Texas Tribune report sees little chance of proposal passage
Jon Rosenthal is set to take his seat on the Texas Railroad Commission on Jan. 4, giving Democrats a presence on the three-member state regulator for the first time in more than 30 years. His six-year term will begin with Republican commissioners Wayne Christian and agency chair Christi Craddick holding a 2-1 majority. The Texas Tribune report assessed Rosenthal as unlikely to get any of his proposals through.
The report placed Rosenthal’s November victory over Republican Bo French in the context of a national electoral setback for the GOP. It said that aside from the Texas Senate, the state’s highest courts and U.S. Sen. Ted Cruz, the commission remained one of the last surviving bastions of state GOP power. The report also said the agency had viewed his party’s policies as a threat to the oil and gas industry.
The Texas Tribune reported that watchdog groups, observers and regulatory analysts criticized the Texas Railroad Commission’s commissioners for being highly supportive of the oil and gas industry the commissioners were elected to regulate. Experts said Rosenthal offers a fresh perspective — and a megaphone — for issues surrounding the state’s enormous oil industry.
Rosenthal ran on an overhaul of the state’s oil and gas regulator, with proposals that would further scrutinize and, in some cases, dramatically change how oil companies run their operations. He proposed eliminating the practice of burning excess gas to encourage operators to sell it, banning campaign donations from fossil fuel companies, making public the commission’s progress on sealing derelict oil and gas wells, and charging companies for disposing wastewater underground, with the fee funding the commission’s work elsewhere.
The Texas Tribune report said passing Rosenthal’s agenda would be challenging because the commission’s makeup remains majority Republican. It described Christian and Craddick as staunch conservatives who have characterized such policies as radical. Christian, a former state representative who joined the commission in 2017, described green-energy policy as climate alarmism. Craddick, whose family amassed wealth from the oil business and who has served on the commission for 14 years, has said climate initiatives led by the Biden administration threatened the industry. Craddick did not respond to a request for comment.
In a statement to The Texas Tribune, Christian congratulated Rosenthal and said he hoped the commission would keep its focus on responsible regulation, affordable energy and protecting jobs. “Governor-elect Hinojosa has promised to focus on affordability and move beyond the culture wars,” Christian said. “I hope that means putting Texas families and their pocketbooks ahead of the political climate crisis crusade against fossil fuels that threatens good-paying jobs, public education funding, and energy affordability.”
Rosenthal also laid the groundwork to appeal to the oil and gas industry during his campaign by highlighting the industry’s contributions to the economy. In September, he told The Texas Tribune, “I think sometimes this industry is unfairly villainized,” adding that “so while there are certainly repeat bad actors that wrongly pollute, I think the vast majority of these businesses are good community partners, and this might actually be an opportunity to highlight their stewardship and partnership.” He also called his campaign “an opportunity for me personally to dispel the negative narrative that’s around Democrats sometimes, where people just want to claim that Democrats want to destroy the oil and gas industry.”
Industry experts told The Texas Tribune they did not expect immediate changes to the commission, though Rosenthal’s presence could be felt in other ways. “I think expectations might be that there would be a massive change in the way oil and gas infrastructure, pipelines and surface mining might be addressed,” said Ramanan Krishnamoorti, vice president for energy and innovation at the University of Houston. “These concerns will see more of the light of day because of the fact that you’ve got a pretty clear-minded third person on the commission, but I don’t expect fundamental changes in what actually happens.”
Yogashri Pradhan, a petroleum engineer and founder of the industry consulting firm IronLady Advisors, said the commission would benefit from Rosenthal’s experience in the oil fields and from the Democrat highlighting companies that hold themselves to strict environmental standards. “I see Jon Rosenthal as less of a threat to the oil and gas industry because he comes from the oil and gas industry,” Pradhan said. “While Jon Rosenthal gives the impression that he’s going to add more regulations, I think he will be more open to listening on the technical aspects of (oil and gas) operations. So while there may be a perceived risk of more red tape, I believe there can be more perspective … because of his experience.”
Mark Jones, a political scientist at Rice University, said Rosenthal could shed light on issues commissioners had hesitated to raise publicly. Even if he could not make key decisions if Republicans unite, Jones said, Rosenthal could serve as the Democratic Party’s watchdog on oil and gas activities.
Even as a minority voice on the commission, Rosenthal will have the backing of willing Democratic partners at nearly every level of statewide government. “It’ll be a far different dynamic,” Jones said. “It’ll be within a state where Democrats are calling the shots, not Republicans, meaning the past, or at least the preferential treatment that the oil and natural gas industry is used to receiving, it may not receive to the same extent.”
The Texas Tribune disclosed that Rice University and the University of Houston had been financial supporters within the past five years. The nonprofit, nonpartisan news organization said it was funded in part by donations from members, foundations and corporate sponsors, and that financial supporters play no role in its journalism. The story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.