Texas Railroad Regulatory Commission May Be Renamed -- Not a Bakken Story

There's an interesting op-ed piece coming out of a Texas newspaper this past week. It looks like the Texas legislature will do away with the Texas Railroad Regulatory Commission (RCC).

Shortly after the turn of the century, oil was discovered and the RRC was given regulatory responsibility over oil pipelines in 1917, oil and gas production in 1919 and gas intrastate pipelines in 1920. In the 1930s the RRC exerted powers that made it one of the most powerful regulatory agencies ever.

Over the years, the rulings of the RCC pretty much set the tone for the rest of the nation. I think it could be argued that the RCC pretty much was very much in favor of growing the oil industry.

So, when I read the headline, I was somewhat startled. I didn't think Texas wanted to give up this leading role.

It turns out that the commission will probably simply be renamed.

The RRC has more than 100 rules and regulations dealing with everything from drilling permits, disposal well restrictions, spacing rules, hazardous materials, environmental regulations and complaints from land owners. Actually, the Sunset Committee doesn't want the duties of the RRC to go away. The committee recommends the RRC name be changed to the Texas Oil and Gas Commission and that the elected three commissioners be reduced to one elected.

Texas will still set the tone when it comes to oil regulation, probably even more so with the discovery and development of Eagle Ford south of San Antonio.