OFFICE OF THE ATI’ORNEY **GENERAL** 

### OF - **AUSTIN**

or. Gw J. Gtraoar,Director Qao Utila.i.ee

Division Bailroad Conmloeionor Terss MrJtsn, %aa8


### Dearsir:

,

b **yootlr iettcrr**  **0r** oat0 your requeet 

### ror

Texas eale to the CLtp 

### 0r Palaoloe, 

### should the City 0r Palaaloe aaqulre a dfetr~butlonsyetem to eerve itia rerlidimte.
“The above deskbed bperationswere begun about Deosmber Xl, 1940, an8 rrlnae that time several bemade have been made ot Paltef Oil 

### aa G.56 C0111pan~

to 

### file with the Raimaa Commlsslon **or** Texae the quarterlyreports required ot gae pipe llno operatorsby article 6080, Beylfied Cltil Dtatutea, 1985.t I&. Gue J. Strauee,page Z

! ..' ". .c Pi;.>

“The RailroadCodraion or Rxaa haa pre- : roribea a form o? annual report for suoh oparatwa, a8 provided

### ror in Artiole 6056, liwised Civil Statuter, 1926,ma d6Wna8 hate been made of - 

### thi8 oompany

### to rii6 suab anaaal report8rtth 

### the Gow&3e~00. Vhe C0mpan.J

ooatenaothat it i8 not a utlllt~ and that It 18 beyond the power or tbm Leglrlatare 0r Texar to olaerlry it aa rush; aad it haa, theretore, reXuse to ffle the report8requfredby drtiole 6060 and the order of th8 .CoPniaaioa 6ntcrea und& Article 6056, It baa ale0 refueedto per the &rose reoelptatax68 $evledby article 6060. "* **

You pmpouad the question:

"'Plea86

adds6 u8 at pur earliestoonveniencs (1) whether or not it 18 your opinion that Paltsr Oil ah6 Oar company is a gai utility a.8 defined by Artiale 6060, (fi) ii it i8 anbject to t&e report8 

### tuiatare8 preecrlbe(l by Artlola 6060, et16(3) ha8 the CoarnlSEiiOn authori.ty

to requirethe Oompany to 

### rile the imaual raport ptisori,bea by the COIDIP~~- sion under Artiole 60567"

We have asoertalaedfrom the Searetaryof .State that Paltes 011 an6 Oa8 CO~QM is a Texas oorporatioa, bsvlag aa its purpoose.

0hn8e "to ertab



### J 8b Ma Mblt.dQ an oil 

### bWhae88 with authorityto oontraot

### ior the lease and purohaae ot the right to prorpeot ror; developaad.we aoal and other mlnaral8, petroloam -awl-8; also the right to erect, bail4 and ovm all avowaary oil take the basine88 o8 oare ~aad gipse neceaaaryfor tba operationof the aaw. Subdiriafon37 0r mtiole 1302, Veraon*sAnnotated Civil Statutes.

a06 6060, 

### V.The pertlneat etatrrtes ore iirtlales

6050, SO66 A.C.S., WhiOh are as rOilOW8:“Art. 6050. Olaoaiflaartian *The tean *gu8 utility* an4 **‘ publio**  utilltp’ or futility,’au uaeC it3 t&is subdirfrion, waw anb inclubempersoda, eompaaiesanb private uorporetfoas,their lcseeee, truatecrs, **3na** reoelvers, owaing, tmm.ging,oparating, le3aingor oontrolling within tiia t;tate

cony wells, pi;le

lime, plant, property,equipsent,Snoilitg,fronohioe, license or pernlt **ror** sithsr one or nkore of the following kind6 or ~wlnesat

uaaa

.‘*Owning or operatingor managinga pips

. line for the treasportution or oarrfageof natural ga8, whether SOT pub110 hire or not, if any pax3 of the right of way for said 111~ ha8 been aaquired, or m4 hereefterbe aoquireaby the exerolae or the d&it 

### 0r eminent 

### a0iianl or If e+fU line or any part thereor ie la14 upon, over or under anp publl~me4 

### or highway of thla State, or street or alley of any muniolpallty,or the right of way of any railroad or other public utility; lnclwiingalso anf natural -8 u%ilit~ authorizedby llzw to sxeiciae the right 0r eminent 4om~1n. (1st * *s

*Art. 6056. Operator'sreports "The Coti8eion may require of all persona or oorporatfonsopera.t;lng, owning 0s contmlliag auoh gar.pipe llnee auorn reportaof the total qunntitfes**0r** gae dietrOuted by suah pipe line8 and of that held by them in storage;an4 aleo of their aouroe OS oupply, the awabcr of well8 fcon which they draw their eupply, the an&at of preeawe malntaineb,a.124 the mount end oharaoter and de6OriptiOri 0r the e,quipaent employed, and rue& other matters pertainingto the butdneffraf the Commisalonmay seem pertinent.W%r. Qua J. istrausa, page 4

I

*Art. 6060. ut 1llt.p t&X
"Xver7 gas utility subjeotto ths lffovlslonU 

### or this subdlrlsion oa or ber0re the first 

### day of '~JanaQry

and quarterly thereafter,shall file with the Qo;rmission

a ststsaent,

duly verifiedua true and oorrsot by the president, troaeurer or general manager if a oox~j~~ny or corporntion. or by ,the owner or one oi them if an individual or co-partnership, showing the gross rsoelpta0r such utility r0r the quarter next preceding or for suoh portion of edd quarterlyperiod as such utilitymey hsvs been oonduotlng any busl~eso , and at such tirzer shall pay i.nto the State Treasury at Austin a scra equal to one-fourthof one $er oeLt of the gross lnco:m re- . oelv.rsd f om.all buelnoss**done** by it within t&la 1Er Stata.du ng said quarter."

In pu OpinionMO. O-352!4a, the orlglnal~of

whloh you 

### huve in your,.b

f<loo, we had before us the puentlon of whsther the hspu'blld atural gas Company,organlsedunder ths sams subdlvislon,

war rspulrsd to rii6 the report8 and pay the taxe8 sought to be required in the instantease.

ke thera held that t& Bepubllo Patltral. @as Cornp&.war not liable for the gro8s reoelpt6tnx ee providad in Article 6050, supra. &oh holdingwas predloatedupon tha propositionthat the co of gming or owrating 

### or transportntion



### or oarria ale dOO#)t

that the transportation of natwal gas was but inoldsntalto the erooutlonof its 

### athad gas produolngbtMnes8 under gurposr of opsratlng an 011 ubdlvlsion97 of Artlols lSOE, B.A.O.S.The faots upon whloh the Eepubllc o?inlon was writtenwere8

The oompany owned a number of gas wells In the Saxet Field, lueoea County, Texas; that it had pipe lines from its wells to (I

central point on it8 own lease,where the gas isrola e.hd~dellvered 

### to the City or Oorpus Christ1 through a line omed by that ofty; its lines oonetituteda gathering system on its own leases which brought t)le nns to a central point l'or

sale and delivery.h4r.

Gus S. i3trauas,

page b 

### ’ f 

## lt3f-3 _~

In the instant aase, Palter Oil and &IS Corapanp 18 not fsllfng gaa whioh it is authorizedby its oharter to prodtaoei **porting** It is purohaslnggas **rroa** other produosrsand transit through its cm lines iOr the purposs Of rs8sll.l~ said gas to ths Units6 Stat88 Omernmsnt. Ws do mt pass **upon** the qwetfon of the **right** of Palter 011 **and Oas**  Compa;r urndsr its ohartex to purohasegas for the purpose of resale. Bufrios it to my that by rirtua of its doing 80, it has, in our optaion, oonetltuteditself l gas utilitywithin tka plain language of A~tlole 6060, 

### eupra, and is repulred to file the **reports** sad pan ths taxes pruvidsd in Artlolss 6OS6 and 6060.



### )

_ Lloyd ArmstfOI1(;

Assistant