Railroad Commission Milestones

First producing well drilled at Melrose in Nacogdoches County.

April 3, 1891
Commission established to regulate railroads.

January 10, 1901
Spindletop is the state's first great gusher. Price drops to three cents per barrel, ending Pennsylvania's monopoly.

February 20, 1917
Pipelines declared common carriers. Commission given jurisdiction.

November 26, 1919
Commission adopts Rule 37 for oil and gas industry, requiring certain spacing between wells.

June 12, 1920
Production and sale of natural gas declared a public utility Commission given jurisdiction.

April 4, 1928
First order issued to prorate production.

October 9, 1930
East Texas Field discovered. Production of one million barrels per day drops price from $1.10 to 10 cents per barrel.

November 12, 1932
Legislature passes law to limit production to market demand. RRC given jurisdiction.

April 13, 1935
Comprehensive oil and gas law passed to prevent wasteful production.

March 17, 1947
Fields ordered to shut down to prevent wasteful flaring of natural gas.

May 22, 1953
Texas and other coastal states given control of offshore production.

Production hits a peak of 365 days per year as fields allowed to produce at maximum efficient rates.

October 17, 1973
Arab oil embargo and resulting energy shortages mark first time Texas production unable to make up for world shortages.

New records set for oil and gas well completions, and total wells drilled.

Gas production increases for the first time since 1977.

Crude oil prices, drilling, exploration plunge.

Texas oil production drops below two million barrels a day for the first time in 40 years.

Commission revises system for determining market demand for gas produced from prorated fields.

Commission incentive legislation spurs oil production and drilling.

Last Updated: 2/25/2019 8:54:36 AM