R-969
EA~~ORNEYGENERAL
OF TB-EXAS
AUSTIN 11. TExAe
PRICE DANIEL
ATTORNEYGENERAL December 30, 1947
Hon. George H. Sheppard
Comptroll~W’of Public Accounts Opinion No. V-467
Austin, Texas
Re: The exemption of gas, burned
in engines useii for lifting
oil from the, tax levied
unaer Art. 7047b, V.C.S.
Dear Sir:
Pour opinion request dated December 1, 1947, is aa
follows :
“The question- has arisen
_ . i? .this department
_ -
as to whether gas burned ln engines usea ror
lifting oil is exempt from the tax levies under
Article 7047b R.C.S.
“Sub-section (c) of Seatlon 1 (1) of
Article 7047b excludes gas used for llftlng
oil, iinless sold for such purpose, ln computing
the tax tin the business or occupation of pro-
ducing gas within this State.
“It is argued that gas used for lease
operations might well be wFthin the exclusion
provision of gas used for llftlng oil. A pimp-
ing engine operating a pumping jack uses the gas
burned to operate the engine for lifting oil. I
shall, therefore, thank you to advlse this de-
partment whether gas consume& in an engine used
for &Lfting oil is taxable under Article 7047b.
“Reference is made to your Opinion O-4151-A."
The question presented is the use of gas as explained
in your letter exempt from the occupation tax imposed ,by ArtLcle
7047b, by virtue of the exclusion contained in Subsection c of
Section 1 of said Article. ThFs subsection reeds as follows:
“Gas used for Lifting oil, unless sold for
such purpose.”
If the use as explained in your letter, namely asp fuel
for the operation of,a pumping engine which lifts 011, is a use
'b,;f
Hon. Geo. H. Sheppard - Page 2 (v-467)
comprehended by said Subsection of the statute, then no tati is
.due upon the proauction'of said gas. We do not, however, accord
such meaning to the phrase 'in the statute "used for lifting oil".
This term is meant only to apply to gas Injected Into thb earth
for repressurlng or lifting the oil of the ground, and has no
i?eference to It@ use as fuel to generate mechanical power, such
as puinplng op8rat'Fon.s for lifting oil. This Is the construction
this, Department has heretofore &corded to It. (See OpItilon
0:&151;A, a copy of which you have.) ,Thls;we think, was the
inanrfbst intention of the Legislature, end you are accordingly
SO advised.,
SUMMARY
..
Exclusion from the gas productFon,tax of gas
usea for lifting oil as provided Fn Sub-section c
of Sbction 1 of Art,icle 7047b, has reference only
to gas Injected Fnto the ground for the purpose of
ijressure in-~lifting the oil, and not to gas used
as fuel In a pumping engine that lifts 011.
Yours very truly~
ATTORNEY
GENERALOF TEXAS
By s/L. P. Loll&r
L. P. Lollar
Asslstafit
APPROVED
s/Fagan Dickson
FIRST ASSISTANT
ATTOR?IBYGENERAL
LPL/lh/wc