Railroad Commission of Texas:
An Inventory of Transportation Division Interstate Commerce Commission Valuation Reports at the Texas State Archives, 1926-1927
The Railroad Commission of Texas 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. It oversees hazardous materials pipelines and natural gas pipelines and distribution systems as well as propane, butane, compressed natural gas, and liquefied natural gas. It works to make sure a continuous, safe supply of natural gas is available to Texas consumers at the lowest reasonable price. Additionally, the Commission regulates surface mining for coal, uranium, and iron ore gravel, and conducts a program for reclaiming lands that were mined and abandoned before 1975.
The Railroad Commission of Texas had its origin in the demands of the shipping public in the late 1880s that insisted that railroads be subject to regulation based on public interest. An advocate for governmental regulation, Attorney General James Stephen Hogg ran for Governor in 1890 with the issue of railroad regulation as the focal point of the campaign. Hogg was elected Governor in the general election and the voters also approved an amendment to Article X, Section 2 of the Texas Constitution that empowered the Legislature to enact statutes creating regulatory agencies. These elections paved the way for the Legislature to enact on April 3, 1891 "An Act to Establish a Railroad Commission of the State of Texas," that later was placed in the Texas Revised Civil Statutes under article 6444 et seq. (House Bills 1, 3, and 58, 22nd Texas Legislature, Regular Session).
The Commission originally consisted of three members appointed by the Governor for three-year terms. Governor Hogg appointed the first three Commissioners in 1891 including John H. Reagan, who resigned as U.S. Senator from Texas to serve as the first Chairman. The Texas Constitution, Article XIX, Section 30 was amended in 1894 to provide for elective six-year overlapping terms for the Commissioners. That same year John H. Reagan was elected and served until his retirement in 1903.
The Texas Railroad Commission was the first regulatory agency created in the State of Texas and originally had jurisdiction over the rates and operations of railroads, terminals, wharves and express companies. The legal focus was on intrastate passenger and freight activities. Interstate jurisdiction fell under the U.S. Interstate Commerce Commission. For the first twenty-five years of its existence, the Railroad Commission was largely concerned with regulating railroads, setting rates, receiving complaints, and making investigations. As other controversies arose where the Legislature deemed that the public interest could best be served by regulation, additional duties were assigned to the Railroad Commission.
The Railroad Commission's authority was broadened beginning in 1917 with the passage of the Pipeline Petroleum Law (Senate Bill 68, 35th Legislature, Regular Session) that declared pipelines to be common carriers like railroads and placed them under the Commission's jurisdiction. This was the first act to designate the Railroad Commission as the agency to administer conservation laws relating to oil and gas. The Commission's regulatory and enforcement powers in oil and gas were increased by the Oil and Gas Conservation Law (Senate Bill 350 of the 36th Legislature, Regular Session), effective June 18, 1919. This act gave the Railroad Commission jurisdiction to regulate the production of oil and gas. Acting upon this legislation, the Commission adopted in 1919 the first statewide rules regulating the oil and gas industry to promote conservation and safety, including Rule 37. This rule requires minimum distances between wells at drilling sites in order to protect field pressure and correlative rights.
The Gas Utilities Act of 1920 (House Bill 11, 36th Legislature, 3rd Called Session) gave the Commission regulatory and rate authority over individuals and businesses producing, transporting, or distributing natural gas in Texas. In 1937, following a large natural gas explosion in a school in New London, Texas, the 45th Legislature passed legislation giving the Railroad Commission the authority to adopt rules and regulations pertaining to the odorization of natural gas or liquefied petroleum gases (House Bill 1017, Regular Session).
The passage of the Public Regulatory Act of 1975 (PURA) (House Bill 819, 64th Legislature, Regular Session) required certain state regulatory agencies, including the Commission, to set the overall revenues of a utility based on its "cost of service." Regulation of liquefied petroleum was added to the Commission's responsibilities in 1939 by the 46th Legislature (House Bill 792, Regular Session). The legislation authorized the Commission to adopt and enforce safety rules and standards in the storage, handling, transportation, and odorization of butane or LP-gases. Regulation of compressed natural gas was added to the Railroad Commission's responsibilities in 1983 (Senate Bill 617, 68th Legislature, Regular Session).
Railroad regulation was initially overseen by the Main Office, later the Main and Transportation Division, then the Transportation Division and finally the Rail Division. This division was responsible for checking equipment and track, railroad and signal operations, and hazardous material handling; conducting investigations of accidents and complaints concerning railroads; and securing federal funds to improve branch lines and preserve rail service to rural areas. The Division enforced rules aimed at removing obstructions on railroad rights-of-way and operated a crossing safety education program. In 2005, the Rail Division and its remaining function, rail safety regulation, were transferred to the Texas Department of Transportation (House Bill 2702, 79th Legislature, Regular Session). The Railroad Commission no longer has any railroad-related functions.
The Interstate Commerce Commission (ICC) was given authority over most aspects of the railroad industry in the early 20th century (detailed in the U.S. Transportation Act of 1920), including regulation of interstate rates, limited regulation of intrastate rates, and authority over granting railroad companies certificates of public convenience and necessity. This series concerns the last activity. Railroad companies made applications to the ICC for these certificates in order to acquire and/or operate any lines or extensions, to construct new lines, to extend or abandon lines, to acquire control over other carriers, to consolidate railroad properties or consolidate two or more companies into a single corporation, to issue and sell stock, to extend their line of financial obligation, to lease transportation equipment and facilities, to apply for loans from the ICC's revolving track fund, and in a few other situations. The ICC also undertook recapture proceedings against companies reporting excess income.
(Sources: Guide to Texas State Agencies, various editions; general laws and statutes; and the records themselves.)
The Railroad Commission of Texas (RRC) had jurisdiction over the rates and operations of railroads, terminals, wharves and express companies. The Railroad Commission, at the request of the federal Interstate Commerce Commission (ICC), would often hear cases for the ICC (or jointly with the ICC) involving applications for certificates of public convenience and necessity and would recommend to the ICC whether or not to grant the application. The Railroad Commission interaction with the ICC was through the Main Office (later Main Office and Rate Division, then Main Office and Transportation Division, then the Transportation Division). These records are two sets of detailed valuation reports on the construction of railroad branch lines. The reports are from a Texas railroad, the Panhandle and Santa Fe, to the Interstate Commerce Commission's (ICC) Bureau of Valuation. The first report is for a branch line from Panhandle, Texas to Borger, Texas dated October 16, 1926. A year later, October 15, 1927, another valuation report was filed for a branch line from White Deer, Texas to Skellyton, Texas. Each report gives a brief history of the railroad company and of its application with the ICC to construct the line. These reports, labeled "Bureau of Valuation Form 588," then detail the construction costs of each line including the costs of labor, materials, transportation, equipment and all improvements such as bridges, track, stations, signals, and grading. Each different construction cost is assigned to an account and the accounts are arranged numerically.
An inventory of the records was conducted to provide a brief description of the contents of each box including the dates and types of materials and a notation of any filing arrangement that may be present.
This finding aid describes one series of the Railroad Commission of Texas records. See Railroad Commission of Texas: An Overview of Records for more records series.
Restrictions on Access
Materials do not circulate, but may be used in the State Archives search room. Materials will be retrieved from and returned to storage areas by staff members.
Restrictions on Use
Most records created by Texas state agencies are not copyrighted and may be freely used in any way. State records also include materials received by, not created by, state agencies. Copyright remains with the creator. The researcher is responsible for complying with U.S. Copyright Law (Title 17 U.S.C.).
(Identify the item), Interstate Commerce Commission valuation reports, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.
Accession number: unknown
These records were received by the Railroad Commission of Texas from the Interstate Commerce Commission and transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Railroad Commission at an unknown date.
Processed by Paul Beck, March 1987
DACS compliance by Laura K. Saegert, February 2009
Detailed Description of the Records