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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 Anypwsoxl 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 otheruse. "2. Ovnlag or 4pentlag ormm&ag 8 i~llae far the tmnsportatlon 

### or 

### 48rrlage of matma **gas,**

f 

### vbathorfor publio him 

### or not, lf urf p4rt of tlm right of upl for SAM llm **bos** been Aaqulnd, or ~LBJ hemAfter b8 AcrpUimdby 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 

### otherpubllo 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 GAB08tth.PttSt&t bVBf.WBB 18 ta IAct 

### theQnlyQrpzpstleell.7 ox4lusl.ro4gewq of lU 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.tQAffe0td 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 OSthnt held by themin **stemgo,** snd **also** of their soums of supply, the nuszberof velln ftornvhicb 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 Utili**  **tie8 AS**  cm tithin the #‘OViBiOtiBOf Artiols 6050, **Bl@M.** Ssid Artlob 6060 **18 AS**  fdllmrsr

"Every &aa ut%llty BUbJO4tto th4 pr~vl~lctns of **this Bttb&b3** **’ %~iOaQttOX** **’ bOfOl** **’ B**  **the fiMt&A~**  **4t** Janusry madqusrtcrly **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 mayhave 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 OlldFOlr0-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 6050sad 15056,iP4ltt~i~8."Thesfore, retidtig Articles 6050and 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 aiayhmeaftor 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 0081and 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 buslLI188Of 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** 

### thatArtiole 

### 6050, l up ra, provides

that tb tax

j 8hall be psid ""S""i8e % or maae&.ag in the bu6lneaa of ovning or Pm =F-

the tmuisportatloa or asrrlage o aa Ural gas.

Fromthe f8Ot8 befOx' UB it Sip-F8 tht t&ORspubllo RatlW81 oar caqpany 1s authorLaml to 0mgagein 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, %SXaSjth3.t it h&8piw8 l=Uil.Uing flW8 itS W0118t0 S 08&2%1Honomblo Herman Jone8, Pago 5

point on Its ownlease 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.

Wehave 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.HQghvayRo. 9. 4 Hovever,vvare iniormdthatthls hl.@vq

**vaa** ooastruoted after the **l%ne8** had bua lrwted aa forthat **roa8on** ve till not be Ooaoerae6Vith **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 aoutherq direotlon aad ero8a a publlo rowl at points la6leated "A" aad % **oat&map** rttaohedhmuto. l%ulips **“ A** **”** is OaOWed t0 @bul?lry -8 fOr 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



### vhetharor 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 yatws vhloh vi11 oonccmtrate the **@r** frw uoh veil to e Blrntral point an6 fraavWahpcdatthe gas is delinredtotheptwebaror. By thlo ve 60 &ot meanthat 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 loqulrud a part of it8 rQht-of-vay for it8 pipe 

### line w Wu exrr **ciao** of the ri&t of srfau2t domainOP **ha** the **powr** to exawc5e~tba 

### right of adaant dcaaia 

### or that hl8 lines 

### do oroas 

### overthu

public road, all am 1s provided kr prbrogra9lI2, Art.10196050, 8upra, l

wh vould

not titer

thu bO&S~tiVO UUidatO. ‘1ZlfSiOr the reason that thu flrstpmm~alt*la that the g88 OWpMy

You am, themfore, advised th8t8uohgaa ocqnuq is aot liable for the one-f'ourthof 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&Obor%lWS8**of** P**2'0&&!3ing**Mtti g&8 for publio une fouroaSpmu6tien 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 ra. We, therefore, 

### owrrulo maroplnlon lo. O-Jg24, in 80 far U it hold8 thBt 8crpobliOIa-1 tkbu CarpBnJ $8 8UbjeOt t0 

### the tu am

### providsd In Artlale6060.