By Jack Oberstein

Mr. Oberstein graduated from the University of Texas with a B.S. in Communications in 2008 and a minor in Business Administration. This summer he will be clerking for K&L Gates in Dallas. He expects to receive his J.D. from the Texas School of Law in May 2012.

When asked what the Texas Railroad Commission does, most people would say that it’s in charge of Texas railroads. But the Railroad Commission has nothing to do with railroads—it regulates the oil and gas industry. Accordingly, the legislature is considering renaming the Commission. While this seems simple enough, there are those who oppose the change due to the name’s historical significance and the costs involved. Nevertheless, it’s time for change— changing the Railroad Commission’s name will increase its transparency and accountability.

History and proposal for change

The Texas Railroad Commission (TRC) is an entrenched agency with historical significance. While it once was in charge of regulating railroads, it now focuses on oil and gas. Established by the legislature in 1891, the TRC is the oldest regulatory agency in the state and one of the oldest in the country. It wasn’t until 1919 that the legislature gave the TRC jurisdiction over oil and gas, and by 1984 it was no longer involved in the economic regulation of the Texas rail industry. By 2005 the legislature transferred the remainder of the TRC’s rail oversight to the Texas Department of Transportation. There are three commissioners in charge of the TRC and each is elected to six-year terms with one seeking election every two years.

The Sunset Advisory Commission, whose goal is to eliminate governmental agency waste, recommended changing the TRC’s name to the legislature early this year. It voted for the proposal by 8-4, along with reducing the number of commissioners from three to one. Possible names include the Oil and Gas Commission and the Texas Energy Commission.

The current name is simply too confusing. In fact, the Sunset Commission noted that in 2005 the Legislature invalidated the TRC’s name when the last rail oversight functions were transferred. Ex-commissioner Victor Carrillo said that the agency “[has] been called, unquestionably, the worst-named state agency in Texas.” Commissioner Michael Williams also voiced his frustration, saying that “[the name] does not depict at all what we do and it’s tremendously confusing to the public.” Luke Metzger, of Environment Texas, an environmental advocacy organization, said “[the TRC needs] to have a name that’s clear to understand . . . [i]t’s horrible in terms of the public having any clue of where to go with concerns and complaints.” Even candidates have been confused. In 2008, a San Antonio Democrat running for railroad commissioner listed “Railroad Safety” as a plank in his campaign platform.

Though the Sunset Commission’s efforts should be taken seriously, a stubborn legislature may oppose such a name change by citing the TRC’s historical significance and cost concerns. In fact, within the past five years there have been multiple efforts to change the TRC’s name, all failing at the House Energy Resources Committee. Not surprisingly, another Bill was recently introduced by Sen. Glenn Hegar. Only time will tell if Hegar’s Bill will survive.

Some would like to preserve the TRC’s name because of its entrenched history. “It seems that [opposition] is more about tradition and very little to do with good public policy,” said Sen. Florence Shapiro. Newly elected railroad commissioner David Porter wants to keep the name. He said that “[it] is probably the most important state regulatory agency in the history of the country, not just Texas.” Some have argued that bills aimed at changing the TRC’s name have been unsuccessful due to Representative Tom Craddick. Craddick mentioned that “[i]t’s the oldest state agency.” He even is under the impression that if you mention the Railroad Commission “people instantly know what the agency is.”

There are others like Representative Myra Crownover who cited the cost of changing the agency’s name as a reason for keeping the status quo. The estimated cost of changing its name, which includes new signs and publication titles, is $100,000. She said “I feel strongly that the Railroad Commission needs every dollar in their budget to ensure the safe and effective regulation of the oil and gas industry.”

Why the name should change

The TRC should change its name to reflect its actual duties. Refusing to change because it’s tradition and because the TRC shouldn’t have to pay to replace signs is no excuse. Being an elected office, the name change will increase its transparency which will also boost its accountability. Moreover, there are plenty of examples where agencies have effectively changed their names to better reflect their missions.

Transparency and accountability will naturally increase with a suitable name change. Many simply don’t know what the TRC does—this is astonishing in light of the fact that TRC commissioners are elected statewide. With a more suitable name, voters will be better equipped to understand what the TRC’s responsibilities are and they will be more likely to take their concerns over oil and gas regulation to the voter’s box.  Such concerns are especially relevant today where the controversy over hydraulic fracturing has become a hotly debated issue.

The TRC would not be the first agency to rename itself to better reflect its business. In 1975, the Mass Transportation Commission was folded into the Highway Department. Eventually, the department would become known as the Texas Department of Transportation to reflect its responsibility for the entire transportation network—including the railroads. To name a few more examples: in 2007, the Texas Structural Pest Control Board was abolished and its powers were transferred to the Texas Department of Agriculture; and in 2004, the Texas Commission on Alcohol and Drug Abuse was incorporated into the new Department of State Health Services. Thus, the TRC has plenty of examples to rely on.

It is time for the TRC to finally change its name. With a name that reflects its responsibilities, transparency and accountability will increase. Unfortunately, while there are numerous examples of other agencies that have changed their names to better reflect their missions, the Texas Railroad Commission may be a name that refuses to disappear.

Sources:

Railroad Commission of Texas, History of the Railroad Commission, http://www.rrc.state.tx.us/about/history/index.php (last updated May 10, 2010).

Railroad Commission of Texas, History of the Railroad Commission,  Chronological Listing of Key Events in the History of the Railroad Commission of Texas (2000 – 2009), http://www.rrc.state.tx.us/about/history/chronological/chronhistory05.php (last updated May 10, 2010).

Railroad Commission of Texas, Railroad Commissioner’s Homepage, http://www.rrc.state.tx.us/commissioners/index.php (last visited March 2, 2011).

Sunset Advisory Commission, Who is Sunset?, http://www.sunset.state.tx.us/ (last visited March 2, 2011).

Sunset Advisory Commission, Commission Decisions: Railroad Commission of Texas 17 (Jan. 2011), available at http://www.sunset.state.tx.us/82ndreports/rct/rct_dec.pdf (last visited March 8, 2011)

Aman Batheja, Texas Railroad Commission chugs along with outdated name, Star-Telegram (July 3, 2010), http://www.star-telegram.com/2010/07/03/2312377/texas-railroad-commission-chugs.html.

Martin Bartlett, Commission name change could come down to cost, KVUE News (July 6, 2010), http://www.kvue.com/news/local/Commission-name-change-could-come-down-to-cost-97892299.html.

Texas Railroad Commission May Get a New Name, CBS DFW (Jan. 12, 2012), http://dfw.cbslocal.com/2011/01/12/texas-railroad-commission-may-get-new-name/.

Environment Texas, About Us, http://www.environmenttexas.org/about-us (last visited March 2, 2011).

Martin Bartlett, Commission name change could come down to cost, KVUE News (July 6, 2010), http://www.kvue.com/news/local/Commission-name-change-could-come-down-to-cost-97892299.html.

SB 655, 82nd Sess. (Tex. 2011), available at http://www.legis.state.tx.us/tlodocs/82R/billtext/html/SB00655I.htm.

Bill Toland, Deep in the heart of the gas drilling controversy: What have Texans learned?, Pittsburgh Post-Gazette (March 6, 2011), http://www.post-gazette.com/pg/11065/1130058-503.stm.

Texas Department of Transportation, TxDOT History: 1971 to 2000 http://www.txdot.gov/about_us/2000_1971.htm (last visited March 3, 2011).

Texas Secretary of State, Rule Transfers and Agency Names http://www.sos.state.tx.us/texreg/transfers/spcb081707.html (last visited March 5, 2011).

Texas Secretary of State, Rule Transfers and Agency Names, http://www.sos.state.tx.us/texreg/transfers/alcohol091004.html (last visited March 5, 2011).

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