Base4 upon euoh iaot situation, you propoun4 the pueetion:

V&n Corporation A, whloh will be ohartere4 under eubdlviaion of hrtiole 1302, ati whioh will engage in the purohasr, trmalniseion and . dietributlon of natural gas to the gsnera;l publio, *2 Honorable %SIllIam J. Lawson, page 2

own ond hold the stock of Corporation B, which will also be ohartared under subdivl- slon 36 or Artiale 1302 and whiah will engage IA the 011 and g&e produalng business, it be- ing understood that Corporation A will not itself dlreotly engage IA the 011 an4 gas producing business, but will engage thereln lndlreotly through Its ownership of the stock of Corporation BP" Sub4lvlsIon 36 or Artlole 1302, V. A. C. S., as amended by Rots or 1935, Forty-rourth Legislature, Page 296, Ohapter 110, reada: - Purposes - The purposes ror

wiirtiole which private oorporations may be formed are8 a* l *

“36. To store, transport, buy an4 sell oil, gas, salt, brine and other mineral solutions an4 llquI- rle4 minerals; also sand an4 olay for the manu- raoture and sale or clay pro4wts.w

Wq held In our Opinion MO. O-3003 that the rights, ' benelite an4 privileges oonterred by Chapter 15, Title 32, V. A. C. S., oould be adopted by those oorporatlons ohartered or holding a roreign permit uader aubblvialon 36 oi Artlole 1302, eupra.

XrtIole 1502, V. A. C. S., oontained IA Chapter 15,

arrorde one ot suoh right.8 an4 privileges en4 It Is :~p&.artlale to whloh we must look for the answer to the epeolrlo queitlon berore'ti. It reads:

*In lieu or engagfng dlreotly IA the oil an4 gas pro4uofng business IA any State or oonntry, a oor- jioratloa organized under this ohapter an4 authorized to ewhge in said produoing business may own the stock of other aorporetlona engaged therein, provided that It shall not own the etoak of more than one pro- ducing corporation, or one pipe line crorporation, organized under the laws of this or any other single No oorporatlon organIze4 In any other state State. or country shall be permitted to own or operate oil *3 pipe lines or engage In the oil produolng business In this State when the stock of suoh oorporation icr omed In whole or In part by a oorporatlon or- ganized un3er this ohapter."

There la no question but that a r?OrpOratiOA oreated mder subdivision supra, has the right to enga@e in the oil an4 gar pro4uoIng buolnesa. Article also oontalned in Chapt8r 15 expressly OOArer6 euch rights.

It Is our oplnlm that the propose4 oorporatlon *A’ sin lieu of engaging direotly In the 011 and gas pro4uolng busiPeesW may own stook of the proposed oorporatlon crB.n

We era returning the instruments submitted with your lettsr 0r request.

Your8 very truly ATTCRNEY Gl?NERE,L OF TECS BY Lloyd Awstroag Assi8tant