Testing the waters

The fracas about fracking continues. Hydraulic  fracturing (fracking) involves shooting 4-6 million gallons of water, sand, and chemicals into the earth to break up stone and rock so that oil and natural gas can be released. The practice has grown substantially in the last decade, and today there are over 7,000 dumping sites in Texas which have waste water from fracking operations.

Fracking concerns range from criticisms about water usage to concerns the process contributes to increased risks of earthquakes. While scientists and policymakers continue to study fracking, there are some who think that greater legislative oversight (government supervision over certain types of activities) is necessary.

This week the Texas Senate Natural Resources Committee examined whether groundwater districts could regulate the water sources used to supply fracking operations.   Senate Bill 873 by Sen. Glenn Hegar (R-Katy) lets local authorities require oil and gas companies obtain permits for the water they use.  The bill would not, however, mandate that all water districts be required to do so, thus allowing home rule (local regulatory codes) to govern the process.  Under current Texas law there is an exemption (legal loophole to avoid regulation) for “drilling and exploration” by oil and gas companies. Some lawmakers think that’s not fair because the law regarding water permits was written over a decade ago before fracking became big.  Supporters argue farmers are required to obtain water permits why shouldn’t oil and gas companies?   Opponents argue it will hinder drilling operations.

It’s not been a good week for concerns about regulatory enforcement of oil and gas sites which fall underneath the Texas Railroad Commission.  That agency was criticized for its failure to comply with requests by the Texas Environmental Enforcement Task Force for documents related to the disposal of fluids from an oil and gas site.  Indeed, the Task Force had to get a search warrant (order issued by a judge that authorizes officers to conduct a search of a specific location) to get the information it needed.  Looks like the Commission may be in hot water.

And speaking of someone who doesn’t have to force the issue and who seems to be testing the waters, some political pundits are wondering whether U.S. Senator Ted Cruz may be already queuing up for bigger offices. The freshman lawmaker (his first term of office started January 3, 2013 as specified in the U.S. Constitution) plans to be a guest speaker at the Silver Elephant Dinner to be held next month in South Carolina.  Past high profile speakers reads like a “Who’s Who” of Republican presidential aspirants including Ronald Reagan, Newt Gingrich, and John McCain.

Wonder if the water’s warm.

Railroaded?

This week the three Railroad Commissioners (heads of the agency) appointed Milton Rister as Executive Director to oversee the daily operations of the Texas Railroad Commission (RRC).  Rister’s appointment, a former Republican political adviser who serves on Gov. Rick Perry’s senior staff (until he takes office Oct. 1), is a big deal because of the status that the RRC has in Texas politics.

The RRC is one of the oldest (created 1891) and one of the most powerful agencies in the state because it oversees the regulatory framework for oil, gas, and mining companies, along with regulating natural energy resources. Don’t let the name fool you though. While at one time the commission regulated railroads, it does not do so any longer. Under the sunset legislation (laws passed to transfer authority or to eliminate departments or agency functions), the Texas legislature got rid of the last bit of railroad power the RRC had in 2005.

Today its emphasis on regulation and safety of energy resources is vital to the Texas economy. Our oil and gas industry supports 14.3 percent of the jobs in Texas and the industry is responsible for roughly 25% of our state’s economy. In recent years it has also had to deal with the health and safety issues surrounding “fracking” (hydraulic fracturing where water and sand are used to break up the earth to release natural gas).

What makes the RRC an even more politicized agency is that in Texas, with its plural executive system where power is fragmented at the top the top levels of government, the top three Railroad Commissioners are elected in statewide elections.  Most folks don’t know it, but Texas has a weak executive system (and you certainly wouldn’t think it based on the larger-than-life personalities we’ve had as governors!). That system means that executive authority (which in most states is concentrated in the hands of the governor) is divided among a plural executive system of officers (meaning that multiple people carry out the functions that typically are reserved to a governor in a state). Under the 1876 Constitution, our state founding fathers’ distrust of government led them to divide power into different elected offices.  So while governors in other states typically appoint heads of office, that’s not the case in Texas where we make them run for political offices with support and backing of the political parties.

In the case of the RRC, the three commissioners then have the power to appoint an Executive Director, and that’s how Rister got his job. He has been praised for his insight into working with the legislature. Prior to coming to the RRC, Rister had held another position on the Legislative Council which is a bipartisan group which works with the Texas legislature to draft laws, so Rister is keenly aware of how the system works.  Not everyone likes the guy, however, and he was called an “ideological hitman” in a Houston Chronicle editorial back in 2006 because of his shrewd political tactics.   It is also notable that he was a campaign adviser to Republican Clayton Williams who had a disastrous loss to Ann Richards in the 1990 gubernatorial election.

The RRC has a lot on its plate going forward especially given the safety concerns about fracking, so lots of folks are watching to see where the track leads us with Rister at the helm.