Audit Section

How do I find out if a certain company is a gas utility?

Contact Pearl Rodriguez at (512) 463-7027 and give her the specific name of the entity.

How do you determine who is and who is not a gas utility?

The definition of a gas utility is found in the statutes, with specific cites being Tex. Util. Code, Title 3, §101.003(7) and §121.001. In order to determine if an entity is a gas utility, we look initially to the T-4 Permit to Operate a Pipeline.

Are there exemptions to gas utility status? And if so, how is that managed?

Tex. Util. Code §121.004 and §121.005 provides certain exemptions to gas utility status focusing on activities taking place in or within the vicinity of the field or field where the gas is produced. To manage that issue, the Commission has a certificate that a qualifying operator can file with us to affirm those conditions are being met.

How do you define a gatherer?

16 T.A.C. §7.301(c), ANNUAL REPORT, defines a "gas-gathering utility" as a gas utility which employs a pipeline or pipelines and ancillary facilities thereto in the first taking or the first retaining of possession of gas produced by others which extends from any point where such gas is produced, purchased, or received to the trunk line or main line of transportation where such gas is sold or delivered, without regard to the size, the length, or the amount of such gas carried through such pipeline or pipelines to the trunk line or main line of transportation, thus having as its primary function the collecting or collecting and processing of gas produced by others as a preliminary incident to the transportation after it has been severed from the earth by production.

When are the quarterly tax payments (16 TAC, §7.351) (Tex. Util. Code Sec. 122) due?

The payments are based upon calendar year quarters, and are due as follows:

1st Quarter Due May 20th

2nd Quarter Due August 20th

3rd Quarter Due November 20th

4th Quarter Due February 20th

Is the tax filing considered timely if it is postmarked on the 20th ?

No. If the tax form is not received on or before the 20th it must be postmarked on or before the 19th, and received within 10 days of the due date. Any tax form not filed timely will be assessed the late penalty as shown on the tax form. See also 16 T.A.C. §7.351, GAS UTILITY TAX, for more details.

Are the audits conducted on gas utilities available for public review?

Yes. Our audit work papers, audit reports, formal violation letters, and subsequent correspondence with the utility to correct violations are all open records subject to review by interested parties.

Are there other utility related records maintained by the audit section that are open to review by the public?

 Yes. In addition to the audits, we maintain the Annual Reports filed by the utilities, as well as their quarterly gas utility tax forms. One other item of interest maintained by the audit section is the Tex. Util. Code §121.005 non-utility certificates.

How does someone go about requesting copies of the items above?

You can either come to our office on the 9th floor of the William B. Travis building or you can call (512 / 463-7022) or FAX (512 / 475-7962) your request to Rebecca Salazar. You can make your own copies at our office or we will take your request and make the copies as soon as possible. There is a nominal fee for all copies made.

Utilities Annual Reports for Calendar Years 2004 through 2007 are currently available online at:  This website is updated periodically to include the most current annual reports.