It is our opinion that the Rueces Corporation is a gas utility within the purview of said statute. Referring to its letter to you of September 26, 1939, copy of whioh you have furnished us, it is noted that it is engaged in the purchase of gas from an affiliated company; Riohard- son Petrolemu Company, and, in turn, sells the same to "other operator8 for jetting and drilling purposes and to one Ice Plant.. Following July 20, 1939, The Nueoes Corporation beoame engaged in the sale of gas to a municipality, and rural oustomrs betmen Clarkmod and Robstown, Texas. It is our opinion that the company should make its quarterly return on your *GUS0 form. for the payment of the tax imposed by Article 6060 on all sales made both pregious to July 20, 1939, and subsequently. For a definition of the term gas utility" a8 used in said Artiale 6060, ~18 turn to Article 6050 defining same.. It is our opinion that the aotivi- ties of this company bring it within the purview of Subsection l(a), whioh covers the production, transportation, oonveyanoe, distribution, or delivery of natural gas "for public u8e of serrrioe for oaapensation." dsd also of Subseotion l(b), covering the production, transportation, ocmveyanae, distribution, or delivery of natural gas "for sale or deliv- ery of nature.1 gas ix the public for domestic or other use." Unqueation- ably the tens "other use" is all inclusive.

Regarding the oompany*s aotivities subsequent to July 20, 1939, when in addition to the above activities the campany undertook to sell gas to the oity of Robstwin, and to additional rural customers. Suoh activi- ties undoubtedly come within the purview of Subseotion l(a), and Subsea- tion l(b), abovereferred to, and also Subsection l(o), which cover8 *2 Honorable Clint %8ley - Page 2 (O-1646)

oomp8nies distributing or delimring n8tunl gas "for sale or deliwry of natural g6a to any peraon or firm or corporation operating under franchise, or a oontraot with any munioip8llty or other legal auMivi- 8ion of thia Stata.

Regarding the atatua of Richardson &trolusm Ormpany, m refer to its letter to you of September 26, lQS9, copy of nhioh you hav8 furn- ished ~8.

PreViOUS to July 20, '1999, If appemathat the role aalea of the Biohardron Petroleum Compuor mr8 to it8 affiliate, The &~eosr Corporation, whioh previous to July 20, 19S9,~~adr l alea mly to rural ouatcmera. Such activity on the part of the Riohardaon Petrolem Sknnpany up to July 20, lQS9, in not, In our opinion deaorib8d R8 that of a gnr utility whithin th8 pur view of the 8tatute. iionwer, aubaequenf to July 20; lQSQ,'tha aole ouatom- 8r of the Richardson P8trolem Company being Th8 Maeo88 Corporation, cam- menoed deliveries of gas to the city of Robstom, and to certain other rural oustomera thereabouts. This activity, we beliavs, was such aa to constitute the Riohard8on company a gas utility nithin the purvieWI Article 6060, Sub- section 5, providingm follower

Vroduoing orpuroharing aaturalga.8 andtranaporbirtg or oauriag the amr to be fmnqorted w pipe lima to or near hho limita of any municipality, in which raid gas ia reoeivwd md diatrilxMd, or aold to th8 public by mother public utility or %y arid muplioipality, in all 08881 where 8uoh buainear ia in fao+j tie only or praoti~lly exolurivs agenoy of supply of Mtuml gas to auoh utility or mrmi~ipality ia hereby declared t0 be a virtual monopoly in the buainsra calling affeoted the publio intereat, . . .8

This 808~8~ l hould, th8refor8, m8ke it8 qUaX-t-83’~ Z'OpOti On yOUr fom *GE48 ptmsuax&to Article 6060 for it8 aotivitisr aubarqu& to July 20, lSS9, only.

Very truly your8 ATTORNEY bBN8RAL OF TXA8 mBcFO:egw

WCWED DEC 6, 1999

/s/Qsrald C. tian

ATTORNEY GR?EML OF TEXAS