Wednesday, April 20, 2011

Texas Legislature on track to abolish the Railroad Commission....

...And replace it with a new/revised entity called the Texas Oil and Gas commission. This is Senate Bill (SB 655), "relating to the abolition of the Railroad Commission of Texas, the creation of the Texas Oil and Gas Commission, and the transfer of the powers and duties of the railroad commission to the oil and gas commission.". Basically all the powers of the Railroad Commission of Texas are transferred to this new entity, and some changes are made in the elected seats, as well as adding or refining some of its regulatory and enforcement powers.

Okay, so obviously there is a big name change. It is about time - the Railroad commission has been regulating the oil and gas industry for a very long time. They stopped regulating railroads about the time they started regulating gas and oil exploration and development. So, the name change is long overdue. At least now the name of the organization matches what it actually does (or at least purports to do). Now if they would just do the regulating and enforcing, right?

Chapter 81, Natural Resources Code (NRC) is the Texas statute that authorizes and empowers the Railroad Commission of Texas. SB 655 replaces all references to "Railroad Commission of Texas" with "Texas Oil and Gas Commission". So, the agency statutory powers are left intact, only the name changes. Now, there is more, and the bill is lengthy, and I haven't read every word. I have read the senate committee analysis, and have gleaned this - the existing 3 commissioner panel heading the Commission will be replaced with a single elected commissioner. In Senate floor action it was attempted to change that to 3 elected commissioners, however, that was defeated nearly unanimously.

It appears that some enhanced enforcement powers, as well as procedural requirements are added. Whether they will amount to a hill of beans remains to be seen. The real question in my mind, is will this organization actually do any better at regulating the oil and gas industry in Texas for the health and safety of Texans? Changing the name is not going to make them a better organization.

I don't have any problem with this change - at least the name will reflect what they do. The problem is whether or not the legislature will actually give them the tools and the will to actually regulate the industry in a way that serves Texans appropriately. That could have been done under the old name.

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