Okla. Corp. Commission chairman says worker furloughs could be problem for oil, gas companies

Okla. Corp. Commission announces 8 furlough days

OKLAHOMA CITY — The chairman of the Oklahoma Corporation Commission said Tuesday an employee furlough plan meant to reduce costs amid a state budget shortfall will likely have a “very significant” impact on oil and gas companies and other entities it regulates.

“The agency will make every effort to provide full services with fewer resources,” Commissioner Bob Anthony said. “Unfortunately, for business and industry, the cost of not providing required commission services can be many times higher than the expense to the agency.”

For example, if a company wants to move a drilling rig to a location to plug an oil well, a field inspector from the Corporation Commission must be there to observe the work and make sure it’s done according to the commission’s rules, Anthony said.

“If we can’t show up on time, its going to cost you a lot of money,” he said. “Our agency directly regulates over $20 billion of Oklahoma’s economy.”

The commission regulates the oil and gas industry, public utilities and a variety of other entities including railroads, gasoline stations, limousines and tour buses.

Its three commissioners plan to give up some of their pay to help address the budget problem in spite of a state law that keeps their salaries from being changed during their terms of office.

Anthony said state law allows elected officials to make gifts to the state through the governor’s office.

“That effort is already under way,” he said. Commission officials said they implemented the furlough plan to deal with budget shortfalls for the fiscal year that ends June 30. Furlough plans also have been developed for the Office of Juvenile Affairs, the Department of Tourism and Recreation, the Oklahoma Indigent Defense System and other state agencies.

Corporation Commission workers will take unpaid furloughs on Feb. 12, March 19, April 9, April 30, May 14, May 28, June 1 and June 25, the agency said. All commission offices will be closed.

The agency, which currently employs about 350 people, reduced 10 percent of its work force last year through voluntary buyouts and other cuts, spokesman Matt Skinner said. But a plan to furlough agency workers one day a month was canceled before it went into effect.

Commissioners said it wasn’t needed after some cost cutting and approval by legislative and administration officials for the agency to broaden its use of existing revenue.

Brooks Mitchell, the agency’s director of administration, said the current furlough plan is subject to change, depending on changes in the agency’s funding.