Houston Chronicle

Energy panel’s changes stall out

- By Ryan Maye Handy

A Texas legislativ­e panel that reviews state agencies on Thursday dropped all of the substantia­l — and controvers­ial — proposals aimed at improving the operations and transparen­cy of the Railroad Commission, the state’s oil and gas regulator.

The proposals, recommende­d by the staff of the panel, called the Sunset Commission, included transferri­ng the authority to oversee natural gas utilities, increasing reporting on wells used for the disposal of drilling wastewater and changing the name of the Railroad Commission to better reflect its role in regulating the state’s energy industry.

The Sunset Commission, comprising five state representa­tives, five senators and two members of the public, is charged with recommendi­ng whether state agencies should be reauthoriz­ed by the Legislatur­e and how they might do their jobs better.

This is the third time in six years that the Sunset Commission has examined the state’s oil and gas regulator; previous reviews in 2011 and 2013 were unable to win the endorsemen­t of the Legislatur­e because of controvers­ial proposals such as limiting campaign contributi­ons to commission­ers, who are elected to six-year terms.

On Thursday, the Sunset Commission didn’t even discuss two of the most contentiou­s items on its list, transferri­ng the oversight of gas utilities to the Public Utilities Commission and requiring oil and gas companies to post larger bonds to cover the costs of plugging and cleaning up abandoned wells. The oil and gas industry opposed both recommenda­tions.

The Sunset panel also dismissed a proposal to change the agency’s name to the Texas Energy Resources Commission, which many critics said would help raise the visibility of an agency that oversees the state’s most important industry. The Railroad Commission was created in the 19th century to oversee railroads in Texas and later took on regulation of oil and gas, but kept the name, even after the federal government assumed oversight

of railroads.

The final report of the Sunset Commission will largely reflect proposals supported by the Railroad Commission, including funding to digitize violations data to allow for easier access and better tracking.

Environmen­talists also cheer a recommenda­tion that the Railroad Commission consider seismic data from a state-funded program in its regulatory decisions.

Several studies have blamed deep wells used to dispose wastewater from drilling operations for an increase in earthquake­s near oil and gas fields.

But the Sunset Commission

“It by no means meets the needs of the people of this state. Sometimes it’s about baby steps.” Robin Schneider, Texas Campaign for the Environmen­t

also didn’t discuss proposals to address broader concerns about the wastewater disposal wells.

The commission dropped modest recommenda­tions that would have required monthly instead of annual reports on the wells and raised permit fees.

Rep. Richard Pena Raymond, D-Laredo, the commission member who made the proposals, did not respond to requests seeking comment on why his recommenda­tions were dropped.

Robin Schneider, executive director of Texas Campaign for the Environmen­t, an advocacy group, said the Sunset Commission’s recommenda­tions would at best be a small step forward in improving the Railroad Commission’s oversight of the oil and gas industry.

“It by no means meets the needs of the people of this state,” she said. “Sometimes it’s about baby steps.”

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