Historical Marker

The Railroad Commission of Texas

Austin, Travis County · Texas
Erected 1966

James S. Hogg won the governorship in 1890 largely by promising railroad regulation, and the 1891 commission oversaw the rates and operations of railroads, terminals, wharves and express companies. Reagan served with William Pinckney McLean and Lafayette L. Foster. In 1894 the legislature made the posts elective, with six-year overlapping terms. Ernest O. Thompson, appointed by Governor Ross Sterling in 1932, led the fight for proration, and under the Connally Hot Oil Act of 1935 the federal government enforced the commission's orders in interstate commerce. The Organization of Petroleum Exporting Countries used the commission as a model.

What the plaque says

The Railroad Commission of Texas (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. (1966)

Where it stands

30.27875, -97.73798 · Directions

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