Untitled Texas Attorney General Opinion

OFFICE OF THE A-HORNEY GENERAL OF TEXAS AUSTIN Hr. John II.Tayler, chief Supsnlaor Oil& 0s~ Dlvlrlon, Rallroa Comal88lon or Tuu Awtila, Tow. Dear slrr 17, 1940, in Vhlah, 1, 3, 8nd 7 or St8ttat.8,rou uk ..- xr. John 3. Taylor, ?aga 2 ‘I r . If th. CoaaiS8iOil finds tbst to OUX’tail the pr&iUCtiCn fl'om, OX'shut in a well p~~duolng faweet gas' will re8ult ln vaets or loss of the Veil b0OOU80 Or phy8iOtbiOOnditiOW in the X%WC- voir, doe8 tb8%~8SiQXl have authority to allow the gas produoed fpop suoh a vell to be burned in the nmnufactum or carbon black? "6. 3 the gas deooribed in questions 3 and 4 IS held to be 'Uae%inghead@w' nay suuh ga8 be vented to the air elthm berore or after it has been processed for Its gasoline content?" Our anwars to your questiona are aa Pollov8~ 1. In our cplnlon Dcssing!madga8” Is a form of "natural qas." There is no derinltion in Article 6008 or the term 'natural gas," and itis, therefore, to be construed in Its ordinaryoignlPiostlon. Article 10, Section 1, Vernon's Annotated Civil Statutes. The ordlnwy Slgnlflca- tlon of ths tern asiaturalgas" lnaludes all &a8 prodwed from s natural subterranvanre8ervolr, a8 di8tinguishsd Iboa &3aS gPnu%OtlWed fiO= OttlOP8Ub8talXe8by artiflOia1 &ZWC88808, and thtBZ%fOPetXlft1UdOS CWinghssB gU. It a180 nay be noted that Artlole 6008 by implicationlnoludeS *caa- ingaOt%d SS” in “WtUM~ @8; ' iOr elanrple,8Ub8eOtloXI (h) of 8wtiOlt 2 proVid8o at ‘8VWt @la" 8-11 Si8U.t *all PatulYbl~8” OXO~t"80UP@Sm~d "WlQ@Wd@=l." 2. In our prodwed Srom & well opinion, 88 producing oil at a 4388-011 OS 100,000 0ub10 feet of Mao gas or leas per barrel of 011 and vhlch co&al118 we f&an l# graina oT hydrogen sulplaide psr 100 oublo feet, 1S ‘Ctb8ingheod lJB8,” and 18 not ‘8our ga8,” and Lb8 Railmad t%I4s88iOn 5y not ?.imitth0 080 Of such @8 t0 the W- paces provided for '801~ gatx." The StcltUtOryOti88ifiCZ4tiOn8 Of "SOUP gU" aab "ca8in@sSd @bS" Sir8not abSoluteiy ClOU. Und8r the pro- vioion8 of 8ubSeotlon (g) or motion 2, Art1010 6008, sour ?jas"Is detlned, amng other thiIlg8,a8 bein "mf 5tUrsl gas oontalnlng mom3 than on8 and onehalf (1 ) gM+ Or hydrogen sul?hlde per one hundred (100) cub10 feet. The tern cosin@ead gas* 1s dofind by subseotlon (1) Oi 88OtioP 2, hrtlole b008. to mean ‘anp gpls and/or vapor lndigenarrs to a 011 swatun and prodwed fmm such strrtua vlth 011." Iir.John E. Taylor, Page f It vi11 be noted that there is no e24W.88 language in the 8tatUtOS vhloh vculd ~%olude 4ca81a@ead ROI" frcm also being =aoW -8." Thi8~8ituatlon18 to be o&msted with the e~tp388 provllrloaunder subseotloa (h) of section 2, Artiole 6008, that "the4term 'awiot ga8' ah11 mn a11 ratural @a8 except *low gas* and 'aaslngheadga8.l” We believe, hovever, that It YIN the Intention Of th0 ~gi8hLtUl'6t0 _ r68triOt _ the term *0~8LnghUd -8’ t0 g&8 VhlOh 18 PCoduOWl vlth 011 fl'OmQ11"Oil V811” a8 that term is dcflned in 8Ub8wtiOa (61 of sootion 2, Artlole 6008, and to rb8trlet ‘8VCt.t gU* Uxd 8OUP @cl” to w produced fPOlS a “&as VOllX U t-t t6M 18 d6tirud ~II8?&86OtiOZl (d), aectlon 2, Art1010 6008. Our reasons for thl8 conclusion alw as follovsr (a) The term "o8slngbmd gas" in its ordimry algnlficatlcnla ceetrioted to gu produced vlth oil from an 011 well. In th6 CMO of Humble 011 SCRatlnlng co. Y. Poe, 29 S.Y. (2d) 1019, Judge Lmddy of the Com&sslon of Appwla, said: "Then 18 m vell-dotinoddistinotlon ln lav betveea @8 produoed fl'om8 w8 ~611 and Caring- head-. t'h0lM&VriB tbatvhioh f%W8 iFOn oilvelln, coming betveniintbo easing and the tnbing. VestoOtt'8 Handbook of C&l.n&eUl 0I8 (2nd Ed.) p. 6s Johnsos& Buntley's Oil BbI%s Produatlon p. 1701 H8gnolir Petroleum Co. V. Connellee [To=. Cm. Am.) 11 S.U. (2d) 158; HuS80119rnv. f&gnolln PetrOleum co., 107 okl. 183, 231 P. 526; Rullmdoro v. laimshaa oil co., (Okl. Sup.) 233 P. 1051." 380 slso the folloving aaSt)8, adopting the same coastructlonof the tern "oeslngheadgas." Nullendon v. 011 Co., (Okl.) 246 P. 8377,Utllltles Produotica ,Rlnnehosta Corporationv. Carter Oil Co., 72 F. (2d) 655; 08nenl Petroleum Corpclgtloaor Wliiorai.8 v. united St8te8, 24 F. supp. 285: srea cannon oil co. T. Cawi~slonsr of Internal Rovonue, 77 F. (26) 671 Utilitie8 Pl%dwtiOa COrpOlUtionV. Carter 011 Co., 2 F. Supp. 81. (b) We belleve thet the oon8truOtioauboro adopted ia in coniormltyvith the enewl latsntlon of the LeglsLeture to pr6v6nt the v-t6 of w f-1 @a. -OlS rsadiw the prOV181orU I&. John 8. Taylor, Pa@ 4 of Artlole 6008 a8 a vhole, w believe tMt it 15 evident thet it ve8 ttm legZ8Utlvo intent?on to put oaroful restrio- tioos Upon the ul)SOf &errflW# e;lu V8118, tb FO8trit3tiOtl8 gn "8veet ma (su&oetlon 1, 8ootion 7, Artlola 6008) being mW0 8t?h@Slt that8th. M8triOtiOM OXI thr US* Of ‘8OtU’ gsrS,” (8Ub88OtiW 2, UOtiOll 7, &tiOlO 6008) b8OauW Of the adt&ptrrbllltyof avant g88 for u8b it3~enentltag light, or ?uel iOr darrrrtlo -68. On the other lsnd, the Lagis- Letare evidently oab8ldomcl that vhore gu l8 prohood a8 a meo8ury lnoldeat to the produotlon of ail from aa oil ~011, the Value of the 011 produuvd vould varMatwleuse Of th0 088i@08d gU *?W w beZIOfiOu1 ~~~088.~ (Sub- section 3, seation 7, Artlole 6008). In vlevo? theabeV8 ooMlderatleM, ve oom?lude that the term %u~ g& appllo8 to 811 @8 owed fMmr any ‘Oil Wu” CA8 db?iXbOd %Xi 8Ub8tMtiOIi (e), aeOtiOn 2, Artlole 6008, aad tbt the terma %veot 8~” and “aour m” wly 0aQ to ~roduoed from any "@Aa ~~11," 88 dbflmd in subseot%omn 8wtlon 2 of Art1010 6008. Slnas, under tlm provisions of sub8aotlon (e), 8eotlon 2, Artlol~ 6008, the tern “Oil ~011” ine1rdO8 mj well vhioh ~we0.0~ Mrrel or more OS orwio petroleum al to ssch lOO,ooO oublc feet of lvrturalgus, 8 v&l prodwAng oil at a m-011 ratio of ?oO,OOO aublo feet of gae or 11388 per bar-1 of oil vould bo an "011 wilt" and under our oon8trwt1on of th8 torn "out gu# the &%8 produced ira 8Wh oil wll vould be %881~ go,' and vould not be '8our &w," M- gam¶leaao?vbet.hezthegiuoontU8dmo~t~1~gWnr, Of -XI S~&~hid+3 pOC 100 OUhiO ?Wt O? gU. u2XbP th8 pVt81onll of 8llh8OatiOII (3) Of section 7, htiOb 6008, cwlngheudg~wyb8 wed ?orfmytmmfiolalmwpo8v, vhioh lnaludm the iaulu?8ctureor natuxur peuollIle,"alM th0~88 Of 8uOhg8818 Pot PO8triOtOd t0 th0~88 fo, “8OuC @&8” under th8 pFOV181OM Of 8Ub88OtiW 80OtiM 7, Artiole Gao8. 3. In our opl.tdon,gma pswdwled from (Lwell pro- dwlq 011 at a g~-ell rstlo of in 8x0088 of 100,000 oublo feet of gas per barrel of 011 and vhloh oontaln8 more than l& g~lns of hydrogen mlphlde Of @a 18per 100 oublo fwt “oour &a8D aJldnot 'orSlZ@e%d gU." (d), 8WtiOn SUbWOtiOZl 2, Art1010 6008 define8 a ‘@I# veil” 88 b.ine, -QM 0th~ things, a veil vhlah mprodwe8 pocd than om htmdmd ~~ (ioo,ooo) ouwo feat of rptd ma to escrh “f‘*;;Erez . prtmib\nr 011 from th8 8am8 producir43 horison. . I plc,John E. Taylor, Page 5 ~OViSiOAS Of 3UbSeCtiOA (g) Of WCtiOA 2, hrtlole 6008, the things, as being %ny term "sour gas' is dofIned, azsongot!zeer natural gas containbigmore than one ad one-half (14) gmim of hydrogen sulphide psr one hundred (100) oubic feet." ft la clear that the well referred to In JOUC third question Is a gas yell, as defined in the statutes,and under the eon- struatlon adopted ahove, the &as produaed from such well vouldnotbs casIr@madgas. Becalub of Ita cantent of hydrogen sulphlde, it vould bo "sour gas" InsteM or "meet gas." 4. IA ouropI~Ion, the gu produced rromawll prodwing 011 at a gas-oil rat10 exceeding 1OO,OOO oublo feet or gas perbarrelofoll butrhIohcontaIns less ttisn1~graI.m of hydromn sulphlde per 100 cub10 feet of gas vould be "sveet gas" aAd Aot "CaalAghud gas.* Aaswe have pointed out in our anwer to question Xo. 3, since the veil produces 011 at a N*er oil-gas ratio than 100,000 oublc feet of gas per barrel of orude petroleum oil, t&well would be a gas ~011 aa not a~ 011 well, axxlthe p groduced hrol 8-h well vould not bo =omIngbead gas. /You vi11 ot cows., note that under the provtslo~~ of subseotldn lg) OS sootIon 2, &tIole 6008, the tom 'sour gas' Includes not only gso which c0ntaIAa more than OAe and OAO-half grains of hydrogen sul- phIds per 100 cubIo foot of'gas, but also gas rhiub oontaias more thsn 30 grainrrof total sulphur per 100 o&Ic feat OS gas,or gasvhlohlnlts orturalstate Is foundby theCow sd8810n to be unfit for use IA ge~~ratlng light w fuel for domsstlo purposes. Ye assume from the vordUag of your question that the gu you rorerto In your qtm8tIonXo. 4 does not O- ~ithb mj 0f tb80 provisions, md ii this u8umpti0n Is cormot, the gas would be 'sveet gas,' and not either "casIngheadgas' or "sour @is.' 5. IAOW OpialOn, th0 C0!m1I8sloadoOsnotbav. authority to permit the we of "sueet gas' In the mmfactum of carbon black, except vharo It is used as gcrsUtt under t&e provIsIons of subseotlon (4) of seation 7, Article 6008. %bWCtiOA (j) Of SOOtion 3, btiCle 6008, S&WOifiti~J pro- vides that the telP "Mt.' Sbrll iAOlUde 'ths US. Of EJVOet gas pro&Wed fromaga8vellfo~th@ Eamraattlm or UPbOA blaak.' and Bctd 8wtIoA further provides that "the produotIon. road i!CSSlSi88iOA In olearly UmIted In its powers to tha our- else of 8-h sutborrityu Is delegated to It by the Ugislatum, Yr. John B. Taylor, Page 6 md it vould be rothg UrslrvfUllyIf It permItted Amy we af mot gas vhlah 18 erpoessly prohibited by the statutes. Ibuicier 011 b:Refim.lngCs. vs. Rallrwd Comio8lon, 49 S.U. As to uhether or not ths statutory ntakrio- tlonupontbusoofmmotgUwuldbov8llduDdtwtho oeouzmtames stated 1~ your lotter, w da P a tlqwoss an opinion, 8Inoe it 1s plain tb8t the Railroad OamIuIon vould only be authorlud to do those thl!qs vhlsh are per- nitted b7 the 8atUtU Of w 8atO.