Austin, TX — In a historic first, a sitting Railroad Commissioner left the room during open meeting proceedings because of their financial interests in a company.
The item in question was an application for permit renewal and amendment for Eagleford Recycling LLC, an oil and gas waste facility that railroad commissioner and current Chairman Jim Wright owns a passive investor interest in. Railroad commissioners are required by state law to recuse themselves from a measure, proposal, or decision in which they have a “personal or private interest,” yet no railroad commissioners have recused themselves from a decision involving their personal or private interests until the November open meeting.
“We’re glad to see that Chairman Wright followed state law today and recused himself from a decision which he has a private interest in. Although this represents the bare minimum of what we should expect from public officials, it is a step forward for the Railroad Commission,” said Virginia Palacios, Commission Shift Executive Director.
The proposed permit amendment was to use waste to produce “reusable product in addition to road base.” During the statewide rulemaking last year, the RRC indicated they wouldn’t allow waste products to be used in road base or construction fill. But this permit shows otherwise. Commission Shift has argued previously that the RRC’s environmental standards for the waste are not stringent enough to allow for reuse of treated drill cuttings on a broad basis.
Protestants asked the facility amendment and renewal to be denied due to concerns about groundwater contamination and Commissioner Wright’s personal financial interest in the company. The examiners contended that the facility will be regulated fairly if it is operated consistent with Railroad Commission rules and recommended approval. The motion passed with two ayes and one abstention.
Neighbors of oil and gas waste pit facilities have complained of headaches, nausea, and other concerns about leaks and emissions. Last year, the Railroad Commission approved updated statewide rules for oil and gas waste facilities, spearheaded by Commissioner Wright.
Commission Shift’s third Captive Agency Report includes documentation of Commissioner Wright’s financial ties and ownership over companies the Railroad Commission oversees. Prior to joining the commission, Wright reached a settlement agreement with the Railroad Commission over serious compliance issues related to DeWitt Recyclable Products, agreeing to pay a $180,000 penalty. DeWitt Recyclable Products was bought by Eagleford Recycling LLC. You can view Commissioner Wright’s personal financial disclosures from 2019-2024 here.
