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TABLE OF CONTENTSScope and Contents of the Records |
Railroad Commission of Texas:An Inventory of Minutes at the Texas State Archives, 1891-1996
Agency HistoryThe Railroad Commission of Texas had its origin in the demands of the shipping public in the late 1880s which 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 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 Senate Bill 350 of the 36th Legislature, Regular Session, the Oil and Gas Conservation Law, 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 House Bill 792, 46th Legislature, 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). The Motor Bus Law of 1927, House Bill 50, 40th Legislature, Regular Session, and the Motor Carrier Law of 1929, House Bill 654, 41st Legislature, Regular Session, extended the Commission's regulatory powers to commercial transportation of persons and property on state highways. Motor transportation activities were handled by the Motor Transportation Division. In 1995, following federal deregulation of motor carriers, the 74th Legislature eliminated the Commission's authority to regulate commercial carriers involved in intrastate transport and transferred the remaining responsibilities related to commercial carriers (motor carrier registration, insurance verification, and safety) to the Texas Department of Transportation (Senate Bill 971, Regular Session), and the Department of Public Safety (Senate Bill 3, Regular Session). The Texas Surface Mining and Reclamation Act of 1975, Senate Bill 55, 64th Legislature, Regular Session, authorized the Commission to regulate the exploration for and surface mining of coal, lignite, and uranium within the state and to oversee the reclamation of lands disturbed by surface mining operations. In 1991, the 72nd Legislature, Regular Session, passed House Bill 451, the Texas Aggregate Quarry and Pit Safety Act, that authorized the Commission to regulate quarry and pit operations. The Commission's authority over railroads diminished over the latter half of the twentieth century. The Federal Railroad Safety Act of 1970 vested rail safety responsibilities in the Federal Railroad Administration. In 1980, the Federal Staggers Rail Act largely eliminated the Commission's responsibility for setting rates for intrastate railroads. By 1984, the Commission ceased its role in the economic regulation of the Texas rail industry. Regulatory powers over rail safety were granted in 1985 when the 69th Legislature authorized the Commission to implement a rail safety program in conjunction with the Federal Railroad Administration Act of 1970 (Senate Bill 444, 69th Legislature, Regular Session). The Railroad Commission regulates the oil and gas industry to prevent the waste of resources and to protect property rights and the environment. It oversees hazardous materials pipelines and natural gas pipelines and distribution systems as well as propane, butane, compressed natural gas, and liquefied natural gas. The Commission licenses and conducts seminars for oil and gas dealers and their employees. It also oversees railroad safety and rail planning; surface mining for coal, uranium, and iron ore gravel; and land reclamation when mining is complete. 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. The Oil and Gas Division works to prevent the waste of oil, gas, and geothermal resources and to prevent the pollution of fresh water from oil and gas operations. The division holds statewide hearings on market demand and provides for equitable production among operators by establishing monthly production allowables. It issues drilling permits, reviews and approves oil and gas well completions, collects data on oil and gas operations, and promotes public safety. It also protects underground drinking water through regulation of the underground injection of fluids in oil field operations, a program approved by the U.S. Environmental Protection Agency under the Federal Safe Drinking Water Act. It oversees well plugging operations, site remediation, underground hydrocarbon storage, hazardous waste management, and maintains a large amount of data on wells - their location, production, etc. The division also investigates complaints and conducts other investigations. This division maintains 10 district offices where field enforcement and support personnel monitor oil and gas operations. The commission does not have the authority to set oil and gas prices at the wellhead. The departments within the Oil and Gas Division are: Administration, Permitting/Production Services, Information Management Services, Environmental Services, Compliance, and the Oil Field Cleanup Operations Unit, which includes Site Remediation and Special Response, and Well Plugging. The Surface Mining and Reclamation Division oversees the exploration of and surface mining for coal, uranium, and iron ore gravel and the reclamation of land disturbed by surface mining operations. It also conducts a program for reclaiming lands that were mined before 1975 and left unrestored. Companies must have a permit from the commission for each mining site operated in the state. Before permits are issued, the companies must submit a performance bond that will provide funds for reclamation if the company fails to do an adequate reclamation job. The division also studies mining sites to ensure the mining will not harm the quality or quantity of water in the area. It determines which abandoned mines pose the greatest threat to public health and safety and the environment, and designs a reclamation plan to address the greatest problems. Private contractors are used to do the reclamation. Railroad regulation was initially overseen by the Main Office, later the Main and Transportation Division, then the Transportation Division. The division charged with rail responsibilities today is the Rail Division. This division is 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 enforces rules aimed at removing obstructions on railroad rights-of-way and operates a crossing safety education program. There are two main sections in this division - Rail Safety and Rail Planning. The Office of the General Counsel is the enforcement branch of the agency. It provides legal support through five sections: Enforcement, Gas Utilities and LP-Gas, General Law, Oil and Gas, and Surface Mining. The Enforcement Section handles enforcement cases for all the agency's regulatory areas and ensures the commission's orders and rules are followed. The Gas Utilities and LP-Gas Section handles rate-setting cases for gas transportation and utility companies and safety compliance cases involving the natural gas, LP-gas, and compressed natural gas industries, as well as cases involving enforcement of the gas utility tax. The General Law Section provides legal research and advice to staff and provides staff attorneys for complex hearings arising in other divisions. It also tracks proposed state regulations and reviews submissions to the Texas Register. The Oil and Gas Section holds hearings on matters dealing with producing, storing, transporting, reclaiming, and processing oil and gas. It also conducts hearings to determine responsibility for the proper plugging of abandoned wells and preventing and controlling oil and gas pollution. The Surface Mining Section reviews and processes applications for permits, revisions, renewals, variances, and bond releases. It also conducts rule-making hearings involving surface mining for coal, uranium, and iron ore gravel; abandoned mine land reclamation; and safety of quarries and pits. It also holds hearings involving new and amended authority, rates, new or amended rules, and compliance with rules and statutes. The Alternative Fuels Research and Education Division works to educate the public and conduct research on LP-gas and other environmentally beneficial fuels. The division is currently researching the contribution of propane to cleaner air and is developing marketing, advertising, and informational programs about propane. Railroad Commission 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. In 1999, the agency had approximately 848 FTE (full-time equivalent) employees. Legal authority for the Railroad Commission is the Texas Constitution, Art. X, Sec. 2 and Art. XVI, Sec. 30; and the Natural Resources Code, Chapter 81. Return to the Table of Contents Scope and Contents of the RecordsThese minutes are the official record of the meetings of the Railroad Commission of Texas and document the actions and orders of the commissioners, covering the years 1891-1996. Other items include notices of hearings, orders, circulars, and special notices. Matters before the Commission documented in the minutes include the establishment of and changes in railroad freight and passenger rates, train schedules, tariff classifications, requests to discontinue passenger stations, amendments to rules, complaints, and other railroad issues; contested oil and gas cases, complaints on violated Commission oil and gas rules (e.g. operator not in compliance with plugging rules), changes in policies and procedures, amendments to rules, resolution of complaints filed against the Commission, and other related matters concerning oil and gas regulation (production/permitting, oil field clean up, site remediation, compliance, etc.); issues concerning the operation of motor vehicles; gas utility regulation; liquefied petroleum gas and other gas services issues; regulation of pipelines; and surface mining and reclamation issues. Minutes from 1891 to the end of the 1910s are primarily concerned with railroad rates and regulations. Beginning in 1917 with pipeline regulation, the minutes begin to record the Commission's activities in other areas. The establishment of the Oil and Gas Division, the Gas Utilities (later Gas Services) Division, and the Motor Transportation Division expanded greatly the Commission's jurisdiction and the minutes reflect these changes. The activities of the divisions added large dockets of cases, hearings and orders to the minutes. These divisions came to dominate the meetings of the Commission and the minutes as railroad regulation decreased and other areas of regulation became more complex. Topics covered in the minutes include regulation and operation of railroads, including railroad companies' annual operations, rail construction, and setting freight and passenger rates; oil and gas activities, including the issuance of orders governing drilling of oil and gas wells and the operation of the fields; oil and gas conservation and safety, including spacing of wells; disposal of oil and gas waste and pollution cleanup efforts; natural gas issues, include rate hearings, deregulation, and odorization of natural gas; and issuance of permits or certificates of convenience to operate commercial motor vehicles on public highways. The minutes from 1891 to 1972 are in bound volumes and from 1973 to 1996 on microfilm. During the microfilming process Reel 81 was skipped. Because the microfilm exists only as master negatives and is stored offsite, paper use copies of the minutes have been retained for 1979-1995. Each of the pre-1920 volumes of minutes have a brief subject index in the front of the volume. The post-1920 volumes, the microfilm, and the paper sets of minutes do not have indexes. Orders, circulars and other attachments are not found in the paper use copies of the minutes. Agendas for Railroad Commission meetings from August 1996 to the present and minutes for 1999-2001 are posted on the Railroad Commission's website, see http://www.rrc.state.tx.us/meetings-seminars/ms-commission-conferences/pcc.html. 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. Return to the Table of Contents
Return to the Table of Contents RestrictionsRestrictions on AccessNone. Restrictions on UseSome of the minutes are in off-site storage at the State Records Center on master negative microfilm. This film is unique and fragile and requires that a duplicate use copy be made of any reel that a researcher wishes to view. A duplicate use copy can be made at the researcher's expense. Arrangements for duplication and prepayment need to be made with the State and Local Records Management Division of the Texas State Library and Archives Commission. Technical RequirementsNone. Return to the Table of Contents
Return to the Table of Contents Related MaterialReturn to the Table of Contents Administrative InformationPreferred Citation(Identify the item), Minutes, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission. Accession InformationAccession numbers: 1978/152, 1998/184, 2002/048, 2003/038 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 August 16, 1978, June 22, 1998, and October 17, 2001; and from the Legislative Reference Library on October 18, 2002 Processing InformationPaul Beck, April 1987 Laura K. Saegert, September 2003 AccrualsAdditions to the minutes are transferred every few years to the Archives. Other Formats for the RecordsPaper copies of the minutes are present for 1979-1995. These were maintained because the microfilm only exists as a master copy and is stored offsite. Return to the Table of Contents Detailed Description of the Records
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