What the Railroad Commission Really needs... besides a name change

The Railroad commission of Texas, or the Texas oil and gas commission, whatever its name finally is, needs more than just a nice name. It needs the resources to get out and inspect gas and oil wells during all phases of operation. While many other state regulatory agencies get their revenue from fees and fines from the companies being regulated, a large portion of the Railroad Commission's revenue comes from the regular funds of the state. Thus, as the entire budget is being cut, the ability of the railroad commission to actually go out and do its job is affected.


Now, I am not saying that this is not a bloated government agency - it probably could use a trimming. It is best that the trimming not be in the level of services provided, but rather in the inefficiencies that may exist in it. Once the trimming is done, the level of services should be determined by the demand for new oil and gas wells, not a fixed general fund budget. So the permits and fees charged to the oil and gas well applicants should be paying for the regulatory oversight and inspections. Likewise with the fines assessed for any infractions. Since the Railroad commission is not currently paying for itself, it appears obvious to me that the fees for permits should be increased. Also, since regular inspections are required, the fees should be high enough to cover that also, or there should be an annual recurring fee that then covers the inspections.

The fines should do more than just make revenue for the commission. They need to be high enough to act as an actual deterrent against the permit holder making the infraction to start with. The fines should be stiff enough to gain compliance through a desire to avoid the fine.

We (you and I) don't need to hash details here - our legislators and the regulators should do that. We (you and I) need to contact our legislators in Austin and let them know what we want - a self funded Railroad Commission.