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OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Ktoar Slrr
605.6aaa 6060, mupra.
Bononble HBZSIAXI
Jams, Dlrsater, FA&Xe
2
9. lwxtucina: or obtaining,tmasporting, Boa-
~0jh.g~ aim4buth.g or tmi~~drbg xbatttragut (a)
for publlo use or semiae for oapenwtlon; (b) for
uAl* to smlciprlitles or persons or eprpanles, ia
those 44848 mfbrrttd to in pSragrvph f h4H4f, Wt6A8Od
In dlstrlbutltq or relllng natural gas to ths publie;
(a) for sale or dollvs~ of aA?mrAl &as to Any pwsoxl
or f?? or aorpomtioa opsmtlng under fraauhlse or a
aaatraot vlth 4ny mmialp4llty or oth4r log81 subdlol-
slon of this State; or, (a) for sale or dsllwp~ of
nstur~l GAB to t&e publ;lo for dcmestio or otheruse.
"2. Ovnlag or 4pentlag ormm&ag 8 i~llae
far the tmnsportatlon or 48rrlageof matmaf gas,
vbathorfor publio him or not, lf urf p4rt of tlm
right of upl for SAM llm bos been Aaqulnd, or ~LBJ
hemAfter b8 AcrpUimd by the lxemi80 Of tba rl&ht Of
rarinent cla5sla~ or if said line or Any part ?Aoreol
is lrld weax, over or umde~ mj public! rood or hlgbv~y
of t&la State, or street oc lXl- of any mml8lpallt~,
or the r%gbt of pat of ASW r~llroad or other publlo
ut%llty1 ineludIng ~180 ~w nsttuwl -8 tMllty 8u-
thcarlmdby &vto uwalsetba rightoi Mnln~tda*¶.n.
9. Prod\roicylorprrrohulng~ut\url~s8nd
tmaxmportingor earulng the m to k tmnsportetl by
plps lln48 to or near ths limits of uy mmlalpAllty
in Vhhth BA%d $$&B tB FW4dV.d Atkd dlBttibRtO& OX’ SO&&
to the public by Another pub114 utllitj or by uld
~fai$7Alit~, in All GAB08 tth.Ptt St&t bVBf.WBB 18 ta
IAct the Qnly Qr pzpstleell.7 ox4lusl.ro 4gewq of lU
of nstursl gas to such utilltq or natataipcrl~t~, is EL
bx dealaml to be vlrttwlly ~)Baop(llJ AM L bu~l~88 ~88%
OAtli.tQ Affe0td vith A publia imtW'.Bt, rad th Uid
buslness ro8 prepert;J ttmplQ@ themitt rlthla this StAti
s&&l1 tm subjeot to the pr~vl81~~~ of this l~v aab to
th4 Jurlsdlufloa ad fsgU@%tlaa of tba C~lsslon As A
&ss UtlLlt~.
Artlolo 60%, supm, prorId th4t eorpontlanr aaing
vltbln ths p~ovl~ton~ of article 6050 shell take corta& mparts
to aa RAllrQAd cQlriBBI0B of TexAB. 8Ald hrtie1e 60% rcPadBas
follevs:
Bvnorsble Eenmri Jonrr, D%rwtor, Pwcr 3
“The Cm~le~fon My require of A?i pe~otm or
4orporatlan6 opsmtlng, onziag or controlling 8uch
jJfA6pip l&6!, BYOX’IiZ’tbpOPtBof th6 tot41 QUUltiti~B
of @~a distributed by Btl4h pipe 1inw1 and OS thnt
held by them in stemgo, snd also of their soums of
supply, the nuszber of velln ftorn vhicb they drev their
BlQplJ, the t4SOUBt Of FFWBUXW 84AttttAinOd, Wld w
Am4utltAna ohrAt?ter aBd dttBorlpttoB of th6 equipPent
emplqed, and such other matten, pertalrdng to the
btt~ia40~ AS the C~S~B~~BS~OI~ nay desar pertinent.”
Artirla 6060 iB the ttPtUt4 vhlch lWie8 A tax of one-
fourth Of Wit pe3' 00nt rtgoa the “-68 MO6i'pts Of BUoh GAB Utili-
tie8 AS cm tithin the #‘OViBiOtiB Of Artiols 6050, Bl@M. Ssid
Artlob 6060 18 AS fdllmrsr
"Every &aa ut%llty BUbJO4t to th4 pr~vl~lctns of
this Bttb&b3’%~iOaQttOX’bOfOl’B the fiMt&A~ 4t Janusry
mad qusrtcrly thereaftttr, aball file vlth ths Car%+
BiOB A BtatW4llt, dU4 V6rifi.d A6 tN0 an8 4OF%WCt by
the president, tresstwerorgeaerslaaasgsr ifs com-
or eorparatlon, or by the cntneror c3neof tha if
tii4ltd lvidual or co-partnewship, shovlag t&s -88
moeipts of su~ki*lllty ror the quarter next prsaediag
or for such portion of mid quarterly period AS such
utilltt may have been aondwt%ag any ~UB~.MBB, snd At
su4htlme shallMy iato ths dtata T~~**~stA~stin
A BU63tQW% t0 OIMS-fOW't;h Of One ~PC@lttOf th# -88
timme Feoeivcd f'mu all buaine88 done by it vlthtn
this state during said cparter.*
Xm?wor, Artlclo 6060, above quote& VAB repsaled la part
by Section 10, ROUBCBill 5';? Of tbs &nd L~8iB~tUl’6~ (A&B of 1931,
4and L~~~B~tUt’O, R. s., h. n, pCrm Ill). S~i3tiU%t 10 Of OAtd
BY1 provides 88 follovs;
‘Thtbt Artfals 6060 Of the INVised Cl*11 &tAtUkB
Of l$@fj, 6XWpt 80 fAl' I8 it ~OBtlO A li0OXlBe fW
0%'tAX Of C2l+fOUl'tb Of Olld FOlr 0-t 4&liBt p4l’BWlB
OVltt3& OpiH+AtiaS: OF lBtU%$$in$pi- lit306 AS PS’OVidad
in Settlon 2 of Artiole 6050, iB hsnbg aqeaLs6 snd
cold fund ohall bs wed for miorak.3 the ~WN~B~~B
al Artlolea 6050 sad 15056,iP4ltt~i~8."
Thesfore, retidtig Articles 6050 and 6060, aupra, to-
gether and aa applied to the question before us, they provide
aa follaira:
“Every corj?orstion engaged In the busin of
ovnmg or aperatlng or nmaa&ng a pipe line for the
tmQicpo*tian of or osrrlage of natural gsa, whether
for publ%a hire or not, ff any part of tba ri@-of-
vey for 6aSd Unit has boea acrqubed or aiay hmeaftor
be aotpired by tha exerolu of the right of ewxt
dcualh, OP if said line, or auy pa& thereof la laf.d
ugy, over or uador say publLc road or hl&vap of
s state, or if auoh corporation is authorized to
exeralse the right of ea~in~t d-in, sbsll pay a tax
of one-fourth olt one per coat of ita grosr inaoam.”
R&public Oatural Q.&smapauy i8 lnoorpomted under the
lavs of the State of D&~vare end en Jammrf 2, 1935, WI granted
a~pmmlt to do buaineaa in the State of Taxaa. Tha palet of thit
gas aaapsny autheriaer It ato ertabllsh and maintain an oil buai-
au8 vlth authoaorityto oontmtat for the lea86 and purah8ae of the
right to pmmpeot for, davdop and tud 0081 and other mlaenla,
oetrolowa and gas; also the right to srwt. build aad &all
boou8az-y 0l.l -hits, eera aad &pm8 for tai, opratloa oS%he busl-
LI188Of SW. a**"
above purpose 16 authorlrod by Sootlcn 3Tr Arti
Civil statutea.
To arrive et a ocsaluslan 88 to vhothr or not the R6-
publto liaturel WI Cm&may i8 Uabl8 for the tar it ia flr8t ne008-
Um t0 &tOl'iSiao td'M~tW@ Of it.8 bU8ias88. Thi.8 18 ~0~8MTp
for the maaoa that Artiole 6050, lup r a p,r o vides
th a t
tb ta xj
8hall be psid ""S""i8e in the bu6lneaa of ovning or
or maae&.ag Pm the tmuisportatloa or asrrlage=F- o
%
aa Ural gas.
From the f8Ot8 befOx' UB it Sip-F8 tht t&O Rspubllo
RatlW81 oar caqpany 1s authorLaml to 0mgage in the oil burfIk0SS
vSth the authority to proap8ot for and davelop 4588v&la together
vitb the xQjit to ereat auah tank8 8ad pipra aa are neaesury for
the OpWatim af ita bU8ia088. It further appears that the gas
ocapany avna a ma&or of gar well8 in the wet field, Sue008 Ooxin-
ty, %SXaSj th3.t it h&8 piw8 l=Uil.UingflW8 itS W0118t0 S 08&2%1
Honomblo HermanJone8, Pago 5
point on Its own lease where the gas is mold and delivered to
the cltg of Corpus Chrl8tl through a l%ae ovned by that City.
In fact, the Ities of the gas ooqmy oomtitut~ a gathering
rgalxm vhich brings its gr4 to a point of 8ale and delivery.
We have attaohed to this oplnlon a rough dreft Saovlng
theloeatlonoftha gas oaepaq~slinoa, thero8da md thepolnt
of dell.*sry to the City of Corpus Chrlati. Three of the llrma
I travel frcm the various vella In a northerly dlreotlcm and orosa
, stat. HQghvayRo. 9. Hovever,vvare iniormdthatthls hl.@vq
4 vaa ooastruoted after the l%ne8 h a db ua lr wted a a fo r th a t
roa8on ve till not be Ooaoerae6 Vith the80 lbea vlth mpvst to
their oroaalng a publio mud. Itvlllk notedtkwt tvo ILnoa
of th4 gas oceapmynm from thenorth 8Me of the ga8 ooapaayta
loa8.8 l.n a aouther q direotlon aad ero8a a publlo rowl at points
la6leated "A" aad % oat&map rttaohedhmuto. l%ulips “A”
is OaO Wed t0 @bul?lry -8 fOr j&tirrg vCrn8 ti do.8 Xi& *lItOr the
llaea uud Co lbm.lsk the city. Line @B* i8 a 2-l/2* llae that
tsarrte8 ga8 aOro88 the pub110 road known a8 "Shell Read’ to a 6”
line, thence to,the oity pipe line.
Hov in oonsl6eriagvhetharor not the lie Hatuml
or ynrg*
it EWt k thought that
t?ma8tuM1aad -atal levs of thu &a8 prQdue~ burtMsa.
%iS bO&Ag tFUO, thO ~gi8&tUW kaOV, M 60 all maa, that it ia
aotoseaaleally roaaibh to rwiapipa fwmeaehhllte the
point of merketlag aa6 ulo, but that it is at t-8 noooaMry
for tl3epraperoperotiwiofthc~ g88 wll8 k, sonatruot~thming
ly a twsvhloh vi11 oonccmtrate the @r frw uoh veil to e Blrntral
point an6 fraavWahpcdatthe gas is delinredtotheptwebaror.
By thlo ve 60 &ot mean that a pro6wur omald,aot tm tn tb busl-
~18s of OpOwt&g a pipe line but ve do aqui that a prodrrcar 18
aOt U1@ge6 in thU pipa line bUS%XM8S 3USt kO8U8e ha Purt aOQO@-
If It be true that Republio Watuml 0~ Oaapurr lass l o-
qulrud a part of it8 rQht-of-vay for it8 pipe line w Wu exrr
ciao of the ri&t of srfau2t domain OP ha the powr to exawc5e~
tba right of adaant dcaaia or that hl8 lines do oroas over thu
public road, all am 1s provided kr prbrogra9lI 2, Art.1019 6050,
8upra, lwh vo uld not titer th ubO&S~tiVO UUida tO. ‘1ZlfS iOr
the reason that thu flrstpmm~alt*la that the g88 OWpMy
You am, themfore, advised th8t8uohgaa ocqnuq is
aot liable for the one-f'ourth of ame pur oont tax On its @ema
noe~pta a8 provided in Artlole 6060, 8upm, as ameaded.
Bovwer, ve am of the opinioa that Republlo lUtuml
@6i8w in t&O bor%lWS8 of 2'0&&!3ing Mtti
i8 Ol!l$3tb&Od g&8
for publio une four oaSpmu6tien u#I for 8~P0 to mntolpalltiea am
prodded ln paragraph one, Artiolo 6050, mpra,orda8 auuhmmt
make the ruport8 roquUmd W hrtlale 6056, lup r a .
We, therefore, owrrulo mar oplnlon lo. O-Jg24, in 80
far U it hold8 thBt 8crpobliO Ia-1 tkbuCarpBnJ $8 8UbjeOt t0
the tu am providsd In Artlale 6060.