UTILITIES CODE

CHAPTER 123. USE OF NATURAL GAS FOR AGRICULTURAL PURPOSES

SUBCHAPTER A. NATURAL GAS SUPPLY FOR AGRICULTURAL PURPOSES


	§ 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, § 1, eff. Sept. 1, 1997.                    


	§ 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, § 1, eff. Sept. 1, 1997.                    

SUBCHAPTER B. AGRICULTURE GAS USERS ACT


	§ 123.021.  SHORT TITLE.  This subchapter may be cited as 
the Agriculture Gas Users Act.

Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.                    


	§ 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, § 1, eff. Sept. 1, 1997.                    


	§ 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, § 1, eff. Sept. 1, 1997.                    


	§ 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, § 1, eff. Sept. 1, 1997.