OFFICE OF THE A-HORNEY GENERAL OF TEXAS AUSTIN

Hr. John II.

Tayler,chief Supsnlaor Oil& 0s~ Dlvlrlon, Rallroa Comal88lonor Tuu Awtila,Tow.

Dear slrr

17, 1940, in Vhlah, 1, 3, 8nd 7 or St8ttat.8,

rou uk..-

xr. John 3. Taylor, **?aga** 2

‘I r

. If th. CoaaiS8iOil finds tbst to OUX’tail the pr&iUCtiCnfl'om, OX' shut in a well p~~duolng faweetgas' will re8ult ln vaets or loss of the Veil b0OOU80 Or phy8iOtbi OOnditiOW in the X%WCvoir, doe8 tb8%~8SiQXl have authorityto allow the gas produoed fpop suoh a vell to be burned in the nmnufactum or **carbon** black?
"6. 3 the gas deooribedin questions3 and 4 IS held to be 'Uae%inghead @w' nay suuh ga8 be vented to the air elthm berore or after it has been processedfor Its gasolinecontent?"

Our anwars to your questionaare aa Pollov8~
1. "naturalqas." In our cplnlon Dcssing!mad ga8” Is a form of There is no derinltionin Article 6008 or the term 'naturalgas," and itis, therefore,to be construed in Its 

### ordinary

oignlPiostlon. Article 10, Section 1, Vernon'sAnnotatedCivil Statutes. The ordlnwy Slgnlflcatlon of ths tern asiatural gas" lnaludesall &a8 prodwed from s natural subterranvanre8ervolr, a8 di8tinguishsd Iboa &3aS gPnu%OtlWed fiO= OttlOP 8Ub8talXe8by artiflOia1 &ZWC88808, and thtBZ%fOPe tXlft1UdOS CWinghssB gU. It a180 nay be 

### noted that Artlole 6008 by implicationlnoludeS 

### *caaingaOt%d SS” in 

### “WtUM~ @8; ' iOr elanrple, 8Ub8eOtloXI

(h) of 8wtiOlt 2 proVid8o at ‘8VWt @la" 8-11 Si8U.t *all PatulYbl~8” OXO~t"80UP@Sm~d "WlQ@Wd@=l."

2. In our opinion, 88 prodwed Srom & well producing oil at a 4388-011 Mao OS 100,000 0ub10 feet of gas or leas per barrel of 011 and vhlch co&al118we f&an l# graina oT hydrogen **sulplaide psr**  100 oublo feet, 1S

‘Ctb8ingheod lJB8,” and 18 not ‘8our ga8,” and Lb8 Railmad t%I4s88iOn 5y not ?.imit th0 080 Of such @8 t0 the Wpaces provided for '801~gatx."

The StcltUtOry

Oti88ifiCZ4tiOn8

Of "SOUPgU" aab "ca8in@sSd @bS" Sir8 not abSoluteiyClOU. Und8r the provioion8of 8ubSeotlon (g) or motion 2, Art1010 6008, sour ?jas" Is detlned,amng other thiIlg8, a8 bein "mf 5tUrsl gas oontalnlngmom3 than on8 and onehalf (1 ) gM+ Or hydrogen sul?hldeper one hundred (100) cub10 feet. The tern cosin@ead gas* 1s dofind by subseotlon (1) Oi 88OtioP 2, hrtlole b008. to mean ‘anp gpls and/or vapor lndigenarrs to a 011 swatun and prodwed fmm such strrtuavlth 011."Iir. John E. Taylor,Page f

It vi11 be noted that there is no e24W.88 language in the 8tatUtOSvhloh vculd ~%olude 4ca81a@ead ROI" frcm also being =aoW -8." Thi8~8ituatlon**18** to be o&msted with the **e~tp388** provllrloa under subseotloa (h) of section Artiole 6008, that "the4 term 'awiotga8' ah11 mn a11 ratural **@a8** except *low gas* and 'aaslnghead **ga8.l ”** 

**We** believe,hovever, that It YIN the Intention Of th0 ~gi8hLtUl'6t0 r68triOtthe term *0~8LnghUd **-8 ’** 

_ _ 2,

t0 g&8 **VhlOh** 18 PCoduOWlvlth 011 fl'Om Q11"Oil V811” a8 that term is dcflned in 8Ub8wtiOa (61 of sootion 2, Artlole 6008, and to rb8trlet ‘8VCt.t gU* Uxd **8OUP** @cl” to w produced fPOlS a “&as VOllX U t-t t6M 18 d6tirud ~II 8?&86OtiOZl (d), aectlon2, Art1010 6008. Our reasonsfor thl8 conclusion alw as follovsr

(a) The term "o8slngbmd gas" in its ordimry algnlficatlcnla ceetriotedto gu produced vlth oil from an 011 well. In th6 CMO of Humble 011 SC Ratlnlngco. Y. **Poe,** 29 S.Y. (2d) 1019, Judge Lmddy of the Com&sslon of Appwla, said:

"Then 18 m vell-dotinoddistinotlonln lav betveea @8 produoedfl'om 8 w8 **~611** and Caringhead-. t'h0

lM&VriB tbatvhioh **f%W8 iFOn**  oilvelln, comingbetveniin tbo easingand the tnbing. VestoOtt'8Handbook **of** C&l.n&eUl **0I8** (2nd Ed.) p. 6s Johnsos& Buntley'sOil BbI%s Produatlon p. 1701 H8gnolirPetroleumCo. V. Connellee [To=.Cm. Am.) 11 S.U. (2d) 158; HuS80119rn

v. f&gnollnPetrOleumco., 107 okl. 183, 231 P. 526; Rullmdoro v. laimshaa oil co., (Okl. Sup.) 233 P. 1051."
380 slso the folloving**aaSt)8, adopting**  the same coastructlonof the tern "oeslnghead gas." Nullendon v. ,Rlnnehosta

011 Co., (Okl.)246 P. 8377, UtllltlesProduotica Corporationv. **Carter** Oil Co., 72 F. **(2d)** 655; 08nenl PetroleumCorpclgtloaor Wliiorai.8v. united St8te8,24 F. supp. 285: srea cannon oil co. T. Cawi~slonsr of Internal Rovonue,77 F. (26) 671 Utilitie8Pl%dwtiOa COrpOlUtion V. **Carter** 011 Co., 2 F. Supp. 81.

(b) We **belleve** thet the oon8truOtioa uboro adopted ia in coniormlty

vith the enewl latsntlonof the LeglsLeture to pr6v6nt the v-t6 of w -1 @a. f -OlS rsadiw the **prOV181orU**I&. John 8. Taylor, Pa@ 4

of Artlole 6008a8 a vhole, w believe tMt it **15** evident thet it ve8 

### ttm legZ8Utlvo intent?on to 

### put oaroful restriotioos Upon the ul)S Of &errflW# e;lu **V8118,** tb FO8trit3tiOtl8 gn "8veet ma (su&oetlon 1, 8ootion 7, Artlola 6008) being **mW0** 8t?h@Slt that8th. M8triOtiOM **OXI thr**  **US*** **Of ‘** **8OtU ’**  **gsrS, ”**  (8Ub88OtiW **2,** UOtiOll 7, &tiOlO 6008) b8OauW Of the adt&ptrrblllty

of avant g88 

### for u8b it3~enentltag light, or ?uel iOr darrrrtlo **-68. On**  **the** other **lsnd, the**  **Lagis** Letareevidentlyoab8ldomclthatvhore **gu l8**  **prohood a8**  a meo8ury lnoldeat to the produotlon of ail from aa oil ~011, the Value of the 011 produuvd **vould** varMatwleuse Of th0 088i@08d gU *?W w beZIOfiOu1 ~~~088.~ (Subsection 3, seation 7, Artlole 6008).

In vlevo? theabeV8 ooMlderatleM, ve oom?lude that the term %u~ g& appllo8 to 811 @8 owed fMmr any ‘Oil Wu” CA8 db?iXbOd %Xi 8Ub8tMtiOIi (e), aeOtiOn **2,** Artlole 6008, aad tbt the terma %veot 8~” and “aour m” wly 0aQ to ~roduoed from any "@Aa ~~11," 88 dbflmd in subseot%omn 8wtlon 2 of Art1010 6008. Slnas, under tlm provisions of sub8aotlon (e), 8eotlon 2, Artlol~ 6008, **the** tern **“Oil ~011**  **” ine1rdO8**  mj well vhioh ~we0.0~ Mrrel or more OS orwio petroleum al to ssch lOO,ooO oublc feet of lvrtural

gus, 8 v&l **prodwAng** oil at a m-011 ratio of ?oO,OOO aublo feet of gae or 11388 per bar-1 of oil vould bo an "011 wilt" and under our oon8trwt1on of th8 torn "out gu# the vould be %881~ go,' &%8 produced ira 8Wh oil wll and vould not be '8our &w," Mgam¶leaao?vbet.hezthegiuoontU8dmo~t~1~gWnr, Of **-XI S~&~hid+3**  **pOC 100**  **OUhiO ?Wt**  **O? gU.**  **u2XbP th8**  pVt81onll of 8llh8OatiOII (3) Of section 7, htiOb 6008, cwlngheudg~wyb8 wed ?orfmytmmfiolalmwpo8v, vhioh lnaludm the iaulu?8cture or natuxur peuollIle," alM th0~88 Of 8uOhg8818 Pot PO8triOtOd t0 th0~88 fo, “8OuC **@&8 ”**  **under th8**  **pFOV181OM Of**  8Ub88OtiW 80OtiM 7, Artiole Gao8.

3. In our opl.tdon, gma pswdwled from (L well prodwlq 011 at a g~-ell rstlo of in 8x0088 of 100,000 oublo feet of gas per barrel of 011 and vhloh oontaln8 more than l& g~lns of hydrogen mlphlde per 100 oublo fwt Of @a 18 “oour &a8D aJld

not 'orSlZ@e%d gU." SUbWOtiOZl (d), 8WtiOn 2, Art1010 6008 define8 a ‘@I# veil” 88 b.ine, -QM 0th~ things, a veil vhlah mprodwe8 pocd than om htmdmd ~~ (ioo,ooo) ouwo feat of rptd ma to escrh“f ‘*;;Erez prtmib\nr **011 from**  **th8 8am8**  **producir43 horison.**  **.**. I

plc, John E. Taylor, Page 5

~OViSiOAS Of 3UbSeCtiOA(g) Of WCtiOA 2, hrtlole 6008, the term "sour gas' is dofIned,azsong ot!zeer things,as being %ny naturalgas containbig more than one ad one-half (14)gmim of hydrogen sulphidepsr one hundred (100) oubic feet." ft **la** clear that thewell referredto In JOUC third questionIs a gas yell, as defined in the statutes,and under the eonstruatlonadoptedahove, the &as produaedfrom such well vouldnotbs casIr@madgas. Becalub of Ita cantentof hydrogen sulphlde,it vould bo "sour gas" InsteM 

### or "meet gas."
4. IA ouropI~Ion, the gu produced rromawll prodwing 011 at a gas-oilrat10 exceeding1OO,OOOoublo feet or gas perbarrelofoll butrhIohcontaIns less ttisn1~graI.m of hydromn sulphldeper 100 cub10 feet of gas vould be "sveet gas" aAd Aot "CaalAghud gas.* **Aas**we have pointed out in our **anwer** to questionXo. 3, since theveil produces011 at a N*er oil-gasratio than 100,000oublc feet of gas per barrel of orude petroleumoil, t&well would be a gas ~011 aa not a~ 011 well, axxl the p groducedhrol 8-h well vould not **bo** =omIngbead gas. /You vi11 ot cows., note thatunder the provtslo~~of subseotldnlg) OS sootIon2, &tIole 6008, the tom 'sourgas' Includesnot only gso which c0ntaIAamore than OAe and OAO-halfgrainsof hydrogensulphIds per 100 cubIo foot of' gas, but also gas rhiub oontaias
more thsn 30 grainrr of total sulphurper 100 o&Ic feat OS gas,or gasvhlohlnlts orturalstate Is foundby theCow sd8810n to be unfit for use IA ge~~ratlnglight w fuel for domsstlopurposes. Ye assume from the vordUag of your question that the gu you rorerto In your qtm8tIonXo. 4 does not O- **~ithb** mj 0f tb80 provisions, md ii this u8umpti0n Is cormot, the gas **would** be 'sveetgas,' and not either "casInghead

gas' or "sour@is.'

5. IAOW OpialOn,th0 C0!m1I8sloadoOs notbav. authority to permit the we of "sueetgas' In the mmfactum of carbon black, exceptvharo It is used as gcrs Utt under t&e provIsIonsof subseotlon (4) of seation 7, Article 6008. %bWCtiOA (j) Of SOOtion 3, btiCle 6008, S&WOifiti~J provides **that** the telP "Mt.' Sbrll iAOlUde 'ths US. Of EJVOet gas pro&Wed fromaga8vellfo~th@ Eamraattlm or UPbOA blaak.'and **Bctd** 8wtIoA furtherprovidesthat "the produotIon.

road i!CSSlSi88iOA In olearly UmIted In its powers to tha ourelse of 8-h sutborrity u Is delegatedto It by the Ugislatum,Yr. John B. Taylor, Page 6

md it vould be rothg UrslrvfUlly If It permItted Amy we af mot gas vhlah 18 erpoessly prohibited by the statutes. Ibuici er 011 b:

Refim.lng

Cs. vs. Rallrwd Comio8lon, 49 S.U. As to uhether or not ths statutory ntakriotlonupontbusoofmmotgUwuldbov8llduDdtwtho oeouzmtames stated 1~ your lotter, w da Pat l qwoss an opinion, 8Inoe it 1s plain tb8t the Railroad OamIuIon vould only be authorlud to do those thl!qs vhlsh are pernitted b7 the 8atUtU Of w 8atO.