Untitled Texas Attorney General Opinion

General Ernest 0: Thompson, Commissioner Railroad Commissionof Texas Austin, Texas Opinion No. WW-542 Re: Whether a company furnishing natural gas to a farm house- for household use is a public utility as defined In Article 6050, V;C.S. and.related .._ questions. Dear General'Thompson:, This ~1sln.responseto your letter of September 24.; 1958, requesting a;rullng from this office on the following: (1) Does the language in Sets. 4 and &a 'of Article 6050~V.C.s. (Acts~53rd.Leg.,lst.CiS;~.p~. 70, Ch; 31;.Sec. 1) .except.fromthe definition of Public Utlllties set forth in the preceding por- tlons'of.Artlcle6050 companies furnishing gas for household purposes to farmers? (2) In the event a gas company should become a utility by reason of serving farm housesgas for heating and cooking purposesi but should not serve IncoY?:. porat&d towns or villages,.wouldit then.be~the duty of the Railroad Commlsslon to regulate the : rates on sales of'gas made to'farmers both'for Irrigation wells and for household use? The.deflnitlonof public utilities made subJect:to. regulation by the Railroad Commissionof Texas 'underArticle. 6050.,V.C.S. (Acts 1920, 36th Leg., 3rd C.S.; Ch. .14,Sec. 1) as originally passed, was sufflclently.broadto Include sales of gas to th$:publlc for domestic or other uses, whether agrl- cultural or not. See Article 605O,.Sec. ~1,V.C.S. General Thompson, page 2 (WW-542) In 1954, the Legislatureaddi:d.zcctions!j~ and Iia to Article 6050, which are as follows: ":;cx . II, Provide:l,however, that tho al:t:>I' acts of~transportlng,delivea:ng, selling or otherwise making ava,llnhlona-i;ul,ai gas for fuel, either directly or 1ridlrectly,to the OWIVX~S of Irrigationwells or the sale, transportationor delivery of natural gas for any other direct use in agriculturalactivities shall not be construed within the'terms of this law as constitutingany person, association,corporation,trastee, receiver or partnershipas a 'gas utility,' 'public utility' or 'utility1as hereinabove defined so as to make such person, association,corporation,'.trutitee, receiver or partnership subJect to the JurlnQiction, control and regulationof the Connntsaion as a gas utility. (RnphaslKthroUgh6ut.M .s!zDpJleg.) . "Sec. 4a. .Thenatural gas made available under the provlelona of:thls Act shall be usedLex6lutilvely for pumping *t&r for f+n and other.agrlcUltural purposes In order ,forthe petison;~astioclatlon, or corporationftirnlshingsucb'naturalgas to be exempt from the provisions of, s&Id Article 6050 of the Revised Clvll Statutes~ofTexas of 1925. The provislofisof this act shall be oonsldered only as cumulativeof other laws and shall not have the effect of:repealipgor amending any.sub- stantlve or.statutory law except as herein speci- fically provided." (Added acts .1954,53rd Leg., lst~C.S.,p. 70, Ch. 31, Sec. 1) It has been suggested that becau~seof the words "other agriculturalpurposes' ~c~ntaincxlin the above quoted sections of Artlole 6050 that the furnishing of gas for domestlo purposes to farm houses might be oonslslored88 another agriculturalpur- pose within the moanlnf:rr!.' .:T+ !;I!:: ~.a,tj 01)rx~i~ta~.nc:d in the statute becauuc:QJ~' t.11~: t':ra::, i?.~'x.:LI :,i,:?1; h(:41::~! .I 0 II ma1,l.yan Integral part of J!almi.n[.; ~.i,,~.:~acl;I.c~l~;i. In our oplnl.011, 1;11:*II:~:: o< t;ilc: rrordn"for,any c)theJ? direct use In agrlaultural. a&Ivll.ic!s", as oontalned Ln ficctlou -precludes suoh a constructionof the statute. This langu- age Is pr,ecededhy a reference to the use of gas for lrriga- tlon purposes, a us0 that act3 dl~cctly on a farming opcratlon, the furnishingof water for the growing of crop&. It in on1.y reas0nahl.cto RD::IUIIi: that the legi i;lat~m: I ntt:ndeA to Ilmit the exemption tn II:ICI:: l;hal; ::,I'.:1:ovq~a1~:~1~1 t:IIIl,leSr"directncs:i", General Thompson~,page 3, (WW-5Li2) such asfuel for stationaryfarm machinery, the use ofgas for the dehydration of crops, and other like.uses. See the dis- cussion of the doctrine,of ejusdem genei-ls ins 39~Tex. Jur. Statutes, Sec. ,109,pp.202-204,which we deem applicable here; There is no case law nreciselv in nolnt. Comnare NorthwesternCasualty v. Earzune,-42.S:WL2d^100,103 (err. dismlssed~lg31)In whlc.h:theword.~"directiy", as used in an Insurance policy, was defined in its ordinary~sense as mean- ing..."without anything intervening;not by~.secondary.but by. direct means." : In the~,absence:.of-something in the legisla- tion indicating a contrary legislativepurpose,,words used by the legislatureare ~ordinarilygiven their plain meaning. Tex. Jur. Statutes;Sec..103, p.~195...The.word3 "'directuse" can only have been intended as a restri.ction.onthe exemption granted. The~exemptlonIs therefore limited to a "direct use in agriculturalactivities.'!.We cannot ignore these limiting words but must give meaning and effect to each and every phrase and word contained Insofar as this canbe done consistently with the object and purposes of the legislature..39 Tex. Jur. Statutes, Section 112, p. 208. We have examined the capt~lonof the legislationand have found nothing that would i,ndicateban. intent to.grant an' exemption any broader,thanthat~speclflcal~ly stated in'the language of the act. Your .flrstquestion 1s therefore answered in the negative. In answering your second questions,we are once a ain tM;;:,b the lanqu$ge contained in section 2 050.. 4 of Article.. s provid.cs ...that the act or acts~of transporting, delivering, selling or otherwise makSng.availablenatural gas, for fuel,... to.the owners of irrigationwells..~.shall not be construed within the term3 of this.law as constitutingany person, association,,corporation,,trustee,receiver or partner- ship as a ~lgasutlllty,l 'publicutillty,'..or'utilltyl'as hereinabovedefined so as to make such person,...aubjectto the jurisdiction,control and regulation of the Commission as a gas utility." Since it is the activity of furnishing gas for irri- gation or other direct agriculturaluses that is exempt from regulation,such activity would be exempt even if engaged In by a company which by reason of otheractlvlties~mightbe classed as a public utility. Therefore, if a gas company should become a gas utllity.by reasonof serving~farm houses for heating and cooking purposes, but should not.-serveIncorporated General Thompson, page 8 (W-542) town3 or villages,1 It . would then be the duty of the Railroad Commissionto regulate the ra.teson sales of gas made to farmer3 for domestic use. Sales for irrlgatlonwells or for other direct agriculturaluses would still remain exempt from regu- lation by theCommi,ssion. We do not mean to imply, however, that the .Commlssion could not or should not consider the economic aspects of.the exempt activity when promulgatingrates for an activity that is not exempt. We do not pass upon this question. SUNMARY The exemption from public utility regulationprovided for sales of gas to farmers for irrigation fuel and other direct use In agriculturalactivitiesprovided in Sets: 4 and &a of Art. 6050 V.C.S. does not extend to sales made to farmers for domestic use. The activity of furntshlnggas for irrigation or for other direct use In agricultural.activitieswould remain exempt from regulationunder Article 6050 V.C.S. even If a company engaged in such activities should become a public utility by virtue of furnishing gas for domestic use to farmers. Very truly yours, WIL; W;LSCN Attornev General of Texas Houghton Brownlee, Jr. Assistant HB/gr APPR&D: OPINION COMMITTEE: Gee. P. Blackburn, ChaLrman Miiton IXchardson Jack Goodman Dean Davis John Webster REVIRWRD FCR THE ATTORNEY GENERAL BY: W. V. Geppert 1. See Articles 1119, et seq. V.C.S. conferring powers on cer- tain citles.and towns to prescribe rates.under the conditions there outlined.