OFFICE OF THE ATTORNEY GENERAL OF TEXAS



### Eoaomblo OoorgoIi. Zhoppard 

### Cc4mptroll~r

or Publlr AoroIlntr Auatlti, 

### mur

nt end hereby thantor the

MO he ha6 km

a oarboa ccmpany r0r 30$ of the sarbon xzodr ~0iiiothe 781~0 or urid 30$ k taxer at 1004
or money ta1u*9-onormblo Oeorp II. 'hopBird, l'8go 2



### In 

### the altuatlon 

### pre8ettt.d la thin quutlott the 

### t-0d~03 p08bu0~ 

### hi8 O*D 

### gu, uheerarr thbn IS 

### 80 f the gU 88 I880 It * upon tiOh th0 ~81118 th8nOr 8M Ot8 O8OOOO8rl t0l OOrt8itl tb0 VOlU Ot bl8 &..

l**B produae6,**  **MO b8for8**  **it im**  **pro8uaeo la**  tk* **g8a** IiD8 Qhtttt, U&Or th. to-8 Of H. a. MO. 6 0881mkO4 s fhb ‘O8OOll0 MOSUJI” Of RtdO 1 bt OtU Opl&t ii0. o-3516, hiOh -8&t

=. . . l 

### tty 8ua of monbyt&t 

### su8h gu la1 H@sombl;l **bTh# ii**  pPOdttO& **a 8OMI**  **118**8000&den&e dtb th8 ?u18B 8ad ~tUl8t~OM Of thb %8tO.*

**h rtrtoa**  **in raid**  opinion **RO. 0.3516,** 

**%t** 8ppliO4tlOhtO? **6db rU&**  **1** (ChDOtd **hri** 

### nltlon or tIarkrt Vslu8) l 811r for 

### 8 dotorminatlon by tho CmDtron8r Or Pnbllo **Aaootmt8** Or ‘IrI’kOt V8lU8', thst 

### 18, the aorrgtrollor or Publlo 

### Aooounte cttat l ~~lnb 811 evmilrblo OTidOMO, inobtding 881.0 ot OtbSr 08O b thb W8R8 688 r&Old, **that** chow or tend to ahow ***market** V8hO’ 8Pd rPar, that l Tid8nOO n8kO l riadiAg Or r8Ot U t0 Uhtth8r O? not thr g88 bM b68n 8014 for itG 'v&he Or Ub8t 

### the g8O **WOUid** POMOM~ b?bg if it hsd **kOtt** produU6 end 801d i&t l OOal’08llOO 

### With the 18W0, **rti8o** 8ld r8gUl8tioM 0f thi8 %8tO.*

YOU 8t8tO that .th8 protailiag pri80 iCU tho 8-8 

### ADO Or 880 itt thtI O-8 ii016 i@ 20$ O? th8 C880mO 8OatOat 

### per 

### oherooel te8t et thb 

### pria qtrotod In l tr84o **pabli~tloa** pi~8 504 or thb **TURBO** 8810e. 

### I? yw 

### hrto icod that 

### thla LB th8 #&8eOt VIM Or th0 go 10 th&8 fiOld, th0 %8X #had b6 **b88Od** Ottrueh t8lP8, 8tWl thOU@l **it** b0 bS8d Upoll&pglll'Wit

### Ly arbitrary ~mBum(l rueh 8B %ho guolltn owknt par ohm- ~orl k8t* u16 tho prloo oi 88rollao nbloh 18 **Wtotod** Sa l tr800prbliUtiOII,î irTUp bOtiV8 Or th0 8OtMi 8BOUd O? ICUallno 

### ortraoted, or tho pfloo et 

### rkloh tk ~rollae lm l

### O= truny rold. no ri8h to point **out,** hmnv8r. **t** hat th8 r00t tkut l mjorlty of 

### tha grs in mob flol4 18 balag so14 W8r **long ten3**  **ooatr116ta** whenun~or **the proboor**  roooiv88 **2ti of**  th8 gaBOlin **by** obroO81 tort 8ttds* O? th8 rO8idm &8a B81O0 

### r&d iS ~810 rOr hlr 8hUt'8Or 

### tho gUOlitt0 8t th6 9riOO **CuoteC** in 8 tr8do prrblio8tlon. i8 I%Ot ll8OOlJO8rily dOtOMh8- 

### tire **of** th6 **present** wsrk8t **reluo** 0t **tkm cp8.**  The 

### rrket volu ,

I
;’ s

.,:

I \**Or tb**  **~88 dght**  **OOfiO8iv8Uy** mOhUt8, UlLhOU(& rO8T. Of

**tl:O gFi8**  **Ol?UthiU8d t0**  **be! SOid**  **8t ihOd**  **priOSQ Wie8r**  **1~** 

### ten1 **0ontrsotS.** A **rSW TMMt**  **OOIItr8Ot8 rOr**  th0 **Ml0 Or**  

### l lmllrr

eer ln the rlolnity would b@ l 

### yore l**oourate** lndl08tiOtt**Or &WOMttt**  **r!8ri:8t T81UO**  thsn WUld th8 **t8l ’** **RS pro**  dded **la** ooatrroto m8ar 88vu81 **years 860**  

### under rhloh roe
or th8 ~88 in tb rl8id i. Still b8ing 

### sold. r.'hara &a8 ir 

### sol0 by the produou, h?r tox Ir baa04 

### upon his groor raoolptr 

### therMor (88 prmi400 lo Ruls 3 or 

### 4 

### or Oplnloa NO. **0.3516)** mgrrci88s 0r *OR h0 t34yh&r8 tmd 

### ittt0 m0h **COntnOt O?**  **S818.** Ir **him ger**  18 801a uno8r 8 low tom oontraot hi8 t82 till **Oolitillltb t0**  **be band**  **UpOn th8**  t8h;B **Of** hi8 **oontract,** 

### lrn89aotlto or fluotuotlonr ia th8 

### mrkot **~011~0 Of**  **tb8 g88**  **in #C**  **riS& 3ut**  

### whom, u la the sltwtlon u&or oonalder8tiOn, th8 **pxotluoor** prooraaee hla om gcla,

### his t6r is **to bQ**  owputed upoa the market rrlue of **th8 Un9rO88SScO**  **588 On**  **YOU FL8y**  

### filtd thu r&me to b @urine the eonth ior uhioh the tu 18 **pOy8bh. Ir**  **VU rhtc**  **8UCh** 

### market v8lU8 **to** bo a oompon8nt 0r Vo$ 0r the ~sollns content Fer OharC t@St 8t t)?@p?iOO quOtd :II8 tr8d8 publl08tiOCI9lU8 so"5Or the r88ioUO 80108". thMI **YOU** 8hOtm **US0** 

### suoh **r8OtOra in**  **OUUpUtt8&** 

### mrkOt VtiU8. lf on the othu **h8R6, you**  **find** 

### the pm8OtLt **RSrket Value**  **Or** tho **UUpWO88Std** ,rasto b6 bared upon 

### tho aotusl noorarg or grr8OllJi8 8t tho prloe 

### ror wbloh 

### it lo eotu8lly 

### fold, then 

### these 8r8 

### tlm **pro** 

### par ractoro for 

### you to osnnl4or ln 

### detcrv.lnin;; the **mtrrret** relum or 

### the c88 8a produood.

fh8 pHBVi8lOll8Or th8 ?Oydty **OOntrQOt8 8rO**  **Con tWJlllUg**  **88 t0**  **t&O Teh~**  **Or t)\8**  **l&h royelty**  **int8mUt, bUt**  

### ‘%a prlae rtodln4 **by** th* royalty 

### ownus would not 

### naoesmrilf **detomitie** 

### th0 38rk8t.V8lU8 Or the 108JSM'S 7/11th8 Of **?OO 8IWWW8**  **t0 tir8t**  **aOOond,** 

### thm doff rO%Wth ~*~ozl in Opinion Ho. **o-351&**

**Tour problor**  h&a ln to G8tolmiw tho fiOrhbtt8luo Or 

### tha 6US **8t** the **llrOUth Of**  **th0 b8ll.**  **tOU nf&ht**  **fm** tt8t them 18 8 ptw6ut n8rket r0r **@em,** 8s produoad, la this ii810 rt a mm OOX't81fl pur thOiU6nd oublo t@Ot 

### SR whleh 8B#8 **YOU** 

### kay uw suoh **taarkot** 

### reluo l

### 8 to gem whlnh 1s prooomed by 

### the produou 8fl6dlereg8rd 8~y erl8tlng **oontraote** 

### r0r th8 881~ 0r g88 **providing for**  **a** por08ntegr 0r th0 g8aO1luO 

### ana r881Cue **g88** dultod **th8rofron, ti**  **8rrlViOg** 8t **th0** 181UR Ot 

### the @Ml for t8X 

### 9l.U&WBe8.t?OAOrablO George B. aoppm6, Pega 4

**6W8tiOA** 2

"ff **nmidua** i8 ~616 at b# per UC?, end thm prwhmmr ummm mom58 rboldue ln lmau op4rmtloa, would thm gem hm umem bm tmxmblo **at** I& **or** mt 21 .MSuriA(L that ma16 **pro&au** noelTern SOB or tbm 41 **naldao** 8ol.dby the opentorTw 

### We868utam

that 

### in thlo **Oama** 

### tha prduoor mm118 hio **gam to**  thm **oprmtor** of the gmollna pleatunder l oon**treat** whereby **the produomr**  **nomlvmm** l paraeatago **ot t&m**  gmmolism aad other prodart extrmotml, plum ml1 of 

### the remidum **gmm** whioh 

### ho **may am.4**  **far hmmm**  **opmrmtlon, pl\rm**  **pa% Of**  **kbd pWWI68**  **fTOA the**  **88h Of**  **the -8iAh&**  **FSb~&IO gmm.**  **IA roof3**  **mmme t!lm**  **tmabl8 78h8**  

### ot the **gma 88**  **pro4ow6** 1s to be dmtmnalnm6 **by the8**  9ortloa of 

### Xoumo Bill 8, Artiale II, edgm8a **in** our oplaiom 60. o-3516 mm +ule 4~. 

### whloh nmdmr

"IA oama the who18 

### or 8 part 

### of **the oonmidmr**  

### 8tloAfor tha 

### 8818O? gmm im aAY 

### f)ortioa of WI. tmnluots

ltraotod

**frar maah**  **KM. thm**  

## tax l hmll km OonSptmd 011the groom t81uG O? the produotm

IO thim iA&tAWOe the ZOSiduS ~mm reOaiTOd **by** the pro&au from thr gamollnm plmnt **8A4** used by 

### him iA lmmmo opontlon 18 onm ot 

### tha *other thlngm OS tmlum rmamitmd*, IZOAti0A.d **iA th.**  **8t8tUk. 2318**  **T88idUS 4f88,**  **OM@8tSd** et it8 **a8rk.t tmlum**  **(*ioh** **r*t** **Or AAl**  **Wt bm**  **thm 8mPI**  l **8** tho **prior tor**  whloh the raaldam gee 18 mold by thr gmmollae 

### 91mA%) **Will be**  **OAS** Ot **thb i88tOl** **’ 8**  **iU dlt.Fdif~**  **t&e** tUl ble rmlum or 8hm &mm *a8 pro4uma4'. 190l rm **am8aaiAg** the this **remidw** gmm ummd by the probttmor iA lmrmm OpWmtiOn lm **not** 

### klag **injootod** hi&a the l mrth ior mtormgm, rmprmmmuting Or lifttn((Oil 80 (Lb t0 )aiAg it Withh the eX*wgiO8 ot =rulm 6'.

IA the **mitU8biAA** 

### ~m@AtOd br yooru mOOtBAd

QAm8tiOA t&a tmxmblo **raho** of thm gmm "mm poduoed~~ wiL1 bm the **aw&** 

### ot the folloulsq ltaial

(11 the gromm trlum or the produoer~m mhmn **ot** 

### pmmoll~m and aehar 9rOdUOt8 oxtreatmd.no~o~Nm Oeorgm H. r'hmppmrd,?mgm 5

(2) Tar mwkot vmluo of 811 tb 

### reelbum @a 

### ummd **by** 

### the **produoor** 

### for lmmmaopmrmtlon otherthmnthatlameted intothm l

8rth for 

### l

tormds, rmpremmur~~, **or** 

### llftlag 0i 1.
**(3)** 

### ?lttrpmrrmntof the gomm prommmdm or thm **ruidw** (Isamold **br** thm (86olbo PlaAk.

“IA 0888 

### them 18 A0 mrkmt lOr 88id N8fda., mad I- WOUU br rmntmd fat0 t&m Sir 88 thr pi&At, would th0 U8m ot 9N.t Ot **8aSb** F86idU6 by t&m m auoer at111 bm kxmbht It the e8 had bmmo t*ze& 

### et the linbur rots ot U/l50 of l# per MCI et the 

### nll he8d, would 

### the rmmidum urn@6by thm prduemr bmtared 

### l

dm1n?n Roplyiod to tha flzbt pmrt of four qumtioa, wm lmmunm t&t than is no 

### carkot for 8 -a 

### ot thm **rmmldw** 

### gmm, mlnmm 700~et&to that mmmieof 

### tha rmm w would k 

### vauted 

### intothe l

### lr. Fornrome rmmldum 

### &am uood bytbm 

### prodwou **ham a**  *urn***valuea** to 

### him, 88 it mmvmm him h6vl~d 

### to buy Sum1 or 

### poumr la other 

### fom, 

### muoham l lsotrfsity,011 or 

### gmmollnm. numbralumor 

### tha **realduo** 

### gem aoulcl

### bu A8trrafnmd 

### bf the prmraillag **prioom p8ld**  

### by otkrrm 

### ;!I the 

### field r0r 8lnilmr UM8. ?%boagh tb8FW bo 80 urket 

### tor & ot the ramldaa gae 

### l **rm~lmbl8,** 18 dOm8 aot r0u0w tkct the 

### nmiduo 888 

### l otaully usedby the produoar 18 

### vorthlua, or 

### thatbm would slvw
awar rm8ldAr 

### to him A814bbr rLtROUt Ohm-. CA3.Jirrthe 

### went thmtyoufit4 *a bmiryr

### ~gulmrly &rma l 

### umt frmeln the tlold, should **you oanmidmr**  th ?mmidum &mm used by 8 

### produou 

### In lmmmm 

### opmrrtloa mm

### vmluelmm8. Shllm tha reel&urn gas ltmolt 

### 1snot taublm, Oha trlum ot so a&eb thenof **ae** thv pro&soar wmb mhauld k tmkma Into rmoouAt ln 

### l oputin~ 

### thetmrmblm

rrlw Of 

### him &am %S pWdUmmdw~


### M to Ohmmomendpar8 

### ot pur ahid quertima, um mmmuw that 

### the minti tar he FOWL ~$6 br tb, 

### parok8nr 0A th0 

### born10

or 

### hia Mtt~0BOAt with t&o prodamer. Am 

### l tat6d above, when the grodummr 88318 ki8 gme for 8 9mrmmatm6m of the 

### produets

l traotod

mad thmnmidw gem, t&m ralum at the 

### gas 'seproduoedg 

### lo to bm o~patmd under 9~10 5. by tkm l

### tllc et **tbruo** 

### ltmr (1)thm nl,w ot **thm** proAamer’8 mhmn
or thm 1lqulAm 

### l xtrmotbA, plum (2) the 

### ~elmmOSthe 

### produomr~m l 

### hmre of the n&i&w 8old, 

### plum (3) the VmhIm ot tke rosidw

### Eoaorable Gaorgs 8. ?hopparQ, P8go 6

**used** by the **produ44r In**  **14444 oporstlon.**  

### rhir third itor should 

### be **00n~ld4md** 88 VUt O? th4 aC(gMg8t8 ~41~4 O? Oh8  rr**  **-aa rnC**  **rh4n produo4d** **’**

**. Ii**  **tb4** 

### l &-xq rt4

**~81~4 of**  

### the **thr84** it4u 

### 18 144 per Y.C.?. or 1081, t&4 

### hirlim\lr **t8x** 

### of ll/lsO of 16 **9ar** 

### M.C.? ., ~810 br **th8 parohaB4r**  **would be**  

### tha oorreot tax. Rat 

### lf the mm of the thrro **items** 

### bring **th4 W1U8**  **Of tba**  **648 “** **88** probUO@d- t0 ISDr4th8llt.U# Per x.c.t., thmn tbo tar rOti k p8y8bh 8t 5.2s Of 8U8h **V81U4** 

### bad the PrOdPOW 

### WUld St111 

### OI the t8X OliiUlJV81UO Of th4 gas 

### In 4xoe81 

### of l.bl# 

### pu M.C.I. 

### aftor the puroh488r hd ptdd tb4 &iniati kX.
Yourr **v4ry** truly