Texas Railroad Commission's New Chief Wants to Double Its $500 Million Budget

Texas Railroad Commissioner-elect Jon Rosenthal wants to double the agency's half-billion-dollar budget, he announced Friday at his first news conference since winning the seat. The Democrat also pledged to raise wages for the commission's roughly 1,100 employees, streamline permitting for responsible operators and ramp up oil and gas production.

Rosenthal, a four-term former Cypress legislator and oil field engineer for 25 years, delivered his remarks in Midland, the heart of the Permian Basin. That region delivered nearly half of the nation's oil supply last year, according to The Texas Tribune, which first reported the address.

What did Rosenthal promise on orphan wells?

The commissioner-elect said he wants to work hand in hand with oil companies to plug thousands of orphan oil and gas wells — derelict sites with no owner. He committed to making that shutdown work less expensive and faster.

He also signaled restraint in how the agency's staff absorbs the added workload. "I don't think it would be fair of me to lay a bunch of extra work on an already overworked workforce," Rosenthal said.

His posture toward the industry was notably collaborative for a Democrat taking over a regulator his party hasn't held in more than three decades. "I personally believe most of our operators want to do the right thing and want to play by the rules, want to make the money and still be good stewards of the environment," Rosenthal said. "I'm sure major operators will agree with me."

Who is on the transition team?

Rosenthal named a bipartisan transition team at the Petroleum Club in Midland. It includes former Republican Railroad Commissioner Barry Smitherman. Sitting Commissioner Jim Wright, whom Rosenthal will replace in January, will serve in an advisory capacity during the handover.

The appointments back Rosenthal's stated goal of bipartisanship. "My goal is to help this commission be more effective and transparent," Rosenthal said. "We're going to put Texans first, responsibly managing resources, keeping our Texas economy strong, improving our infrastructure, and to … the folks that may not yet understand the role that Texas energy plays. Oil and gas here is not just the backbone of the Texas economy and the driver of the Texas miracle. It's the heart of our energy infrastructure."

How did Rosenthal win a seat critics said he'd threaten?

Friday's address marked the first indication of how Rosenthal will govern as the first Democratic oil and gas commissioner in more than 30 years. He defeated Republican Bo French in a heated election in which Rosenthal was outraised and outspent, while facing denunciations that he would threaten the oil and gas industry.

Rosenthal countered by running a campaign focused squarely on the job itself. He barnstormed across Texas, teaching voters about the agency's responsibilities. He rarely addressed culture war issues, which French made the cornerstone of his campaign.

The strategy worked in a state where the energy regulator's three-member board sets the terms for a sector that anchors the state economy. Rosenthal takes office in January, when the doubled budget request, wage increases and permitting reforms move from campaign rhetoric to legislative asks in Austin.