CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
UTILITIES CODE
TITLE 3. GAS REGULATION
SUBTITLE B. REGULATION OF TRANSPORTATION AND USE
CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES
SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES
Sec. 123.001. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES. A
person, firm, corporation, partnership, association, or
cooperative who sells natural gas for irrigation may not reduce
the supply of natural gas for an agricultural purpose, including
irrigation pumping or crop drying, if that person or entity:
(1) sells and distributes natural gas in a municipality; or
(2) delivers gas to the boundary of a municipality for resale in
the municipality.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 123.002. EXCEPTION. This subchapter does not apply to the
extent that the supply of natural gas is required to maintain
natural gas service for:
(1) use by residential users or hospitals; or
(2) an analogous use that is vital to public health and safety.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER B. AGRICULTURE GAS USERS ACT
Sec. 123.021. SHORT TITLE. This subchapter may be cited as the
Agriculture Gas Users Act.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 123.022. DEFINITIONS. In this subchapter:
(1) "Agriculture energy user" means a person who purchases or
uses natural gas for fuel for an irrigation well.
(2) "Corporation" means a domestic or foreign corporation or
association, and each lessee, assignee, trustee, receiver, or
other successor in interest of the corporation or association,
that has any of the powers or privileges of a corporation not
possessed by an individual or partnership.
(3) "Person" includes an individual, a partnership of two or
more persons having a joint or common interest, a mutual or
cooperative association, and a corporation.
(4) "Supplier" means a person who furnishes natural gas to an
agriculture energy user.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 123.023. CONTRACT FOR NATURAL GAS. (a) A supplier and an
agriculture energy user may by contract establish a price and
other terms of service for the furnishing of natural gas.
(b) A contract under this section must be negotiated in good
faith and the result of arm's-length bargaining between the
parties.
(c) Each party shall provide information and maintain records as
reasonably necessary for the contract.
(d) A price charged to an agriculture energy user under the
contract may not exceed the price charged to a majority of the
supplier's commercial users or other similar large-volume users.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 123.024. EXCEPTION. This subchapter does not apply to a
transaction between an agriculture energy user and a supplier who
does not deliver gas to a municipality unless:
(1) the parties agree the subchapter applies to the transaction;
and
(2) the contract states the subchapter applies to the
transaction.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.