Texas Attorney General Opinion: GA-0610 Page: 2 of 5
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The Honorable Richard L. "Rick" Hardcastle - Page 2
Government Code, to the extent that the state agency must obtain the approval described by Section
31.401(a), Natural Resources Code." TEX. UTIL. CODE ANN. 101.003(15) (Vernon 2007)
(emphasis added)4. Thus, the "to the extent" language modifies the definition of "state agency"
found in section 572.002 of the Government Code.
Section 31.401(a) ofthe Natural Resources Code declares that "[t]he land office' shall review
and must approve any contract entered into by a state agency for the acquisition of an annual average
of 100 MCF per day or more of natural gas used to meet its energy requirements." TEX. NAT. RES.
CODE ANN. 31.401(a) (Vernon 2001). See also 31 TEX. ADMIN. CODE 8.4 (2008) (Gen. Land
Office, Review Criteria for All Contracts) ("GLO will review all new and existing contracts entered
into by a state agency for the acquisition of an average volume of 100 Mcf... or more per day of
natural gas, calculated on an annual basis, to ensure that the agency is using natural gas produced
from state lands for the production of energy to the greatest extent practical."). With the caveat of
section 31.041(a) in mind, a "state agency," for present purposes, is one that is within the generally
understood meaning of the term, but only if the agency contracts for the acquisition of an annual
average of 100 Mcf of natural gas.
You first ask whether "a state agency [must] use an annual average of 100 Mcf per day or
more of natural gas to meet its energy requirements in order to qualify for the exemption found" in
section 104.202 of the Texas Utilities Code. Request Letter, supra note 2, at 2. In construing
statutes, we strive "to determine and give effect to the Legislature's intent." In re Energy Corp., 142
S.W.3d 316, 322 (Tex. 2004) (citing City ofSan Antonio v. City ofBoerne, 111 S.W.3d 22, 25 (Tex.
2003)). In order to ascertain that intent, we look to the "plain and common meaning of the statute's
words." Id. (quoting State v. Gonzalez, 82 S.W.3d 322, 327 (Tex. 2002)). "When a statute's
meaning is unambiguous, we interpret that statute according to its plain language." Id. The plain
language of the relevant statutes, as we indicated in the previous paragraph, demonstrates that a
"state agency" for purposes of section 104.202(a) of the GURA is an agency that (1) is within the
executive branch of state government; (2) exercises statewide jurisdiction; and (3) was created by
statute or by the Texas Constitution. That definition is, however, applicable to an agency only to the
extent that it enters into a contract to acquire an annual average of at least 100 Mcfper day of
natural gas to meet its energy requirements. Thus, for example, an entity that enters into two
3(...continued)
(ii) has authority that is not limited to a geographical portion of the
state; and
(iii) was created by the Texas Constitution or a statute of this state.
TEX. GOV'T CODE ANN. 572.002(10) (Vernon Supp. 2007).
4Subsection 104.202(b) of GURA declares that "[a]n expense under Subsection (a) that is reasonable and is not
recovered from a state agency under this section may be recovered from other customers of the gas utility or municipally
owned utility." As a result, if the state agency is entitled to the discounts of subsection (a), the cost to the gas utility may
be passed along to private consumers.
5"Land office" means "the General Land Office." TEX. NAT. RES. CODE ANN. 31.001(3) (Vernon 2001).(GA-0610)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: GA-0610, text, March 20, 2008; (https://texashistory.unt.edu/ark:/67531/metapth275506/m1/2/?q=%222008~%22: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.