Railroad Commission of Texas, Gas Utilities Division:
An Inventory of Gas Utilities Division Directors' General Correspondence at the Texas State Archives, 1935-1946, 1972-1979, bulk 1972-1979
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).
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.
Three divisions with the agency have regulatory functions: the Gas Services Division, the Oil and Gas Division, and the Surface Mining and Reclamation Division. The Office of the General Counsel's Enforcement Section has enforcement powers, the Safety Division is responsible for the safe transportation of products through pipelines, installation of LP-Gas (propane), and the reporting of damage to pipelines through third-party damage reporting, and the Alternative Fuels Research and Education Division has research and education functions. Support divisions include the Public Information Office, Personnel, Finance and Administration, Information Technology Services, Intergovernmental Affairs, and the Office of Internal Audit. Three elected Commissioners direct the operations of the agency.
The Gas Services Division works to ensure that a continuous safe supply of gas is available to Texas consumers at the lowest reasonable rates. The division establishes rates and services that are fair and reasonable for gas utilities and their customers; enforces those rates; maintains safety standards in the gas and hazardous liquids pipeline systems throughout the state by inspection and investigation of any hazards or accidents; oversees intrastate gathering and storage services; and adopts and maintains adequate safety rules and standards in the handling, transportation, and odorization of LP-gases (liquefied petroleum gases) for dealers, handlers, and consumers. It further regulates propane and compressed natural gas by requiring anyone working with these gases to pass a written qualifying exam administered by the Commission. The division also focuses on regulatory policy and analysis as well as identifying and eliminating natural gas transportation problems. There are four main sections in this division - Audit, Liquefied Petroleum Gas, Pipeline Safety, and Regulatory and Analysis.
(Sources: Guide to Texas State Agencies, various editions; general laws and statutes; the Railroad Commission website, accessed on August 24, 2008; and the records themselves.)
The Gas Services Division of the Railroad Commission of Texas (RRC) establishes rates and services for gas utilities and their customers and enforces those rates. It also maintains safety standards for gas and hazardous liquids pipeline systems; oversees intrastate gathering and storage services; and adopts and maintains adequate safety rules and standards in the handling, transportation, and odorization of LP-gases. These records are the general correspondence and research files of several directors of the Gas Utilitities Division (later called the Gas Services Division) of the Railroad Commission of Texas dating 1935-1946, 1972-1979. Most of the records are from the directorships of first Walter Wendladt and then Frank Youngblood in the 1970s. Only one reel of microfilm contains correspondence from 1935 to 1946.
There is much correspondence with federal and state government officials including Texas Railroad Commissioners, Texas Attorney General's office, Texas Office of State-Federal Relations, Federal Energy Administration, Congressional aides, and legislative committees. Other correspondents include the National Association of Regulatory Utility Commissioners (NARUC), cities, electric power cooperatives, natural gas utilities and companies, solar energy companies, the Interstate Oil Compact Association, and private citizens.
Subjects covered include the federal deregulation of natural gas, the LoVaca Gas Gathering Company and Crystal City dispute of the early 1970s, energy conservation, natural gas rates, rate hike requests, the Alaska pipeline, and citizen complaints of gas utility service and rates.
Besides correspondence, other types of records include transcripts of testimony of Division directors before state and federal legislative committees, speeches by the directors, state and federal legislative bills, legal briefs, Texas Attorney General opinions, reports to the National Association of Regulatory Utility Commissioners, energy related publications, newsletters from universities, and newspaper clippings.
Also found are internal records of the Gas Utilities Division including travel vouchers and receipts of Division personnel, bids for surplus state property, insurance policies, personnel and employments records, and copies of Division newsletters. Some personal correspondence of the directors is also present.
This finding aid describes a single series of the Railroad Commission of Texas records. See Railroad Commission of Texas: An Overview of Records for more records series.
To prepare this inventory, the described materials were cursorily reviewed to delineate series, to confirm the accuracy of contents lists, to provide an estimate of dates covered, and to determine record types. The audit files are on microfilm; the inventory provided by the Railroad Commission does not list the dates for these files.
Restrictions on Access
Because of the possibility that portions of these records fall under Public Information Act exceptions including, but not limited to, home addresses, phone numbers, social security numbers, and personal family information of government employees and officials (V.T.C.A., Government Code, Section 552.117), and information of a private nature (V.T.C.A., Government Code, Section 552.101) an archivist must review these records before they can be accessed for research. The records may be requested for research under the provisions of the Public Information Act (V.T.C.A., Government Code, Chapter 552). The researcher may request an interview with an archivist or submit a request by mail, fax, or email including enough description and detail about the information requested to enable the archivist to accurately identify and locate the information requested. If our review reveals information that may be excepted by the Public Information Act, we are obligated to seek an open records decision from the Attorney General on whether the records can be released. The Public Information Act allows the Archives ten working days after receiving a request to make this determination. The Attorney General has 45 working days to render a decision. Alternately, the Archives can inform you of the nature of the potentially excepted information and if you agree, that information can be redacted or removed and you can access the remainder of the records.
Materials housed in the State Archives 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.).
Microfilm readers are available in the Geneology and Reference reading rooms at the Texas State Library and Archives.
(Identify the item), Gas Utilities Division directors' general correspondence, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.
Accession number: 1981/120
These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Railroad Commission of Texas on February 12, 1981.
Described by Paul B. Beck, February 1987
DACS compliance by Laura K. Saegert, September 2008.
Detailed Description of the Records