Jim Wright exited the room last week when fellow Railroad Commissioners voted to renew the permit for Eagleford Recycling LLC, an oilfield waste company with financial ties to him.
This move highlighted his financial interests in companies regulated by the Railroad Commission. The agency, overseeing oil and gas extraction, is managed by three elected commissioners. Wright, a Republican elected in 2020, considers his oilfield waste industry experience beneficial to his commissioner role. He remains president of one oilfield waste company and holds shares in others, as per financial disclosure statements. Advocates have urged for stricter conflict of interest protocols at the commission and called for recusals in cases of financial interests.
“We’re pleased that Chairman Wright followed state law by recusing himself from a decision he has a private interest in,” said Virginia Palacios, executive director of nonprofit Commission Shift. “This represents the minimum we should expect from public officials and is a step forward for the Railroad Commission.”
Commission Shift labeled the recusal “historic.” The organization highlighted Wright’s extensive oil and gas industry holdings in a 2021 report, “Captive Agency.” Commissioners often receive campaign contributions from companies with business before the agency. According to a spokesperson, Wright’s recusal was the first since 2020 by a member of the Railroad Commission due to financial ties.
Wright had recused himself in 2021 when his general counsel was involved in a prior private practice matter.
Wright is currently campaigning for a second six-year term on the commission. Well control expert Hawk Dunlap and activist Bo French are competing for the Republican nomination, while mechanical engineer and state Rep. Jon Rosenthal is running for the Democratic nomination.
“Chairman Wright is focused on his campaign. He will continue advocating for Texas energy production as a cornerstone of the state’s economy,” said his spokesperson, Aaron Krejci.
“I’m Going to Step Out”
During the agency’s monthly meeting in Austin on Nov. 18, Eagleford Recycling LLC’s permit renewal and amendment was the second agenda item. Before the vote, Wright stood up.
“I’m going to step out because I have a financial interest in this,” he stated. Commissioners Christi Craddick and Wayne Christian approved the permit 2-0 in Wright’s absence.
Krejci, Wright’s spokesperson, explained Wright holds “a small financial interest (approximately 5%)” in the company and is not involved in daily operations. Wright intends to recuse himself from future votes involving financial interests.
Wright also holds stock in Environmental Evolutions National, EEES Energy Solutions, Environmental Evolutions Holdings, Transportation, Environmental Tank Solutions, and Greenergy Companies, as per his 2024 disclosure statements. Oklahoma does not allow regulators to own industry interests.
Wright founded DeWitt Recyclable Products, LLC in 2011, amid the South Texas shale boom. Its DeWitt County facility managed oil and gas waste. The commission oversees oilfield waste landfills and recycling sites, which often raise health and safety concerns among locals.
After selling the company in 2014, it was renamed Eagleford Recycling LLC. Subsequent site contamination led the commission to cancel its permit in 2017. Wright claimed pollution occurred post-sale.
Eagleford Recycling LLC received a new permit in 2020, valid through 2025. This year, it applied for renewal and amendment. The existing permit allows roadbase production from drilling waste, and the amendment would let the company market it as a “reusable product.”
The previous permit limited use of the roadbase to “lease roads, well pads or private and county roads with property owner and county commissioner authorization.” Concerns remain about volatile organic compounds in drill cuttings.
Two residents near the Cuero facility opposed the permit, citing potential groundwater contamination and Wright’s financial interest. Following a hearing, commission staff recommended approval.
The commission’s final order granted the permit, with Commissioners Craddick and Christian signing. Beside Wright’s name, “recused” was noted.
Original Story at insideclimatenews.org