RAILROAD COMMISSION OF SELF-EVALUATION REPORT

SUBMITTED TO THE SUNSET COMMISSION

SEPTEMBER 2015

Christi Craddick David Porter Commissioner Chairman Commissioner In accordance with Chapter 325, Government Code (Texas Sunset Act) and HB 1675 from the 83rd Texas Legislature, the Railroad Commission of Texas submitted this Self Evaluation Report to the Sunset Commission.

Table of Contents List of Tables 4 List of Attachments (Provided electronically to the Sunset Commission) 6

I. AGENCY CONTACT INFORMATION 7 Exhibit 1: Agency Contacts 7

II. KEY FUNCTIONS AND PERFORMANCE 8 Exhibit 2: Key Performance Measures — Fiscal Year 2014 20

III. HISTORY AND MAJOR EVENTS 23

IV. POLICYMAKING STRUCTURE 33 Exhibit 3: Policymaking Body 33 Exhibit 4: Subcommittees and Advisory Committees 36

V. FUNDING 39 Exhibit 5A: Expenditures by Strategy — Fiscal Year 2014 (Actual) 42 Exhibit 5B: Capital Contract Expenditures — Fiscal Year 2014 (Actual) 43 Exhibit 6: Sources of Revenue — Fiscal Year 2014 (Actual) 45 Exhibit 7: Federal Funds — Fiscal Year 2014 (Actual) 45 Exhibit 8: Fee Revenue — Fiscal Year 2014 (Actual) 47

VI. ORGANIZATION 55 Exhibit 9: FTEs by Location — Fiscal Year 2014 56 Exhibit 10: List of Program FTEs and Expenditures — Fiscal Year 2014 57

VII. GUIDE TO AGENCY PROGRAMS 59

Energy Resource Development 59

Monitoring and Inspections 71 Exhibit 11: Monitoring and Inspections Information on Complaints Against Regulated Persons or Entities for Fiscal Years 2013 and 2014 80

Oil and Gas Well Plugging 81

Oil and Gas Remediation 87

Geographic Information Systems and Well Mapping 94

Gas Utilities Rates and Compliance 98 Exhibit 11: Gas Utilities and Compliance Information on Complaints Against Regulated Persons or Entities for Fiscal Years 2013 and 2014 105

Pipeline Safety 106

Exhibit 11: Pipeline Safety Information on Complaints Against Regulated Persons or Entities Fiscal Years 2013 and 2014 112

Pipeline Damage Prevention 114 Exhibit 11: Pipeline Damage Prevention Information on Complaints Against Regulated Persons or Entities Fiscal Years 2013 and 2014 119

Alternative Fuels Training and Education 120

Regulate Alternative Energy Resources 125 Exhibit 11: Regulate Alternative Energy Resources Information on Complaints Against Regulated Persons or Entities for Fiscal Years 2013 and 2014 132

Surface Mining Regulation 134 Exhibit 11: Surface Mining Regulation Information on Complaints Against Regulated Persons or Entities for Fiscal Years 2013 and 2014 143

Abandoned Mine Lands 144

Public Information and Services 150

VIII. STATUTORY AUTHORITY AND RECENT LEGISLATION 156 Exhibit 12 Statutes / Attorney General Opinions 156 Exhibit 13 Legislation 84th Legislative Session 179

IX. MAJOR ISSUES 190

X. OTHER CONTACTS 192 Exhibit 14: Contacts 192

XI. ADDITIONAL INFORMATION 203 Exhibit 15: Evaluation of Agency Reporting Requirements 203 Exhibit 16: Complaints Against the Agency — Fiscal Years 2013 and 2014 206 Exhibit 17: Purchases from HUBs 207 Exhibit 18: Equal Employment Opportunity Statistics 210

XII. AGENCY COMMENTS 213

List of Tables

Table 1 Exhibit 1 Agency Contacts 7 Table 2 Exhibit 2 Key Performance Measures 22 Table 3 Exhibit 3 Policymaking Body 33 Table 4 Exhibit 4 Subcommittees and Advisory Committees 38 Table 5 Exhibit 5A Expenditures by Strategy 43 Table 6 Exhibit 5B Capital Contract Expenditures 44 Table 7 Exhibit 6 Sources of Revenue 45 Table 8 Exhibit 7 Federal Funds 46 Table 9 Exhibit 8 Fee Revenue 54

Table 10 Exhibit 9 FTEs by Location 56 Table 11 Exhibit 10 List of Program FTEs and Expenditures 58 Table 12 Energy Resource Development Program FY 2014 Performance Measures 63 Table 13 Energy Resource Development Program FY 2014 Sources of Funding 66 Table 14 Monitoring and Inspections Program FY 2014 Performance Measures 73 Table 15 Monitoring and Inspections Program FY 2014 Sources of Funding 75 Table 16 Exhibit 11 Information on Complaints Against Persons or Entities 81 Table 17 Oil and Gas Well Plugging Program FY 2014 Performance Measures 83 Table 18 Oil and Gas Well Plugging Program FY 2014 Sources of Funding 85 Table 19 Oil and Gas Remediation Program FY 2014 Performance Measures 89 Table 20 Oil and Gas Remediation Program FY 2014 Sources of Funding 91 Table 21 Geographic Information Systems and Well Mapping Program FY 2014 Performance Measures 95 Table 22 Geographic Information Systems and Well Mapping Program FY 2014 Sources of Funding 96 Table 23 Gas Utilities Rates and Compliance Program FY 2014 Performance Measures 100 Table 24 Gas Utilities Rates and Compliance Program FY 2014 Sources of Funding 102 Table 25 Exhibit 11 Information on Complaints Against Persons or Entities 105 Table 26 Pipeline Safety Program FY 2014 Performance Measures 108 Table 27 Pipeline Safety Program FY 2014 Sources of Funding 109 Table 28 Exhibit 11 Information on Complaints Against Persons or Entities 113 Table 29 Pipeline Damage Prevention Program FY 2014 Performance Measures 115 Table 30 Pipeline Damage Prevention Program FY 2014 Sources of Funding 116 Table 31 Exhibit 11 Information on Complaints Against Persons or Entities 120 Table 32 Alternative Fuels Training and Education Program FY 2014 Performance Measures 121 Table 33 Alternative Fuels Training and Education Program FY 2014 Sources of Funding 122 Table 34 Regulate Alternative Energy Resources Program FY 2014 Performance Measures 127 Table 35 Regulate Alternative Energy Resources Program FY 2014 Sources of Funding 129 Table 36 Exhibit 11 Information on Complaints Against Regulated Persons or Entities 133 Table 37 Surface Mining Regulation Program FY 2014 Performance Measures 136 Table 38 Surface Mining Regulation Program FY 2014 Sources of Funding 139 Table 39 Exhibit 11 Information on Complaints Against Regulated Persons or Entities 144 Table 40 Abandoned Mine Lands Program FY 2014 Performance Measures 145 Table 41 Abandoned Mine Lands Program FY 2014 Sources of Funding 147 Table 42 Public Information and Services Program FY 2014 Performance Measures 151 Table 43 Public Information and Services Program FY 2014 Sources of Funding 152 Table 44 Exhibit 12 Statutes 178 Table 45 Exhibit 12 Attorney General Opinions 178 Table 46 Exhibit 13 Legislation Enacted 84th Legislative Session 180 Table 47 Exhibit 13 Legislation Not Passed 84th Legislative Session 189 Table 48 Exhibit 14 Interest Groups 194 Table 49 Exhibit 14 Interagency, State, and National Associations 196 Table 50 Exhibit 14 Liaisons at Other State Agencies 202 Table 51 Exhibit 15 Agency Reporting Requirements 205 Table 52 Exhibit 16 Complaints Against the Agency 206 Table 53 Exhibit 17 HUB Purchases for FY 2013 207 Table 54 Exhibit 17 HUB Purchases for FY 2014 208 Table 55 Exhibit 17 HUB Purchases for FY 2015 208 Table 56 Exhibit 18 EEO Statistics for Officials/Administration 210 Table 57 Exhibit 18 EEO Statistics for Professionals 210 Table 58 Exhibit 18 EEO Statistics for Technical 211 Table 59 Exhibit 18 EEO Statistics for Administrative Support 211 Table 60 Exhibit 18 EEO Statistics for Service and Maintenance 212 Table 61 Exhibit 18 EEO Statistics for Skilled Craft 212

List of Attachments (Provided electronically to the Sunset Commission)

Attachments Relating to Key Functions, Powers, and Duties

1. Agency’s enabling statute. 2. Annual report published by the agency from FY 2012–2015. 3. Internal or external newsletters published by the agency from FY 2014–2015.

Attachments Relating to Policymaking Structure

4. Biographical information or resumes of all policymaking body members. 5. Agency’s most recent rules.

Attachments Relating to Funding

6. Agency’s Legislative Appropriations Request for FY 2016–2017. 7. Annual financial reports from FY 2012–2014. 8. Operating budgets from FY 2013–2015.

Attachments Relating to Organization