Case Information
*1 OFFICE OF THE ATI’ORNEY GENERAL OF -
AUSTIN
or. Gw J. Gtraoar, Director
Qao Utila.i.ee Division
Bailroad Conmloeion or Terss
MrJtsn, %aa8
Dear sir:
,
b yootlr iettcrr 0r oat0 your requeet ror eale to the CLtp Palaoloe, should the City 0r Palaaloe aaqulre a Texas
dfetr~butlon syetem to eerve itia rerlidimte.
“The above deskbed bperations were 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 Com-
mlsslon Texae the quarterly reports required ot gae pipe llno operators by article 6080, Be-
ylfied Cltil Dtatutea, 1985.
.c Pi;.> t I&. Gue J. Strauee, page Z
! ..' ".
“The Railroad Codraion or Rxaa haa pre- o? annual report for suoh oparatwa, : roribea a form a8 provided ror in Artiole 6056, liwised Civil
Statuter, 1926, ma d6Wna8 hate been made of - thi8 oompany to rii6 suab anaaal report8 rtth the Gow&3e~00.
Vhe C0mpan.J ooatenao that 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, there- to ffle the report8 requfred by drti- tore, reXuse ole 6060 and the order of th8 .CoPniaaioa 6ntcrea und& Article 6056, It baa ale0 refueed to per the &rose reoelpta tax68 $evled by article 6060. "* **
You pmpouad the question:
"'Plea86 adds6 u8 at pur earliest oonveniencs (1) whether or not it 18 your opinion that Paltsr Oil ah6 Oar company is a gai utility a.8 defined it i8 anbject to t&e re- by Artiale 6060, (fi) ii port8 tuia tare8 preecrlbe(l by Artlola 6060, et16 (3) ha8 the CoarnlSEiiOn authori.ty to require the Oompany to rile the imaual raport ptisori,bea by the COIDIP~~- sion under Artiole 60567"
We have asoertalaed from the Searetary of .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 authority to oontraot ior the lease and purohaae ot the right to prorpeot ror; develop aad.we aoal and other mlnaral8, petro- loam -awl -8; also the right to erect, bail4 and ovm all avow- aary oil take oare ~aad gipse neceaaary for tba operation of the basine88 o 8 the aaw. Subdiriafon 37 mtiole 1302, Veraon*s Annotated Civil Statutes.
The pertlneat etatrrtes ore iirtlales 6050, SO66 a06 6060, V. WhiOh are as rOilOW8: A.C.S.,
“Art. 6050. Olaoaiflaartian *The tean *gu8 utility* an4 ‘publio utilltp’ or futility,’ au uaeC it3 t&is subdirfrion, waw anb inclubem persoda, eompaaies anb private uor- poretfoas, their lcseeee, truatecrs, 3na reoelvers, owaing, tmm.ging, oparating, le3aing or 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 or ~wlnesat kind6
uaaa
. .
‘* Owning or operating or managing a pips line for the treasportution or oarrfage of natural ga8, whether SOT pub110 hire or not, if any pax3 of the right of way for said 111~ ha8 been aaquired, or m4 hereefter be aoquirea by 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 alley of any muniolpallty, or the right of way of any railroad or other public utility; lnclwiing also anf natural -8 u%ilit~ authorized by llzw to sxeiciae the right 0r eminent 4om~1n.
(1st * *s
*Art. 6056. Operator's reports "The Coti8eion may require of all persona or oorporatfons opera.t;lng, owning 0s contmlliag auoh gar.pipe llnee auorn reporta of 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 pree- awe malntaineb, a.124 the mount end oharaoter and de6OriptiOri the e,quipaent employed, and rue& other matters pertaining to the butdneffr af the Commisalon may seem pertinent.W
%r. Qua J. istrausa, page 4
I *Art. 6060. ut 1llt.p t&X
"Xver7 gas utility subjeot to 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 verified ua 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 rsoelpta 0r such r0r the utility quarter next preceding or for suoh portion of edd quarterly period as such utility mey hsvs been oon- duotlng any busl~eso , and at such tirzer shall pay i.nto the State Treasury at Austin a scra equal to
one-fourth of one $er oeLt of the gross lnco:m re- .
oelv.rsd f om.all buelnoss done by it within t&la Stata.du ng said quarter." 1Er
In pu Opinion MO. O-352!4a, the orlglnal~of whloh you huve in your,.b <loo, we had before us the puentlon of whs- f ther the hspu'blld atural gas Company, organlsed under ths sams
subdlvislon, war rspulrsd to rii6 the report8 and pay the taxe8 sought to be required in the instant ease.
ke thera held that t& Bepubllo Patltral. @as Corn- p&.war not liable for the gro8s reoelpt6 tnx ee providad in Article 6050, supra. &oh holding was predloated upon tha proposition that the co
of gming or owrating or
transportntion or oarria
ale dOO#)t that the transportation of natwal gas was but in- oldsntal to the erooutlon of its urposr of opsratlng an 011 athad gas produolng btMnes8 under g ubdlvlsion 97 of Artlols lSOE, B.A.O.S.
The faots upon whloh the Eepubllc o?inlon was written were8
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 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. *5 ’ f lt3f-3 _~
h4r. Gus S. i3trauas, page b In the instant aase, Palter Oil and &IS Corapanp 18 not fsllfng gaa whioh it is authorized by its oharter to prodtaoei It is purohaslng gas rroa other produosrs and trans- it through its cm lines iOr the purposs Of rs8sll.l~ porting 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 purohase gas for the purpose of resale. Bufrios it to my that by rirtua of its doing 80, it has, in our opta- ion, oonetltuted itself l gas utility within 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