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Railroad Commission of Texas

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The Railroad Commission of Texas ( RRC ; also sometimes called the Texas Railroad Commission , TRC ) is the state agency that regulates the oil and gas industry , gas utilities, pipeline safety, safety in the liquefied petroleum gas industry, and surface coal and uranium mining . Despite its name, it ceased regulating railroads in 2005, when the last of the rail functions were transferred to the Texas Department of Transportation .

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61-623: Established by the Texas Legislature in 1891, it is the state's oldest regulatory agency, and began as part of the Efficiency Movement of the Progressive Era . From the 1930s to the 1960s, it largely set world oil prices, but was displaced by OPEC ( Organization of Petroleum Exporting Countries ) after 1973. In 1984, the federal government took over transportation regulation for railroads, trucking, and buses, but

122-453: A century before it became coeducational. The 1903 Long Horn, a student year book published by the seniors of A&M, dedicated the first edition to Foster. Foster Hall, a building located at the A&;M College from 1899 to 1951, and L. L. Foster Hall, a men's dormitory at Prairie View A&M University built in 1909 and demolished in 1980, were named in his honor. Foster was a member of

183-801: A chairperson from among their members every year. The agency is headquartered in the William B. Travis State Office Building at 1701 North Congress Avenue in Austin . In addition, the Texas Railroad Commission has twelve oil and gas district offices located throughout the state. The district offices facilitate communication between industry representatives and the Commission. 30°16′45″N 97°44′18″W  /  30.279064°N 97.738270°W  / 30.279064; -97.738270 Texas Legislature The Texas Legislature

244-424: A close and substantial relation to interstate traffic,” and to ensure that “interstate commerce may be conducted upon fair terms.” The Railroad Commission has also figured prominently in two major U.S. Supreme Court cases on the doctrine of abstention : The commissioners are elected in statewide partisan elections for six-year terms, with one commission seat up for election every two years. The commission selects

305-732: A commanding presence and address, and is graceful and dignified in manner." Foster became an elected member of the American Association for the Advancement of Science in 1901. He died on December 2, 1901, at the St. George Hotel in Dallas , where he died of pneumonia. His son Joseph Lumpkin Foster was with him at the time. He was initially buried on the grounds of Texas A&M, the only president to have been so, where his funeral

366-552: A large impact on lawmaking in the state. Only the governor may call the Legislature into special sessions, unlike other states where the legislature may call itself into session. The governor may call as many sessions as desired. For example, Governor Rick Perry called three consecutive sessions to address the 2003 Texas congressional redistricting . The Texas Constitution limits the duration of each special session to 30 days; lawmakers may consider only those issues designated by

427-616: A long term tenant at the Milam Building . Regulation was a practical rather than ideological affair. The TRC typically worked with the regulated industries to improve operations, share best practices, and address consumer complaints. Radical activities—like heated court battles or rate-setting to favor shippers, producers, or consumers—were the exception rather than the rule. Within the oil and gas industry, it took into account production in other states, in effect bringing total available supply (including imports, which were small) within

488-475: A member of the first Railroad Commission of Texas , which was established to regulate shipping rates and practices, later the same year. He was the railroad commissioner until 1895, when he became the vice president and general manager of the Velasco Terminal Railway . Foster later resigned from this position in 1898 to work for the successful gubernatorial campaign of Joseph D. Sayers , as

549-491: A per diem of $ 221 for every day the Legislature is in session (also including any special sessions). That adds up to $ 38,140 a year for a regular session (140 days), with the total pay for a two-year term being $ 45,340. Legislators receive a pension after eight years of service, starting at age 60. Article III, Section 10 of the Texas Constitution requires that 2/3 of a chamber's members be present to constitute

610-494: A quorum for conducting business (this is greater than what is required for the United States Congress, which only requires a simple majority of a chamber's members). This has resulted in several instances where, in an effort to block legislation from passing, a sufficient number of members have fled the state in order to deny a quorum. The most recent of these attempts took place during a 2021 special session of

671-553: A railroad commission in Texas began in 1876. After five legislative failures, an amendment to the state constitution that provided for a railroad commission was submitted to voters in 1890. The amendment's ratification and the 1890 election of Governor James S. Hogg , a Democrat, permitted the legislature in 1891 to pass legislation that constitutionally created the Railroad Commission of Texas, and gave it jurisdiction over

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732-556: Is almost absolutely necessary for the rapid rise of young men to political distinction, many poor young men of genius give up the struggle in despair, and turn aside into the sterile and beaten paths of life and never accomplish the destinies for which the Architect of nature intended them; but, in this land of Democratic liberty the talents of men are appreciated, the road that leads to honor is well defined and open to all men mentally able to climb its steep ascent. The lives of such men as

793-530: Is the state legislature of the U.S. state of Texas . It is a bicameral body composed of a 31-member Senate and a 150-member House of Representatives . The state legislature meets at the Capitol in Austin . It is a powerful arm of the Texas government not only because of its power of the purse to control and direct the activities of state government and the strong constitutional connections between it and

854-508: Is the start of the state's fiscal year). Bills can (and many are) pre-filed before the start of a session: for regular sessions the lower numbers are reserved for bills with high priority by Legislative leadership (with HB1 and SB1 specifically reserved for each chamber's version of the General Appropriations Act, the state's budget and spending authority). Although members are elected on partisan ballots, both houses of

915-697: The 2024 Texas elections . The Texas Legislature meets in regular session on the second Tuesday in January of each odd-numbered year. The Texas Constitution limits the regular session to 140 calendar days. The lieutenant governor , elected statewide separately from the governor , presides over the Senate, while the Speaker of the House is elected from that body by its members. Both have wide latitude in choosing committee membership in their respective houses and have

976-693: The Lieutenant Governor of Texas , but also due to Texas's plural executive . The Legislature is the constitutional successor of the Congress of the Republic of Texas since Texas's 1845 entrance into the Union . The Legislature held its first regular session from February 16 to May 13, 1846. The Legislature has completed its 88th session , and the next session is the 89th session , scheduled to convene on January 14, 2025, at noon ( CST ) after

1037-489: The Masonic fraternity from 1873 until his death. Foster wed Laura Lucretia Pender (December 11, 1856 – January 27, 1929) originally of Orange, Texas , on January 2, 1875, and they had five sons and two daughters. In 1887, he was described as standing "about six feet tall, straight and slight in person, with a finely chisled face, the lower part of which is hidden by a thick, black beard, worn at moderate length. He has

1098-598: The Texas House of Representatives for the 42nd district in 1880, winning the election and was inaugurated in 1881. He later on went to represent the 62nd district after redistricting. In 1883, he was the chair of the House Committee on Public Printing. He was the Speaker of the Texas House of Representatives from 1885 to 1887. An 1885 biography of Foster notes From obscurity and poverty he struggled up

1159-483: The 1950s, the TRC controlled over 40% of United States’ crude production, and approximately half of estimated national proved reserves. It served as a model in the creation of OPEC . Gordon M. Griffin, chief engineer of the TRC during World War II , developed the formula for prorationing to keep production flowing for the military. Because the TRC needed access to the Texas headquarters of the various oil companies, it became

1220-405: The 52 absent Democratic members of the House. The bill passed upon the eventual return of enough state Democrats to constitute a quorum in the legislature. The Texas Legislature has five support agencies that are within the legislative branch of state government. Those five agencies are as follows: Lafayette L. Foster Lafayette Lumpkin Foster (November 27, 1851 – December 2, 1901)

1281-874: The Chairman of the Sayers Central Campaign Committee. In the summer of 1898, he was appointed as the President of the Agricultural and Mechanical College of Texas by the Board of Directors of the college. He served in this position for three years, until his death in 1901. Foster became an unordained minister at the First Baptist Church, which he helped found in Groesbeck in 1873, the same year he moved to town. He

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1342-689: The Civil War, and after his mothers death, Foster and his siblings lived with his grandmother, Mary Foster. His father Joseph sided with the Confederacy , eventually becoming Captain in the 22nd Georgia Infantry Regiment of the confederate army , and was captured during the Battle of Gettysburg . After the battle he was held at the POW camp at Johnson's Island until near the end of the war. Lafayette Foster moved to Limestone County , Texas, penniless and at

1403-483: The Legislature are officially organized on a nonpartisan basis, with members of both parties serving in leadership positions such as committee chairmanships. As of 2022, a majority of the members of each chamber are members of the Republican Party . The Texas Constitution sets the qualifications for election to each house as follows: State legislators in Texas make $ 600 per month, or $ 7,200 per year, plus

1464-465: The Legislature. On July 12, 2021, during a special session, at least 51 Democratic members of the House fled the state in two charter jets bound for Washington, D.C. , in an effort to block Republican-backed election legislation from passing. The lawmakers planned to spend at least three weeks in Washington, running out the clock on the special session, which began July 8. During their time away from

1525-417: The Railroad Commission kept its name. With an annual budget of $ 79 million, it now focuses entirely on oil, gas, mining, propane , and pipelines, setting allocations for production each month. The three-member commission was initially appointed by the governor, but an amendment to the state's constitution in 1894 established the commissioners as elected officials who serve overlapping six-year terms, like

1586-400: The TRC and similar “Commissions do no good. They do harm. Their only function is to harass. I regard it as essentially foolish and essentially vicious.” Clark lost the 1892 election to Hogg, but federal judge Andrew Phelps McCormick granted an injunction preventing the TRC from enforcing compliance and seeking to prosecute or recover penalties from railroad companies the same year; the decision

1647-513: The TRC on the collection of data, direct negotiation with railway executives, and compromises with the parties involved. Lafayette L. Foster (1851–1901) was a commissioner of the first TRC (1891–1895) appointed by Governor Hogg. He resigned in 1895, and became the vice president and general manager of the Velasco Terminal Railway. He was succeeded as commissioner by Nathan Alexander Stedman . William P. McLean (1836–1925)

1708-525: The TRC to give out quotas so that every producer would get higher prices and profits. Pure Oil Company opposed the first statewide oil prorationing order, which was issued by the TRC in August 1930. The order, which was intended to conserve oil resources by limiting the number of barrels drilled per day, was seen by small producers, like Pure Oil, as a conspiracy between government and major companies to drive them out of business, and ultimately foster monopoly in

1769-408: The Texas Railroad Commission found it difficult to fully enforce Jim Crow segregation legislation . Because of the expense involved, Texas railroads often allowed wealthier blacks to mix with whites, rather than provide separate cars, dining facilities, and even depots. In addition, West Texas authorities often refused to enforce Jim Crow laws because few African Americans resided there. In the 1940s,

1830-455: The Texas railway system began a slow decline. John H. Reagan (1818–1903), the first chairman of the TRC (1891–1903), had been the most outspoken advocate in Congress of bills to regulate railroads in the 1880s. He feared the corruption caused by railroad monopolies, and considered their control a moral challenge. As chairman of the TRC, Reagan changed his views when he became acquainted with

1891-476: The age of 18. He initially lived in the community of Horn Hill and later moved to Springfield . He labored as a brick mason and cotton picker before saving enough money to afford to attend Waco University . At Waco, Foster specialized his studies in Mathematics and Latin, but did not graduate. He began attending the university in 1872 and in 1873 he listed the town of Groesbeck as his home. He attended

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1952-512: The bill. After the first special session expired on August 6, Governor Abbott called a second session the next day. State District Judge Brad Urrutia granted a restraining order on August 9 temporarily protecting the absent Democrats from arrest by the state, however this restraining order was overturned by the Texas Supreme Court . On August 10, with the chamber still lacking a quorum, Speaker Dade Phelan issued arrest warrants for

2013-401: The college and was an ex officio member of the Board of Directors from 1887 to 1889. As president, he was an early advocate for the admission of women into the college. While president, Foster permitted the first female students to enroll. Twin sisters Mary and Sophie Hutson, and Emma Watkins Fountain, the daughters of professors, were the first females to enroll at the college nearly half

2074-708: The committees appointed by the Texas Baptist State Convention and the Baptist General Association of Texas" at the "Baptist House of Worship, Temple , on December 9, 1885." At this meeting, he was also appointed "to present a basis for the consolidation of the schools." This committee decided 1. That Waco University and Baylor Universities be consolidated. 2. The name of the school would be Baylor University. 3. That Baylor University be located in Waco, and we further agree that

2135-610: The distinguished Speaker of the Nineteenth Legislature, contain a moral that the most ignorant man may read and one that should stimulate the young men of Texas, who thirst for the laurels that crown the brow of successful merit, to earnest and untiring effort. [ sic ] He was the youngest-ever to hold the position at the time. He was appointed as the Commissioner of Agriculture, Insurance, Statistics and History by Governor Lawrence Sullivan Ross and

2196-620: The female department be continued there now as it exists… Foster was the final president of the General Association of Texas before it merged into the Baptist General Convention in 1886. He was president of the Baptist General Convention of Texas in 1890. He was listed as the secretary from Austin for the Baptist General Convention of Texas of 1894. Foster was a member of the Board of Trustees of Baylor University between 1890 and 1896. Foster helped plan

2257-575: The governor in his "call," or proclamation convening the special session (though other issues may be added by the Governor during a session). Any bill passed by the Legislature takes effect 90 days after its passage unless two-thirds of each house votes to give the bill either immediate effect or earlier effect. The Legislature may provide for an effective date that is after the 90th day. Under current legislative practice, most bills are given an effective date of September 1 in odd-numbered years (September 1

2318-536: The jurisdiction of the Public Utility Commission of Texas . A crisis for the petroleum industry was created by the East Texas oil boom of the 1930s , as prices plunged to 25¢ a barrel. The traditional TRC policy of negotiating compromises failed; the governor was forced to call in the state militia to enforce order. Texas oilmen decided they preferred state to federal regulation, and wanted

2379-461: The loss of its titular regulatory duties. The Shreveport Rate Case , also known as Houston E. & W. Ry. Co. v. United States , 234 U.S. 342 (1914) arose from the Railroad Commission's setting railroad freight rates unequally. Because of the low intrastate rates, shippers in eastern Texas tended to ship their wares to Dallas (in Texas), rather than to Shreveport, Louisiana , although Shreveport

2440-492: The merger of two large Texas Baptist conventions, and Baylor University 's move to Waco . He helped organize the first "Farmers' Camp Meeting" in 1898, which would turn into the Texas Farmers Congress and be held annually at the A&M College until 1915. He was the youngest Speaker of the Texas House of Representatives at the time of his election to the office at the age of 33. Lafayette Lumpkin Foster

2501-423: The oil industry. Ernest O. Thompson (1892–1966), head of the TRC from 1932 to 1965, took charge of the agency, and indeed the oil industry, by appealing to an ideal of Texas's role in the global oil order—the civil religion of Texas oil. He cajoled, harangued, and browbeat recalcitrant producers into compliance with the TRC's prorationing orders. The New Deal allowed the TRC to set national oil policy. As late as

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2562-439: The operations of railroads, terminals, wharves , and express companies . It could set rates, issue rules on how to classify freight, require adequate railroad reports, and prohibit and punish discrimination and extortion by corporations. George Clark, running as an independent “ Jeffersonian Democratic ” candidate for governor in 1892, denounced the TRC as being “Wrong in principle, undemocratic, and unrepublican.” Clark opined that

2623-538: The paper in 1890, when it began to consume too much of his time. He was a founding member and the seventh president of the Texas Press Association in Austin from 1886 to 1887. During his term as president of the press association, Foster and Charles E. Gilbert purchased the Dallas Herald on June 7, 1886. Foster sold his interest in the paper to Gilbert later the same year. He ran for

2684-485: The principle of prorationing to market demand. Allowable oilfield production was calculated as follows: estimated market demand, minus uncontrolled additions to supply, gave the Texas total; this was then prorated among fields and wells in a manner calculated to preserve equity among producers, and to prevent any well from producing beyond its maximum efficient rate (MER). Scheduled allowables are expressed in numbers of calendar days of permitted production per month at MER. In

2745-606: The railroad commission's enforcement of segregation laws began collapsing further, in part because of the great number of African American soldiers that were transported during World War II. The trains were integrated in the early 1960s. The agency's reach expanded as it took over responsibility for regulating oil pipelines (in 1917), oil and gas production (1919), natural gas delivery systems (1920), bus lines (1927), and trucking (1929). It grew from 12 employees in 1916 to 69 in 1930 and 566 in 1939. It does not have jurisdiction over investor-owned electric utility companies; that falls under

2806-441: The realities of the complex forces affecting railroad management. Reagan turned to the Efficiency Movement for ideas, and established a pattern of regulatory practice that the TRC used for decades. He believed that the agency should pursue two main goals: to protect consumers from unfair railway practices and excessive rates, and to support the state's overall economic growth. To find the optimal rates that met these goals, he focused

2867-433: The resources to spend much of its time in court battles. The carrot was far more important than the stick. Freight rates continued to decline dramatically. In 1891, a typical rate was 1.403 cents per ton mile. By 1907, the rate was 1.039 cents—a decline of 25%. However, the railroads did not have rates high enough for them to upgrade their equipment and lower costs in the face of competition from pipelines, cars, and trucks, and

2928-468: The rugged heights to distinction and a place in the hearts of his colleagues in the legislature, his constituents and the people of the Lone Star State. By industry, economy and firmness of purpose, he has gained a competency; built himself a home, and properly utilized and developed the intellect which God has given him. In England and other foreign countries where the possession of wealth and rank

2989-431: The sequence in the U.S. Senate , elected statewide. No specific seat is designated as chairman; the commissioners choose the chairman from among themselves. Normally, the commissioner who faces reelection is the chairman for the preceding two years. The current commissioners are: Jim Wright since January 4, 2021; Wayne Christian since January 9, 2017; and Christi Craddick since December 17, 2012. Attempts to establish

3050-473: The spring of 2013, new hydraulic fracturing water recycling rules were adopted in the state of Texas by the Railroad Commission of Texas. The Water Recycling Rules are intended to encourage Texas hydraulic fracturing operators to conserve water used in the hydraulic fracturing process for oil and gas wells. As of March 2022, the commission members are Wayne Christian (chairman), Christi Craddick , and Jim Wright . All three members are Republicans . Christian

3111-537: The state legislative chambers, they also advocated for federal voting legislation such as the For the People Act . Governor Abbott stated that representatives, upon return to the state, would be arrested and escorted to the state legislative chambers to fulfill their lawmaking duties. He additionally noted he would use his power to call successive special sessions until such a time as the legislature met quorum to vote on

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3172-612: The university before it merged with Baylor University, then located in Independence , in 1886. Foster was one of the leaders in the negotiation for the merger of the two universities into Baylor University in Waco. Foster moved to Groesbeck in November 1873, starting a newspaper, the Limestone New-Era , on November 19, 1876. He was the papers editor, proprietor, and publisher. He soon after entered politics, leaving

3233-457: Was a commissioner of the first TRC (1891–1894) appointed by Governor Hogg. He was a judge before his appointment to the commission. He was re-elected in 1893, but resigned his position in 1894 to practice law in Fort Worth . He was succeeded as commissioner by Leonidas Jefferson Storey , who later became chairman of the TRC in 1903, following Reagan's death. From the 1890s through the 1960s,

3294-515: Was an American journalist and politician. A bureaucrat that held various positions in the state government of Texas, Foster was a member of the boards of both Baylor University and the Agricultural and Mechanical College of Texas , later becoming president of the A&M College of Texas, now known as Texas A&M University, from 1898 to his death three years later. A strong believer in organization and progress, he played instrumental roles in

3355-470: Was attended by Governor Sayers and Oscar H. Cooper , among others. Foster was originally interred in the area between Duncan Dining Hall and Dorm 9. In 1939, his grave was moved to the historic Texas A&M Cemetery that was once located on the corner of Luther Street and Marion Pugh Drive in order to make room for the Duncan Dining Hall. In 2010, it was reported that Texas A&M were in

3416-683: Was born on November 27, 1851, in Sheltonville, Georgia , to Joseph Douglas Foster (February 22, 1829 - July 17, 1877), a veteran of both the Mexican–American War and the American Civil War , and Millie Malinda Foster ( née Estes; September 15, 1833 – May 20, 1861) from Gwinnett County, Georgia . He was the first-born of five children. Sheltonville was located near the town of Cumming , in Forsyth County . During

3477-414: Was considerably closer to much of eastern Texas . The Railroad Commission's (and the railroad's) position was that only the state could regulate commerce within a state, and that the federal government had no power so to do. The Supreme Court ruled that the federal government's ability to regulate interstate commerce necessarily included the ability to regulate intrastate “operations in all matters having

3538-465: Was elected in 2016 as a commissioner, and was selected as chairman in 2019. Craddick was elected in 2012, and reelected in 2018. Wright was elected in 2020. Effective October 1, 2005, as a result of House Bill 2702, the rail oversight functions of the Railroad Commission were transferred to the Texas Department of Transportation . The traditional name of the commission was not changed despite

3599-523: Was overruled by the United States Supreme Court in 1894. The governor appointed the first members; the first elections to the commission were held in 1893, with three commissioners serving six-year, overlapping terms. The TRC did not have jurisdiction over interstate rates, but Texas was so large that the in-state traffic it regulated was of dominant importance. The agency did not have the legal authority to set rates, nor did it have

3660-643: Was reappointed to the position by Governor Jim Hogg on January 22, 1891. As commissioner, Foster organized the First Annual Report of the Agricultural Bureau of the Department of Agriculture, Insurance, Statistics, and History. He also worked with Hogg to harry illegally operating insurance companies out of Texas. Hogg then appointed Foster, known for his attention to detail and large store of knowledge about railroad affairs, as

3721-540: Was sent as a delegate from Groesbeck to the twenty-seventh Annual Session of the Baptist State Convention of Texas in Galveston , October 3 to October 6, 1874. Foster was appointed president of the Baptist General Association of Texas convention on July 24, 1885. He was also present during the meeting between the "board of trustees of Waco University, Baylor University and Baylor Female College with

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