What Does the OCC Regulate?

The Oklahoma Corporation Commission was established in 1907 by the Oklahoma Constitution to regulate public service corporations, whose services are deemed essential for public welfare. This was based on the legal principle that private companies affecting the community at large are subject to state regulation, as established in the 1877 U.S. Supreme Court case Munn v. Illinois.

Initially, the Commission's primary focus was on regulating transportation and transmission companies, such as railroads and telephone/telegraph companies. It was also tasked with maintaining records of all corporations operating in Oklahoma. As the state grew, this record-keeping responsibility was largely transferred to the Secretary of State and other agencies, while the Commission retained authority over public service companies.

Over time, the Commission's regulatory scope expanded significantly:

• 1908: Began regulating telephone call prices.

• 1912 (April): Started regulating telegram prices.

• 1913: Regulation of water, heat, light, and power rates commenced. Also, oil pipelines came under its regulation following action by the Second Legislature.

• 1914: Began regulating the oil and gas industry by restricting drilling and production in certain fields to prevent waste.

• 1915: The Oil and Gas Conservation Act expanded its authority in this area to protect the rights of all parties involved in production. Cotton gins were also declared public utilities and brought under Commission oversight for both rates and practices.

While the fundamental regulatory responsibilities of the Corporation Commission have remained, the specifics of what is regulated have evolved due to changes in state and federal laws. Currently, the Commission regulates:

• Public utilities (unless under municipal or federal jurisdiction, or exempt).

• Oil and gas drilling, production, and environmental protection.

• Safety aspects of motor carrier, rail, and pipeline transportation.

• Environmental integrity of petroleum storage tank systems.

A significant change occurred with the federal Motor Carrier Act of 1995, which ended state authority for economic regulation (rates and routes) of most intrastate commodity transport. However, the Commission continues to enforce requirements for operating authority and insurance in this sector. It also enforces federal regulations related to underground injection, disposal of certain oil and gas waste fluids, and remediation of pollution from leaking petroleum storage tanks.

The Corporation Commission possesses judicial, legislative, and administrative authority. It is composed of three commissioners elected statewide for staggered six-year terms, ensuring one vacancy occurs every two years. This election pattern dates back to the Commission's creation. In-term vacancies are filled by gubernatorial appointment until the next regular election. Commission orders can only be appealed to the Oklahoma Supreme Court. The average tenure for a panel of three commissioners serving together is about four years, with the longest-serving panel sitting for over 13 years (1955-1968).

Information from the OCC website. For more information: https://oklahoma.gov/occ/about/history.html