May 31, 1966

Davis and Water ConservationHoard National Building Temple, Texas OpinionNo. C-699 Re: Does a Soil and Water ConservationDistrict, as a governmental subdivisionof the State of Texas with powers and restrictionsas set forth by Article 165a-4,V.C.S., have the authority to form a separate corporation, non-profit in nature, to own and operate a natural gas distribution Dear Sir: system? You have requested an opinion of this office concerning the following question:

"Doesa Soil and Water Conservation District, as a governmental subdivision of the State of Texas with powers and restrictions as set forth by Article 165a-4, V.C.S., have the authority to form a separate corporation,non-profit in nature, to own and system?"

operate a naturalgas distribution

A "soiland water conservationdistrict" (now so dasignated under Acts 1965, Page 370, Ch. 176) is governed by the provisions of Article 165a-4,V.C.S., such law being passed to carry out themandate expressed in Article 16, Sec. 59, Constitutionof the State of Texas. Article 165a-4 authorizes the creation of such districts and vests them with certain powers to carry out the purposes set forth in the statute. Such districts are political subdivisionsof the State with authority to exercise certain rights,privileges and functions pertadning to conservationand reclamation. Attorney General's OpinionV-999. The districts authorizedby Article 165a-4 are vestedwith the samepowers and must operatewithin the same limitation as -3370-Mr. Harvey Davis, page 2 (C-699)

other conservationdistricts authorizedby the Legislature to carry out themandate of Article 16, Sec. 59. Attorney General's OoinionNo. V-69. A soil conservationdistrict may thus be*consldered to-perform limited rather than general functions. Lower Nueces River Water Supply District v. Cart- ~;;;3", 274 S.W.2d 199, (Tex.Civ.App.,error ref., n.r.e. Speakinggenerally of the nature and extent of powers possessed by a conservationdistrict similar to a soil conservationdistrict, the Supreme Court, in Tri-City Fresh Water Sunply District No. 2 of Harris County v. Mann, 1% Tex. 280, 142 S.W.2d 945 (1940),had the following to say:

"Thepowers of such district are measured by the terms of statuteswhich authorized their creation,and they can exerciseno authority that has not been clearly granted by the Legislature." (&phasl:s added)
A close review of Article 164a-4 falls to yield any specific authorizationallowing a soil conservationdistrict to form a separate corporation to own and operate a natural gas distribution system. Failing such specific authorizntion, we therefore conclude that under the terms of Article 165a-4, a so11 conservationdistrictmay not create a separate,nonprofit corporation to own and operate a natural gas distribution system. SUMMARY

Article 165a-4 does not authorize a soil and water conservationdistrict to create a separate,non-profit corporation for the purposes of owning and operating a natural gas distribution system.

Yours very truly, WAGGONER CARR

era1 of Texas

GCB,jr/vmo AssistantAttorMr. Harvey Davis, page 3 (c-699)

APPROVED: OPINION CCMMITTEE W. V. Gsppert, Chairman Pat Bailey Roy Johnson Roger Tyler Wade Anderson APPROVED FOR THE ATTORNEY GEZiERAL By: T. B. Wright

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