Understanding where (ineffective) organizational rules come from is of vital importance for both public administration scholars and practitioners. Yet, little is known about the underlying mechanisms that explain why external rules may cause organizational rule-breeding and, as a byproduct, red tape. Using a combination of archival and interview data, the authors empirically study rule-breeding processes in the case of Gasunie, which is a heavily regulated Dutch gas transport organization. The archival findings indicate that rule stocks have increased substantially over time at every policy level. Furthermore, the interview data supports the notion that policymakers at different levels are jointly responsible for excessive rule-breeding and, ultimately, organizational red tape.