Railroad Commission v. Texas Citizens for a Safe Future & Clean Water
336 S.W.3d 619
| Tex. | 2011Background
- Barnett Shale wells require fracturing; produced oil/gas waste disposed via underground injection wells; Pioneer applied for a permit to convert an existing well to an oil/gas waste injection well.
- Texas Citizens for a Safe Future and James Popp opposed the permit, raising traffic-safety and road-impact concerns.
- Hearing examiners recommended granting the permit, finding disposal would increase production and public interest; Commission adopted those findings.
- Court of Appeals reversed, holding the Commission abused its discretion by narrowly interpreting public interest as production-related only and remanded to reconsider with broader factors including traffic safety.
- Legislative scheme distinguishes Commission (oil/gas waste) from TCEQ (industrial/municipal waste) and contemplates traffic-safety considerations for TCEQ, not the Commission; the Legislature amended the statute to require traffic considerations for TCEQ but not for the Commission.
- Supreme Court held the Commission’s interpretation of “public interest” as a narrow, production-focused inquiry is reasonable and entitled to deference; Court reversed the Court of Appeals and rendered for Commission and Pioneer.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission’s interpretation of ‘public interest’ is entitled to deference. | Texas Citizens argues ‘public interest’ is broad and open-ended. | Commission argues ‘public interest’ is narrow and limited to oil/gas production and resource protection. | Yes; the Commission’s interpretation is reasonable and entitled to deference. |
| Whether traffic-safety factors may be considered by the Commission under public interest. | Texas Citizens contends traffic safety should be weighed as part of public interest. | Traffic safety is not within the Commission’s public interest scope; TCEQ handles such factors. | No; traffic-safety factors are not part of the Commission’s public-interest inquiry. |
| Whether deference to agency interpretation is appropriate given the statutory scheme. | Burnishes that deference should be limited or rejected where statute is clear. | Agency has expertise; deference appropriate if interpretation is reasonable and consistent with statute. | Yes; deference appropriate under the statutory framework and agency expertise. |
Key Cases Cited
- Fiess v. State Farm Lloyds, 202 S.W.3d 744 (Tex. 2006) (agency construction of ambiguous statute given deference if reasonable)
- First Am. Title Ins. Co. v. Combs, 258 S.W.3d 627 (Tex. 2008) (serious consideration given to agency interpretation; defer if reasonable)
- Pub. Util. Comm’n v. City Pub. Serv. Bd. of San Antonio, 53 S.W.3d 310 (Tex. 2001) (longstanding deference to agency construction in regulatory context)
- Dodd v. Meno, 870 S.W.2d 4 (Tex. 1994) (statutory interpretation with agency perspective given weight)
