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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).
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.
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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. These reports are copies of annual printed statements sent out by utility companies to their stockholders, dating 1963-1978. A copy was filed with the Gas Utilitities Division (later called the Gas Services Division) of the Railroad Commission of Texas. Each report contains the names of officers and director of the utility and a great deal of financial information on recent operations of the utility, typically including balance sheet data, assets, liabilities and stockholder's equity, real property, plants and equipment, operating data which includes earnings and dividends per share, and a ten year chart showing past financial performance. These reports are not standarized so there are some differences in the data presented. In a few cases, a financial statement or an income tax return was filed in place of the longer annual report statement.
This finding aid describes one series of the Railroad Commission of
Texas records. See
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 reports are on microfilm, most are on one reel. The second reel contains a few reports and has retakes of most, but not all of the reports.
These records are arranged alphabetically by gas utility and then chronologically by year, as received from the agency.
(Identify the item), Gas Utilities Division stockholders annual reports, Railroad Commission of Texas. Archives and Information Services Division, Texas State Library and Archives Commission.
Inventoried by Laura K. Saegert, 1981
Described by Paul Beck, January 1987
DACS compliance by Laura K. Saegert, September 2008.
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.