Four Things You Didn’t Know About the Texas Railroad Commission

Posted by CourthouseDirect.com Team - 21 January, 2015

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Texas Railroad CommissionWhile the Texas Railroad Commission is largely known by landmen, surveyors, abstractors, oil and gas employees and other land professionals, there are a number of facts and interesting bits of information that many have never heard. Let’s take a look at a few of those facts and explain why they are important.

The Origins of the Texas Railroad Commission 

The beginnings of the Texas Railroad Commission can be traced back to 1889, when Attorney General James S. Hogg found himself in conflict with many of the state’s railroad supporters. Believing that many of the railroads were attempting to take over and control the entire industry, Hogg sued a number of companies – including the Texas Traffic Association.

Later that year, Mr. Hogg decided to run for governor. As part of his campaigning, he promised to create a commission that would regulate the railroad industry in Texas, if he was elected. He did in fact win the election, and in 1891, the Texas State Legislature successfully passed an act that created the Railroad Commission of Texas.

While much has changed since the founding of the commission, it’s important to have an understanding of what the original goal of the organization was and how it has shaped the organization today.

The Mission Statement

Understanding how the commission acts today requires a look at the mission statement. According to the Railroad Commission of Texas’ website,

“The Railroad Commission serves Texas through: our stewardship of natural resources and the environment; our concern for personal and community safety; and our support of enhanced development and economic vitality for the benefit of Texans.”

In other words, the commission is designed to ensure the state’s natural resources are efficiently and effectively used so that citizens, local businesses, and the environment prosper.

The Commission’s Power

Many people are unaware of the amount of power the Texas Railroad Commission has. While it started as a state body – and technically still is – it has become one of the most important regulatory bodies in the entire United States. This is in large part due to its ability to influence the price and supply of natural gas and oil in the country. The commission gives Texas a lot of power and is one of the state’s biggest assets, year in and year out.

Expansion to Oil

As the name suggests, the Texas Railroad Commission was originally built to manage the state’s railroad system. However, between 1917 and 1919, the commission expanded its reach and began regulating oil pipelines and oil and gas production. For the last 90-plus years, the oil and gas responsibilities have taken first priority and are the major reason the commission has such significant power.

The Future of the Texas Railroad Commission

While the past is much storied, it will be interesting to see what the future holds. As a surveyor, landman or other land professional in Texas, it’s important to understand the Texas Railroad Commission’s history and what it means for the present day and future. While these four facts are extremely valuable, there are plenty more interesting information about this historical agency to uncover and learn about.

 


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*Image courtesy of freedigitalphotos.net

Topics: Oil and Gas


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