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The Railroad Commission of Texas (RRT) is a state agency that regulates the oil and gas industry, gas utilities, pipeline safety, and coal mining.
The RRC has a threefold mission involving stewardship of the environment, personal and community safety, and economic development.
Despite its name, the agency does not regulate railroads. When it was created in 1891, it did regulate railroads, but its duties have since evolved.
The RRC sets certain regulatory fees, such as fees for permits for pipelines.
The RRC has the authority to establish market-based rates for oil and gas pipelines and ensures that natural gas shippers aren’t discriminated against by pipeline providers.
The commission also has regulatory and enforcement responsibilities under federal law including the Surface Coal Mining Control and Reclamation Act, Safe Drinking Water Act, Pipeline Safety Acts, Resource Conservation Recovery Act, and Clean Water Act.
In case of violations of RRC rules or the law, the agency has the power to levy administrative penalties.
Structure of the Commission
The Railroad Commission of Texas is led by a three-member board elected in partisan statewide elections. These commissioners serve six-year, staggered terms. One commissioner position is on the ballot every two years.
The commissioners choose their own chairperson to lead the board.
By law, the three-member commission must follow policies that clearly separate its “policy-making responsibilities” from the “management responsibilities” of the staff of the commission.
The agency employs about 800 staff and has its headquarters in Austin and 12 district offices located throughout the state. The RRC has several divisions including for surface mining and reclamation, oversight and safety, oil and gas, and various administrative divisions.
Current Commissioners
| Commissioner | Party | Assumed office | Next election |
|---|---|---|---|
| Wayne Christian, Chairman | Republican | January 9, 2017 | 2022 |
| Christi Craddick | Republican | December 12, 2012 | 2024 |
| Jim Wright | Republican | January 1, 2021 | 2026 |
Divisions of the Commission
Oil and Gas Division
The Oil and Gas Division regulates the exploration, production, and transportation of oil and natural gas in Texas. Its statutory role is to:
- prevent waste of the state’s natural resources,
- to protect the correlative rights of different interest owners,
- to prevent pollution, and
- to provide safety in matters such as hydrogen sulfide.
The division oversees oil and gas permitting, performs field inspections, and implements programs to remediate abandoned wells and sites.
Surface Mining and Reclamation Division
In 1975, the Texas Legislature gave the Railroad Commission jurisdiction to regulate surface mining for coal and uranium. Companies mining coal/lignite in Texas must have a commission permit and post a bond for each site they operate in the state.
Division field personnel make, at a minimum, monthly visits to mine sites, checking for compliance with coal mining regulations.
The Surface Mining and Reclamation Division also administers a program to reclaim dangerous or environmentally harmful abandoned mine sites that were mined prior to the implementation of a federal surface mining law in 1975.
Oversight and Safety Division
The Oversight and Safety Division has responsibility for Alternative Fuels, Gas Services and Pipeline Safety.
The Alternative Fuels Safety department enforces laws and regulations on the safe transportation, storage, distribution of liquefied petroleum gas (LPG) (commonly referred to as propane); compressed natural gas (CNG) and liquefied natural gas (LNG).
The Gas Services department oversees natural gas utility rates. The department’s Market Oversight section participates in contested rate determinations, collects and publishes natural gas utility tariffs, and resolves consumer complaints and industry complaints.
The department’s Utility Audit section administers the gas utility tax and audits natural gas utilities to ensure the proper computation and billing of authorized rates.
The Pipeline Safety department regulate the safety of intrastate gas, hazardous liquid and CO2 pipelines in the state. The department conducts inspections of pipettes and investigates accidents and complaints involving pipeline facilities.
Budget
The Texas Railroad Commission had a budget of $123.7 million in fiscal year 2023, according to the Appropriations Act. The commission’s sources of funds included $55.5 million from the General Revenue Fund, $60 million from a dedicated Oil and Gas Regulation Cleanup Account, $6.9 million in federal funds, and $1.4 million in appropriated receipts.
The Texas Railroad Commission has an authorized staffing level of 871.
‘Regulatory Capture’
The RRC has come under scrutiny for being too cozy with the oil and gas industry that it purports to regulate. In a joint report in 2021 watchdog groups Texans For Public Justice and Commission Shift described the railroad commission as a “captive agency.”
The report honed in on the role of Commissioner Christi Craddick, saying, “Craddick maintains stakes in oil and gas entities that do business with her agency.”
“Craddick’s personal and political finances also are entangled with those of her father. State Rep. Tom Craddick of Midland is Texas’ longest serving lawmaker, first elected in 1969 and who served as Speaker of the House from 2003 to 2009. Since 2009, Rep. Craddick has served on the House Energy Resources Committee, which oversees the Railroad Commission.”
“Between Christi Craddick’s 1995 University of Texas at Austin School of Law graduation and her 2012 commission election, her father’s political committees paid her more than $1 million, even as he personally donated more than $600,000 to her first commission campaign. The up to $680,000 in lobby income that Christi Craddick reported in that time period also is difficult to disassociate from her father’s political involvements.”
“The current ethics policy framework does not clearly define the term “personal or private interest” which the railroad commission’s recusal policy hinges on. Moreover, the policy must be enforced “on the petition of the attorney general,” making it potentially difficult to enforce. Several policy reforms are needed to prevent real or apparent ethical breaches, improve transparency, and regain public trust.”
FAQ
The Railroad Commission of Texas hasn’t regulated railroads since 2005 when its rail safety division was transferred to the Texas Department of Transportation. Long before that, however, its focus had shifted toward the oil and gas industry, which it began regulating in 1917.
Some have said that it would take a constitutional amendment to change the name of the Railroad Commission because it is mentioned by name in the Texas Constitution. This would require a vote of two-thirds of lawmakers in each chamber and approval by the voters.
However, the Sunset Advisory Commission concluded in a 2017 review, “Changing the agency’s name does not require a constitutional amendment. The constitutional provision mentioning a Railroad Commission is permissive.”
If, however, the Legislature changed the name, “it would no longer be the railroad commission” and candidates for commissioner would no longer have to be elected in the manner prescribed by the constitution.
Address and Contact
- Main Office: 1701 N. Congress, Austin, TX 78701
- Mailing Address: P.O. Box 12967, Austin, TX 78711-2967
- Website: https://www.rrc.texas.gov/
- Phone: 512-463-7158
