt~ia40~ AS the C~S~B~~BS~OI~ nay desar pertinent.” 

Artirla 6060 iB the ttPtUt4 vhlch lWie8 A tax of onefourth Of Wit pe3' 00nt rtgoa the “-68 MO6i'pts Of BUoh GAB Utilitie8 AS cm tithin the #‘OViBiOtiB Of Artiols 6050, Bl@M. Ssid 

Artlob 6060 18 AS fdllmrsr 

"Every &aa ut%llty BUbJO4t to th4 pr~vl~lctns of 

this Bttb&b3’%~iOaQttOX’bOfOl’B the fiMt&A~ 4t Janusry 

mad qusrtcrly thereaftttr, aball file vlth ths Car%+ 

BiOB A BtatW4llt, dU4 V6rifi.d A6 tN0 an8 4OF%WCt by 

the president, tresstwerorgeaerslaaasgsr ifs comtii4ltd 

or eorparatlon, or by the cntner or c3ne of tha if 

lvidual or co-partnewship, shovlag t&s -88 

moeipts of su~ki*lllty ror the quarter next prsaediag 

or for such portion of mid quarterly period AS such 

utilltt may have been aondwt%ag any ~UB~.MBB, snd At 

su4htlme shallMy iato ths dtata T~~**~stA~stin 

A BU63 tQW% t0 OIMS-fOW't;h Of One ~PC@lttOf th# -88 

timme Feoeivcd f'mu all buaine88 done by it vlthtn 

this state during said cparter.* 

Xm?wor, Artlclo 6060, above quote& VAB repsaled la part 

by Section 10, ROUBC Bill 5';? Of tbs &nd L~8iB~tUl’6~ (A&B of 1931, 

4and L~~~B~tUt’O, R. s., h. n, pCrm Ill). S~i3tiU%t 10 Of OAtd 

BY1 provides 88 follovs; 

‘Thtbt Artfals 6060 Of the INVised Cl*11 &tAtUkB 

Of l$@fj, 6XWpt 80 fAl' I8 it ~OBtlO A li0OXlBe fW 

0%' tAX Of C2l+fOUl'tb Of Olld FOlr 0-t 4&liBt p4l’BWlB 

OVltt3& OpiH+AtiaS: OF lBtU%$$in$ pi- lit306 AS PS’OVidad 

in Settlon 2 of Artiole 6050, iB hsnbg aqeaLs6 snd 

cold fund ohall bs wed for miorak.3 the ~WN~B~~B 

al Artlolea 6050 sad 15056, iP4ltt~i~8." 
Thesfore, retidtig Articles 6050 and 6060, aupra, together and aa applied to the question before us, they provide 

aa follaira: 

“Every corj?orstion engaged In the busin of 

ovnmg or aperatlng or nmaa&ng a pipe line for the 

tmQicpo*tian of or osrrlage of natural gsa, whether 

for publ%a hire or not, ff any part of tba ri@-ofvey for 6aSd Unit has boea acrqubed or aiay hmeaftor 

be aotpired by tha exerolu of the right of ewxt 

dcualh, OP if said line, or auy pa& thereof la laf.d 

ugy, over or uador say publLc road or hl&vap of 

s state, or if auoh corporation is authorized to 

exeralse the right of ea~in~t d-in, sbsll pay a tax 

of one-fourth olt one per coat of ita grosr inaoam.” 

R&public Oatural Q.&s mapauy i8 lnoorpomted under the 

lavs of the State of D&~vare end en Jammrf 2, 1935, WI granted 

a~pmmlt to do buaineaa in the State of Taxaa. Tha palet of thit 

gas aaapsny autheriaer It ato ertabllsh and maintain an oil buaiau8 vlth authoaority to oontmtat for the lea86 and purah8ae of the 

right to pmmpeot for, davdop and tud 0081 and other mlaenla, 

oetrolowa and gas; also the right to srwt. build aad &all 

boou8az-y 0l.l -hits, eera aad &pm8 for tai, opratloa oS%he buslLI188 Of SW. a**" 

above purpose 16 authorlrod by Sootlcn 3Tr Arti 

Civil statutea. 

To arrive et a ocsaluslan 88 to vhothr or not the R6- 

publto liaturel WI Cm&may i8 Uabl8 for the tar it ia flr8t ne008- 

Um t0 &tOl'iSiao td'M ~tW@ Of it.8 bU8ias88. Thi.8 18 ~0~8MTp 

for the maaoa that Artiole 6050, l up r a pro , videts h a t tb ta x j 

8hall be psid ""S""i8e 

% 

or maae&.ag 

in the bu6lneaa of ovning or 

Pm the tmuisportatloa or asrrlage =F- o 

aa Ural gas. 

From the f8Ot8 befOx' UB it Sip-F8 tht t&O Rspubllo 

RatlW81 oar caqpany 1s authorLaml to 0mgage in the oil burfIk0SS 

vSth the authority to proap8ot for and davelop 4588 v&la together 

vitb the xQjit to ereat auah tank8 8ad pipra aa are neaesury for 

the OpWatim af ita bU8ia088. It further appears that the gas 

ocapany avna a ma&or of gar well8 in the wet field, Sue008 Ooxinty, %SXaSj th3.t it h&8 piw8 l=Uil.Uing flW8 itS W0118 t0 S 08&2%1 
Honomblo Herman Jone8, Pago 5 

point on Its own lease where the gas is mold and delivered to 

the cltg of Corpus Chrl8tl through a l%ae ovned by that City. 

In fact, the Ities of the gas ooqmy oomtitut~ a gathering 

rgalxm vhich brings its gr4 to a point of 8ale and delivery. 

We have attaohed to this oplnlon a rough dreft Saovlng 

theloeatlonoftha gas oaepaq~slinoa, thero8da md thepolnt 

of dell.*sry to the City of Corpus Chrlati. Three of the llrma 

I travel frcm the various vella In a northerly dlreotlcm and orosa 

, stat. HQghvay Ro. 9. 4 Hovever,vvare iniormdthatthls hl.@vq 

vaa ooastruoted after the l%ne8 h a d b ua l r wted aa for th a t 

roa8on ve till not be Ooaoerae6 Vith the80 lbea vlth mpvst to 

their oroaalng a publio mud. Itvlllk notedtkwt tvo ILnoa 

of th4 gas oceapmynm from thenorth 8Me of the ga8 ooapaayta 

loa8.8 l.n a aouther q direotlon aad ero8a a publlo rowl at points 

la6leated "A" aad % oat&map rttaohedhmuto. l%ulips “A” 

is OaO Wed t0 @bul?lry -8fOr j&tirrg vCrn8 ti do.8 Xi& *lItOr the 

llaea uud Co lbm.lsk the city. Line @B* i8 a 2-l/2* llae that 

tsarrte8 ga8 aOro88 the pub110 road known a8 "Shell Read’ to a 6” 

line, thence to,the oity pipe line. 

Hov in oonsl6eriag vhethar or not the lie Hatuml 

or ynrg* 

it EWt k thought that 

t?ma8tuM1aad -atal levs of thu &a8 prQdue~ burtMsa. 

%iS bO&Ag tFUO, thO ~gi8&tUW kaOV, M 60 all maa, that it ia 

aotoseaaleally roaaibh to rwiapipa fwmeaehhllte the 

point of merketlag aa6 ulo, but that it is at t-8 noooaMry 

for tl3epraperoperotiwiofthc~ g88 wll8 k, sonatruot~thming 

l y a tws vhloh vi11 oonccmtrate the @r frw uoh veil to e Blrntral 

point an6 fraavWahpcdatthe gas is delinredtotheptwebaror. 

By thlo ve 60 &ot mean that a pro6wur omald,aot tm tn tb busl- 

~18s of OpOwt&g a pipe line but ve do aqui that a prodrrcar 18 

aOt U1@ge6 in thU pipa line bUS%XM8S 3USt kO8U8e ha Purt aOQO@- 

If It be true that Republio Watuml 0~ Oaapurr lass l oqulrud a part of it8 rQht-of-vay for it8 pipe line w Wu exrr 

ciao of the ri&t of srfau2t domain OP ha the powr to exawc5e~ 
tba right of adaant dcaaia or that hl8 lines do oroas over thu 

public road, all am 1s provided kr prbrogra9lI 2, Art.1019 6050, 

8upra, l wh vo uld not titer thu bO&S~tiVO UUida tO. ‘1ZlfS iOr 

the reason that thu flrstpmm~alt*la that the g88 OWpMy 

You am, themfore, advised th8t8uohgaa ocqnuq is 

aot liable for the one-f'ourth of ame pur oont tax On its @ema 

noe~pta a8 provided in Artlole 6060, 8upm, as ameaded. 

Bovwer, ve am of the opinioa that Republlo lUtuml 

@6i8 w i8 Ol!l$3tb&Od in t&O bor%lWS8 of 

P 

2'0&&!3ing Mtti g&8 

for publio une four oaSpmu6tien u#I for 8~ 0 to mntolpalltiea am 

prodded ln paragraph one, Artiolo 6050, mpra,orda8 auuhmmt 

make the ruport8 roquUmd W hrtlale 6056, l up r a . 

We, therefore, owrrulo mar oplnlon lo. O-Jg24, in 80 

far U it hold8 thBt 8crpobliO Ia-1 tkbu CarpBnJ $8 8UbjeOt t0 

the tu am providsd In Artlale 6060.