Texas Attorney General Opinion: O-1715 Page: 3 of 5
This text is part of the collection entitled: Texas Attorney General Opinions and was provided to The Portal to Texas History by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
5t
rcn. Clinton Owsley, Director, pae 3
Article 6056 provides:
The Commiasion may require of all per-
sons or corporations operating, o:ning or con-
trolling such fgas pipe lines sworn reports of
tha total quantities of g~s distributed by such
pipe lines and of that held by them in storage,
and also of their source of supply, th~t number
of vslls front which they draw their supply,
the amount of pressure maintained, and the
amount and character and description of the
equipment employed, and such other matters
pertaining to the business as the Co: mission
may deem pertinent."
The Supreme Court recognizes the necessity
under the statute for the C=nission to inquire into
the price of the gas sold to the utility. I; ie the
sllor, if a mere producer, cannot be re u lted, from
the standpoint of rate making, nevertheless the pur-
ch:nsing utility may be directed not to charge ucre upon
its books than a reasonable price. In that event the
utility would, of course, absorb the excess price found
to be paid to the producer, and would be prohibited
from pEssing it on to the public. However, in making
n doterzination of the reasonableness of the price, the
Coratission would necessarily have to inquire into the
cotracts, books and records of the producer. In this
cornoction the court clearly infers that the consumer
ill not ha-e to pay a "burner tip" rate embracing an
unfeazonable "well head" or production prive for the
.At this point w"e pause to call attbn-
tontion to the.fact that our holding to the
effect that the Caurission is without juris-
diction to tell a ncre gas producer whst price
he mut charse for his product w hen sold on
the preaises of production to a public gas
utility does not iean that the Cominlission, in
all instnces and under all circumstances, in
fixing gs utility rates, mu~t alow the ;as
utility affected ull credit for the puroase
Upcoming Pages
Here’s what’s next.
Search Inside
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
Texas. Attorney-General's Office. Texas Attorney General Opinion: O-1715, text, 1939; (https://texashistory.unt.edu/ark:/67531/metapth258908/m1/3/: accessed May 8, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.