A look at the influence interest groups an have on regulatory agencies.
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State regulators on Monday released their draft rules for what to do with all the hazardous oilfield waste that’s left over once a well is drilled. The announcement gives the public one month to comment on the new rules — while some industry representatives started giving input more than two years ago, documents and interviews show.
Oilfield waste executives and consultants helped write the regulations beginning in 2021. Oil and gas business advocates also gave feedback to the Railroad Commission of Texas, which regulates the industry.
The effort was initiated by a commissioner who has investments in oilfield waste companies. Jim Wright, one of the agency’s three elected commissioners, ran for his seat with an eye on rewriting what’s known as Rule 8. Wright owns stock in several hazardous waste management companies in Texas, according to statements filed with the Texas Ethics Commission.
In an interview, Wright brushed off critics who suggest his involvement in the industry makes him a biased regulator. He said that he had little to do with re-writing the rules after he became commissioner, and that, if anything, his position on the Commission has hurt his businesses rather than helped it. Few companies want to risk doing business with companies associated with regulators, he said.
“For those who think this is my rule — what Jim Wright wants — that couldn’t be further from the truth,” Wright said. “Even before I came to office, [commission] staff knew we really needed to take a hard look at Rule 8.”