Railroad Commission of Texas again delayed taking action on proration of production for the state’s oil and gas industry at a meeting Tuesday. Ryan Sitton, reportedly the only commissioner who said he was ready to vote, proposed a state-mandated cut of 20 percent or about one million barrels in cooperation with other states and nations. But chairman Wayne Christian and commissioner Christi Craddick said more information is needed, including legal consultation between the commission’s lawyers and the state’s attorney general. Craddick said, “I’m not sure, by law, that some of what you’re proposing is legal or not… I may be the only lawyer in the group, but I’m telling you this is going to the courthouse.”
Christian appointed a task force to study the issue and make recommendations before the commission’s next meeting May 5. It will be led by officials from major trade associations, including Permian Basin Petroleum Association, Texas Oil and Gas, Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners, Panhandle Producers and Royalty Owners, and Texas Pipeline. “The goal is to save as many jobs, enable operators to survive, and return to a robust level as quickly as possible,” Christian said.