Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN *?ihen Articles 0053 end 6354, cup-3, are read either tozdther or sepmateiy they doxm- ntrote beyond any doubt that the rste ;:sX,o~ jurledictlox OL - the Co?slission i-23 riot 5;ten entanded to coviw -zare ~roiucars of .zxi 71F.o sell their product at the point of origin.* 1.?!8s.;i'.(xi) at p-p. 14 tnij 15, (IJildarscor- ing ours). The court olemly holds thrlt rats Z,Akbg jcr- isdictio2 as to %ere producers" has not bee3 cmerr3a upcm the Co%issi.m, erce~t,that such producer be a’ gzt of en integrated enterprise under a 3lrl3le control ea.;oged elso in diotributioh of WA to the 2ublia. other i&tutes dealing v&tk jdricdlctional L?a%ters wore Rot canaidertd by the oourt. The opin20~~1,Werufora, does mt pur;iort to control tfx question belore us zc~:ncd2r.g i;h?cjurisdiction of the Cor;tisnlOn to*raquI.ze armual rep9rta of n%ere i)rtiucer*. Eouever, h3.lfc1e 6098 uk;~s a ruquirestnt of "such pipe 1h93m to r%e rapoztn 11s the Cxxtnsion nay doem pertFnent. T!lo question t:~e;l is &~mtltar a mre 631) producer, math RB Yazoua, is a aipo line within the contcn~lstiou of this stetute. Ve bcllwR? it is. %ile it has been held not to be n utfl- it,o,the mre producer oXearly exercisea funatiozs de- Tked to be thzt of a pipe line. Article GO51 prooldes: Sellic&, .trmx3_70rting,producicg or othrn:lr?e dealing in nsturnl ~LXI io a buaimss which iz its nature end accordiz3 to the estiibbliehed nsthod of coriIuctin?;the bustie is.a mx~opoly and six111 not b8 conducted unless such 2~s :jIse lizo co used in conncc';ion ??ith such Lmsi;ie%s be s*&jcct ts tho jurisdiction ?xrcin cotii"erred upon 'tha Comlssion. Toe nttors.ay ikclsrej ~hal.1 enforce this ?rovisim by icjumtiox 01 other re;72cdy;w lien. Cll.sto~ ows1ey, 3frcctor, psrje 5 hrtlcle 6056 provides: ";irt. E356. O?;i!L;'iORt.r, FJ:cETs The Co~i3sio~ miy require of all per- 1503s or csr:orotions o_oeratin&, ovoing or cou- trolling such gcs pips llms 571ozn regort3 of th3 tot51 gmntities of ~9s aietributaa by SUCK pipe lines and of that held by the= in storage, cna also of their source oi supply, t>~ rmxber of aslls trcn which they arm their reply, the mount of ?rasoure neintainad, end the mount and chnmctor and assor:ption of the quipnent eqAoyea, cud such othar mttero pcrtnlnl.og to the business a5 tha Cozi~ssion my ace= p6rtinent.* The Suprem Court recognize5 th0 necessity u;ldor the stat&e for the CEJFA~SS~OZ to inquire into the price of the gas oold to the utility. -Ghilo the seller, if s acre proaucer;canoot 35 reguktad, iron tic 5tanapoiS or rate makink, navorthelcos the pur- cl:nsl~~gutility my bo directaa rot to ckmse sxre ulon its bo&s the5 a re~ao~ble price. 19 thAt event the utility vmuld, or cmrse, absorb the excess price found %I ba paSd t.:, the prociucer, and would be arobibited Prox peesing it 03 to the 2ublio. Iio>mdr, ia n3kLir.g e actarzinetion Oi ths reasonsblene3s of the arice, the Ccx&53133 tr0ttlanecessarily hsve to izquire into the co5trSct5, books ena recorda or the ;rcaucer. In t1:i5 comoction the court olcsrly infers thet the consutbar not he-ce to pap a %urnar '::ill tlpe rcte 532bi9cir?gan WIxaaonable %eil hcaa" or ~roauctiO% prive for the gg,YS: "At t&S5 2oiL3t z9c ~;buse to call ottcn- tcctioa to tho.f-ot that our hclalng to the cfx-act t!let the Cdsoion is without jc*is- aiction to tell 3 mra gas prohcer w';tstprice ha met chmge for his product rilen ssla on 210 praxises of ?roauction to 5 public 35s utllitr does not man th5t the Comission. in 511 in&nccs fina unaor all cfrcuxstsnoe5; in fisici; g:H.s utilit r'atcs, mc.t ellon tho ;:ns Utility s-rfeoted H ull credit for the pzomse iX2l. Clinton Oxslsy, Director, pg.a 4 price 0r t5e ;;ns purchased byit. 1.n regma to that mttar, ws thiuk that, ia firiiis ~RS utility ratas, it is not only the ~miior but th3 duty 0r the Ccmnission to inquire 2~20 t&e rwsona3leness or unreasozmbleness of the gas utility gas controets. C'eot*rn Cistribut- $I$-Cogyty vs. Fublio Se:YlCe Coat. 2:85 G. S, - .. . za. 655; efth VB. 11lmis mo- phone Co., 282 u. s. 133, 73 L. xa. 255.~ fxticle 6053 referred to by the court t