Railroad Commission candidates make pitch to Midlanders

Railroad Commissioner candidates Doug Jeffrey, John Greytok, Wayne Christian, speak during a forum Wednesday, Feb. 10, 2016, at Horseshoe Pavilion. James Durbin/Reporter-Telegram Railroad Commissioner candidates Doug Jeffrey, John Greytok, Wayne Christian, speak during a forum Wednesday, Feb. 10, 2016, at Horseshoe Pavilion. James Durbin/Reporter-Telegram Photo: James Durbin Photo: James Durbin Image 1 of / 1 Caption Close Railroad Commission candidates make pitch to Midlanders 1 / 1 Back to Gallery

Three candidates seeking to replace former Midlander David Porter on the Railroad Commission introduced themselves at a Wednesday evening forum.

The forum, sponsored by the Midland County Republican Party, brought candidates Wayne Christian, John Greytok and Doug Jeffrey to the Horseshoe Pavilion to answer questions.

“An informed and educated voter” is integral to the democratic process, noted James Beauchamp, chairman of the Midland County Republican Party, in introducing the candidates.

Beauchamp went on to observe that the agency is important to the Permian Basin because it regulates the state’s oil and gas industry.

“The Permian Basin is one of only two basins increasing production. And not only is the Permian Basin the epicenter of oil, it is the epicenter of wind power and soon to be the epicenter of solar power,” he continued.

He then left the candidates to field a variety of questions.

Q. The Railroad Commission is called the Railroad Commission even though it has nothing to do with trains. In the next legislative session, should the name be changed?

Jeffrey: There is a lot of history behind that name. Now is not the time to change the name. Not only are there fiscal constraints in the cost of changing the name but we want to make sure the Railroad Commission has its regulatory authority so the Environmental Protection Agency can’t come in and say, with the new name it no longer has authority.

Greytok: I understand the confusion and there are a variety of reasons to suggest a name change. But the most common source is bureaucrats in Austin, especially the staff at the Sunset Commission.

We have so many serious issues to deal with and the only reasonable explanation for changing the name would be transparency. With Google and other search engines, the public can find out what the Railroad Commission does. This would be a distraction and we can’t afford the controversy. We need to get the agency through Sunset Review and reauthorized.

Christian: It’s important to keep things as calm as possible. I was in the legislature a number of years and on the Sunset Committee.

I’ve experienced how the legislature works, I’ve experienced how Sunset Review works. We must not change the name. (Industry associations) are very aware of what the Railroad Commission does.

We need to educate the public on what the Railroad Commission does and that the oil industry is not evil, dirty and stinky.

Q. The Railroad Commission has an $87 million 2016-2017 budget out of a $204 billion (state) budget. That’s 0.4 percent of the total budget for an agency that’s one of the state’s most critical agencies. Do you think that’s inequitable and how would you change it?

Jeffrey: We need to talk about getting past the budget. I’ve always asked ‘How can we do better?” On the Railroad Commission I would as “How can we do better?” The agency needs to work smarter and better.

Greytok: It’s grossly inadequate. The legislature views the Railroad Commission as an expense, as a loss. That’s the wrong attitude. This is a cyclical industry and oil prices will come back. Because the agency is self-funded, its funding is cyclical and now, when funding is needed most, it’s not there.

We need to get the legislature to partner with the agency and not view it as an expense.

Christian: People have used the Railroad Commission as a launching pad. They’ve strangled the budget from the top down so when it comes to the next campaign they can paint themselves as a fiscal conservative. We need to let the public and the legislature know how their money is being wasted.

Q. There are allegations the Railroad Commission is too cozy with the industry and cite enforcement actions and how only 2 percent go to court.

Jeffrey: Those criticisms are about perception. The Railroad Commission and the industry have a good relationship and they should. Don’t accept efforts to drive a wedge between them.

As a Railroad commissioner, I would say if we get rid of oil and gas completely, we would go from the Jetsons to the Flintstones. Try living without oil and gas for a year. It can’t be done.

Greytok: The Railroad Commission’s mission is to protect public health, safety and welfare. The people who elect us should have the confidence their concerns are being addressed. Whether it’s industrial activity in an urban area like Denton and fracturing, whether it’s protecting groundwater with Statewide Rule 13 or induced seismicity, we’ve seen issues can’t be ignored.

The way to address the criticisms is by showing concern and showing you’re taking action. The commission did it with Rule 13 and should do the same with induced seismicity.

Christian: The fact that only 2 percent of enforcement actions go to court is something to brag about.

Our job is to open doors, encourage economic development and create jobs and when the bad guys show up, jump on them. Out here people have the mentality that, when something’s wrong, let’s fix it. Let’s let them fix it.

Q.: Should the Railroad Commission step in and implement prorationing?

Jeffrey: Absolutely not. This is a free market. If you have a well and you want to produce it, you should produce it.

Greytok: I understand that impulse. But what we shouldn’t do is use government regulation to force people to restrain production. Fifty-sixty years ago, the commission didn’t have that option. I don’t think it would work today.

That doesn’t mean we should do nothing. The government should invest in the industry. First, it should enact a temporary abatement of the severance tax like it did in the 1990s. Second, there should be a moratorium on new regulations. Third, the Railroad Commission has a program that hands out subsidies for alternative fuels. That should stop.

Christian: Every time the government passes more regulations and government gets bigger, the free market gets smaller.

We believe in Texas the oil industry is the best in the world and when it’s the best in the world, why limit it?

Q. What is the most important role or function of the Railroad Commission and why. Also, more than a few Railroad commissioners have used the position as a stepping stone. What do you think about that?

Jeffrey: The most important role of the Railroad Commission is to safely produce oil and natural gas across the state. That’s why we have the Railroad Commission. Our job is to make sure we produce oil and gas effectively and get it all out of the ground. If we leave oil and gas in the ground, that’s energy we need for future generations that won’t be there.

I said I would serve 10 years in the Air Force and I served 15. I honor my commitments.

Greytok: Time and time again people have tried to use the position as a stepping stone and failed. In 30 years, only two have moved on to higher office.

There’s only one Agriculture commissioner. There’s only one comptroller. But there are three Railroad commissioners. This is a type of tribunal, a type of court. That’s both why I’m qualified and why I want do this job.

Christian: I’ve served in the legislature and I know how to work with legislators and I know how to work with the Sunset Review Agency.

The important thing the Railroad Commission does is stay out of free market and producers and protect them from the federal government. The commission needs to stand behind the issues and behind the industry and when the bad guys show up, stop them.

Q. In this political issues, most of the issues the industry deals with are federal. What can you and the Railroad Commission do to help?

Jeffrey: We need to partner with the industry and other agencies and present a united front.

Greytok: There are more and more regulations coming from the EPA; they’re coming faster and they’re more aggressive. The EPA is conducting an irrational war against fossil fuels. That doesn’t mean filing lawsuits.

As head of the regulatory agency, we can say here’s the issue, we have the resources, let’s tackle the problem.

Christian: What I’ve seen work is the state government stand behind the company, stand behind the individual being sued. The Railroad Commission can call the governor’s office, call the attorney general, all these agencies standing behind that business or that individual and public discourse against the federal government.

Q. Many of the nation’s 410,000 stripper wells are in Texas and despite their low output, comprise 10 percent of the nation’s production. Should the Railroad Commission implement a quota cutting production from stripper wells?

Jeffrey: It’s a bad idea.

Greytok: I understand the idea behind cutting stripper wells, but it would harm those who own stripper wells. It goes back to the government investing in the industry. We know prices will recover, we just don’t know when. These wells are an asset to the state. They represent streams of production and streams of revenue, revenue to the business and tax revenues, they represent jobs and prosperity for the state.

Christian: Stripper wells are the little guy. The little guy is who I’ve worked for. The big guys can take care of themselves. My heart is with the little guy.