WEBVTT
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Morning, everybody ready?
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Yeah.
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This meeting of the Railroad Commission of Texas
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will come to order to consider matters
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which have been duly posted
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with the Secretary of State for June 5th, 2018.
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The Commission will consider the items on the agenda
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as posted on the agenda. Under our
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public participation policy,
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anyone desiring to offer public testimony
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on any items that are not noticed on today's agenda
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will need to fill out a testimony form
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in the back of the room and submit it
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to Commission Secretary Kathy Way.
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Reminder, turn off your cell phones.
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Item number one, good morning.
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Good morning, Chairman and Commissioners.
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For the record, my name is Amy Bruce.
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I am representing the Market Oversight section
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of the Oversight and Safety Division.
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Before you today is Gas Utilities Docket Number 10697,
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the application of Atmos Energy Corporation's
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West Texas division for the Test Year 2017
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Annual Interim Rate Adjustment
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for the unincorporated areas.
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This docket is the fifth interim rate adjustment
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the company has filed for the West Texas division in Byron
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since the final order was issued in Gas Utilities
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Docket Number 10174.
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This adjustment represents an incremental increase
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of nine million, six hundred and four thousand,
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one hundred and ten dollars of which
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eight hundred and twenty-five thousand
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nine hundred and ninety dollars is allocated
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to Byron's customers.
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Staff recommends approval of the revised interim
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rate adjustment, and I'm available to answer any questions.
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Thank you, are there any questions?
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[Commissioner Sitton] Nope.
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I move we approve the examiner's recommendation.
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Is there a second?
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[Commissioner Sitton] Second.
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Second, Commissioner Sitton.
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All in favor, say aye.
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Aye.
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Motion passes, item's approved. Thank you, Amy.
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Thank you.
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Item number two.
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Good morning, Kristina.
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Good morning Chairman and Commissioners.
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For the record, my name is Kristina Poole,
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and I'm with the Oversight and Safety Division.
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I will be presenting the next two agenda items.
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The first item is Gas Utilities Docket Number 10698,
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The application of Atmos Energy Corporation
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Mid-Tex division, for the test year of 2017
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Annual Interim Rate Adjustment
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for the unincorporated areas.
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This docket is a sixth interim rate adjustment
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the company has filed for this area
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since it's last rate case, GUD number 10170.
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This adjustment represents an incremental revenue increase
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of forty-seven million, one hundred and sixty-five thousand,
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one hundred and eighty-nine dollars of which
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one million, six hundred three, six hundred
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and ninety-nine thousand is allocated
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to the customer subject to the order in this docket.
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Staff recommends approval
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at the interim rate adjustment as proposed.
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I can address any questions.
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Thank you, are there any questions?
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[Commissioner Sitton] No.
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I move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Christian.
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All in favor, say aye.
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Aye.
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Motion passes, the item is approved.
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The next agenda item is Gas Utilities Docket Number 10706,
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the application of Energy Transfer Fuel LP
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pursuant to the Natural Gas Policy Act,
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Section 311, for review of the reasonableness
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of a transportation rate.
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This is an existing tariff rate with the Commission
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and Energy Transfer provided testimony and supporting
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information to demonstrate that the requested rate
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does not exceed a cost base rate.
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Staff is recommending approval of the application.
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And I can address any questions at this time.
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Thank you, are there any questions?
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I move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Sitton.
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All those in favor, say aye.
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Aye.
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The motion passes, item is approved.
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Thank you, Kristina.
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Item number four.
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Morning, Sarah.
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Good morning, Chairman and Commissioners.
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For the record, my name is Sarah Montoya Fogelsong.
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I am also representing the Market Oversight section
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of the Oversight and Safety Division.
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Before you today is Gas Utilities Docket Number 10703.
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That's the interim rate adjustment
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for Texas Gas Service for the 2017 interim rate adjustment
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for the unincorporated portion
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of the Central Texas service area.
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This docket is the second interim rate adjustment
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for the company, for the Central Texas service area
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since the final order was issued in GUD Number 10526.
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It represents an incremental investment of
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three million, two hundred and eighty-two thousand,
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six hundred and eighty-five dollars.
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Of that, two hundred and fifty-six thousand,
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one hundred and forty-six dollars is allocated
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to the unincorporated customers.
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I recommend approval of the interim rate adjustment
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as revised, and I'm happy to answer any questions you have.
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Thank you, are there any questions?
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No.
I move we approve
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the examiner's recommendation,
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is there a second?
Second.
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Second, Commissioner Christian.
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All those in favor, say aye.
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Aye.
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Motion passes, item's approved.
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Thank you very much.
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Item number five. Morning, Frank.
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Good morning, Madam Chairman and Commissioners.
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Batting last for the Oversight
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and Safety division this morning,
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I'm Frank Tomasek with the Oversight and Safety division.
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This final agenda item from Oversight and Safety
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is Gas Utilities Docket Number 10710,
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which is also an application
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for annual interim rate adjustment
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made by Texas Gas Service for Tax Year 2017,
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annual interim rate adjustment in the unincorporated areas
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of its West Texas service area.
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This is their second interim rate adjustment
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since the company's last rate case in GUD Number 10506
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which set the base interim rate adjustment components.
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I'll also note the TGS has made a voluntary adjustment
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to its IRA request to reflect a tax rate of 21%,
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in accordance with the Tax Cuts and Jobs Act of 2017.
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And the resulting proposed IRA rates in this docket
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additionally incorporate a rate reduction
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approved administratively in GUD 10713,
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which produced a previous IRA rates
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for changes in the tax rates as per the Commission's
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accounting order approved in GUD 10695 this past February.
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Using those factors, the company's identified
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a test year incremental rate requirement
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of approximately three million, four hundred
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and ninety thousand, four hundred and ten dollars.
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Which two hundred and sixty-six thousand,
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five hundred and nineteen dollars, or 7.64%,
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will be recovered from the environment's customers
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under the proposed rate adjustment.
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Staff's review of the filing has found it to be
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compliant with the provisions of the group statutes,
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and we are recommending approval.
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I can address any questions at this time.
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Thank you, are there any questions?
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I move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Sitton.
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All those in favor, say aye.
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Aye.
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Motion passes, item's approved.
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Thank you.
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Item number six.
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Morning, Kyle.
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Good morning, Commissioners.
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Kyle Lubby, Administrative Law Judge
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with the Hearings division.
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Item six is an application by
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the Texas Municipal Power Agency
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requesting release of reclamation obligations,
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or an aggregate 130.8 acres within the Given's Creek mine.
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Permit number 26-D, located in Grimes County.
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Request includes phase one through three release of 99 acres
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and phase three release for 31.8 acres.
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The post-mine land use for the acreage
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is industrial/commercial.
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Evidence in the record indicates reclamation
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has been accomplished in accordance with the terms
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of the approved permit and the regulations.
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After notice, no comments or requests
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for hearings were received.
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Team PA and staff were the only parties to the proceeding.
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No exceptions were filed.
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No changes to the current bond instrument
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is requested in this docket.
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Full release of the acreage is recommended,
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along with an eligible bond reduction amount
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of eight hundred thirteen thousand,
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eight hundred seventy-seven dollars and twenty-four cents.
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I'm available for questions.
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Thank you, are there any questions?
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Move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Christian.
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All those in favor, say aye.
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Aye.
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Motion passes, item's approved.
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Thank you.
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Morning, Jennifer.
Morning.
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Good morning, Chairman, Commissioners,
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my name's Jennifer Cooke with the Hearings division.
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In item seven, LenexCo Inc filed a complaint
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claiming that SBJ Energy Partners, LLC
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does not have a good faith claim to operate two wells.
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SBJ filed a permit application for one of the wells.
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No permit was issued, and the application
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has been dismissed administratively.
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SBJ does not have a,
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does have a permit for the other well,
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and that well has been drilled.
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LenexCo executed a farm out agreement with SBJ
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including acreage covering the wells.
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LenexCo asserts that the farm out agreement provides
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that SBJ's obtaining any acreage is conditioned,
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or was conditioned upon, and was to occur
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after SBJ paid $100,000 to LenexCo.
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LenexCo claims the $100,000 was never paid,
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so the acreage was never earned or assigned to SBJ.
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Therefore, LenexCo argues SBJ does not
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have good faith claim.
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SBJ acknowledges that the $100,000 was not paid.
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SBJ asserts the dispute with LenexCo
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is a contract dispute and outside
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the Commission's jurisdiction.
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SBJ maintains the dispute is to
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the amount of money it's owed.
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It does not dispute SBJ's good faith claim.
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The examiners recommend the Commission dismiss the complaint
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as to the stale permit application,
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find SBJ demonstrated a good faith claim,
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and deny LenexCo's request that the drilled well be plugged.
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No exceptions were filed, and I'm available for questions.
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Thank you, is there any questions?
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I move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Sitton.
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All in favor, say aye.
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Aye.
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Motion passes, item is approved.
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Number eight.
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In item eight, Medicine Mound Oil Company
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filed a complaint claiming that Anacline Energy, LLC
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is producing from different strata with it's well
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in violation of Statewide Rule 10.
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Medicine Mound request that Anacline be limited
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to producing only from the original zone
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designated in the completion port for the well.
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Medicine Mound claims it has a contractual lease
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to drill where the well is located.
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Anacline argues that the pledge be dismissed
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because Medicine Mound does not have standing
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since Medicine Mound is not an operator.
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Anacline further asserts the complaint should be denied.
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Medicine Mound failed to provide evidence
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Anacline is producing the well.
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The examiners recommend the Commission dismiss
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the complaint for lack of standing,
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and also deny the request for relief in the complaint.
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Exceptions and replies were filed.
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The examiners also recommend that the language
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and findings to the fact four and five
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be revised based on Anacline's exceptions
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to clarify that Medicine Mound failed to provide evidence
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in the record for this case that the well
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is being produced in violation of Statewide Rule 10.
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And, I'm available for questions.
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Thank you, are there any questions?
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I move we approve the examiner's recommendation.
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Is there a second?
Second.
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Second, Commissioner Christian.
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All in favor, say aye.
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Aye.
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The motion passes, item is approved.
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Thank you.
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Morning, Clayton.
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Morning, Chairman, Commissioners.
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Clayton Huber, Administrative Law Judge.
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Item number nine is a motion for rehearing
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in an enforcement action against Kaywell Energy, LLC
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for failure to plug an inactive well.
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In this enforcement action,
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the operator failed to respond or to attend a hearing.
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Default enforcement order was entered in April.
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Operator timely filed a motion for rehearing,
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alleging that it's failure to respond was due to travel.
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Most importantly, however, the motion for rehearing
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does not meet the second prong of the Craddock Test,
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in that it does not present a meritorious defense.
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The well remains unplugged and noncompliant.
00:11:05.830 --> 00:11:08.940
The recommendation is to deny the motion for rehearing.
00:11:08.940 --> 00:11:11.220
The motion will be overruled by operation of law
00:11:11.220 --> 00:11:13.760
on July 19th, 2018.
00:11:13.760 --> 00:11:15.104
I'm available for questions.
00:11:15.104 --> 00:11:17.005
Thank you, is there any questions?
00:11:17.005 --> 00:11:19.750
I move we approve the examiner's recommendation.
00:11:19.750 --> 00:11:21.040
Is there a second?
Second.
00:11:21.040 --> 00:11:23.216
Second, Commissioner Sitton. All in favor, say aye.
00:11:23.216 --> 00:11:24.360
Aye.
00:11:24.360 --> 00:11:25.960
Motion passes, item is approved.
00:11:25.960 --> 00:11:26.793
Number 10.
00:11:26.793 --> 00:11:28.287
Thank you, Chairman.
00:11:28.287 --> 00:11:30.630
Item number 10 is a motion for rehearing
00:11:30.630 --> 00:11:33.670
in another enforcement action against Brian Woodbine
00:11:33.670 --> 00:11:36.050
Gathering, Inc. concerning an inactive
00:11:36.050 --> 00:11:39.040
reclamation facility in Brazos County.
00:11:39.040 --> 00:11:41.390
The case primarily involves a requirement
00:11:41.390 --> 00:11:44.250
to remove oil sludge waste from three
00:11:44.250 --> 00:11:46.290
ten thousand barrel tanks.
00:11:46.290 --> 00:11:49.430
An order assessing a penalty and ordering compliance
00:11:49.430 --> 00:11:51.260
was signed in April.
00:11:51.260 --> 00:11:52.900
The motion for rehearing discusses
00:11:52.900 --> 00:11:55.170
the status of the facility lease.
00:11:55.170 --> 00:11:58.950
Woodbine actually gave up their surface lease in 2011.
00:11:58.950 --> 00:12:01.580
Which is an issue that was addressed at the hearing.
00:12:01.580 --> 00:12:05.010
Woodbine has recently been denied access to the facility
00:12:05.010 --> 00:12:07.130
by the surface owner.
00:12:07.130 --> 00:12:10.080
A mediation with the surface owner was held
00:12:10.080 --> 00:12:12.990
shortly after the hearing, to no avail.
00:12:12.990 --> 00:12:16.010
A district court case has been filed.
00:12:16.010 --> 00:12:18.300
The facility remains out of compliance
00:12:18.300 --> 00:12:20.100
according to enforcement staff.
00:12:20.100 --> 00:12:23.760
Their recommendation is to deny the motion for rehearing.
00:12:23.760 --> 00:12:26.000
The motion will be overruled by operation of law
00:12:26.000 --> 00:12:29.170
on July 19th of 2018.
00:12:29.170 --> 00:12:30.310
I'm available for questions.
00:12:30.310 --> 00:12:32.343
Thank you, are there any questions?
00:12:32.343 --> 00:12:34.210
We have the party's attorney here.
00:12:34.210 --> 00:12:36.201
Does anybody need to hear from him?
00:12:36.201 --> 00:12:37.450
No.
Okay.
00:12:37.450 --> 00:12:39.530
I move we approve the examiner's recommendation.
00:12:39.530 --> 00:12:40.850
Is there a second?
Second.
00:12:40.850 --> 00:12:43.250
Second, Commissioner Christian. All in favor, say aye.
00:12:43.250 --> 00:12:44.083
Aye.
00:12:44.083 --> 00:12:45.540
Motion passes, item's approved.
00:12:45.540 --> 00:12:46.987
Thank you, Clayton.
00:12:48.351 --> 00:12:49.550
(coughing)
00:12:49.550 --> 00:12:51.546
Item number 11. Good morning, Lynn.
00:12:51.546 --> 00:12:52.480
Good morning, Chairman and Commissioners,
00:12:52.480 --> 00:12:54.140
for the record, my name is Lynn Latome,
00:12:54.140 --> 00:12:56.440
Administrative Law Judge with the Hearings division.
00:12:56.440 --> 00:12:59.140
I'm here to present items 11 through 16 on the agenda,
00:12:59.140 --> 00:13:01.363
all of which are P-5 motions for rehearing.
00:13:02.200 --> 00:13:04.060
Item number 11 is a motion for rehearing
00:13:04.060 --> 00:13:06.640
filed by Atlas Fuel Supply Limited.
00:13:06.640 --> 00:13:09.970
On April 10th, 2018, a final order was entered
00:13:09.970 --> 00:13:11.240
by the Commission denying the renewal
00:13:11.240 --> 00:13:13.970
of the operator's P-5 organization report,
00:13:13.970 --> 00:13:15.960
because the operator has wells in non-compliance
00:13:15.960 --> 00:13:17.453
with Statewide Rule 15.
00:13:20.290 --> 00:13:22.880
In its timely filed motion, the operator states
00:13:22.880 --> 00:13:26.100
it needs more time to complete the renewal process.
00:13:26.100 --> 00:13:29.150
Staff has responded that two wells are non-compliant.
00:13:29.150 --> 00:13:31.230
It is recommended that the motion be denied.
00:13:31.230 --> 00:13:33.830
The motion will be overruled by operation of law
00:13:33.830 --> 00:13:35.900
on July 19th, 2018.
00:13:35.900 --> 00:13:37.320
I'm available for any questions.
00:13:37.320 --> 00:13:38.767
Thank you, are there any questions?
00:13:38.767 --> 00:13:39.870
No.
I move we approve
00:13:39.870 --> 00:13:41.200
the examiner's recommendation.
00:13:41.200 --> 00:13:42.460
Is there a second?
Second.
00:13:42.460 --> 00:13:43.950
Second by Commissioner Sitton.
00:13:43.950 --> 00:13:45.303
All those in favor, say aye.
00:13:45.303 --> 00:13:46.160
Aye.
00:13:46.160 --> 00:13:47.720
Motion passes, item is approved.
00:13:47.720 --> 00:13:50.650
Number 12.
Item number 12 is a motion
00:13:50.650 --> 00:13:55.620
for rehearing by BNR Operating, LLC, on April 10th, 2018
00:13:55.620 --> 00:13:57.530
a final order was entered by the Commission
00:13:57.530 --> 00:13:59.090
denying the renewal of the operator's
00:13:59.090 --> 00:14:01.090
P-5 organization report
00:14:01.090 --> 00:14:03.180
because the operator has wells non-compliant
00:14:03.180 --> 00:14:05.290
with Statewide Rule 15.
00:14:05.290 --> 00:14:07.150
In it's timely filed motion for rehearing,
00:14:07.150 --> 00:14:09.130
the operator states that it is currently arranging
00:14:09.130 --> 00:14:11.310
lease access with surface owners to perform
00:14:11.310 --> 00:14:14.980
required testing and needs more time to complete renewal.
00:14:14.980 --> 00:14:17.640
Staff has responded that three wells are non-compliant.
00:14:17.640 --> 00:14:19.980
It is recommended that the motion be denied.
00:14:19.980 --> 00:14:22.180
The motion will be overruled by operation of law
00:14:22.180 --> 00:14:23.930
on July 19th, 2018.
00:14:23.930 --> 00:14:24.763
I'm available for any questions.
00:14:24.763 --> 00:14:26.507
Are there any questions?
00:14:26.507 --> 00:14:27.630
No.
I move we approve
00:14:27.630 --> 00:14:28.960
the examiner's recommendation,
00:14:28.960 --> 00:14:30.380
is there a second?
Second.
00:14:30.380 --> 00:14:31.990
Second by Commissioner Christian.
00:14:31.990 --> 00:14:33.200
All in favor, say aye.
00:14:33.200 --> 00:14:34.033
Aye.
00:14:34.033 --> 00:14:35.170
The motion passes, item's approved.
00:14:35.170 --> 00:14:37.930
Number 13.
Item number 13 is a motion
00:14:37.930 --> 00:14:42.880
for rehearing filed by Mayjack One LLC, on April 10th, 2018
00:14:42.880 --> 00:14:44.610
a final order was entered by the Commission
00:14:44.610 --> 00:14:46.690
denying the renewal of the operator's P-5
00:14:46.690 --> 00:14:49.410
organization report because the operator has wells
00:14:49.410 --> 00:14:52.070
non-compliant with Statewide Rule 15.
00:14:52.070 --> 00:14:53.780
In it's timely filed motion for rehearing,
00:14:53.780 --> 00:14:56.130
the operator states that it is waiting on the bond company
00:14:56.130 --> 00:14:58.470
to issue the bond to submit to the Commission
00:14:58.470 --> 00:14:59.880
with it's filings.
00:14:59.880 --> 00:15:03.420
Staff responds that there are 14 wells non-compliant.
00:15:03.420 --> 00:15:05.460
It is recommended that the motion be denied.
00:15:05.460 --> 00:15:07.400
The motion will be overruled by operation of law
00:15:07.400 --> 00:15:09.180
July 19th, 2018.
00:15:09.180 --> 00:15:10.670
I'm available for any questions.
00:15:10.670 --> 00:15:11.728
Are there any questions?
00:15:11.728 --> 00:15:14.100
I move we approve the examiner's recommendation.
00:15:14.100 --> 00:15:15.380
Is there a second?
Second.
00:15:15.380 --> 00:15:17.595
Second by Commissioner Sitton, all in favor, say aye.
00:15:17.595 --> 00:15:18.440
Aye.
00:15:18.440 --> 00:15:20.195
Motion passes, item is approved.
00:15:20.195 --> 00:15:21.802
14 I'd like to pass.
00:15:21.802 --> 00:15:23.709
Please.
Alright.
00:15:23.709 --> 00:15:26.930
Item number 15 is a motion for rehearing
00:15:26.930 --> 00:15:31.000
filed by Roland Oil Company, on April 10th, 2018,
00:15:31.000 --> 00:15:32.790
a final order was entered by the Commission
00:15:32.790 --> 00:15:34.760
denying the renewal of the operator's P-5
00:15:34.760 --> 00:15:36.790
organization report because the operator
00:15:36.790 --> 00:15:40.040
has wells in non-compliance with Statewide Rule 15.
00:15:40.040 --> 00:15:41.760
In its timely filed motion for rehearing,
00:15:41.760 --> 00:15:43.570
the operator states that it is taking steps
00:15:43.570 --> 00:15:44.980
to come into compliance.
00:15:44.980 --> 00:15:46.530
Given the illness of Roland's owner
00:15:46.530 --> 00:15:48.550
who has been hospitalized intermittently
00:15:48.550 --> 00:15:51.000
over the last 12 months with a serious illness.
00:15:51.000 --> 00:15:54.150
Staff has responded that 32 wells are non-compliant.
00:15:54.150 --> 00:15:56.020
It is recommended that the motion be denied.
00:15:56.020 --> 00:15:57.970
The motion will be overruled by operation of law
00:15:57.970 --> 00:16:00.083
on July 19th, 2018.
00:16:00.083 --> 00:16:01.412
Are there any questions?
00:16:01.412 --> 00:16:02.680
I'm available for any questions.
00:16:02.680 --> 00:16:04.678
Thanks, I move we approve the examiner's recommendation
00:16:04.678 --> 00:16:06.690
and is there a second?
Second.
00:16:06.690 --> 00:16:08.110
Second by Commissioner Christian.
00:16:08.110 --> 00:16:09.167
All in favor, say aye.
00:16:09.167 --> 00:16:10.000
Aye.
00:16:10.000 --> 00:16:12.189
Motion passes, item is approved.
00:16:12.189 --> 00:16:14.470
And number 16.
Item number 16 is a motion
00:16:14.470 --> 00:16:18.840
for rehearing filed by Sand Hawk, LLC, on April 10th, 2018,
00:16:18.840 --> 00:16:20.530
a final order was entered by the Commission
00:16:20.530 --> 00:16:22.920
denying renewal of the operator's P-5
00:16:22.920 --> 00:16:25.430
organization report because the operator has wells
00:16:25.430 --> 00:16:27.950
non-compliant with Statewide Rule 15.
00:16:27.950 --> 00:16:29.560
In it's timely filed motion for rehearing,
00:16:29.560 --> 00:16:31.410
the operator states that it needs more time
00:16:31.410 --> 00:16:32.890
to come into compliance.
00:16:32.890 --> 00:16:35.810
Staff has responded that four wells are non-compliant.
00:16:35.810 --> 00:16:37.810
It is recommended that the motion be denied.
00:16:37.810 --> 00:16:39.780
The motion will be overruled by operation of law
00:16:39.780 --> 00:16:41.900
on July 19th, 2018.
00:16:41.900 --> 00:16:43.330
I'm available for any questions.
00:16:43.330 --> 00:16:44.163
Thank you.
00:16:44.163 --> 00:16:45.160
Are there any questions?
00:16:45.160 --> 00:16:46.750
I move we approve the examiner's recommendation.
00:16:46.750 --> 00:16:48.480
Is there a second?
Second.
00:16:48.480 --> 00:16:49.700
Second by Commissioner Sitton.
00:16:49.700 --> 00:16:50.859
All in favor, say aye.
00:16:50.859 --> 00:16:51.692
Aye.
00:16:51.692 --> 00:16:53.060
Motion passes, item is approved.
00:16:53.060 --> 00:16:54.023
Thank you, Lynn.
00:16:55.780 --> 00:16:57.250
Alright, we're on to
00:16:58.310 --> 00:17:00.550
the Oil and Gas Consent Agenda.
00:17:00.550 --> 00:17:02.880
We've got three that have been,
00:17:02.880 --> 00:17:04.750
well, that staff want to pass, correct?
00:17:04.750 --> 00:17:07.940
So, these are items 17 through 38.
00:17:07.940 --> 00:17:11.171
Staff wants to pass 31, 32, and 33.
00:17:11.171 --> 00:17:12.350
Okay?
00:17:12.350 --> 00:17:15.144
I move we approve item 17 through 38,
00:17:15.144 --> 00:17:17.970
except for items 31, 32, and 33.
00:17:17.970 --> 00:17:19.680
Is there a second?
Second.
00:17:19.680 --> 00:17:21.170
Second by Commissioner Christian.
00:17:21.170 --> 00:17:22.421
All in favor, say aye.
00:17:22.421 --> 00:17:23.254
Aye.
00:17:23.254 --> 00:17:25.600
Motion passes, those items are approved.
00:17:25.600 --> 00:17:27.842
Rule 15 Inactive wells.
00:17:27.842 --> 00:17:29.580
We've got,
00:17:29.580 --> 00:17:32.570
now, numbers 39 through 55, we've got two
00:17:32.570 --> 00:17:35.800
that are in compliance, 46 and 53, correct?
00:17:35.800 --> 00:17:40.520
Alright, so I move that we approve items 39 through 55,
00:17:40.520 --> 00:17:43.120
except for items 46 and 53.
00:17:43.120 --> 00:17:44.580
Is there a second?
Second.
00:17:44.580 --> 00:17:46.010
Second by Commissioner Sitton.
00:17:46.010 --> 00:17:47.350
All those in favor, say aye.
00:17:47.350 --> 00:17:48.357
Aye.
00:17:48.357 --> 00:17:50.480
Motions passes, those items are approved.
00:17:50.480 --> 00:17:52.610
Master Default Items.
00:17:52.610 --> 00:17:55.250
Orders, there are eight on this.
00:17:55.250 --> 00:17:57.570
Items 56 through 63.
00:17:57.570 --> 00:18:00.330
I move we approve items 56 through 63.
00:18:00.330 --> 00:18:01.660
Is there a second?
Second.
00:18:01.660 --> 00:18:03.000
Second, Commissioner Christian.
00:18:03.000 --> 00:18:04.385
All those in favor, say aye.
00:18:04.385 --> 00:18:05.218
Aye.
00:18:05.218 --> 00:18:07.800
Motion passes, those items are approved.
00:18:07.800 --> 00:18:08.910
And then,
00:18:08.910 --> 00:18:11.880
Agreed Enforcement Orders, there are 90 on this.
00:18:11.880 --> 00:18:14.480
Number 64 through 153.
00:18:14.480 --> 00:18:17.500
I move we approve items 64 through 153.
00:18:17.500 --> 00:18:18.810
Is there a second?
Second.
00:18:18.810 --> 00:18:20.220
Second, Commissioner Sitton.
00:18:20.220 --> 00:18:21.804
All those in favor, say aye.
00:18:21.804 --> 00:18:22.637
Aye.
00:18:22.637 --> 00:18:24.460
Motion passes, those items are approved.
00:18:24.460 --> 00:18:27.390
This concludes the Hearing section, thank you very much.
00:18:28.869 --> 00:18:29.702
Alright.
00:18:34.003 --> 00:18:34.880
Good morning.
Good morning,
00:18:34.880 --> 00:18:36.900
Chairman, Commissioners, my name is Wei Wang,
00:18:36.900 --> 00:18:38.500
Executive Director.
00:18:38.500 --> 00:18:41.670
154 is the Director's Report.
00:18:41.670 --> 00:18:44.763
As we move into summer which is traditionally our busy time,
00:18:48.454 --> 00:18:51.650
we see the increased activities in the industry.
00:18:51.650 --> 00:18:53.530
Our drill and permit applications,
00:18:53.530 --> 00:18:57.260
we've received over 1,500 of them in May.
00:18:57.260 --> 00:19:00.100
And that has been the trend for the last couple months.
00:19:00.100 --> 00:19:02.130
And on the hiring front,
00:19:02.130 --> 00:19:04.940
we're projecting at the end of the month
00:19:04.940 --> 00:19:07.120
we'll have 759 employees,
00:19:07.120 --> 00:19:10.300
up from 659 from September.
00:19:10.300 --> 00:19:11.680
So, we're doing a lot of the hiring,
00:19:11.680 --> 00:19:13.470
filling our inspector positions,
00:19:13.470 --> 00:19:16.683
and our application processing team positions.
00:19:18.270 --> 00:19:23.270
Plugging, as of June 1st, we had plugged 1,024 wells.
00:19:23.680 --> 00:19:25.850
So, we're on track for meeting our
00:19:26.740 --> 00:19:29.783
very aggressive goal of 1,500 wells for the year.
00:19:30.721 --> 00:19:32.660
So, which means if we can plug
00:19:32.660 --> 00:19:36.050
about 160 wells per month for the next three months,
00:19:36.050 --> 00:19:38.160
we have a really good chance of meeting that goal.
00:19:38.160 --> 00:19:41.530
And also, we're working with divisions and finance
00:19:41.530 --> 00:19:44.233
in preparing our FY '19 Operating Budget.
00:19:45.200 --> 00:19:46.990
That concludes my report for the day.
00:19:46.990 --> 00:19:48.064
Thank you.
00:19:48.064 --> 00:19:49.500
Any questions today?
00:19:49.500 --> 00:19:51.001
Thank you for the work.
00:19:51.001 --> 00:19:53.070
Good progress.
00:19:53.070 --> 00:19:53.913
Morning, Alex.
00:19:55.300 --> 00:19:56.570
I'm sorry, after Coleen's.
00:19:56.570 --> 00:19:58.430
Oh, sorry, I'm sorry, wasn't paying any attention.
00:19:58.430 --> 00:20:00.280
Good morning, Coleen.
Good morning.
00:20:00.280 --> 00:20:02.090
Good morning, Chairman and Commissioners.
00:20:02.090 --> 00:20:03.780
For the record, my name's Coleen Forest,
00:20:03.780 --> 00:20:06.020
I'm with the Commission's Executive Office.
00:20:06.020 --> 00:20:08.470
Today I will be presenting item 155,
00:20:08.470 --> 00:20:10.900
and with your permission item 159,
00:20:10.900 --> 00:20:12.190
as the two are related.
00:20:12.190 --> 00:20:13.697
Yeah, y'all are fine,
00:20:13.697 --> 00:20:14.530
we're gonna take 159 out of order
00:20:14.530 --> 00:20:15.878
since she's standing up here.
00:20:15.878 --> 00:20:16.711
[Commissioner Sitton] Sure.
00:20:16.711 --> 00:20:17.620
Okay, thank you.
00:20:17.620 --> 00:20:20.310
Yes, item 155 for your approval today
00:20:20.310 --> 00:20:22.270
is the Commission's Strategic Plan
00:20:22.270 --> 00:20:26.130
for fiscal years 2019 through 2023.
00:20:26.130 --> 00:20:28.510
The plan lays out the Commission's strategic direction
00:20:28.510 --> 00:20:31.100
for the next five years and determines the Commission's
00:20:31.100 --> 00:20:34.130
budget structure for the 2020 to 2021
00:20:34.130 --> 00:20:36.500
Legislative Appropriations request.
00:20:36.500 --> 00:20:39.230
The goals and action items laid out in this plan
00:20:39.230 --> 00:20:41.480
track to the goals that serve as the structure
00:20:41.480 --> 00:20:43.260
of the Commission's budget.
00:20:43.260 --> 00:20:45.920
The plan also defines the Commission's performance measures
00:20:45.920 --> 00:20:47.330
for the coming biennium.
00:20:47.330 --> 00:20:49.180
The Governor's budget and policy teams
00:20:49.180 --> 00:20:51.060
and the legislative budget board approved
00:20:51.060 --> 00:20:54.130
the Commission's performance measure definitions in May.
00:20:54.130 --> 00:20:56.500
The plan is due this Friday, June 8th,
00:20:56.500 --> 00:20:58.190
and it will be submitted electronically
00:20:58.190 --> 00:21:00.510
to the LBB, the Governor's office,
00:21:00.510 --> 00:21:02.670
other state officials, and will also be posted
00:21:02.670 --> 00:21:04.390
on the Commission's website.
00:21:04.390 --> 00:21:06.220
May I answer any questions?
00:21:06.220 --> 00:21:09.240
Are there any questions on the strategic plan?
00:21:09.240 --> 00:21:11.190
Thank you all for the work on this.
00:21:11.190 --> 00:21:13.720
I move we approve the staff's recommendation
00:21:13.720 --> 00:21:15.270
for the strategic plan.
00:21:15.270 --> 00:21:16.770
Is there a second?
Second.
00:21:16.770 --> 00:21:18.230
Second by Commissioner Christian.
00:21:18.230 --> 00:21:19.501
All those in favor, say aye.
00:21:19.501 --> 00:21:20.410
Aye.
00:21:20.410 --> 00:21:22.400
Motion passes, item's approved.
00:21:22.400 --> 00:21:25.230
And 159.
159 for your approval
00:21:25.230 --> 00:21:27.450
is the Commission's First Annual Oil and Gas
00:21:27.450 --> 00:21:29.410
Monitoring and Enforcement Plan.
00:21:29.410 --> 00:21:31.970
A draft for this plan was before you on March 20th,
00:21:31.970 --> 00:21:35.570
and was then available for public comment until April 20th.
00:21:35.570 --> 00:21:37.120
During that period, the Commission received
00:21:37.120 --> 00:21:39.450
input from 22 people.
00:21:39.450 --> 00:21:41.420
The final version of the plan before you today
00:21:41.420 --> 00:21:43.890
includes specific performance measure targets
00:21:43.890 --> 00:21:47.720
on pages 17 and 18, and many of the measures that are found
00:21:47.720 --> 00:21:50.970
in this plan are also used in the Commission's
00:21:50.970 --> 00:21:52.880
budget structure and strategic plan.
00:21:52.880 --> 00:21:54.997
And those definitions were approved by the LBB
00:21:54.997 --> 00:21:56.650
and the Governor's office as part of
00:21:56.650 --> 00:21:59.180
the strategic planning process.
00:21:59.180 --> 00:22:02.100
Per HB 1818, this plan must be posted
00:22:02.100 --> 00:22:04.890
to the Commission's website no later than July 1st.
00:22:04.890 --> 00:22:06.960
With your approval today, it will be posted
00:22:06.960 --> 00:22:08.760
well in advance of that deadline.
00:22:08.760 --> 00:22:10.510
May I answer any questions?
00:22:10.510 --> 00:22:13.200
So we're doing this because of Sunset, correct?
00:22:13.200 --> 00:22:14.033
Yes, correct.
00:22:14.033 --> 00:22:16.010
Mm hmm, alright, are there any questions?
00:22:16.010 --> 00:22:16.843
Alright,
00:22:17.858 --> 00:22:19.800
I move we approve the Oil and Gas Monitoring
00:22:19.800 --> 00:22:20.720
Enforcement Plan,
00:22:20.720 --> 00:22:22.170
is there a second?
Second.
00:22:22.170 --> 00:22:23.630
Second by Commissioner Sitton.
00:22:23.630 --> 00:22:25.006
All those in favor, say aye.
00:22:25.006 --> 00:22:25.839
Aye.
00:22:25.839 --> 00:22:26.690
Motion is approved.
00:22:26.690 --> 00:22:29.550
Thank you very much for all your work on those.
00:22:29.550 --> 00:22:31.380
Alright, now, Alex, sorry.
00:22:31.380 --> 00:22:33.401
I was just ahead of the game.
00:22:33.401 --> 00:22:35.110
Good morning, Chairman, Commissioners.
00:22:35.110 --> 00:22:36.610
For the record, my name is Alex Schott,
00:22:36.610 --> 00:22:38.990
General Counsel of the Railroad Commission Texas.
00:22:38.990 --> 00:22:42.740
We've got no updates to report this morning for item 156.
00:22:42.740 --> 00:22:45.380
And Haley will cover items 157 and 158.
00:22:45.380 --> 00:22:46.430
Okay, great.
00:22:46.430 --> 00:22:47.263
Morning, Haley.
00:22:50.380 --> 00:22:51.610
Morning, Chairman, Commissioners.
00:22:51.610 --> 00:22:54.090
Haley Cochrane with the Office of General Counsel.
00:22:54.090 --> 00:22:56.800
Item number 157 pertains to Commissioner approval
00:22:56.800 --> 00:22:58.810
of certain contracts pursuant to the Commission's
00:22:58.810 --> 00:23:02.760
delegation of authority in Section 2261.254
00:23:02.760 --> 00:23:04.460
of the Texas Government Code.
00:23:04.460 --> 00:23:06.380
The Commission's internal delegation of authority
00:23:06.380 --> 00:23:08.470
requires Commissioner approval of contracts
00:23:08.470 --> 00:23:10.320
and associated amendments greater than or equal
00:23:10.320 --> 00:23:12.200
to five hundred thousand dollars.
00:23:12.200 --> 00:23:15.510
Section 2261.254 of the Government Code
00:23:15.510 --> 00:23:17.830
requires approval of contracts and associated amendments
00:23:17.830 --> 00:23:19.720
greater than one million dollars.
00:23:19.720 --> 00:23:22.060
At issue today is the Commission's inter-agency agreement
00:23:22.060 --> 00:23:24.690
with the Department of Information Resources
00:23:24.690 --> 00:23:28.100
for Data Center Services and Multi-sourcing Services
00:23:28.100 --> 00:23:30.670
Integrator and Service Component Providers.
00:23:30.670 --> 00:23:32.930
Staff asked the Commission to approve this agreement.
00:23:32.930 --> 00:23:35.790
Approval of this item today will ensure agency operations
00:23:35.790 --> 00:23:38.260
remain on schedule and the necessary approvals
00:23:38.260 --> 00:23:39.830
will be in place pursuant to the Commission's
00:23:39.830 --> 00:23:42.260
delegation of authority and state law.
00:23:42.260 --> 00:23:43.290
May I answer any questions?
00:23:43.290 --> 00:23:44.323
Are there any questions?
00:23:44.323 --> 00:23:47.110
Alright, I move we approve the staff's recommendation.
00:23:47.110 --> 00:23:48.558
Is there a second?
Second.
00:23:48.558 --> 00:23:49.980
Second by Commissioner Christian.
00:23:49.980 --> 00:23:50.968
All in favor, say aye.
00:23:50.968 --> 00:23:51.801
Aye.
00:23:51.801 --> 00:23:53.680
Motion passes, item is approved.
00:23:53.680 --> 00:23:56.530
158.
Item number 158 is staff's
00:23:56.530 --> 00:23:59.830
recommendation to adopt amendments to 16 Texas Administrative Code,
00:23:59.830 --> 00:24:01.640
Section 3.70.
00:24:01.640 --> 00:24:03.840
The amendments implement the Commission's Sunset bill,
00:24:03.840 --> 00:24:05.540
House Bill 1818,
00:24:05.540 --> 00:24:07.630
which authorizes the Commission to impose fees
00:24:07.630 --> 00:24:09.920
to fund its pipeline safety program.
00:24:09.920 --> 00:24:12.530
The proposed amendments create two main types of fees:
00:24:12.530 --> 00:24:14.330
An annual fee to pipeline permit holders,
00:24:14.330 --> 00:24:17.650
and a $500 processing fee for new permit applications
00:24:17.650 --> 00:24:19.020
and permit renewals.
00:24:19.020 --> 00:24:20.700
The amendments include additional changes
00:24:20.700 --> 00:24:23.310
such as requiring the electronic filing of permits,
00:24:23.310 --> 00:24:26.250
decreasing the time for Commission review of permit filings,
00:24:26.250 --> 00:24:29.220
and detailing procedures for pipeline transfers.
00:24:29.220 --> 00:24:31.460
On March 20th, the Commission approved publication
00:24:31.460 --> 00:24:33.410
of the proposed amendments in the Texas Register
00:24:33.410 --> 00:24:35.190
for a 30-day comment period.
00:24:35.190 --> 00:24:36.930
Which ended on May 7th.
00:24:36.930 --> 00:24:39.310
The Commission received five comments on the proposal
00:24:39.310 --> 00:24:41.830
which are addressed in the preamble to the adoption
00:24:41.830 --> 00:24:43.500
in your notebook materials.
00:24:43.500 --> 00:24:45.450
In response to the comments, staff recommends
00:24:45.450 --> 00:24:46.940
that the Commission adopt the amendments
00:24:46.940 --> 00:24:49.080
with three changes to the proposed text
00:24:49.080 --> 00:24:50.940
that was published in the Register.
00:24:50.940 --> 00:24:52.930
First, a change to correct a misstatement
00:24:52.930 --> 00:24:54.750
that pipeline operators will be categorized
00:24:54.750 --> 00:24:57.470
into group A or group B for fee purposes.
00:24:57.470 --> 00:24:59.797
Pipelines, not pipeline operators will be categorized
00:24:59.797 --> 00:25:02.330
into group A or group B.
00:25:02.330 --> 00:25:04.780
Second, to require the $500 processing fee
00:25:04.780 --> 00:25:07.390
beginning on October 1st, 2018,
00:25:07.390 --> 00:25:08.460
which is when the programming
00:25:08.460 --> 00:25:11.360
to accommodate this fee collection will be complete.
00:25:11.360 --> 00:25:13.600
And third, to clarify that the fees do not apply
00:25:13.600 --> 00:25:15.270
to interstate pipelines.
00:25:15.270 --> 00:25:17.360
If approved today, the amendments would go into effect
00:25:17.360 --> 00:25:19.915
on June 25th, may I answer any questions?
00:25:19.915 --> 00:25:21.850
Thank you, are there any questions?
00:25:21.850 --> 00:25:23.476
I've got a question.
Mm hmm.
00:25:23.476 --> 00:25:25.960
Haley said, October 1st, 2018,
00:25:25.960 --> 00:25:27.640
that's when the program will go into effect
00:25:27.640 --> 00:25:30.960
to process the new system.
00:25:30.960 --> 00:25:33.860
Just for a portion of the system.
00:25:33.860 --> 00:25:35.090
Yes, my question is: Still, the last time we talked
00:25:35.090 --> 00:25:38.780
about this, is our POP system fully functional yet?
00:25:38.780 --> 00:25:42.000
Or we anticipate it to be there by October 1st, 2018?
00:25:42.000 --> 00:25:44.560
There will be, the new POPS,
00:25:44.560 --> 00:25:45.790
and I'm not sure what they wanna call it,
00:25:45.790 --> 00:25:49.230
but the new POPS will be functional by October 1st, of 2018.
00:25:49.230 --> 00:25:52.437
And that's what will satisfy the processing fee element.
00:25:52.437 --> 00:25:53.336
[Commissioner Sitton] Okay.
00:25:53.336 --> 00:25:56.020
There will be changes made in advance
00:25:56.020 --> 00:25:57.640
to accommodate the annual fee,
00:25:57.640 --> 00:25:59.388
and that will be available on August 1st.
00:25:59.388 --> 00:26:00.713
[Commissioner Sitton] Okay.
00:26:07.860 --> 00:26:09.202
Do you have any other questions?
00:26:09.202 --> 00:26:12.977
I am, I gotta.
00:26:12.977 --> 00:26:14.534
My other,
00:26:14.534 --> 00:26:16.493
am I summarizing that the preamble,
00:26:16.493 --> 00:26:20.010
that the responses we got correctly, we got five responses.
00:26:20.010 --> 00:26:21.500
One was from a pipeline operator.
00:26:21.500 --> 00:26:22.720
Two were from
00:26:24.060 --> 00:26:25.993
industry trade associations.
00:26:27.230 --> 00:26:29.080
Two were individuals, I think.
00:26:29.080 --> 00:26:31.180
That's correct, yes, sir.
00:26:31.180 --> 00:26:32.500
And one of the trade associations
00:26:32.500 --> 00:26:35.300
and the one pipeline operator were supportive of this.
00:26:35.300 --> 00:26:37.970
The others didn't necessarily disagree,
00:26:37.970 --> 00:26:40.820
but they weren't in support either.
00:26:40.820 --> 00:26:42.880
So we had two comments that were supportive
00:26:42.880 --> 00:26:44.233
of the new structure, yes?
00:26:45.460 --> 00:26:47.380
Yes, that were specifically supportive,
00:26:47.380 --> 00:26:48.725
that stated their support, yes.
00:26:48.725 --> 00:26:50.503
[Commissioner Sitton] Yeah, okay, just wanted to confirm.
00:26:57.220 --> 00:26:58.891
I don't have any other questions.
00:26:58.891 --> 00:26:59.931
Madame Chairman?
Yes?
00:26:59.931 --> 00:27:02.410
Just wanted to make a statement, if I could?
00:27:02.410 --> 00:27:04.350
Though I'm normally not in favor of frivolously
00:27:04.350 --> 00:27:08.150
raising the taxes or fees on the industry we regulate.
00:27:08.150 --> 00:27:10.440
However, I'm also not in favor of one person
00:27:10.440 --> 00:27:13.530
being forced to pay for another person's services.
00:27:13.530 --> 00:27:15.870
And currently the legislature recognizes
00:27:15.870 --> 00:27:18.990
the Texas taxpayers are paying for the pipeline
00:27:18.990 --> 00:27:20.860
industry's regulation.
00:27:20.860 --> 00:27:23.050
Last session is part of the Sunset approval,
00:27:23.050 --> 00:27:25.270
the legislature asked us to assess a new fee
00:27:25.270 --> 00:27:27.840
to shift the burden from the Texas family
00:27:27.840 --> 00:27:30.200
to the pipeline companies we regulate.
00:27:30.200 --> 00:27:32.890
And I commend the industry to agreeing to that.
00:27:32.890 --> 00:27:35.610
I believe this is also the conservative and right move
00:27:35.610 --> 00:27:38.880
for our agency so long as the fees are not frivolous
00:27:38.880 --> 00:27:42.020
but simply cover the cost of pipeline expansion programs.
00:27:42.020 --> 00:27:46.210
The provision of House Bill 1818 was passed
00:27:46.210 --> 00:27:49.540
with the industry support because the industry also believes
00:27:49.540 --> 00:27:51.520
pipeline companies, not Texas families
00:27:51.520 --> 00:27:54.850
should have to pay for the regulation of pipelines.
00:27:54.850 --> 00:27:57.200
Thus, in recognizing the legislature,
00:27:57.200 --> 00:28:00.710
I think it's important if we don't pass this rule change,
00:28:00.710 --> 00:28:03.170
how could we go back to the legislature next session
00:28:03.170 --> 00:28:05.120
and ask them to fund this agency
00:28:05.120 --> 00:28:05.953
when we're not willing to do
00:28:05.953 --> 00:28:07.970
what is necessary to fund ourselves?
00:28:07.970 --> 00:28:09.310
So, I just wanted to make a statement
00:28:09.310 --> 00:28:12.360
for the legislature to know that we are listening to them
00:28:12.360 --> 00:28:16.030
and appreciate what they've done, and respect their will.
00:28:16.030 --> 00:28:17.340
Now, thank you very much.
00:28:17.340 --> 00:28:20.060
I wanna continue with that and say,
00:28:20.060 --> 00:28:23.010
we're the top pipe state just volume-wise,
00:28:23.010 --> 00:28:25.070
numbers of pipe, and I think it's important
00:28:25.070 --> 00:28:27.650
that we are inspecting our pipelines
00:28:27.650 --> 00:28:30.740
and allowing them to operate efficiently and effectively,
00:28:30.740 --> 00:28:32.410
but the inspections we've all focused,
00:28:32.410 --> 00:28:34.420
you heard Wei get up and talk about,
00:28:34.420 --> 00:28:36.240
we're hiring inspectors and we're finally there
00:28:36.240 --> 00:28:38.840
on the pipeline world, and so I think it's part of
00:28:38.840 --> 00:28:42.650
our Sunset process, to me, also, they gave us
00:28:42.650 --> 00:28:45.840
a tool to manage our agency appropriately.
00:28:45.840 --> 00:28:48.750
And to fund ourselves, and I think that's really important
00:28:48.750 --> 00:28:51.850
too, so, and look, I think the challenge has been
00:28:51.850 --> 00:28:53.670
at this agency to have funding stability.
00:28:53.670 --> 00:28:55.370
And this gives us some funding stability,
00:28:55.370 --> 00:28:59.357
particularly for pipes and I know that we had a lot of input
00:28:59.357 --> 00:29:02.183
all across the board, and I appreciate the input.
00:29:03.270 --> 00:29:06.010
With pipes and with staff and with stakeholders
00:29:06.010 --> 00:29:07.970
across the board I think this has been
00:29:07.970 --> 00:29:11.360
a well-vetted rule and you all have done a good job.
00:29:11.360 --> 00:29:12.705
So, thank you for
00:29:12.705 --> 00:29:14.237
the work on it.
00:29:14.237 --> 00:29:17.760
I'm gonna move that we approve the staff's recommendation.
00:29:17.760 --> 00:29:18.660
Is there a second?
00:29:20.190 --> 00:29:21.023
Second.
00:29:21.023 --> 00:29:21.890
Second by Commissioner Christian.
00:29:21.890 --> 00:29:23.690
All those in favor, say aye.
00:29:23.690 --> 00:29:24.523
Aye.
00:29:24.523 --> 00:29:25.770
Opposed?
No.
00:29:25.770 --> 00:29:26.923
Thank you.
00:29:32.580 --> 00:29:34.140
160, we've done 159.
00:29:34.140 --> 00:29:35.740
So, good morning, Mark.
00:29:35.740 --> 00:29:37.660
Good morning, Chairman, Commissioners.
00:29:37.660 --> 00:29:39.320
For the record, my name is Mark Evers
00:29:39.320 --> 00:29:41.860
with the Oversight and Safety division.
00:29:41.860 --> 00:29:43.170
The Oversight and Safety division
00:29:43.170 --> 00:29:45.180
proposes two new recommended forms:
00:29:45.180 --> 00:29:47.750
Public Notice of Proposed Rate Increase,
00:29:47.750 --> 00:29:50.150
and Customer Notice of Interim Rate Adjustment,
00:29:50.150 --> 00:29:51.333
also known as GRIP.
00:29:52.820 --> 00:29:54.630
Oversight and Safety also proposes
00:29:54.630 --> 00:29:57.670
a revised recommended interim rate adjustment spreadsheet
00:29:57.670 --> 00:30:01.700
to streamline the filing process for gas utility applicants.
00:30:01.700 --> 00:30:04.270
Oversight and Safety also proposes minor changes
00:30:04.270 --> 00:30:06.780
to the required form used by gas utilities
00:30:06.780 --> 00:30:09.130
to report gas utility tax.
00:30:09.130 --> 00:30:11.340
These forms were published on the Commission website
00:30:11.340 --> 00:30:13.540
for 35 days as approved by the Commission
00:30:13.540 --> 00:30:17.060
at the January 23rd, 2018 conference.
00:30:17.060 --> 00:30:19.830
Timely comments were received from Centerpoint Energy
00:30:19.830 --> 00:30:22.320
and Atmos Pipeline Texas.
00:30:22.320 --> 00:30:24.960
The Oversight and Safety division respectfully requests
00:30:24.960 --> 00:30:27.270
your approval of the proposed final forms
00:30:27.270 --> 00:30:29.160
which incorporate revisions
00:30:29.160 --> 00:30:31.140
in response to comments received.
00:30:31.140 --> 00:30:32.820
I'm available for questions.
00:30:32.820 --> 00:30:35.497
Thank you, is there any questions?
00:30:36.443 --> 00:30:38.360
I move we approve the staff's recommendation.
00:30:38.360 --> 00:30:39.780
Is there a second?
Second.
00:30:39.780 --> 00:30:41.050
Second by Commissioner Sitton.
00:30:41.050 --> 00:30:42.650
All those in favor, say aye.
00:30:42.650 --> 00:30:43.483
Aye.
00:30:43.483 --> 00:30:44.620
Motion passes, item is approved.
00:30:44.620 --> 00:30:45.970
Thank you for the comments.
00:30:47.100 --> 00:30:50.020
Item 161 is our Public Participation item
00:30:50.020 --> 00:30:51.560
and no one's turned in any cards
00:30:51.560 --> 00:30:54.960
indicating they wish to speak on any non-posted items.
00:30:54.960 --> 00:30:57.310
Item 162 is our Executive Session,
00:30:57.310 --> 00:30:59.323
which we will be going into today.
00:31:00.340 --> 00:31:04.420
Having convened in a duly posted, noticed open meeting
00:31:04.420 --> 00:31:05.900
the Railroad Commission of Texas
00:31:05.900 --> 00:31:10.260
will now at 10:02 on Tuesday, June 5th, 2018,
00:31:10.260 --> 00:31:12.950
hold a closed meeting in the Willa Mae Conference Room
00:31:12.950 --> 00:31:14.550
on the 12th floor of the William B. Travis
00:31:14.550 --> 00:31:16.500
State Office Building pursuant to
00:31:16.500 --> 00:31:19.340
the Texas Government Code Chapter 551.
00:31:19.340 --> 00:31:21.490
The Commission will seek the advice of its attorney
00:31:21.490 --> 00:31:23.980
regarding pending or contemplated litigation
00:31:23.980 --> 00:31:27.760
pursuant to Section 551.071 of the Code.
00:31:27.760 --> 00:31:29.740
As well as to discuss personnel matters
00:31:29.740 --> 00:31:33.133
pursuant to Section 551.074 of the Code.
00:31:33.133 --> 00:31:35.480
The Commission will reconvene the open meeting
00:31:35.480 --> 00:31:37.350
in the Willa Mae Conference Room on the 12th floor
00:31:37.350 --> 00:31:39.810
of the William B. Travis State Office Building.
00:31:39.810 --> 00:31:42.087
We are recessed, thank you.