(a) Except as provided by Subsection (b), the rules adopted under this chapter may apply to interstate pipelines, intrastate pipelines, portions of pipeline systems the regulation of which the federal government has temporarily delegated to the Railroad Commission of Texas, or gathering lines, and to pipelines for the transportation of any substance or material under the jurisdiction of the commission, as specified by the commission.
(b) Exempted from the application of this chapter are gathering lines outside:
(1) the limits of an incorporated or unincorporated city or village;
(2) any designated residential or commercial area such as residential subdivisions, businesses, shopping centers, or community development.