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 tUntitled Texas Attorney General Opinion
Combined Opinion