The Railroad Commission of Texas
Austin, Travis County, Texas
Marker Inscription
(75th Anniversary) Created in 1891, as result of years of political controversy, to regulate shipping rates, practices. Considered so important that Governor James S. Hogg persuaded John H. Reagan to resign from the United States Senate to head the original commission. Oil and gas regulation, a major responsibility, began in 1917 with jurisdiction over pipelines. The Legislature made the commission responsible in 1919 for oil and gas conservation, and drilling rules were made. In the 1920's proration began. Complete regulation came in the 1930's with the 1,700,000-barrel-a-day production in east Texas. Backed by Texas Rangers, the commission closed the field until conservation rules could be revised. Commission policies were acclaimed when in World War II Texas was able to supply the Allies with great stores of oil necessary for victory. The commission's goal is to prevent waste and protect oil and gas reserves by orderly regulation of exploration, production and transportation. Members have set high ethical standards that continue in the commission, causing it to merit the confidence of the people and of the petroleum industry.
Erected by Texas Historical Commission
The Story
Created in 1891 after years of political struggle, the Railroad Commission of Texas was born to regulate the rates and practices of the powerful railroads. Its importance was such that Governor James S. Hogg persuaded John H. Reagan to resign from the U.S. Senate to lead it. Over the following decades the commission became the pivotal regulator of Texas oil and gas — setting drilling rules, pioneering proration, and famously calling in the Texas Rangers to shut down the flooded East Texas field until conservation rules could be revised.
Why it matters
The commission became the most influential oil-and-gas regulator in the world, and its proration system helped stabilize American petroleum production — capacity that proved decisive in supplying the Allies in World War II.
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Related people
- · James S. Hogg
- · John H. Reagan
Themes & tags
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