October 11, 2010 at 7:12 AM
Sunset at the Railroad Commission

In the upcoming weeks and months, the Texas Railroad Commission will enter into what is known as the Sunset Process. This is the process by which the Sunset Advisory Council (made up of five members of the Texas House of Representatives and five members of the Texas Senate, together with two public members) evaluate the operation and efficiency of all State Agencies.

As the Texas Railroad Commission (RRC) begins the Sunset process it lists five key policy issues as part of their own Self Evaluation Report; they are as follows:

1. Consolidation of State energy programs at the Railroad Commission

2. The Funding structure of the Railroad Commission

3. Changing the name of the Railroad Commission

4. Changing the Railroad Commission from three Commissioners to one

5. Interstate damage prevention enforcement

The final decision on changing the RRC and shrinking the number of commissioners is up to the legislature and the voters of the Great State of Texas as both will require extensive legislation and ultimately a change in the Texas Constitution.

The Governor, the Lt. Governor, and the Speaker of the House have requested that each State Agency, including the Sunset Advisory Council, cut their budgets by 10 percent. I believe the most important area of focus at the RRC during this important Sunset Process is its funding structure.

The oil and gas industry in Texas continues to grow, even in these tough economic times. The industry continues to move into previously unexplored urban areas, and most importantly, it continues to be the economic driving force in our State. However, all this growth demands more inspectors to ensure public safety, which is why we cannot afford to shrink the Commission.

This is why the MOST important challenge facing the RRC during this Sunset Process is the agency's funding structure. I am in agreement with the current commission that we need to restructure how we fund the commission's responsibilities -- just not to the detriment of the public's safety.

We must insure that taxes and fees raised for specific purposes are used for those purposes; not just placed in the general fund. As oil and gas industry activities increase, so will revenue from taxes and fees; furthermore, the demands on the RRC will increase as well. Let's give the RRC the tools it needs, i.e. more inspectors in order for the Commission to do its job. If we are collecting fees and taxes from pipelines, let's use that money to make sure we have enough pipeline inspectors to ensure the safety of all Texans.

Ultimately, the funding for the RRC will be determined by the State Legislature as a result of the Sunset process. I'll work to convince the legislature to adequately fund the RRC so we can always put first the public's safety and keep the permitting process functioning fast and efficient so industry can continue creating jobs, and growing the Texas economy.

Asking the RRC to expand to reflect the growth of industry in our State, while at the same time shrinking the RRC's budget is a tough challenge, but one we feel confident that Texans can handle.