 A Message from Commission Shift Executive Director Virginia Palacios This week I’m reflecting on the whirlwind nine months since we launched Commission Shift. With your support, we have raised the profile of the Railroad Commission, providing credible research and analysis to hold the state’s oil and gas agency accountable.
It seems like yesterday that deadly power outages killed over 700 Texans and cost our state up to $130 billion in economic costs. That painful calamity has highlighted the Railroad Commission’s failures to plan ahead. With some sources predicting another extreme winter season, I’ve been thinking about what cities, counties, and mutual aid groups can do to prepare our communities for more power outages this winter.
Since last winter’s storms, the relative inaction of railroad commissioners reflects the financial interests regulators have with the oil and gas industries they oversee. Our blockbuster Captive Agency report series has grabbed headlines by asking who these regulators really prioritize.
Even worse, Texans are now on the hook to pay more for less reliable electricity and gas service, while state lawmakers went out of their way to protect the gas industry from having to pay upfront to prevent the next power outage.
But we won’t give up. We’re less than one year old, and we’ve got big plans for 2022 and beyond. Thank you for helping us grow and for demanding stronger leadership at the Railroad Commission.
I wish you all a safe and healthy holiday this week, and we’re grateful for your support. Join Us with a Tax-Deductible Donation Thank you for following our work in 2021 to build public support to hold the Railroad Commission of Texas accountable to its mission in a shifting energy landscape. I invite you to become one of Commission Shift’s first-year donors with a tax-deductible gift. Join us as we make sure Texas leaders plan ahead to save lives, livelihoods and our communities. Donate today. Orphan wells update With the passage of the federal infrastructure bill, Texas may be eligible for hundreds of millions of dollars to plug orphan wells and cleanup abandoned sites. At the last RRC open meeting, RRC Executive Director Wei Wang indicated that the RRC plans to apply for the initial grant period, which will give up to $25 million per state. A later round of funding will only be available if the Railroad Commission makes improvements to its well plugging program that will reduce future orphaned well burdens. 
NBC TV in Dallas-Fort Worth featured Commission Shift in an investigative story about the “easy out” gas supply chain operators could use to avoid preparing their facilities for the winter. Thanks to a loophole, just a $150 fee will allow companies to opt-out of installing winter protections that are supposed to help keep the lights on for Texans. As Virginia told NBC: “‘I would love to believe that they're going to change these rules, but I'm just not sure.’ Palacios believes the commission is doing what she said it often does, protecting the interests of gas companies that don't want to spend millions to comply with more regulations.”
Commission Shift appeared on the Texas Public Radio live, call-in show The Source to discuss conflicts of interest at the Railroad Commission and our recent Captive Agency series.
The San Antonio Express-News issued a strong editorial focused on our Captive Agency series, calling for reforms at the Railroad Commission. Read the full editorial here or below: Editorial: Time to refresh Railroad Commission of Texas ethics Express-News Editorial Board Nov. 17, 2021
That the Railroad Commission of Texas has nothing to do with railroads is the first sign something is off track with the 130-year-old state entity.
The Railroad Commission of Texas, or the RRC, is the state regulator of the oil and gas industry, which includes pipelines, natural gas and liquefied petroleum gas, as well as coal and uranium surface mining. It oversees and enforces state and federal laws for energy industries in Texas.
In the aftermath of February’s devastating Winter Storm Uri, which killed more than 200 people and cost billions, the RRC came under fire for not requiring winterization of the gas supply chain.
A recent series of reports by the independent watchdog groups Commission Shift and Texans for Public Justice raises serious ethical concerns and conflicts of interest for each of the three elected commissioners overseeing the RRC.
The reports highlight how commissioners maintain interests in oil and gas entities that do business with the RRC. They also show how energy companies make significant contributions to commissioners’ campaign funds.
Then there are weak recusal rules that allow commissioners to participate in cases for companies that have made campaign contributions or in which they hold a personal financial stake.
It’s no surprise that RRC Chairman Wayne Christian said, “As an anti-oil and gas special interest group, Commission Shift is biased.”
He pointed out that former New York City Mayor Michael Bloomberg donated $2.6 million to a Democratic candidate seeking an RRC seat in the last election cycle: “If we are going to reform campaign finance in Texas, let’s start by limiting out-of-state billionaires from attempting to buy Texas elections.”
Would he say the same if an out-of-state billionaire were donating to a Republican candidate?
The commissioners claim to behave in line with the Texas Ethics Commission, but these reports reveal alarming conflicts of interest.
Commission Shift calls for changes, such as requiring commissioners to have no financial interest in the companies they regulate; limiting campaign contributions from entities that do business with the RRC; improving financial disclosures; strengthening recusal standards; and using a neutral forum for contested cases.
These commonsense changes would provide more transparency and help disentangle oil and gas interests from their regulators, because when it comes to ethics, even the perception of impropriety can derail credibility.”
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