Senate panel backs bill to create Railroad Commission task force on organized oilfield theft

The Senate Committee on Natural Resources & Economic Development voted to advance Senate Bill 494, which would require the Railroad Commission of Texas to establish a statewide task force to analyze organized oilfield theft and recommend solutions to improve coordination among industry, local law enforcement and federal authorities.

Senator Kelly Hancock laid out the bill for Senator Charles Sparks, saying stakeholders have reported that organized thieves operating across jurisdictions have complicated investigations and prosecutions. "The task force will meet quarterly to assess these impacts, improve coordination between law enforcement, enhance security, transparency, consumer protections, and prevent future thefts," Hancock said.

Resource witnesses and public testimony emphasized the scale and sophistication of theft in the Permian Basin. Sean Hallett, captain with the Texas Department of Public Safety—s Criminal Investigations Division, told the committee that since September 2023 DPS investigations had seized about 3,900 barrels of oil ("valued at about $274,000") and about $3.8 million in currency from illegal proceeds; he said DPS had also seized about $2.3 million in equipment. "It is a problem in the Permian Basin," Hallett said; he added that private-sector groups already hold quarterly industry-law enforcement meetings but the bill would formalize coordination.

Industry witnesses described the operational challenge created by theft that crosses county lines. Michael Lozano of the Permian Basin Petroleum Association said the region covering the Permian is roughly "an area the size of Minnesota" and produces about 6 million barrels a day, and that thefts have shifted from opportunistic incidents to more sophisticated, multi-jurisdictional operations. Ed Longenecker of the Texas Independent Producers and Royalty Owners Association presented survey results showing significant losses at individual operators, including one respondent who reported more than $1 million in losses across 2023—02024.

Howard County Sheriff Stan Parker described practical enforcement hurdles: many suspected theft incidents involve trucks hauling commingled water and oil, and local law enforcement often lacks dedicated personnel and resources. "Our problem is we don't know who's supposed to be there and who's not," Parker said, noting that some disposal facilities can legally receive oil and that recordkeeping at those sites raises investigative challenges.

After public testimony, the committee voted to report the bill to the full Senate. The clerk recorded the vote "There being 8 ayes and no nays," and the committee recommended the bill for the local and uncontested calendar.