is a ~011~ defineddistinoti,onin law batwsengas producedfrea a gas wsll and oashingheadgas: The latter is that which flows from oil wells . . ." .- .- . . -
Hon. Olin Culberson,Page 3 (O-7096)
HmableOil & R-finingCOO Vo Poe, 29 s,x (zd) 1019 (Camniesionof Appeals). This constructionof the tsm "cashingheadgas" has also been adoptedin the followingaascs: Mullendorev. Dennehcrma OU Co. (248 Pac. 837)~ Ctilitis* ProductionCorp.v. Carter Oil Co*, 72 F&L (2d)'655$GeneralPetroleumCorp. of Californiav. United S+ate*,24 Fed, Sup, 2853 Brea CannonOil Co. vo Cam- mission of InternalRevenue,77 Fed. (2d) 67*
Thus it i* that casingheadgas is definedas follows in subsection (i), ScctiPn2, Article 60081 "The term 'casinghead baa' shallmean any gas and/or vapor indigenousto an oil stratmeand preduoedfrom su~ohstmtm with oil." Subsection(h) section2, Article 6008 defines"smet gas" as meaning 'all.naturalgas except 'sourgas* and 'casingheadgas.," 'Thefactthat the oaslngheadgas which is the subjeotof your letter is desoribedas being "in the categorywith sweet gas" doesnotaffect the applicationof the statutes regulatingcasingheadgas as such. %e held in Opinion Eo. O-1760 dated March 13, 1940, addressedto Mr. John E. Taylor,Chief Supervisor,Oil and Gas Division,RailroadCanmSssion,that the tens "casinghead gas" is restrictedto gas which is producedfrom an "011 well" as that term 'isdefinedin subsection (0) of Section2, Artiole 6008, and the-terms"sweet gas*~and"sour gas" to gas producedfrom a "gas well" as that term is d&finedin Subsection(d), Seotion 2 of Artiole 6008.
Casingheadgae not being Foduoed separatelybut only as sn incident to the productionof oil, section(a) of &tie10 6014 authorisesthe Railroad Cammissionto fix the efficientgas-oilratio for such production. The gas producedunder the fixed ratio may, under Subseotion(g), Seotion3, Artiole 6008,be permittedto escapeinto the~openair and the provisoof Section(a), &ticle 6014, is a specificlegislativedeclarationthat the utilizationof this casingheadgas for the manufactureof naturalgasolineshall not be includ- ed within "he definitionof statutorywastei Therefore,easingheadgas is removedfrom the operationof subsection(i), sectionS, Article 6008,the purposeof which is the conservationof the naturalgasolinecontent.
It is manifest,however,that any beneficialuse of cashingheadgas lawfullyproduced(any productionin exoessof the effioientand fixed gas-oil ratio being of courseunlawful),ratherthan its esoape intothe open air, would be in the publicinterestand is contemplatedby subreotion(3), Section 7, article 6008, providingas fellows:
"(3) Casingheadgas may be used for any beneficialpurpose,which include8 the manufaotureof naturalgasoljns.!'
Aacordingly,it is the opinionof this departmentthat cashinghead gas which ha8 not been processedfor the removalof bydrooarbws maybe legally utilizedfor the manufactureof carbonblaok where the recoverywill be less than five poundsof carbonblack to each one thousandoubio feet of cashinghead gas.
Yours very truly APPROVEDFEB 26, 1946 ATTORNEYGEI?ERAL OFTMIS /*/ CARLOSASHLEY FIRSTASSISTANT ATTORNEY GENERAL By /a/ eo11iec. steak1ey Assistant