Texas Utilities Code 121.005 – Transportation of Gas in Vicinity of Place of Production Excluded
(a) Except as provided by § 121.001(a)(2), a person is not a gas utility if the person certifies to the railroad commission that the person transports natural or synthetic gas, for sale, for hire, or otherwise, solely:
(1) in, or in the vicinity of, the field or fields where the gas is produced to a gas processing plant or treating facility;
(2) from the outlet of a gas processing plant or treating facility described by Subdivision (1) to a person:
(A) at, or in the vicinity of, the plant or treating facility; or
(B) described by Subdivision (3) or § 121.004; or
(3) to another person in, or in the vicinity of, the field or fields where the gas is produced for transportation or sale in intrastate commerce.
(b) A person is not a gas utility because the person delivers or sells gas:
(1) for lease use, compressor fuel, processing plant fuel, or a similar use;
(2) under a lease or right-of-way agreement;
(3) in, or in the vicinity of, the field where the gas is produced; or
(4) at a processing plant outlet.
Terms Used In Texas Utilities Code 121.005
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) Subsection (b) does not exclude as a gas utility a pipeline that:
(1) transmits or distributes to end users of gas, other than:
(A) those described by Subsection (b); or
(B) a person who qualifies for the exemption provided by § 121.003; or
(2) makes city-gate deliveries for local distribution.
(d) The railroad commission may review a certification made by a person under Subsection (a). The railroad commission shall invite a person whose certification is being reviewed to an informal meeting to resolve the person’s status under this subsection. If the person’s status remains unresolved after the informal meeting and there is sufficient reason to move forward, the railroad commission shall provide notice and an opportunity for a hearing. After notice and an opportunity for a hearing, the railroad commission may determine whether the person is eligible for an exemption under this subsection.