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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.
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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 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 consist of ICC finance docket files, generally consisting of applications; briefs, exhibits, questionnaires, and other items gathered for or presented during the hearing; the report of the ICC as to the outcome of the railroad company's application; and correspondence. Files are dated 1920-1952. The finance docket files concern applications for certificates of public convenience and necessity by rail companies. Docket topics include construction of new lines, extension of lines, acquisition of lines, abandonment of lines and/or operations, consolidation of railroad companies, recapture proceedings of excess income, extension of liens and mortgages, issuing and selling stocks and bonds, loans through the revolving track fund, and other topics. Most railway lines operating in Texas during this time period (1920-1952) are represented.
Supplementing the case documents are correspondence between the ICC
Commissioner and the Governor or the Railroad Commission; correspondence
between railroad companies and the Railroad Commission; some correspondence
from city and county officials and others to the Railroad Commission concerning
proposed changes of railroad companies; maps showing proposed extensions, track
to be abandoned, lines in operation, right-of-way maps along railroad lines,
general railroad maps of areas, and other railroad related topics; prospectus
and charters of railroad companies; specimen sheets of stocks or bonds to be
offered for sale; and some photographs used for exhibits, showing things such
as railroad depots and the condition of tracks. A few docket files not titled
as
Dates given on the folder reflect the dates of the dockets and the materials associated with it. In a few cases, the only items in the files are supplemental applications and associated materials which were often filed years after the initial case was heard. These particular cases are filed by the original date, in brackets, followed by the dates of the supplemental materials. Materials used as exhibits (maps, charts, etc.), may date back to the late 19th century or early 20th century. Dates of materials used as exhibits are not included in the folder titles.
Preceding the alphabetical files is a list of dockets, giving dates applications were filed and decided upon, for the years 1927-1936. At the end of the series is a Box of materials from docket 8448, Texas and Northern Pacific Railroad. These were originally housed with part of another series in the Railroad Commission records. Additional materials from this docket can also be found in the regular alphabetical listing.
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.
This finding aid describes a single series of the Railroad Commission
of Texas records. See
These files are arranged alphabetically by the company filing the application, then by docket (which is also chronological as docket numbers were assigned sequentially), as received from the agency. Filing by applicant is maintained throughout the records except the Union Terminal Company files, where companies wanting to buy mortgage bonds from this company are filed under Union Terminal rather than under the name of the company applying for the bonds.
(Identify the item), Transportation Division Interstate Commerce Commission financial dockets, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.
Accession number: 1990/097
These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Rail Planning/Rail Safety Division of the Railroad Commission of Texas on March 6, 1990.
Laura K. Saegert, October 1990
Finding aid edited for DACS compliance by Laura K. Saegert, November 2008