Polk: Regulatory body or shield?Polk:

Texas is known for two things: cattle and oil.  These two industries rely on the same resource—shared land. All too often, however, the boardrooms and law offices of the oil and gas industry use their money and influence to direct policy and court cases that benefit their bottom line. 

For decades, landowners have worked with oil and gas operators. In most cases, the surface owner receives no compensation. Since surface use agreements are not required in Texas, landowners are left defenseless unless they achieve hard-fought, bargained-for protections through a negotiated surface use agreement.

Law gives oil and gas operators the upper hand as the mineral estate supersedes the surface estate. This often results in equipment left behind from non-producing or abandoned wells, active electrical lines, refusal to pay for road maintenance and irreparable damage to land.

Enter the Railroad Commission—a state agency led by three statewide elected commissioners. Their stated mission is to serve Texas by their stewardship of natural resources and environment, their concern for personal and community safety and their support of enhanced development and economic vitality for the benefit of Texans.

Last year, the Texas Panhandle suffered the largest wildfire in the state’s history. The cause of this deadly fire—electrical infrastructure failure of five oil and gas operators along with the failure of Xcel Energy to properly maintain its electric lines and poles. Unfortunately, this is not the first time catastrophic wildfires have started by faulty electrical lines in Texas.

According to data from Texas A&M Forest Service and area fire departments, more than four million acres in Texas burned since 2006—and of those fires, 73% were caused by faulty electrical lines. These human-caused disasters can and should be prevented. 

Momentum to address the issues started strong. The Texas House Investigative Committee on the Panhandle Wildfires spent three extensive days in Pampa listening to testimony. The hearings confirmed the wildfires could have been prevented and outlined opportunities to improve future responses.

The reality is the Legislature must act because the Railroad Commission failed to do so. Proposed bills require proper oversight and maintenance of oil and gas leases and well sites, including the electrical lines and equipment on them. 

The Railroad Commission’s response to legislative efforts is an insult to landowners. There has been virtually no acknowledgement of their failed oversight. They have obstructed progress by claiming proposed legislation will cost $15.7 million—despite previously testifying that no additional funds would be needed.

The lack of accountability and realization of their own faults is obvious. One commissioner went so far as to publicly insult legislators and victims of wildfires and Winter Storm Yuri earlier this April in Wichita Falls. As documented by the Times Record News, the commissioner said legislation is “created by people who know how to fry chicken, but they don’t know a damn thing about the oil and gas industry.”

Landowners know better than any what is best for their land.

They have done their due diligence by reporting faulty infrastructure to the Railroad Commission, but the Commission refuses to take meaningful action. Instead, they leave ranchers and landowners to deal with dishonest oil and gas operators who abuse and ignore regulations, leaving behind a mess for the landowner to clean up and allowing dangerous conditions to continue and worsen.

In a time when ranchers and landowners are squeezed for every dollar, they don’t need the risks and harm of bad actors in the oil and gas industry. They need support from those with legal authority. Legislators have been working to fix the problem. The Railroad Commission has not. 

When a regulatory agency is shielding an industry rather than taking care of taxpayers and natural resources, serious questions need to be asked. The time has come when the status quo is no longer acceptable. Significant changes need to be made now.

By Carl Ray Polk, Jr, Texas & Southwestern Cattle Raisers Association