WEBVTT 00:00:03.486 --> 00:00:05.171 This meeting of the Railroad Commission of Texas 00:00:05.171 --> 00:00:07.660 will come to order to consider matters which have been 00:00:07.660 --> 00:00:09.879 duly posted with the Secretary of State 00:00:09.879 --> 00:00:11.796 for October 16th, 2018. 00:00:12.702 --> 00:00:14.347 The Commission will consider the items on 00:00:14.347 --> 00:00:16.885 the agenda as posted on the agenda. 00:00:16.885 --> 00:00:18.850 Under our public participation policy, 00:00:18.850 --> 00:00:20.868 anyone desiring to offer public testimony 00:00:20.868 --> 00:00:22.758 on any items that are not noticed 00:00:22.758 --> 00:00:24.863 on today's agenda will need to fill out 00:00:24.863 --> 00:00:27.366 a testimony form found in the back of the room 00:00:27.366 --> 00:00:30.298 and submit it to Commission Secretary Kathy Way. 00:00:30.298 --> 00:00:32.305 Reminder to turn off your cell phones. 00:00:32.305 --> 00:00:33.698 Good morning, and Item No. 1. 00:00:33.698 --> 00:00:34.531 How are you? 00:00:34.531 --> 00:00:35.584 Good morning Chairman and commissioners. 00:00:35.584 --> 00:00:37.290 For the record my name is Christina Pull 00:00:37.290 --> 00:00:39.530 and I'm with the Oversight and Safety Division. 00:00:39.530 --> 00:00:43.602 Before you today is Gas Utilities Docket No. 10764, 00:00:43.602 --> 00:00:46.951 an application filed by Atmos Pipeline Texas for the 2018 00:00:46.951 --> 00:00:48.793 Rider Rev Adjustment for its 00:00:48.793 --> 00:00:51.097 customer service by its pipeline system. 00:00:51.097 --> 00:00:54.096 This is the first Rider Rev Adjustment since APT's 00:00:54.096 --> 00:00:56.513 last rate case GUD No. 10580. 00:00:58.183 --> 00:01:01.899 In GUD No. 10580, APT's other revenue was 00:01:01.899 --> 00:01:03.899 approved at $69,411,586. 00:01:06.022 --> 00:01:08.677 This amount represents the benchmark 00:01:08.677 --> 00:01:10.513 for measurement of a debit or credit 00:01:10.513 --> 00:01:12.402 for the Rider Rev Adjustment. 00:01:12.402 --> 00:01:14.780 In today's filing the adjustment represents 00:01:14.780 --> 00:01:17.946 a decrease in rates to the customers 00:01:17.946 --> 00:01:21.446 as other revenue increased to $98,317,086. 00:01:23.537 --> 00:01:25.420 The difference in other revenue 00:01:25.420 --> 00:01:28.253 from GUD No. 10580 is $28,905,500. 00:01:31.259 --> 00:01:33.509 Of this amount $21,679,125, 00:01:35.640 --> 00:01:40.640 or 75% will be a credit to rate CGS and rate PT customers. 00:01:41.487 --> 00:01:42.320 Staff recommends approval 00:01:42.320 --> 00:01:46.093 of the Rider Rev Adjustment as filed. 00:01:46.093 --> 00:01:47.118 I'm available to answer questions. 00:01:47.118 --> 00:01:47.993 Thank you Christina. 00:01:47.993 --> 00:01:48.876 Are there any questions? 00:01:48.876 --> 00:01:49.942 No. 00:01:49.942 --> 00:01:52.080 I move we approve the examiners' recommendation. 00:01:52.080 --> 00:01:52.999 Is there a second? 00:01:52.999 --> 00:01:53.832 Second. 00:01:53.832 --> 00:01:54.736 Second by Commissioner Sitton. 00:01:54.736 --> 00:01:55.959 All those in favor, say aye. 00:01:55.959 --> 00:01:56.837 [Chairman & commissioners] Aye. 00:01:56.837 --> 00:01:57.933 Item's approved. 00:01:57.933 --> 00:01:59.244 Thank you. 00:01:59.244 --> 00:02:00.601 Item No. 2. 00:02:00.601 --> 00:02:01.443 Good Morning, Jennifer. 00:02:01.443 --> 00:02:02.826 Good morning Chairman and commissioners 00:02:02.826 --> 00:02:04.383 I am Jennifer Cook with the Hearings Division. 00:02:04.383 --> 00:02:06.919 Item 2 concerns a motion for rehearing 00:02:06.919 --> 00:02:10.422 of a Commission order approving an injection well permit. 00:02:10.422 --> 00:02:14.670 On January 23, 2018, the Commission issued an order 00:02:14.670 --> 00:02:17.300 granting Adams Affiliates' permit application 00:02:17.300 --> 00:02:20.200 to operate a disposal injection well. 00:02:20.200 --> 00:02:22.213 A timely motion for rehearing was filed by 00:02:22.213 --> 00:02:25.364 the protestant Thompson Mineral Trust #2. 00:02:25.364 --> 00:02:27.463 The applicant filed a response in opposition 00:02:27.463 --> 00:02:29.020 to the motion for rehearing. 00:02:29.020 --> 00:02:30.555 None of the issues raised in the motion 00:02:30.555 --> 00:02:31.849 for rehearing are new. 00:02:31.849 --> 00:02:33.632 All issues raised to the motion were already raised 00:02:33.632 --> 00:02:35.852 by the protestant and considered by the Commission 00:02:35.852 --> 00:02:38.844 prior to the Commission issuing the order in this case. 00:02:38.844 --> 00:02:40.990 The examiners recommend denying the motion. 00:02:40.990 --> 00:02:43.929 The motion will be overruled by operation of law 00:02:43.929 --> 00:02:45.679 on November 29, 2018. 00:02:47.483 --> 00:02:49.240 I'm available for questions. 00:02:49.240 --> 00:02:50.073 Thank you. 00:02:50.073 --> 00:02:51.551 Are there any questions? 00:02:51.551 --> 00:02:52.384 No. 00:02:52.384 --> 00:02:55.640 I have a person, we have a person here 00:02:55.640 --> 00:02:57.666 from the Thompson Mineral Trust. 00:02:57.666 --> 00:02:59.203 Does anybody want to hear from him 00:02:59.203 --> 00:03:01.101 and have any questions? 00:03:01.101 --> 00:03:01.934 Alright. 00:03:01.934 --> 00:03:03.839 I move we approve the examiners' recommendation. 00:03:03.839 --> 00:03:04.796 Is there a second? 00:03:04.796 --> 00:03:05.629 [Commissioner Christian] Second. 00:03:05.629 --> 00:03:06.758 Second Commissioner Christian. 00:03:06.758 --> 00:03:08.190 All those in favor, say aye. 00:03:08.190 --> 00:03:09.023 [Chairman & commissioners] Aye. 00:03:09.023 --> 00:03:09.856 Motion passes. 00:03:09.856 --> 00:03:10.689 Item's approved. 00:03:10.689 --> 00:03:12.272 Thank you Jennifer. 00:03:14.268 --> 00:03:15.101 Morning Clayton. 00:03:15.101 --> 00:03:17.089 Good morning, Chairman, commissioners. 00:03:17.089 --> 00:03:19.505 Clayton Huber, Administrative Law Judge. 00:03:19.505 --> 00:03:21.613 Item No. 3 is a Good Faith claim case 00:03:21.613 --> 00:03:25.136 involving seven gas-producing units in the 00:03:25.136 --> 00:03:28.823 East Texas field area in Gregg County. 00:03:28.823 --> 00:03:30.588 This is a complaint by Deborah Christian 00:03:30.588 --> 00:03:32.916 that Breitburn Operating no longer has 00:03:32.916 --> 00:03:34.313 a Good Faith claim. 00:03:34.313 --> 00:03:37.249 The operator presented detailed testimony 00:03:37.249 --> 00:03:39.634 and record title for each of the seven 00:03:39.634 --> 00:03:44.038 producing gas units, including original underlying leases 00:03:44.038 --> 00:03:45.999 executed back in 1931 00:03:45.999 --> 00:03:48.450 when the East Texas field was being developed. 00:03:48.450 --> 00:03:50.948 Unit designations of each unit for the drilling 00:03:50.948 --> 00:03:55.948 and production of the Cotton Valley gas sands in about 1994. 00:03:55.964 --> 00:03:58.138 Amendments as necessary to the underlying 00:03:58.138 --> 00:04:00.528 leases to form such units, 00:04:00.528 --> 00:04:04.278 and Commission production records to show that the units 00:04:04.278 --> 00:04:08.183 have continuously produced gas to the present. 00:04:08.183 --> 00:04:09.945 The complainant was unable to show that the 00:04:09.945 --> 00:04:13.528 underlying leases were void or had expired. 00:04:14.450 --> 00:04:16.635 The production from the Cotton Valley Gas Sand 00:04:16.635 --> 00:04:20.186 since the mid 1990s has been continuous 00:04:20.186 --> 00:04:23.311 and has held the seven units and all the underlying 00:04:23.311 --> 00:04:25.908 leases in full force and effect. 00:04:25.908 --> 00:04:27.866 It is, therefore, recommended that the Commission 00:04:27.866 --> 00:04:31.552 find that the operator has a Good Faith claim to operate, 00:04:31.552 --> 00:04:33.839 and that the complaint be dismissed. 00:04:33.839 --> 00:04:37.115 Exceptions were filed by both sides but they raise 00:04:37.115 --> 00:04:41.909 no issues of law or fact not previously considered. 00:04:41.909 --> 00:04:44.131 As you know an amended proposal for decision 00:04:44.131 --> 00:04:46.695 was issued and now a second amended proposal 00:04:46.695 --> 00:04:49.170 for decision is being submitted to correct 00:04:49.170 --> 00:04:51.824 a few minor details of document descriptions 00:04:51.824 --> 00:04:53.117 in the findings of fact. 00:04:53.117 --> 00:04:54.912 I'm available for questions. 00:04:54.912 --> 00:04:55.745 Thank you. 00:04:55.745 --> 00:04:56.578 Are there any questions? 00:04:56.578 --> 00:04:57.411 No. 00:04:57.411 --> 00:04:58.244 I appreciate your work on this. 00:04:58.244 --> 00:04:59.077 Thank you. 00:04:59.077 --> 00:05:00.908 I move we approve the examiner's recommendation. 00:05:00.908 --> 00:05:01.792 Is there a second? 00:05:01.792 --> 00:05:02.625 Second. 00:05:02.625 --> 00:05:03.792 Second by Commissioner Sitton. 00:05:03.792 --> 00:05:05.111 All those in favor say aye. 00:05:05.111 --> 00:05:05.944 [Chairman & commissioners] Aye. 00:05:05.944 --> 00:05:06.777 Motion passes. 00:05:06.777 --> 00:05:07.680 Item's approved. 00:05:07.680 --> 00:05:08.819 No. 4. 00:05:08.819 --> 00:05:09.652 Morning Kristi. 00:05:09.652 --> 00:05:10.485 Good morning. 00:05:10.485 --> 00:05:11.859 Good morning Chairman, commissioners. 00:05:11.859 --> 00:05:12.948 For the record Kristi Reeve, 00:05:12.948 --> 00:05:15.222 Administrative Law Judge with the Hearings Division. 00:05:15.222 --> 00:05:17.909 I will be presenting Items No. 4 and 5. 00:05:17.909 --> 00:05:20.070 Item No. 4 resulted from a complaint 00:05:20.070 --> 00:05:22.204 received from a landowner. 00:05:22.204 --> 00:05:24.579 The issue is whether the commercial permit 00:05:24.579 --> 00:05:26.504 to inject fluid into a reservoir 00:05:26.504 --> 00:05:30.009 productive of oil or gas issued to Beta Oil Corporation 00:05:30.009 --> 00:05:32.183 was valid given the possible failure 00:05:32.183 --> 00:05:34.668 to notify the surface owner of the permit application, 00:05:34.668 --> 00:05:37.248 and if not valid should the permit be canceled. 00:05:37.248 --> 00:05:39.896 Prior to the hearing Beta requested cancellation 00:05:39.896 --> 00:05:41.228 of the permit and stated it would 00:05:41.228 --> 00:05:44.405 plug the well, therefore, no issues remained. 00:05:44.405 --> 00:05:46.766 At the hearing the complainant appeared via her 00:05:46.766 --> 00:05:49.713 attorney-in-fact, and requested an order ordering 00:05:49.713 --> 00:05:52.244 Beta to plug the well and clean up the lease 00:05:52.244 --> 00:05:54.786 in accordance with Statewide Rule 14. 00:05:54.786 --> 00:05:57.256 Beta did not appear at the hearing. 00:05:57.256 --> 00:05:59.992 Following the hearing I sent Beta's request 00:05:59.992 --> 00:06:01.433 to cancel its permit 00:06:01.433 --> 00:06:04.356 to the injection storage permits section 00:06:04.356 --> 00:06:06.147 of the Oil and Gas Division, 00:06:06.147 --> 00:06:08.403 and the permit was subsequently canceled. 00:06:08.403 --> 00:06:10.167 The examiners recommend that the Commission 00:06:10.167 --> 00:06:12.549 order Beta to plug and abandon the well 00:06:12.549 --> 00:06:13.503 and clean up the lease 00:06:13.503 --> 00:06:15.475 in accordance with Statewide Rule 14, 00:06:15.475 --> 00:06:18.537 and order cancellation of the existing plugging extension. 00:06:18.537 --> 00:06:20.234 I'm available for questions. 00:06:20.234 --> 00:06:21.067 Thank you. 00:06:21.067 --> 00:06:21.900 Are there any questions? 00:06:21.900 --> 00:06:22.733 No. 00:06:22.733 --> 00:06:23.566 I move we 00:06:23.566 --> 00:06:24.738 approve the examiners' recommendation. 00:06:24.738 --> 00:06:25.646 Is there a second? 00:06:25.646 --> 00:06:26.479 [Commissioner Christian] Second. 00:06:26.479 --> 00:06:27.525 Second By Commissioner Christian. 00:06:27.525 --> 00:06:28.789 All those in favor say aye. 00:06:28.789 --> 00:06:29.622 [Chairman & commissioners] Aye. 00:06:29.622 --> 00:06:30.566 Item's approved. 00:06:30.566 --> 00:06:31.399 Motion's passed. 00:06:32.232 --> 00:06:33.065 Thank you. 00:06:33.065 --> 00:06:33.898 No. 5. 00:06:33.898 --> 00:06:34.731 Thank you. 00:06:34.731 --> 00:06:35.591 Item No. 5 is a Good Faith claim docket. 00:06:35.591 --> 00:06:37.803 At the hearing the parties agreed that the mineral lease 00:06:37.803 --> 00:06:39.829 had been canceled by written agreement 00:06:39.829 --> 00:06:41.504 between the parties, 00:06:41.504 --> 00:06:44.365 thus, North Texas does not have a Good Faith claim. 00:06:44.365 --> 00:06:46.268 However, the parties disagree as to who 00:06:46.268 --> 00:06:48.033 has the plugging obligation for the wells 00:06:48.033 --> 00:06:50.254 per their written agreement. 00:06:50.254 --> 00:06:52.380 While there is certainly a contractual dispute 00:06:52.380 --> 00:06:54.469 between the parties, per Commission rules, 00:06:54.469 --> 00:06:57.012 and applicable statues North Texas remains 00:06:57.012 --> 00:07:00.259 the regulatory responsible operator of the lease and wells, 00:07:00.259 --> 00:07:03.575 and, therefore, as it does not have a Good Faith claim 00:07:03.575 --> 00:07:06.045 has the obligation to plug the wells. 00:07:06.045 --> 00:07:07.682 It is recommended that the Commission find 00:07:07.682 --> 00:07:09.244 that North Texas Energy Inc. 00:07:09.244 --> 00:07:11.161 does not have a Good Faith claim, 00:07:11.161 --> 00:07:12.877 and order the wells plugged and abandoned 00:07:12.877 --> 00:07:15.218 in accordance with Statewide Rule 14. 00:07:15.218 --> 00:07:17.112 Exceptions and replies were filed. 00:07:17.112 --> 00:07:19.687 The PFD and order were amended to include 00:07:19.687 --> 00:07:22.297 a permitted well drilled but not completed, 00:07:22.297 --> 00:07:23.636 thus, not on the parations schedule 00:07:23.636 --> 00:07:26.532 for the lease which had not been included 00:07:26.532 --> 00:07:28.381 in the original PFD and order. 00:07:28.381 --> 00:07:29.774 I'm available for questions. 00:07:29.774 --> 00:07:30.607 Thank you. 00:07:30.607 --> 00:07:31.551 Are there any questions. 00:07:31.551 --> 00:07:33.217 No. 00:07:33.217 --> 00:07:34.163 I move we approve the examiners' recommendation. 00:07:34.163 --> 00:07:35.170 Is there a second? 00:07:35.170 --> 00:07:36.003 Second. 00:07:36.003 --> 00:07:36.974 Second by Commissioner Sitton. 00:07:36.974 --> 00:07:38.042 All those on favor say aye. 00:07:38.042 --> 00:07:38.883 [Chairman & commissioners] Aye. 00:07:38.883 --> 00:07:39.716 Motion passes. 00:07:39.716 --> 00:07:40.549 Item's approved. 00:07:40.549 --> 00:07:43.240 Thank you Kristi. Thank you. 00:07:43.240 --> 00:07:44.173 Item No. 6 00:07:44.173 --> 00:07:45.410 Good morning Chairman and commissioners. 00:07:45.410 --> 00:07:46.918 My name is Lynn Latombe, 00:07:46.918 --> 00:07:48.773 Administrative Law Judge in Hearings Division. 00:07:48.773 --> 00:07:50.840 I'm here to present Item No. 6 00:07:50.840 --> 00:07:52.168 which is a motion for rehearing 00:07:52.168 --> 00:07:55.203 filed by Jay Management Company Inc. 00:07:55.203 --> 00:07:59.974 On August 21, 2018 the Commission entered a default order 00:07:59.974 --> 00:08:02.888 approving the single signature P4 submitted by 00:08:02.888 --> 00:08:04.846 Deguello Operating to transfer 00:08:04.846 --> 00:08:07.806 the operator of record for the AFNU lease 00:08:07.806 --> 00:08:10.809 from Jay Management Company to Deguello Operating. 00:08:10.809 --> 00:08:12.848 The order followed Jay's failure to respond 00:08:12.848 --> 00:08:14.728 to the Hearing Division's request for evidence 00:08:14.728 --> 00:08:18.645 of it's Good Faith claim or to request a hearing. 00:08:18.645 --> 00:08:20.869 Jay Management filed a motion for rehearing 00:08:20.869 --> 00:08:23.629 stating that they never received that request. 00:08:23.629 --> 00:08:25.694 Deguello opposes the motion. 00:08:25.694 --> 00:08:28.894 I recommend granting the motion for rehearing. 00:08:28.894 --> 00:08:30.060 The address to which Jay was sent 00:08:30.060 --> 00:08:32.217 correspondence was deficient. 00:08:32.217 --> 00:08:33.583 It is in the interest of justice 00:08:33.583 --> 00:08:35.231 that Jay be allowed the opportunity 00:08:35.231 --> 00:08:37.692 to present evidence of it's Good Faith claim. 00:08:37.692 --> 00:08:39.782 I'm available for any questions. 00:08:39.782 --> 00:08:40.615 Thank you. 00:08:40.615 --> 00:08:41.948 Are there any questions? 00:08:41.948 --> 00:08:43.822 And y'all fixed the problem, right? 00:08:43.822 --> 00:08:47.041 Going forward on the address issues. 00:08:47.041 --> 00:08:48.913 We've identified one other case 00:08:48.913 --> 00:08:51.426 but other than that we've been able to correct the problem. 00:08:51.426 --> 00:08:52.259 Okay, great. 00:08:52.259 --> 00:08:53.942 That one additional case where the address 00:08:53.942 --> 00:08:58.171 was incomplete from the transfer will be here, 00:08:58.171 --> 00:08:59.426 I believe, at next conference. 00:08:59.426 --> 00:09:00.358 Okay, great. 00:09:00.358 --> 00:09:01.191 Thank you. 00:09:01.191 --> 00:09:02.045 Alright, are there any other questions? 00:09:02.045 --> 00:09:02.878 No. 00:09:02.878 --> 00:09:05.089 I move we approve the examiner's recommendation. 00:09:05.089 --> 00:09:06.269 Is there a second? 00:09:06.269 --> 00:09:07.191 [Commissioner Christian] Second. 00:09:07.191 --> 00:09:08.501 Second by Commissioner Christian. 00:09:08.501 --> 00:09:09.635 All in favor say aye. 00:09:09.635 --> 00:09:10.468 [Chairman & commissioners] Aye. 00:09:10.468 --> 00:09:11.301 Motion passes. 00:09:11.301 --> 00:09:12.134 Item's approved. 00:09:12.134 --> 00:09:12.967 Thank you. 00:09:13.819 --> 00:09:16.242 Okay, we'll go to our Oil and Gas Consent Agenda. 00:09:16.242 --> 00:09:18.218 We have 44 items on that. 00:09:18.218 --> 00:09:19.142 Items 7-- 00:09:19.142 --> 00:09:20.394 1-, -- 00:09:20.394 --> 00:09:22.644 7-50. Get my numbers right. 00:09:23.911 --> 00:09:26.078 I move we approve Items 7-50. 00:09:26.078 --> 00:09:27.421 Is there a second? 00:09:27.421 --> 00:09:28.540 [Commissioner Sitton] Second. 00:09:28.540 --> 00:09:29.842 Second by Commissioner Sitton. 00:09:29.842 --> 00:09:31.362 All those in favor say aye. 00:09:31.362 --> 00:09:32.195 [Chairman & commissioners] Aye. 00:09:32.195 --> 00:09:33.028 Motion passes. 00:09:33.028 --> 00:09:34.733 Item's are approved. 00:09:34.733 --> 00:09:37.397 Were at Rule Inactive Well Items. 00:09:37.397 --> 00:09:40.694 We have three that have come in compliance: 00:09:40.694 --> 00:09:41.944 54, 57, and 59. 00:09:43.887 --> 00:09:48.408 So, we used to have 11, now we have eight items. 00:09:48.408 --> 00:09:49.501 Did we have anybody else? 00:09:49.501 --> 00:09:50.375 That it for items? 00:09:50.375 --> 00:09:54.084 Okay, so I move we approve Items 51-61 00:09:54.084 --> 00:09:58.307 with the exception of Items 54, 57, and 59. 00:09:58.307 --> 00:09:59.317 Is there a second? 00:09:59.317 --> 00:10:00.150 [Commissioner Christian] Second. 00:10:00.150 --> 00:10:01.652 Second by Commissioner Christian. 00:10:01.652 --> 00:10:02.909 All in favor say aye. 00:10:02.909 --> 00:10:03.742 [Chairman & commissioner] Aye. 00:10:03.742 --> 00:10:04.575 Motion passes. 00:10:04.575 --> 00:10:06.131 Those item's are approved. 00:10:06.131 --> 00:10:08.381 Master Default Item Orders. 00:10:10.897 --> 00:10:13.929 41 items originally but when you have 67 we are -- 00:10:13.929 --> 00:10:15.514 got a settlement agreement on that, 00:10:15.514 --> 00:10:17.444 it's Item No. 67, is that correct? 00:10:17.444 --> 00:10:18.531 Okay. 00:10:18.531 --> 00:10:21.364 So, I move we approve Items 62-102 00:10:22.927 --> 00:10:25.427 with the exception of Item 67. 00:10:26.429 --> 00:10:27.559 Is there a second? 00:10:27.559 --> 00:10:28.435 [Commissioner Sitton] Second. 00:10:28.435 --> 00:10:30.133 Second by Commissioner Sitton. 00:10:30.133 --> 00:10:31.695 All those in favor say aye. 00:10:31.695 --> 00:10:32.581 [Chairman & commissioners] Aye. 00:10:32.581 --> 00:10:33.414 Motion passes. 00:10:33.414 --> 00:10:34.624 Those item's are approved. 00:10:34.624 --> 00:10:35.783 And we have a great -- 00:10:35.783 --> 00:10:38.533 enforcement orders, 157 of these. 00:10:39.927 --> 00:10:42.594 I move we approve Items 103-259. 00:10:43.574 --> 00:10:44.411 Is there a second? 00:10:44.411 --> 00:10:45.244 [Commissioner Christian] Second. 00:10:45.244 --> 00:10:46.347 Second Commissioner Christian. 00:10:46.347 --> 00:10:47.387 All in favor say aye. 00:10:47.387 --> 00:10:48.481 [Chairman & commissioners] Aye. 00:10:48.481 --> 00:10:49.314 Motion passes. 00:10:49.314 --> 00:10:50.414 Those item's are approved. 00:10:50.414 --> 00:10:51.920 That concludes the Hearing section. 00:10:51.920 --> 00:10:52.753 Thank you Brenda. 00:10:52.753 --> 00:10:55.086 I'll take up Administrative. 00:10:56.378 --> 00:10:57.519 Good morning Chairman, commissioners. 00:10:57.519 --> 00:10:58.352 Morning. 00:10:58.352 --> 00:10:59.921 Wei Wang, Executive Director. 00:10:59.921 --> 00:11:02.512 Today, I am glad to report that we have a new 00:11:02.512 --> 00:11:05.506 Director of Government Relations, Jeremy Mazur. 00:11:05.506 --> 00:11:07.127 He started yesterday, 00:11:07.127 --> 00:11:08.328 and he's with us in the audience today. 00:11:08.328 --> 00:11:10.974 I'd like him to stand up, introduce him. 00:11:10.974 --> 00:11:12.457 Welcome. 00:11:12.457 --> 00:11:16.720 (Commission attendees applauding) 00:11:16.720 --> 00:11:18.810 And that concludes my report this morning. 00:11:18.810 --> 00:11:19.643 Okay. 00:11:19.643 --> 00:11:20.476 Thank you. 00:11:20.476 --> 00:11:23.104 Don't get all long-winded on us. 00:11:23.104 --> 00:11:23.937 Can I ask real quick, 00:11:23.937 --> 00:11:25.501 how many people do we have? 00:11:25.501 --> 00:11:26.334 How many people we reporting? 00:11:26.334 --> 00:11:29.949 Our head count is right below 750 at 749, 00:11:29.949 --> 00:11:32.629 and some, they're part-time employees in there. 00:11:32.629 --> 00:11:33.948 So, it's about 749. 00:11:33.948 --> 00:11:34.781 Okay. 00:11:34.781 --> 00:11:35.614 Thank you. 00:11:35.614 --> 00:11:37.585 Our goal is to bring up even higher, 00:11:37.585 --> 00:11:40.711 back to our 2015, 2014 level. 00:11:40.711 --> 00:11:42.831 Well, 100 people in a year's pretty impressive 00:11:42.831 --> 00:11:43.664 that we've hired. 00:11:43.664 --> 00:11:44.497 Now, we've gotta keep them. 00:11:44.497 --> 00:11:46.747 So, thank you for the work. 00:11:47.695 --> 00:11:48.534 Good Morning Alex. 00:11:48.534 --> 00:11:49.656 Good morning Chairman and commissioners. 00:11:49.656 --> 00:11:51.209 For the record my name is Alex Schoch 00:11:51.209 --> 00:11:53.555 General Counsel of the Railroad Commission of Texas. 00:11:53.555 --> 00:11:56.486 We've got nothing to report for Item 261. 00:11:56.486 --> 00:11:58.236 Vanessa has Item 262. 00:12:01.390 --> 00:12:03.140 Morning. 00:12:04.375 --> 00:12:06.089 Good morning, commissioners. 00:12:06.089 --> 00:12:08.888 Vanessa Burgess, Assistant General Counsel 00:12:08.888 --> 00:12:09.721 for the record. 00:12:09.721 --> 00:12:11.684 Item 262 on the agenda pertains to 00:12:11.684 --> 00:12:14.208 commissioner approval of certain contracts. 00:12:14.208 --> 00:12:16.468 Pursuant to the Commission's delegation of authority 00:12:16.468 --> 00:12:17.963 and state law, 00:12:17.963 --> 00:12:20.807 the Commission's internal delegation of authority 00:12:20.807 --> 00:12:22.803 requires commissioner approval of contracts 00:12:22.803 --> 00:12:24.334 and associated amendments greater than 00:12:24.334 --> 00:12:26.084 or equal to $500,000. 00:12:27.074 --> 00:12:29.564 At issue today is one amendment to the agency's 00:12:29.564 --> 00:12:32.721 agreement with Nubis for imaging services. 00:12:32.721 --> 00:12:35.523 This amendment increases the not to exceed ceiling 00:12:35.523 --> 00:12:37.381 of the agency's agreement. 00:12:37.381 --> 00:12:39.482 Approval of this item today will ensure agency 00:12:39.482 --> 00:12:41.870 operations remain on schedule and the necessary 00:12:41.870 --> 00:12:44.077 approvals will be in place pursuant to 00:12:44.077 --> 00:12:47.560 the Commissions delegation and also state law. 00:12:47.560 --> 00:12:50.511 A summary of this agreement including the contract number 00:12:50.511 --> 00:12:53.220 and amount was included in your notebook. 00:12:53.220 --> 00:12:55.524 Staff has permission to approve this agreement pursuant to 00:12:55.524 --> 00:12:58.539 the Commission's delegation of authority. 00:12:58.539 --> 00:12:59.372 Thank you. 00:12:59.372 --> 00:13:00.453 Are there any questions? 00:13:00.453 --> 00:13:02.836 I move we approve the staff's recommendation. 00:13:02.836 --> 00:13:04.086 Is there a second. 00:13:04.086 --> 00:13:04.919 [Commissioner Sitton] Second. 00:13:04.919 --> 00:13:05.869 Second Commissioner Sitton. 00:13:05.869 --> 00:13:07.414 All those in favor say aye. 00:13:07.414 --> 00:13:08.247 [Chairman & commissioners] Aye. 00:13:08.247 --> 00:13:09.080 Motion passes. 00:13:09.080 --> 00:13:09.913 Item's approved. 00:13:09.913 --> 00:13:12.160 [Vanessa & Chairman] Thank you. 00:13:12.160 --> 00:13:12.993 Good morning. 00:13:12.993 --> 00:13:13.826 How are you Clay? 00:13:13.826 --> 00:13:17.807 Good morning Chairman, commissioners. 00:13:17.807 --> 00:13:18.873 Real progress. 00:13:18.873 --> 00:13:20.074 Yes ma'am. 00:13:20.074 --> 00:13:21.848 For the record my name's Clay Whittle 00:13:21.848 --> 00:13:23.529 with the Oil and Gas Division. 00:13:23.529 --> 00:13:28.445 Item 263 is the Oil Field Cleanup Program, Fiscal Year 00:13:28.445 --> 00:13:31.278 2018, Fourth Quarter Status Report. 00:13:32.277 --> 00:13:34.541 I'll present the Well Plugging Report 00:13:34.541 --> 00:13:38.699 and Art Korea will present the site remediation portion. 00:13:38.699 --> 00:13:41.524 During the fourth quarter of Fiscal Year 2018 00:13:41.524 --> 00:13:42.357 plugging operations were completed 00:13:42.357 --> 00:13:45.190 and files were closed on 528 wells 00:13:46.978 --> 00:13:48.978 at a cost of $9,921,499. 00:13:53.044 --> 00:13:55.577 This includes only those wells that were plugged, 00:13:55.577 --> 00:13:57.603 invoiced by the plugging contractor and approved 00:13:57.603 --> 00:13:59.978 for payment by field operations. 00:13:59.978 --> 00:14:03.707 During this same period 596 new wells were approved 00:14:03.707 --> 00:14:05.782 for plugging with state funds. 00:14:05.782 --> 00:14:09.870 A total of 1,440 wells were physically plugged 00:14:09.870 --> 00:14:11.870 during Fiscal Year 2018, 00:14:12.904 --> 00:14:15.821 of which files were closed on 1,364 00:14:16.851 --> 00:14:18.934 at a cost of $23,393,101. 00:14:22.712 --> 00:14:25.700 The statewide average plugging cost for inland wells 00:14:25.700 --> 00:14:28.617 during Fiscal Year '18 was $16,787. 00:14:30.403 --> 00:14:32.046 I'll turn it over to Art now who will 00:14:32.046 --> 00:14:35.227 give the Status Report for Site Remediation. 00:14:35.227 --> 00:14:36.060 Thank you Clay. 00:14:36.060 --> 00:14:37.084 Y'all are during great work. 00:14:37.084 --> 00:14:38.667 Thank you. 00:14:47.525 --> 00:14:48.667 Good morning commissioners. 00:14:48.667 --> 00:14:49.500 Morning. 00:14:49.500 --> 00:14:51.199 For the record my name is Art Korea. 00:14:51.199 --> 00:14:54.672 I'm the team lead for the State-Managed Cleanup program. 00:14:54.672 --> 00:14:57.771 During the fourth quarter of Fiscal Year '18, 00:14:57.771 --> 00:15:00.153 the State-Managed Cleanup program completed 00:15:00.153 --> 00:15:03.607 and closed 141 cleanup activities 00:15:03.607 --> 00:15:05.607 at a cost of $2,182,036. 00:15:10.383 --> 00:15:13.466 138 of the activities used OGRC funds 00:15:14.683 --> 00:15:17.776 and three of the activities were grant funds. 00:15:17.776 --> 00:15:20.906 An additional 69 activities were authorized during 00:15:20.906 --> 00:15:22.550 the fourth quarter. 00:15:22.550 --> 00:15:24.571 At the end of the fourth quarter 00:15:24.571 --> 00:15:29.099 46 authorized cleanup activities remained to be completed. 00:15:29.099 --> 00:15:32.082 During the Fiscal Year '18-- 00:15:32.082 --> 00:15:34.399 Performance for the year, 00:15:34.399 --> 00:15:36.649 we completed 228 activities 00:15:37.879 --> 00:15:39.879 at a cost of $3,137,090. 00:15:44.243 --> 00:15:47.040 225 of the activities were OGRC funds. 00:15:47.040 --> 00:15:50.135 Three activities were grant funds. 00:15:50.135 --> 00:15:51.874 May I answer any questions? 00:15:51.874 --> 00:15:52.707 Thank you. 00:15:52.707 --> 00:15:54.522 Are there any questions? 00:15:54.522 --> 00:15:56.097 'Preciate the work that both of y'all 00:15:56.097 --> 00:15:57.238 and your teams are doing. 00:15:57.238 --> 00:15:58.162 Doing a great job. 00:15:58.162 --> 00:15:58.995 Thanks. 00:15:58.995 --> 00:15:59.828 Thank you. 00:15:59.828 --> 00:16:00.661 [Man] Thank you. 00:16:00.661 --> 00:16:01.583 I also have Item 2 -- 00:16:01.583 --> 00:16:02.501 I was gonna say, you're next too, right? 00:16:02.501 --> 00:16:03.334 Yeah. 00:16:03.334 --> 00:16:04.167 Okay. 00:16:04.167 --> 00:16:05.292 Okay. 00:16:05.292 --> 00:16:06.898 Again, for the record. 00:16:06.898 --> 00:16:07.731 Art Korea, team lead for 00:16:07.731 --> 00:16:11.239 the State-Managed Cleanup program. 00:16:11.239 --> 00:16:13.723 The Oil and Gas Division is seeking approval 00:16:13.723 --> 00:16:16.420 of our State-Managed Cleanup program 00:16:16.420 --> 00:16:19.837 Fiscal Year '19 budget of $20,888,488.25. 00:16:28.023 --> 00:16:29.440 We anticipate 406 00:16:30.324 --> 00:16:34.157 cleanup activities and three grant activities. 00:16:35.326 --> 00:16:39.826 Again, I have a T-bar for your approval and signature. 00:16:41.407 --> 00:16:43.290 May I answer any questions? 00:16:43.290 --> 00:16:44.123 Thank you. 00:16:44.123 --> 00:16:45.137 Does anybody have any questions? 00:16:45.137 --> 00:16:45.970 Alright. 00:16:45.970 --> 00:16:49.139 I move we approve the staff's recommendation. 00:16:49.139 --> 00:16:50.228 Is there a second? 00:16:50.228 --> 00:16:51.061 [Commissioner Christian] Second. 00:16:51.061 --> 00:16:52.074 Second Commissioner Christian. 00:16:52.074 --> 00:16:53.488 All those in favor say aye. 00:16:53.488 --> 00:16:54.321 [Chairman & commissioners] Aye. 00:16:54.321 --> 00:16:55.154 Item's approved. 00:16:55.154 --> 00:16:55.987 Thank you Art. 00:16:55.987 --> 00:16:56.820 Thank you. 00:16:56.820 --> 00:16:58.386 Thank you Clay. 00:16:58.386 --> 00:17:02.487 Alright, Item 265 is our Public Participation Item. 00:17:02.487 --> 00:17:04.413 And no one has turned in cards indicating 00:17:04.413 --> 00:17:07.536 they wish to speak on any non-posted items. 00:17:07.536 --> 00:17:10.703 Item 266 is our Executive Session item 00:17:13.356 --> 00:17:15.055 which we won't be going into today. 00:17:15.055 --> 00:17:17.186 Are there any other duly posted items? 00:17:17.186 --> 00:17:18.886 Haring none, this meeting 00:17:18.886 --> 00:17:20.325 of the Railroad Commission's adjourned. 00:17:20.325 --> 00:17:22.408 Thank you all, very much.