WEBVTT
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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 with the Secretary of State
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for October 30th, 2018.
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The Commission will consider the items
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on the agenda as posted on the agenda.
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Under our 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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found in the back of the room
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and submit it to Commission Secretary Kathy Way.
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Remember to turn off your cell phones
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and before we get started we've got a lot of
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service awards and recognition,
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so we are gonna start with that.
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Good morning, chairmen and commissioners,
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today I'm here to present Outstanding Service Awards
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for Fiscal Year 2018.
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Each division director will present
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the awards for their division.
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Rich Parsons, our Director of Communications,
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could not be here today,
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on his behalf, I would like to present
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the first Outstanding Service Award to Michelle Banks.
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(applause)
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Rich asked me to say a few words.
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Michelle will never ask you for
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kudos, compliments, or credit,
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what she will ask you is how can I help you,
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what can I do for you?
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Michelle epitomizes what this award is all about:
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outstanding service.
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Whether you're a coworker or a customer,
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Michelle will always find a way
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to make your task easier or your goal more achievable.
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We see many Commission projects and initiatives succeed
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thanks to Michelle's critical eye
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and solution-oriented actions,
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and so today, we give you the kudos, compliments, and credit
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that you never ask for but that you deserve
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thanks to your commitment to serving the Railroad Commission
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and the state of Texas.
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(applause)
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On behalf of Human Resources,
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I would like to present the next award
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to Wendy O'Neill.
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This Fiscal Year has included
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several large Human Resources projects
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that affect employees and managers statewide.
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Wendy has traveled to almost every district office
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to ensure the launch of new policies and systems
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are clear and understood by all employees.
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Through these efforts, managers have received
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numerous training sessions that have never
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been made available to them before.
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In addition to this, Wendy was instrumental
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in the rewrite of the employee handbook.
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She did more than 10 employee handbook trainings
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with our managers at the Commission
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to ensure that everyone understands the new policies.
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I greatly appreciate the energy and enthusiasm
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Wendy brings to our HR Department.
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(applause)
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Next we have Randall Collins, our Chief Operating Officer,
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to present awards for the Hearings Division.
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I'm gonna do my two sort of together,
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not because I want to confuse them in any way,
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however, they're two of the people in our division
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that are behind the scenes.
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Those of you who have attended conferences
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on a regular basis see the ALJs and technical examiners
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getting all the glory while they're up here,
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but behind the scenes, the people taking the phone calls
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from the operators, from the people involved in the dockets,
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and handling everything from updating our technology
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to computerizing our statistics
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and two of the first people in the Hearings Division
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that are gonna go out of their way
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not only to serve all our stakeholders,
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but also to make sure that everything
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runs smoothly on conference days.
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Those two are Joseph Benefee, if you would,
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and David Cornet.
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(applause)
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(mumbling)
(laughter)
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(applause)
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Next is Carrie French,
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from the Oversight and Safety Division.
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Good morning, chairmen, commissioners, everyone here
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for this celebratory occasion,
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I have several employees I'd like to recognize
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and we'll start with Andrea Maxwell.
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(applause)
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Andrea is an extremely reliable and quick-learning employee
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who works as a research specialist
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on the Tariff Analyst Consumer Complaints Team
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for Market Oversight and Safety.
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Earlier this year, she was made
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acting team lead as role outside of her normal job duties,
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and she did an excellent job,
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so she has since then been promoted,
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and she's given this outstanding award
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in recognition for her attitude and performance
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as acting team leader.
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(applause)
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I'd like to ask Bruce Waterman to come up.
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(applause)
There he is.
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Bruce is being recognized for the outstanding service
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that he provided to the Commission
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during the recent transition to
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a new Pipeline Online Permitting System.
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His leadership, dedication, expertise, and long hours
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make him deserving of this award.
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His dedication to serving our customers
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throughout this transition has been extraordinary,
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thank you, Bruce.
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(applause)
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Thank you.
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Christie Schultz.
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Bruce did not do it alone.
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Christie Schultz is being recognized
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for her dedication and leadership role
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in the development of the updates
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to the Pipeline Online Permitting System
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that were all required due to recent rule changes.
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She was instrumental in determining
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necessary improvements to the system,
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and worked with pipeline safety team
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to coordinate the workflow.
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Her attention to detail, oversight of the mapping process,
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and teamwork make her truly deserving of this award.
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Thank you, Christie.
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(applause)
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Teresa Osborne.
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Teresa is an exceptional inspector
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for our AFS group, Alternative Fuels.
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She has consistently exceeded expectations
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on her inspections and field percentages
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for the past two years.
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This past year, she also covered
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the adjoining district due to a vacancy.
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We appreciate your hard work, thank you, Teresa.
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(applause)
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Garnet Cantwell.
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(applause)
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A popular choice, Garnet is being recognized
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for her outstanding attitude,
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her commitment to customer service,
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and I'm talking about customer service
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for those of us who work here
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and for those of us outside the Commission.
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She has a constant willingness to go the extra mile
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to ensure that not only her job, but our job,
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is done in an efficient and quality manner.
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She is the glue that holds our division together.
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Thank you, Garnet.
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(applause)
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I'm gonna call the next two up together,
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because, while I'll recognize them individually,
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they are also a great team,
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Josh Sedel and Yolanda Davis.
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(applause)
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Josh and Yolanda are both in our audit group,
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they're both in the Fort Worth area,
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and today they're being recognized for their audit work,
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which consistently exceeds requirements,
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and not only a very high quality,
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but the quantity of their work is impressive, also.
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This recommendation isn't for any specific event,
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but for consistent dedication and commitment
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to the success of our audit program.
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Thank you so much, Josh and Yolanda.
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(applause)
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I have one more, and I don't know if he is here,
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and if he's not, I hope if he makes it in time,
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he's stuck on I-35, we can address it then.
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Chris Mann?
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No, not yet.
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So hopefully at the end, thank you.
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(applause)
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Good morning, chairmen and commissioners,
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I've got two employees for my group I'd like to recognize.
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First is Jessica Mendoza.
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(applause)
Jessica?
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Jessie is an attorney in the Legal Enforcement section
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of the Office of General Counsel.
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Jessica has recently worked hard
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to improve enforcement practices
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involving permitting facilities.
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Her outstanding efforts include
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visiting facilities in several districts,
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analyzing inspection procedures for the facilities,
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and working with inspectors and technical permitting
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to identify issues and solutions.
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Thank you, Jessica.
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(applause)
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Thanks, Jessie.
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Next is Natalie Dubil.
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(applause)
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Natalie is an attorney in the General Law section
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of the Office of General Counsel.
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In the past year, Natalie has assumed
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primary legal responsibility for
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the Oversight Safety Division,
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with emphasis on supporting gas utility rate cases.
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Her hard work and exceptional customer service
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have transformed the role of staff counsel on rate cases
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and her dedication and support have been recognized
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by not only her internal clients in division,
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as well as outside attorneys.
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Thank you, Natalie.
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(applause)
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Good morning, chairmen, commissioners.
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We have two employees from the
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Surface Mining Division to recognize today,
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the first of which, Sharon Walter.
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(applause)
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So for you all old enough to remember the TV show, MASH,
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you remember the guy, Radar, okay,
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this is not Radar.
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(laughter)
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She knows the answer before the question.
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And the attitude, the outstanding effort she gives,
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makes our jobs so much easier, so much smoother,
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and I'm really proud to have her receive this award.
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Thanks, Sharon.
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(applause)
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My next employee is Kimberly Jackson.
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(applause)
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(laughter)
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Well, she's not here today, but
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let me just say something about her in her absence,
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she came to us about a year ago from the division,
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and this is an example of from team to agency,
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the transition she made from one division to another,
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and the attitude and effort she gave is outstanding,
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and if you see her around the hallways,
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tell her congratulations and I'll pass it onto her.
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Thanks, Kimberly.
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(applause)
00:13:16.757 --> 00:13:17.590
(laughter)
I have a lot.
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Good morning, commissioners.
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The first person I have is,
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this is for the whole Gas Division,
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the first person I have is Christian Astorga.
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(applause)
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Chris Astorga is responsible for
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improving the accuracy and reliability
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of complex groundwater determination
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by transforming the GAU from
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predominately two-dimensional analysis
00:13:56.310 --> 00:13:59.750
to three-dimensional modeling organization.
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Must be a smart guy.
(laughter)
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(applause)
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(mumbling)
(laughter)
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The next person I have is John Tucker.
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(applause)
00:14:27.040 --> 00:14:29.650
John is familiar with Visual Basics,
00:14:29.650 --> 00:14:33.863
Python scripting for Arc GISSQL
00:14:33.863 --> 00:14:36.440
and the current practice for coding,
00:14:36.440 --> 00:14:38.870
data analysis, and data management.
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These skills have yielded several
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successful products for the Commission,
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including three major products during the Fiscal Year.
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(applause)
00:14:55.925 --> 00:14:58.175
(laughter)
00:14:59.030 --> 00:15:00.147
Sharon Fishin.
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(applause)
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And I pronounced it right.
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Sharon is extremely enthusiastic about her position
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and always portrays positive personality and attitude.
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Sharon's work ethic and willingness to be team player
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has especially supported the department.
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She is a true asset to the Commission.
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Thank you.
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(applause)
00:15:37.520 --> 00:15:38.453
Deborah Desmuke.
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(applause)
00:15:46.190 --> 00:15:48.040
During the Fiscal Year of 2018,
00:15:48.040 --> 00:15:51.250
Deborah has assumed the role of quality control agent.
00:15:51.250 --> 00:15:53.880
Deborah's role plays an integral part
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in the final review process.
00:15:56.600 --> 00:15:58.260
This role demands a high level of
00:15:58.260 --> 00:16:01.360
professionalism, accuracy, and attention to detail.
00:16:01.360 --> 00:16:03.350
Deborah is a model employee,
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putting the needs of the Commission first.
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Thank you.
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(applause)
00:16:13.740 --> 00:16:15.153
Roseanne Acosta.
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(applause)
00:16:22.870 --> 00:16:25.540
Roseanne has assisted 200 operations
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during Fiscal Year 2018,
00:16:28.380 --> 00:16:32.103
gaining compliance with Oil and Gas SWR15.
00:16:33.240 --> 00:16:35.850
Roseanne's ability to accurately comply with
00:16:36.902 --> 00:16:39.424
complex rules and regulations to the industry
00:16:39.424 --> 00:16:40.760
is invaluable to the department.
00:16:40.760 --> 00:16:44.170
Roseanne is always willing to share her knowledge with staff
00:16:44.170 --> 00:16:46.230
and is the first to take on
00:16:46.230 --> 00:16:48.690
additional roles and responsibilities.
00:16:48.690 --> 00:16:49.861
Thank you.
00:16:49.861 --> 00:16:52.111
(applause)
00:17:01.350 --> 00:17:02.183
Amanda Kent.
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(applause)
00:17:09.490 --> 00:17:14.490
Amanda voluntarily stepped up to maintain OCP processes,
00:17:14.870 --> 00:17:17.980
monitor Project Matt assignments
00:17:18.958 --> 00:17:20.030
and train new staff after the
00:17:20.030 --> 00:17:24.360
previous OCP team lead retired.
00:17:24.360 --> 00:17:25.544
Thank you.
00:17:25.544 --> 00:17:27.794
(applause)
00:17:30.746 --> 00:17:33.100
I was just thinking about what my wife did last night,
00:17:33.100 --> 00:17:35.950
I'm having trouble reading, I guess 'cause I'm too young,
00:17:37.674 --> 00:17:38.780
but she started laughing last night,
00:17:38.780 --> 00:17:41.420
looking at the laptop or whatever you call it,
00:17:41.420 --> 00:17:44.940
you know, and wanted me to look at it,
00:17:44.940 --> 00:17:48.943
and it was a field of dirt and on the bottom it said,
00:17:50.617 --> 00:17:53.605
"maze for the elderly."
00:17:53.605 --> 00:17:54.830
(laughter)
00:17:54.830 --> 00:17:57.042
And there was one cornstalk.
00:17:57.042 --> 00:17:59.810
(laughter)
00:17:59.810 --> 00:18:01.760
Okay, the next one is Brooklyn Clement.
00:18:02.622 --> 00:18:04.872
(applause)
00:18:08.093 --> 00:18:09.620
Brooklyn is the engineering specialist three
00:18:09.620 --> 00:18:12.023
technical staff person in Corpus Christi.
00:18:13.362 --> 00:18:14.880
She was recently commended by two individuals
00:18:14.880 --> 00:18:18.200
that contacted the Corpus Industry Office for assistance,
00:18:18.200 --> 00:18:19.820
both parties praised her for her
00:18:19.820 --> 00:18:22.500
excellent customer service and professionalism.
00:18:22.500 --> 00:18:26.420
Miss Clement is a model of exceeding the agency's goal
00:18:26.420 --> 00:18:29.040
for providing excellent customer service.
00:18:29.040 --> 00:18:30.357
Thank you.
00:18:30.357 --> 00:18:32.607
(applause)
00:18:41.170 --> 00:18:42.283
Clayton Farmer.
00:18:43.942 --> 00:18:46.192
(applause)
00:18:50.570 --> 00:18:52.130
I worked with Clayton in Kilgore,
00:18:52.130 --> 00:18:54.840
Clayton is one of the reasons
00:18:54.840 --> 00:18:57.683
Kilgore is such a good place to work.
00:18:59.012 --> 00:19:01.313
When I got there Clayton was an inspector,
00:19:02.766 --> 00:19:05.110
and had showed some interest in going into plugging,
00:19:05.110 --> 00:19:08.050
became a plugger and is one of the reasons
00:19:08.050 --> 00:19:10.880
we made our goals of,
00:19:10.880 --> 00:19:14.510
we had a goal of 259, we did 263,
00:19:14.510 --> 00:19:17.680
and a lot of that was because of this man here.
00:19:17.680 --> 00:19:18.586
Thank you.
00:19:18.586 --> 00:19:20.836
(applause)
00:19:24.340 --> 00:19:26.083
Michael Sorenson.
00:19:26.083 --> 00:19:28.333
(applause)
00:19:35.760 --> 00:19:38.010
Micheal is another one of the employees
00:19:38.010 --> 00:19:39.700
that I worked with in Kilgore,
00:19:39.700 --> 00:19:41.530
he's more or less what I would call
00:19:41.530 --> 00:19:43.833
the brains of the district.
00:19:44.830 --> 00:19:47.390
Michael, if he doesn't know,
00:19:47.390 --> 00:19:49.653
he will find out anything you wanna know.
00:19:50.980 --> 00:19:53.569
He's a very, very good tech there
00:19:53.569 --> 00:19:55.080
and has done a wonderful job.
00:19:55.080 --> 00:19:56.565
Thank you, Mike.
00:19:56.565 --> 00:19:58.815
(applause)
00:20:02.995 --> 00:20:07.255
Stephanie Carball.
00:20:07.255 --> 00:20:09.505
(applause)
00:20:13.144 --> 00:20:18.144
Stephanie has assisted the staff service officer
00:20:19.099 --> 00:20:22.963
and performed her duties during her absence.
00:20:25.823 --> 00:20:27.470
Some of her qualities are communication
00:20:27.470 --> 00:20:30.463
and the answering of our phone.
00:20:33.830 --> 00:20:37.040
She developed calls received by the answer service
00:20:37.040 --> 00:20:38.483
for entry into ICE,
00:20:40.013 --> 00:20:42.510
and ensuring the proper coverage of administrative staff
00:20:42.510 --> 00:20:47.500
during hours of operation without hesitation,
00:20:47.500 --> 00:20:51.033
which maintained efficiency.
00:20:52.667 --> 00:20:53.653
Thank you.
00:20:54.975 --> 00:20:57.225
(applause)
00:21:01.002 --> 00:21:03.250
Have I left anybody out of Oil and Gas?
00:21:03.250 --> 00:21:05.428
I think we're good.
00:21:05.428 --> 00:21:06.261
Am I good?
00:21:06.261 --> 00:21:07.094
Okay.
00:21:13.890 --> 00:21:14.920
Good morning, commissioners.
00:21:14.920 --> 00:21:16.060
First off, I'd like to thank you
00:21:16.060 --> 00:21:18.710
for allowing us to do this ceremony today,
00:21:18.710 --> 00:21:21.240
building a culture for results-driven performance.
00:21:21.240 --> 00:21:23.300
I think the first step is to recognize
00:21:23.300 --> 00:21:25.080
the outstanding performance of our employees,
00:21:25.080 --> 00:21:26.560
so thank you.
00:21:26.560 --> 00:21:29.960
The first person I nominated is Olan Magnimura.
00:21:29.960 --> 00:21:32.253
Olan is on our staff.
00:21:32.253 --> 00:21:34.503
(applause)
00:21:37.290 --> 00:21:40.583
Olan is one of our technical staff on Oil and Gas Division,
00:21:41.621 --> 00:21:43.083
and because of his work, in addition
00:21:43.083 --> 00:21:43.916
to his regular job duties,
00:21:43.916 --> 00:21:47.010
they also serve as subject matter expert for W3A project
00:21:47.010 --> 00:21:49.190
and his contribution was instrumental
00:21:49.190 --> 00:21:50.900
in the success of that project.
00:21:50.900 --> 00:21:52.314
Thank you.
00:21:52.314 --> 00:21:54.564
(applause)
00:22:00.980 --> 00:22:02.593
So I had this crazy idea last year
00:22:02.593 --> 00:22:04.170
that I thought maybe we should do
00:22:04.170 --> 00:22:06.830
a leadership training program for employees,
00:22:06.830 --> 00:22:08.650
and very quickly, I was overwhelmed
00:22:08.650 --> 00:22:10.220
with all the work and timeline
00:22:10.220 --> 00:22:11.610
and picking the curriculum,
00:22:11.610 --> 00:22:14.080
so I enlisted the help from Jamie Andrews,
00:22:14.080 --> 00:22:15.640
and Lisa Wilmore,
00:22:15.640 --> 00:22:17.830
and they just took and ran with it,
00:22:17.830 --> 00:22:20.310
and in August, when we officially launched the
00:22:20.310 --> 00:22:21.790
Grow With RRC Program,
00:22:21.790 --> 00:22:24.860
and we currently enroll 46 employees in the program.
00:22:24.860 --> 00:22:26.250
So we're really excited to see
00:22:26.250 --> 00:22:28.181
people going through that program
00:22:28.181 --> 00:22:30.120
and look forward to the result.
00:22:30.120 --> 00:22:31.493
Thank you, please come up.
00:22:32.444 --> 00:22:34.694
(applause)
00:22:47.478 --> 00:22:49.728
(mumbling)
00:22:55.202 --> 00:22:57.452
(applause)
00:23:00.670 --> 00:23:02.830
Lorenzo Garza is our manager
00:23:02.830 --> 00:23:04.700
for the Drilling Permit Department,
00:23:04.700 --> 00:23:08.650
and under his leadership, our Drilling Permit Department
00:23:08.650 --> 00:23:11.970
set a record for last quarter, and also the year.
00:23:11.970 --> 00:23:15.249
We're currently processing drilling permits
00:23:15.249 --> 00:23:18.853
at just nearly one business day, so.
00:23:19.870 --> 00:23:20.820
Thank you, Lorenzo.
00:23:22.065 --> 00:23:24.315
(applause)
00:23:32.238 --> 00:23:34.488
(mumbling)
00:23:44.092 --> 00:23:46.509
(chattering)
00:24:04.672 --> 00:24:07.230
Yes, if the Drilling Permit Team,
00:24:07.230 --> 00:24:08.913
thank you, please come up.
00:24:10.936 --> 00:24:13.186
(applause)
00:24:20.865 --> 00:24:23.115
(mumbling)
00:24:58.691 --> 00:25:00.941
(applause)
00:25:04.160 --> 00:25:06.660
And y'all heard me say this many times last year,
00:25:06.660 --> 00:25:10.940
in FY18 we've plugged 1440 wells,
00:25:10.940 --> 00:25:12.940
and the only reason we were able to do that
00:25:12.940 --> 00:25:14.980
is the hard work in our district offices,
00:25:14.980 --> 00:25:16.950
the state management and plugging team,
00:25:16.950 --> 00:25:18.910
and we have five district offices
00:25:18.910 --> 00:25:21.600
that exceeded their number for FY18,
00:25:21.600 --> 00:25:23.250
which helped with our total goal.
00:25:24.156 --> 00:25:26.760
So, I'm gonna ask them to come up, one at a time,
00:25:26.760 --> 00:25:27.990
so the first one I'm gonna have is
00:25:27.990 --> 00:25:30.901
Corpus Christi Well Plugging Team.
00:25:30.901 --> 00:25:33.151
(applause)
00:25:41.422 --> 00:25:42.936
You are the Corpus Christi team?
00:25:42.936 --> 00:25:44.721
(laughter)
00:25:44.721 --> 00:25:45.971
There you go.
00:25:59.235 --> 00:26:00.687
Alright, thank you.
00:26:00.687 --> 00:26:01.960
And then we have the Kilgore plugging team,
00:26:01.960 --> 00:26:03.560
I think Clayton is representing.
00:26:06.609 --> 00:26:08.859
(applause)
00:26:18.602 --> 00:26:20.787
(applause)
00:26:20.787 --> 00:26:25.140
Next one is Abilene District Office, Tim Rhymer.
00:26:25.140 --> 00:26:27.390
(applause)
00:26:41.733 --> 00:26:43.910
(applause)
00:26:43.910 --> 00:26:47.583
And from San Angelo, we have Ronald, Jack, and Vivian.
00:26:49.072 --> 00:26:51.322
(applause)
00:26:58.325 --> 00:27:03.325
Thank y'all.
00:27:08.610 --> 00:27:10.239
Oh, we got a new thing.
00:27:10.239 --> 00:27:12.489
Yes.
A really big thing.
00:27:17.999 --> 00:27:20.249
(applause)
00:27:22.920 --> 00:27:25.130
Last but not least, we have
00:27:25.130 --> 00:27:27.786
ED and Joan from Wichita Falls.
00:27:27.786 --> 00:27:30.036
(applause)
00:27:36.206 --> 00:27:41.206
Thank you.
00:27:41.382 --> 00:27:43.632
(mumbling)
00:27:55.371 --> 00:27:57.621
(applause)
00:28:00.220 --> 00:28:01.563
But wait, there's more.
00:28:02.870 --> 00:28:05.492
Alright, I'd like Chris Mann to come up.
00:28:05.492 --> 00:28:07.742
(applause)
00:28:13.290 --> 00:28:17.090
Not only is Chris Mann an exceptional field inspector
00:28:17.090 --> 00:28:18.160
for alternative fuels,
00:28:18.160 --> 00:28:20.380
he can battle that I-35 traffic
00:28:20.380 --> 00:28:22.636
and still get here before we're done.
00:28:22.636 --> 00:28:23.770
(laughter)
00:28:23.770 --> 00:28:25.660
I think that's fair.
00:28:25.660 --> 00:28:28.310
He's very willing to help train new inspectors
00:28:28.310 --> 00:28:31.013
and answer questions that others might have
00:28:31.013 --> 00:28:32.740
when they seek his advice.
00:28:32.740 --> 00:28:34.980
He's also very willing to help in all areas
00:28:34.980 --> 00:28:36.140
as the need arises.
00:28:36.140 --> 00:28:38.900
He consistently exceeds expectations
00:28:38.900 --> 00:28:40.950
on his goals and everything we ask him.
00:28:40.950 --> 00:28:42.605
Thank you so much, Chris.
00:28:42.605 --> 00:28:44.855
(applause)
00:28:49.321 --> 00:28:50.420
Thank you all, you're an amazing group of people,
00:28:50.420 --> 00:28:52.420
we appreciate everything everybody does.
00:28:53.645 --> 00:28:56.775
You see, the drilling team's already gone back,
00:28:56.775 --> 00:28:58.696
they've got to get more permits out.
00:28:58.696 --> 00:28:59.610
(laughter)
00:28:59.610 --> 00:29:00.960
Thank y'all for everything,
00:29:00.960 --> 00:29:02.430
and thank you to our leadership team
00:29:02.430 --> 00:29:05.201
for doing outstanding service.
00:29:05.201 --> 00:29:07.601
Glad to do that.
00:29:07.601 --> 00:29:09.851
(mumbling)
00:29:56.720 --> 00:29:57.920
Alright, good morning.
00:29:58.922 --> 00:30:00.495
Got everybody cleared out. I think.
00:30:00.495 --> 00:30:02.235
Good morning.
00:30:02.235 --> 00:30:03.590
Good morning, chairmen and commissioners,
00:30:03.590 --> 00:30:04.933
my name is Claudia Gadoy,
00:30:05.876 --> 00:30:07.420
and I'm representing the Market Oversight Section
00:30:07.420 --> 00:30:09.950
of the Oversight and Safety Division.
00:30:09.950 --> 00:30:14.420
Before you today is Gas Utilities Docket 10734,
00:30:14.420 --> 00:30:17.120
the application of Hugh's Natural Gas Incorporated
00:30:17.120 --> 00:30:19.430
for the Test Year 2017,
00:30:19.430 --> 00:30:21.320
annual interim rate adjustment,
00:30:21.320 --> 00:30:23.640
for the unincorporated areas
00:30:23.640 --> 00:30:25.610
of the company's service area.
00:30:25.610 --> 00:30:28.120
This docket is the fifth interim rate adjustment
00:30:28.120 --> 00:30:31.000
the company has filed for the unincorporated areas
00:30:31.000 --> 00:30:32.780
since the final ordered was issued in
00:30:32.780 --> 00:30:35.560
Gas Utilities Docket 10190.
00:30:35.560 --> 00:30:38.510
The adjustment represents an incremental increase
00:30:38.510 --> 00:30:43.510
of 129,968 dollars, of which 116,582 is allocated
00:30:50.400 --> 00:30:52.630
to the unincorporated customers.
00:30:52.630 --> 00:30:54.030
I recommend approval for the
00:30:54.030 --> 00:30:55.890
interim rate adjustment as proposed,
00:30:55.890 --> 00:30:58.393
I'm available to answer any questions.
00:30:58.393 --> 00:30:59.691
[Commissioner Craddick] Thank you Claudia,
00:30:59.691 --> 00:31:00.870
are there any questions?
00:31:00.870 --> 00:31:02.960
I move we approve the examiner's recommendation,
00:31:02.960 --> 00:31:04.089
is there a second?
00:31:04.089 --> 00:31:05.020
[Commissioner Sitton] Second.
00:31:05.020 --> 00:31:06.534
[Commissioner Craddick] Second Commissioner Sitton,
00:31:06.534 --> 00:31:07.564
all those in favor say aye.
00:31:07.564 --> 00:31:08.397
Aye.
Aye.
00:31:08.397 --> 00:31:10.523
Motion passes, thank you.
Thank you.
00:31:11.387 --> 00:31:13.098
Good morning, how are you?
00:31:13.098 --> 00:31:14.860
Good morning, chairmen and commissioners,
00:31:14.860 --> 00:31:17.250
for the record my name is Dana Louis,
00:31:17.250 --> 00:31:19.440
Administrative Law Judge with the Hearings Division.
00:31:19.440 --> 00:31:23.470
Item number two is Gas Utility Docket 10738,
00:31:23.470 --> 00:31:26.410
a statement of intent filed by T&L Gas
00:31:26.410 --> 00:31:27.890
to increase rates in the environments
00:31:27.890 --> 00:31:31.240
in the city of Conroe and Montgomery County, Texas.
00:31:31.240 --> 00:31:33.790
Staff intervened, and after the parties engaged
00:31:33.790 --> 00:31:35.720
in discovery and negotiations,
00:31:35.720 --> 00:31:37.930
the unanimous settlement agreement was reached
00:31:37.930 --> 00:31:40.130
that resolved all issues.
00:31:40.130 --> 00:31:43.090
The settlement includes an increase
00:31:43.090 --> 00:31:47.800
in current annual revenue of 88,616 dollars,
00:31:47.800 --> 00:31:50.350
approves a system replenishment fee,
00:31:50.350 --> 00:31:51.830
and rate case expenses.
00:31:51.830 --> 00:31:54.150
T&L'S revenue calculations reflect
00:31:54.150 --> 00:31:57.290
the corporate tax rate of 21% passed in the
00:31:57.290 --> 00:32:00.850
Tax Cuts and Job Act of 2017.
00:32:00.850 --> 00:32:03.160
The parties timely filed joint exceptions,
00:32:03.160 --> 00:32:04.840
no replies were filed.
00:32:04.840 --> 00:32:07.050
After review and consideration of the exceptions,
00:32:07.050 --> 00:32:10.050
non-substitutive corrections were made
00:32:10.050 --> 00:32:12.518
to certain pages of the proposal for decision,
00:32:12.518 --> 00:32:15.640
and clarifying language was added
00:32:15.640 --> 00:32:17.123
to the proposed final order.
00:32:18.253 --> 00:32:19.720
The examiners recommend the Commission
00:32:19.720 --> 00:32:21.550
approve the terms of the settlement agreement,
00:32:21.550 --> 00:32:23.400
as reflected in the final order.
00:32:23.400 --> 00:32:25.421
I'm available for questions.
00:32:25.421 --> 00:32:26.254
[Commissioner Craddick] Thank you.
00:32:26.254 --> 00:32:28.020
I have one quick question, just because I've seen it.
00:32:28.020 --> 00:32:29.500
A system replenishment fee,
00:32:29.500 --> 00:32:31.320
will you explain why we're doing that,
00:32:31.320 --> 00:32:34.260
I've just never seen that in that case before.
00:32:34.260 --> 00:32:37.770
So I've only seen that in this particular case,
00:32:37.770 --> 00:32:39.640
they had one in the previous docket
00:32:39.640 --> 00:32:41.580
that was previously approved,
00:32:41.580 --> 00:32:44.330
and staff recommended in this case
00:32:44.330 --> 00:32:47.160
to continue with that system replenishment fee.
00:32:47.160 --> 00:32:48.677
Okay, alright, thank you.
00:32:48.677 --> 00:32:50.840
Are there any other questions?
00:32:50.840 --> 00:32:52.483
I move we approve the examiner's recommendation,
00:32:52.483 --> 00:32:53.740
is there a second?
00:32:53.740 --> 00:32:54.573
Second.
00:32:54.573 --> 00:32:55.750
Second, Commissioner Christian,
00:32:55.750 --> 00:32:57.378
all those in favor say aye.
00:32:57.378 --> 00:32:58.211
Aye.
Aye.
00:32:58.211 --> 00:33:00.730
Motion passes, item was approved, thank you.
00:33:00.730 --> 00:33:01.630
Item number three.
00:33:03.747 --> 00:33:04.870
Good morning, commissioners.
00:33:04.870 --> 00:33:06.480
Kyle Love, the Administrative Law Judge
00:33:06.480 --> 00:33:08.400
with the Hearings Division.
00:33:08.400 --> 00:33:09.860
Item three is an application by
00:33:09.860 --> 00:33:12.180
Texas Municipal Power Agency, they're 10PA,
00:33:12.180 --> 00:33:16.620
requesting release of phase one reclamation obligations
00:33:16.620 --> 00:33:19.470
for 655.9 acres within the
00:33:19.470 --> 00:33:22.586
Gibbins Creek 95 permit number 38D,
00:33:22.586 --> 00:33:24.483
located in Grimes County.
00:33:25.650 --> 00:33:27.070
The acreage proposed for release
00:33:27.070 --> 00:33:29.090
is comprised of various parcels located
00:33:29.090 --> 00:33:32.550
in the central and southwest portions of the permit area.
00:33:32.550 --> 00:33:34.400
The approved post 99 uses include
00:33:34.400 --> 00:33:36.727
pasture land, develop water resources,
00:33:36.727 --> 00:33:38.083
and industrial-commercial.
00:33:39.230 --> 00:33:41.800
Staff based on its review of the application
00:33:41.800 --> 00:33:44.220
and multiple field inspections of the area,
00:33:44.220 --> 00:33:46.080
recommends approval of phase one release
00:33:46.080 --> 00:33:50.150
for 654 acres and denial of release for 1.9 acres
00:33:50.150 --> 00:33:52.270
due to the absence of soil testing data.
00:33:52.270 --> 00:33:54.600
In support of finding of that the top four feet
00:33:54.600 --> 00:33:57.160
of post mound soils are free of acid
00:33:57.160 --> 00:33:58.803
or toxic-forming materials.
00:33:59.650 --> 00:34:02.040
TNPA agrees with staff's position,
00:34:02.040 --> 00:34:04.000
and indicates the 1.9 acre parcel
00:34:04.000 --> 00:34:06.360
will be addressed in a future release
00:34:06.360 --> 00:34:08.593
after remediation of the area is complete.
00:34:09.670 --> 00:34:11.800
After notice, no comments or request
00:34:11.800 --> 00:34:12.880
for hearings were received,
00:34:12.880 --> 00:34:16.737
TMPA and staff are the only parties due to proceeding.
00:34:16.737 --> 00:34:19.930
No changes should occur in bond instruments
00:34:19.930 --> 00:34:22.010
requested in this docket,
00:34:22.010 --> 00:34:24.210
no exceptions were received in response
00:34:24.210 --> 00:34:25.343
to the proposed order.
00:34:26.430 --> 00:34:29.220
The 1.9 acre parcel is recommended for denial
00:34:29.220 --> 00:34:31.360
without prejudice so that TMPA
00:34:31.360 --> 00:34:33.373
may refile for release.
00:34:34.290 --> 00:34:36.200
I recommend approval for phase one release
00:34:36.200 --> 00:34:38.610
for the 654 acres, along with an
00:34:38.610 --> 00:34:40.560
eligible bond reduction amount totalling
00:34:40.560 --> 00:34:45.560
5,689,535 dollars and 41 cents.
00:34:46.610 --> 00:34:48.432
I'm available for questions.
00:34:48.432 --> 00:34:49.872
[Commissioner Craddick] Thank you,
00:34:49.872 --> 00:34:50.951
are there any questions?
00:34:50.951 --> 00:34:52.730
I move we approve the examiner's recommendation.
00:34:52.730 --> 00:34:53.850
Second.
00:34:53.850 --> 00:34:55.020
Second, Commissioner Sitton,
00:34:55.020 --> 00:34:56.627
all those in favor say aye.
00:34:56.627 --> 00:34:57.460
Aye.
Aye.
00:34:57.460 --> 00:34:58.620
Motion passes, item is approved,
00:34:58.620 --> 00:34:59.573
thank you, Kyle.
00:35:01.719 --> 00:35:03.141
Morning, Clayton.
00:35:03.141 --> 00:35:04.910
Good morning, chairmen and commissioners.
00:35:04.910 --> 00:35:07.090
Item number four is a complaint concerning a
00:35:07.090 --> 00:35:09.840
rule eight permit for a brine pond
00:35:09.840 --> 00:35:11.422
to be constructed in Houston,
00:35:11.422 --> 00:35:13.860
2.4 miles south of the Astrodome,
00:35:13.860 --> 00:35:17.430
as part of a salt cavern oil storage facility.
00:35:17.430 --> 00:35:19.180
Complainant is a citizen's group
00:35:19.180 --> 00:35:21.050
from City Council District K,
00:35:21.050 --> 00:35:23.100
where the pit is to be located.
00:35:23.100 --> 00:35:25.110
It contends the permit must be terminated
00:35:25.110 --> 00:35:26.947
because notice was not proper
00:35:26.947 --> 00:35:29.740
and the Commission lacked jurisdiction.
00:35:29.740 --> 00:35:31.520
Rule 8 6 C requires notice
00:35:31.520 --> 00:35:33.370
to be sent to the city clerk,
00:35:33.370 --> 00:35:35.460
or other appropriate official.
00:35:35.460 --> 00:35:37.920
Houston does not have a city clerk.
00:35:37.920 --> 00:35:40.774
It has a city secretary, Anna Russel,
00:35:40.774 --> 00:35:44.880
the city official who routinely distributes legal notices
00:35:44.880 --> 00:35:47.690
to the appropriate district council members.
00:35:47.690 --> 00:35:50.520
She's been city secretary for 64 years,
00:35:50.520 --> 00:35:52.763
she never received notice from Fairway.
00:35:54.711 --> 00:35:55.920
Instead, in response to rad letters
00:35:55.920 --> 00:35:57.840
and conversations with staff on
00:35:57.840 --> 00:35:59.720
numerous, mostly-unrelated issues,
00:35:59.720 --> 00:36:03.300
Fairway's employee decided to send notice
00:36:03.300 --> 00:36:08.300
of its application to HTC Utilities/Stormwater Analysis
00:36:08.650 --> 00:36:11.990
to the attention of analyst in that department,
00:36:11.990 --> 00:36:15.500
with whom Fairway was working for stormwater permits.
00:36:15.500 --> 00:36:17.850
Complainants show that the city charter
00:36:17.850 --> 00:36:21.540
and the city ordinances do not include such department,
00:36:21.540 --> 00:36:24.470
or someone in the analyst position,
00:36:24.470 --> 00:36:26.560
as an official of the city.
00:36:26.560 --> 00:36:30.270
Complainant presented the testimony of District K residents,
00:36:30.270 --> 00:36:32.580
including a city council member,
00:36:32.580 --> 00:36:35.660
to show that those affected never received notice
00:36:35.660 --> 00:36:38.210
as they would have if Fairway had simply
00:36:38.210 --> 00:36:41.735
served Anna Russel, the city secretary.
00:36:41.735 --> 00:36:43.970
Complainant contends that because
00:36:43.970 --> 00:36:46.290
Fairway did not comply with the notice requirements
00:36:46.290 --> 00:36:47.137
of rule eight,
00:36:47.137 --> 00:36:49.030
the Commission had no jurisdiction
00:36:49.030 --> 00:36:50.240
to issue the permit,
00:36:50.240 --> 00:36:52.810
and the permit must be terminated.
00:36:52.810 --> 00:36:56.220
Fairway relies on the purported approval of such notice
00:36:56.220 --> 00:36:58.077
by Railroad Commission staff,
00:36:58.077 --> 00:37:00.590
and the issuance of the permit by the Commission
00:37:00.590 --> 00:37:02.466
as evidence of its compliance.
00:37:02.466 --> 00:37:05.630
Fairway had the responsibility to comply
00:37:05.630 --> 00:37:07.440
with the plain and simple language
00:37:07.440 --> 00:37:10.860
of Statewide Rule 8 6 C, but they did not.
00:37:10.860 --> 00:37:14.550
Basic legal principles of due process and notice
00:37:14.550 --> 00:37:16.490
require that notice be proper
00:37:16.490 --> 00:37:19.180
in order for the Commission to have jurisdiction
00:37:19.180 --> 00:37:22.370
to issue a permit such as this.
00:37:22.370 --> 00:37:24.582
Those in city council District K
00:37:24.582 --> 00:37:27.420
never learned of Fairway's application
00:37:27.420 --> 00:37:29.330
because of the defective and possibly
00:37:29.330 --> 00:37:31.520
misleading notice procedure.
00:37:31.520 --> 00:37:34.270
The recommendation is to find that Fairway
00:37:34.270 --> 00:37:36.230
did not satisfy the notice requirements
00:37:36.230 --> 00:37:38.307
of Statewide Rule 8 6 C,
00:37:38.307 --> 00:37:42.120
and to terminate the permit for the ready brine pit.
00:37:42.120 --> 00:37:45.400
Exceptions and replies were filed
00:37:45.400 --> 00:37:48.370
but raised no issues of law or fact
00:37:48.370 --> 00:37:50.170
not previously considered.
00:37:50.170 --> 00:37:51.570
I'm available for questions.
00:37:52.414 --> 00:37:53.489
[Commissioner Craddick] Thank you,
00:37:53.489 --> 00:37:54.322
are there any questions?
00:37:55.530 --> 00:37:57.350
So Randall, I want to clarify,
00:37:57.350 --> 00:38:00.070
I'm looking at Statewide Rule eight E,
00:38:00.070 --> 00:38:03.363
and it says we can modify, suspend, or terminate, correct?
00:38:03.363 --> 00:38:04.196
A permit.
00:38:05.920 --> 00:38:09.710
So we can actually, if we decide to suspend the permit
00:38:09.710 --> 00:38:10.670
instead of terminate,
00:38:10.670 --> 00:38:13.800
can y'all explain to me the procedure for that.
00:38:13.800 --> 00:38:15.810
If the commissioners chose
00:38:16.780 --> 00:38:18.184
to suspend the permit,
00:38:18.184 --> 00:38:20.240
it would be suspended until
00:38:20.240 --> 00:38:22.790
further action is taken by the Commission.
00:38:22.790 --> 00:38:25.476
So in this case, they would have to go back in
00:38:25.476 --> 00:38:28.630
and provide notice to the city of Houston,
00:38:28.630 --> 00:38:31.950
and if anybody chose to protest it, at that point,
00:38:31.950 --> 00:38:34.212
we would conduct a hearing just like we would
00:38:34.212 --> 00:38:36.800
for any other contested matter.
00:38:36.800 --> 00:38:41.800
Once that's concluded, and the PFD is written,
00:38:41.920 --> 00:38:43.921
the Commission could then choose
00:38:43.921 --> 00:38:46.380
to lift the suspension,
00:38:46.380 --> 00:38:49.050
and proceed on with the application itself.
00:38:49.050 --> 00:38:52.580
It would also, the commissioner chose to suspend it,
00:38:52.580 --> 00:38:55.550
I believe it would allow all parties
00:38:55.550 --> 00:39:00.290
to update or to modify the current application,
00:39:00.290 --> 00:39:01.550
that could also be done during
00:39:01.550 --> 00:39:03.100
the process of the suspension,
00:39:03.100 --> 00:39:05.239
but it would take, if it is suspended,
00:39:05.239 --> 00:39:07.760
it would take a further order by the commissioners
00:39:07.760 --> 00:39:10.598
to lift that suspension and grant them a PFD
00:39:10.598 --> 00:39:12.197
or granting them the permit itself.
00:39:12.197 --> 00:39:14.348
[Commissioner Craddick] And they'd still have to have
00:39:14.348 --> 00:39:15.520
appropriate notice before we could do anything,
00:39:15.520 --> 00:39:18.237
because I think we all agree notice is important.
00:39:18.237 --> 00:39:20.450
But it wouldn't necessarily have to go back
00:39:20.450 --> 00:39:22.290
through all the technical review,
00:39:22.290 --> 00:39:25.802
assuming they didn't modify their permit, correct?
00:39:25.802 --> 00:39:29.030
For staff reasons, we've already done
00:39:29.030 --> 00:39:30.690
some of the technical review, correct?
00:39:30.690 --> 00:39:32.280
Assuming there's no modifications
00:39:32.280 --> 00:39:34.553
or revisions to the application, yes.
00:39:37.130 --> 00:39:39.613
That would also be addressed,
00:39:39.613 --> 00:39:42.980
that if it was protested, some issues could arise
00:39:42.980 --> 00:39:44.450
because of the lapse of time,
00:39:44.450 --> 00:39:46.500
that may require some modifications,
00:39:46.500 --> 00:39:48.093
but if there are no modifications,
00:39:48.093 --> 00:39:49.510
I don't believe there'd be any
00:39:49.510 --> 00:39:52.350
additional staff review for the technical specifications
00:39:52.350 --> 00:39:54.221
that weren't in the application.
00:39:54.221 --> 00:39:56.330
[Commissioner Craddick] Okay, alright.
00:39:56.330 --> 00:39:59.192
I'm more inclined to suspend this than terminate it,
00:39:59.192 --> 00:40:01.600
if anybody's inclined.
00:40:01.600 --> 00:40:03.250
So I've got a motion to nix it.
00:40:03.250 --> 00:40:06.200
I agree with that, but just one question, I think.
00:40:06.200 --> 00:40:08.594
Randall, Clayton, let me ask you,
00:40:08.594 --> 00:40:10.437
I wanna make sure I understand,
00:40:10.437 --> 00:40:12.810
the citizens in District K that were concerned about this,
00:40:12.810 --> 00:40:14.580
assuming that we suspend this
00:40:14.580 --> 00:40:18.450
and ensure that proper notice is now given,
00:40:18.450 --> 00:40:19.790
they'll have the same opportunity
00:40:19.790 --> 00:40:21.180
as they would have had in the beginning,
00:40:21.180 --> 00:40:23.270
in other words, they're not missing any opportunity
00:40:23.270 --> 00:40:25.590
to protest this case if we suspend it
00:40:25.590 --> 00:40:27.450
versus what happened in the beginning, correct?
00:40:27.450 --> 00:40:29.219
I believe that's correct.
00:40:29.219 --> 00:40:30.764
[Commissioner Sitton] Okay, just wanted to confirm it.
00:40:30.764 --> 00:40:31.597
[Commissioner Craddick] Great.
00:40:31.597 --> 00:40:34.330
So I'm gonna move that we suspend the permit
00:40:34.330 --> 00:40:35.680
rather than terminate it.
00:40:35.680 --> 00:40:36.513
Is there a second.
00:40:36.513 --> 00:40:37.346
Second.
00:40:37.346 --> 00:40:38.970
Second by Commissioner Christian,
00:40:38.970 --> 00:40:40.490
all those in favor say aye.
00:40:40.490 --> 00:40:41.420
Aye.
Aye.
00:40:41.420 --> 00:40:45.110
Motion is passed, this item is approved to that extent.
00:40:45.110 --> 00:40:47.310
Thank you, Clayton, for your work.
00:40:47.310 --> 00:40:50.858
Item number five, good morning, and how are you?
00:40:50.858 --> 00:40:51.950
Good, good morning, commissioners,
00:40:51.950 --> 00:40:54.440
my name is Jennifer Cook with the Hearings Division.
00:40:54.440 --> 00:40:57.200
In Item five, Annette Ferrell filed a complaint,
00:40:57.200 --> 00:41:00.030
claiming Gannett Operating LLC
00:41:00.030 --> 00:41:01.890
does not have a Good Faith claim
00:41:01.890 --> 00:41:04.890
to operate the Holcomb A lease in Young County.
00:41:04.890 --> 00:41:06.450
Complainant is the surface owner of
00:41:06.450 --> 00:41:09.300
part of the tract comprising the lease,
00:41:09.300 --> 00:41:10.920
and requests the Commission order Gannett
00:41:10.920 --> 00:41:14.374
to plug the two disposal wells on complainant's property.
00:41:14.374 --> 00:41:16.530
Complainant asserts the contractual lease
00:41:16.530 --> 00:41:20.160
relied on by Gannett has terminated for lack of production.
00:41:20.160 --> 00:41:23.423
The lease has not been productive since June 2017.
00:41:24.600 --> 00:41:27.820
Gannett contends the contractual lease is not terminated.
00:41:27.820 --> 00:41:29.900
Gannett provided testimony and documentation
00:41:29.900 --> 00:41:31.130
showing complainant's son,
00:41:31.130 --> 00:41:32.720
who is the prior surface owner
00:41:32.720 --> 00:41:34.180
and lives on the property,
00:41:34.180 --> 00:41:35.920
has interfered with Gannett's operations,
00:41:35.920 --> 00:41:37.750
preventing Gannett from operating.
00:41:37.750 --> 00:41:40.230
For example, Gannett provided a final judgment
00:41:40.230 --> 00:41:42.030
that contains a permanent injunction
00:41:42.030 --> 00:41:43.590
against the complainant's son,
00:41:43.590 --> 00:41:46.470
preventing him from interfering with Gannett's operations
00:41:46.470 --> 00:41:50.600
and assessing him over 15,000 in economic damages.
00:41:50.600 --> 00:41:53.110
Gannett plans to do secondary recovery operations
00:41:53.110 --> 00:41:54.200
on the lease.
00:41:54.200 --> 00:41:55.820
The examiners recommend the Commission
00:41:55.820 --> 00:41:57.820
deny the complainant's request.
00:41:57.820 --> 00:42:00.090
Examiners recommend the Commission find Gannett provided
00:42:00.090 --> 00:42:02.180
a reasonably satisfactory showing
00:42:02.180 --> 00:42:04.230
of a Good Faith claim to operate the lease.
00:42:04.230 --> 00:42:07.391
No exceptions were filed and I'm available for questions.
00:42:07.391 --> 00:42:08.224
[Commissioner Craddick] Thank you, Jennifer.
00:42:08.224 --> 00:42:09.336
Are there any questions?
00:42:09.336 --> 00:42:10.375
[Commissioner Sitton] No.
00:42:10.375 --> 00:42:11.648
[Commissioner Craddick] I move we approve
00:42:11.648 --> 00:42:12.761
the examiner's recommendation, is there a second?
00:42:12.761 --> 00:42:13.594
Second.
00:42:13.594 --> 00:42:14.427
Second by Commissioner Sitton,
00:42:14.427 --> 00:42:15.772
all in favor say aye.
00:42:15.772 --> 00:42:16.610
Aye.
Aye.
00:42:16.610 --> 00:42:18.030
Motion passes, item was approved,
00:42:18.030 --> 00:42:19.601
thank you.
00:42:19.601 --> 00:42:21.213
Item number six.
00:42:21.213 --> 00:42:22.710
Good morning, chairmen and commissioners,
00:42:22.710 --> 00:42:24.160
my name is Lynn Latomb,
00:42:24.160 --> 00:42:26.710
I'm here to present Items six through 10,
00:42:26.710 --> 00:42:30.180
all of which are P5 motions for rehearing.
00:42:30.180 --> 00:42:32.180
Item number six is a motion for rehearing
00:42:32.180 --> 00:42:35.977
filed by Philmar on August 21, 2018.
00:42:35.977 --> 00:42:37.950
The final order was entered by the Commission,
00:42:37.950 --> 00:42:39.530
denying the renewal of the operator's
00:42:39.530 --> 00:42:41.212
P5 organization report,
00:42:41.212 --> 00:42:42.840
because the operator has wells
00:42:42.840 --> 00:42:45.470
noncompliant with Statewide Rule 15.
00:42:45.470 --> 00:42:46.950
In this motion the operator states
00:42:46.950 --> 00:42:48.990
they are working to complete all requirements.
00:42:48.990 --> 00:42:51.220
Philmar explains it failed to be in compliance
00:42:51.220 --> 00:42:54.340
because the contractor they hired to do their paperwork
00:42:54.340 --> 00:42:55.714
lost their paperwork.
00:42:55.714 --> 00:42:58.810
Staff responds that two wells are noncompliant.
00:42:58.810 --> 00:43:00.850
It is recommended that the motion be denied.
00:43:00.850 --> 00:43:03.070
The motion will be overruled by operation of law
00:43:03.070 --> 00:43:05.320
on November 29, 2018.
00:43:05.320 --> 00:43:07.146
I'm available for any questions.
00:43:07.146 --> 00:43:08.454
[Commissioner Craddick] Thank you,
00:43:08.454 --> 00:43:09.387
are there any questions?
00:43:09.387 --> 00:43:10.323
[Commissioner Sitton] No.
00:43:10.323 --> 00:43:11.300
[Commissioner Craddick] I move we approve
00:43:11.300 --> 00:43:12.133
the examiner's recommendation, is there a second?
00:43:12.133 --> 00:43:12.966
Second.
00:43:12.966 --> 00:43:14.240
Second by Commissioner Christian,
00:43:14.240 --> 00:43:15.354
all those in favor say aye.
00:43:15.354 --> 00:43:16.370
Aye.
Aye.
00:43:16.370 --> 00:43:18.943
Motion passes, item was approved, number seven.
00:43:18.943 --> 00:43:21.110
Item number seven is a motion for rehearing
00:43:21.110 --> 00:43:25.950
filed by Restoration Energy LLC on August 21, 2018.
00:43:25.950 --> 00:43:27.720
A final order was entered by the Commission,
00:43:27.720 --> 00:43:29.236
denying the renewal of the operator's
00:43:29.236 --> 00:43:31.630
P5 organization report
00:43:31.630 --> 00:43:32.850
because the operator has wells
00:43:32.850 --> 00:43:35.480
noncompliant with Statewide Rule 15.
00:43:35.480 --> 00:43:37.190
In its motion, the operator explained
00:43:37.190 --> 00:43:38.620
it has failed to be in compliance
00:43:38.620 --> 00:43:40.810
because the operator had to travel out of state
00:43:40.810 --> 00:43:43.900
due to the sudden illness of an immediate family member.
00:43:43.900 --> 00:43:47.150
Staff responds that 26 wells are noncompliant.
00:43:47.150 --> 00:43:49.830
It is recommended that the motion be denied.
00:43:49.830 --> 00:43:51.690
The motion was overruled by operation of law
00:43:51.690 --> 00:43:53.890
on November 29, 2018.
00:43:53.890 --> 00:43:55.057
I'm available for any questions.
00:43:55.057 --> 00:43:57.220
Okay, are there any questions?
00:43:57.220 --> 00:43:59.310
I move we approve the examiner's recommendation,
00:43:59.310 --> 00:44:00.301
is there a second?
00:44:00.301 --> 00:44:01.134
[Commissioner Sitton] Second.
00:44:01.134 --> 00:44:02.190
Second by Commissioner Sitton,
00:44:02.190 --> 00:44:03.513
all those in favor say aye.
00:44:03.513 --> 00:44:04.470
Aye.
Aye.
00:44:04.470 --> 00:44:08.030
Motion passes, item was approved, number eight.
00:44:08.030 --> 00:44:10.040
Item number eight is a motion for rehearing
00:44:10.040 --> 00:44:13.100
filed by CEI Operating LLC.
00:44:13.100 --> 00:44:15.810
On August 21, 2018, a final order
00:44:15.810 --> 00:44:16.940
was entered by the Commission,
00:44:16.940 --> 00:44:20.440
denying the renewal of the operator's P5 report,
00:44:20.440 --> 00:44:22.270
because the operator has wells noncompliant
00:44:22.270 --> 00:44:24.170
with Statewide Rule number 15.
00:44:24.170 --> 00:44:25.940
In its motion the operator explained
00:44:25.940 --> 00:44:27.250
it failed to be in compliance
00:44:27.250 --> 00:44:30.010
because the landowners denied access to the property.
00:44:30.010 --> 00:44:32.590
Staff responds that five wells were noncompliant.
00:44:32.590 --> 00:44:34.840
It is recommended that the motion be denied.
00:44:34.840 --> 00:44:36.730
The motion is overruled by operation of law
00:44:36.730 --> 00:44:38.630
on November 29, 2018.
00:44:38.630 --> 00:44:40.887
I'm available for any questions.
00:44:40.887 --> 00:44:42.492
[Commissioner Craddick] Okay, are there any questions?
00:44:42.492 --> 00:44:44.450
I move we approve the examiner's recommendation,
00:44:44.450 --> 00:44:45.938
is there a second?
00:44:45.938 --> 00:44:47.104
[Commissioner Christian] Second.
00:44:47.104 --> 00:44:48.859
Second by Commissioner Christian, all in favor say aye.
00:44:48.859 --> 00:44:49.692
Aye.
Aye.
00:44:49.692 --> 00:44:50.680
Motion passes, item was approved--
00:44:50.680 --> 00:44:51.916
Chairman?
00:44:51.916 --> 00:44:54.210
Oh, I'm a representative from CEI,
00:44:54.210 --> 00:44:55.640
may I have a chance to speak?
00:44:55.640 --> 00:44:56.663
Thank you, I don't have anything
00:44:56.663 --> 00:44:58.230
that you signed in to speak,
00:44:58.230 --> 00:45:00.483
does anybody want to hear from this gentleman?
00:45:01.670 --> 00:45:03.070
Thank you, I think we've taken a vote,
00:45:03.070 --> 00:45:05.127
we appreciate you being here though.
00:45:05.127 --> 00:45:06.940
Number nine.
00:45:06.940 --> 00:45:08.870
Item number nine is a motion for rehearing
00:45:08.870 --> 00:45:12.890
filed by CWOC on August 21, 2018.
00:45:12.890 --> 00:45:14.670
A final order was entered by the Commission,
00:45:14.670 --> 00:45:16.260
denying the renewal of the operator's
00:45:16.260 --> 00:45:18.080
P5 organization report
00:45:18.080 --> 00:45:19.310
because the operator has wells
00:45:19.310 --> 00:45:21.667
noncompliant with Statewide Rule number 15.
00:45:21.667 --> 00:45:23.480
In its motion the operator states
00:45:23.480 --> 00:45:25.700
it is working to complete all requirements.
00:45:25.700 --> 00:45:28.540
Staff responds that six wells are noncompliant.
00:45:28.540 --> 00:45:30.620
It is recommended that the motion be denied.
00:45:30.620 --> 00:45:32.340
The motion is overruled by operation of law
00:45:32.340 --> 00:45:34.270
on November 29, 2018.
00:45:34.270 --> 00:45:36.053
I'm available for any questions.
00:45:36.053 --> 00:45:37.430
[Commissioner Craddick] Are there any questions?
00:45:37.430 --> 00:45:39.590
I move we approve the examiner's recommendation,
00:45:39.590 --> 00:45:40.423
is there a second?
00:45:40.423 --> 00:45:41.256
Second.
00:45:41.256 --> 00:45:42.420
Second by Commissioner Sitton,
00:45:42.420 --> 00:45:43.909
all those in favor say aye.
00:45:43.909 --> 00:45:44.742
Aye.
Aye.
00:45:44.742 --> 00:45:47.890
Motion passes, item was approved, item number 10.
00:45:47.890 --> 00:45:50.110
Item number 10 is a motion for rehearing
00:45:50.110 --> 00:45:52.490
filed by Oz Gas Cooperation.
00:45:52.490 --> 00:45:55.190
On August 21, 2018, a final order
00:45:55.190 --> 00:45:56.630
was entered by the Commission,
00:45:56.630 --> 00:45:59.485
denying the renewal of the operator's
00:45:59.485 --> 00:46:01.051
P5 organization report,
00:46:01.051 --> 00:46:02.770
because the operator has wells
00:46:02.770 --> 00:46:05.390
noncompliant with Statewide Rule 15.
00:46:05.390 --> 00:46:06.930
In its motion, the operator states
00:46:06.930 --> 00:46:08.770
that it failed to timely file its paperwork
00:46:08.770 --> 00:46:10.670
because it lost files after the death
00:46:10.670 --> 00:46:12.563
of its previous owner in 2009,
00:46:12.563 --> 00:46:15.120
and had a reduction in staff.
00:46:15.120 --> 00:46:18.190
Staff responds that 27 wells are noncompliant.
00:46:18.190 --> 00:46:20.220
It is recommended that the motion be denied.
00:46:20.220 --> 00:46:22.600
The motion is overruled by operation of law
00:46:22.600 --> 00:46:24.780
on November 29, 2018.
00:46:24.780 --> 00:46:26.819
I'm available for any questions.
00:46:26.819 --> 00:46:27.877
[Commissioner Craddick] Thank you,
00:46:27.877 --> 00:46:28.710
are there any questions?
00:46:28.710 --> 00:46:30.730
I move we approve the examiner's recommendation,
00:46:30.730 --> 00:46:32.399
is there a second?
00:46:32.399 --> 00:46:33.640
Second.
00:46:33.640 --> 00:46:34.970
Second by Commissioner Sitton,
00:46:34.970 --> 00:46:36.585
all those in favor say aye.
00:46:36.585 --> 00:46:37.418
Aye.
Aye.
00:46:37.418 --> 00:46:38.670
Motion passes, item was approved.
00:46:38.670 --> 00:46:39.503
Thank you, Lynn.
00:46:39.503 --> 00:46:40.353
Thank you.
00:46:41.745 --> 00:46:43.520
Item number 11.
00:46:43.520 --> 00:46:44.900
Good morning, chairmen and commissioners,
00:46:44.900 --> 00:46:46.369
for the record, Christie Reave,
00:46:46.369 --> 00:46:48.770
Administrative Law Judge with the Hearings Division.
00:46:48.770 --> 00:46:52.770
I will be presenting items number 11 through 28.
00:46:52.770 --> 00:46:54.940
Item number 11 is an enforcement action
00:46:55.946 --> 00:46:57.410
against Jet Black Oil inc.
00:46:57.410 --> 00:46:59.500
for violations of Statewide Rules
00:46:59.500 --> 00:47:01.650
on a five mile unit lease.
00:47:01.650 --> 00:47:03.520
Enforcement presented Commission records
00:47:03.520 --> 00:47:05.120
consisting of mainframe prints
00:47:05.120 --> 00:47:07.230
and Commission district inspection reports
00:47:07.230 --> 00:47:09.270
in support of the allegations.
00:47:09.270 --> 00:47:11.730
Jet Black stated it is not the responsible party,
00:47:11.730 --> 00:47:14.820
as it has not been an operator since 2015.
00:47:14.820 --> 00:47:17.710
Jet Black asserts it was a contract operator
00:47:17.710 --> 00:47:20.600
for the mineral rights owner, Capstone Innovations,
00:47:20.600 --> 00:47:23.790
and in August of 2014, the mineral right holder
00:47:23.790 --> 00:47:25.650
released the minerals to the landowner
00:47:25.650 --> 00:47:28.530
and they assumed operator and ownership
00:47:28.530 --> 00:47:30.190
of the mineral rights.
00:47:30.190 --> 00:47:31.820
A Commission form P4 was submitted
00:47:31.820 --> 00:47:34.030
to transfer the subject lease.
00:47:34.030 --> 00:47:35.970
However, the assuming operator lacked
00:47:35.970 --> 00:47:38.050
a Good Faith claim to operate the lease,
00:47:38.050 --> 00:47:40.750
and the P4 could not be approved.
00:47:40.750 --> 00:47:42.710
Stacey Rice, the individual appearing
00:47:42.710 --> 00:47:44.040
on behalf of Jet Black,
00:47:44.040 --> 00:47:46.270
stated that he should not be found to be
00:47:46.270 --> 00:47:48.610
in a position of ownership or control,
00:47:48.610 --> 00:47:50.470
as he ceased working for Jet Black
00:47:50.470 --> 00:47:53.390
a few months prior to the closing down of the company.
00:47:53.390 --> 00:47:55.990
The most recent Commission form P5
00:47:55.990 --> 00:47:59.060
lists Mr. Rice as an officer of Jet Black.
00:47:59.060 --> 00:48:00.740
It is recommended that the Commission find
00:48:00.740 --> 00:48:02.900
that Jet Black is the responsible operator,
00:48:02.900 --> 00:48:05.480
and find Jet Black responsible for the violations
00:48:05.480 --> 00:48:07.240
of Statewide Rules that have occurred
00:48:07.240 --> 00:48:08.960
as described in the PFD
00:48:08.960 --> 00:48:10.970
and the Commission assess a penalty
00:48:10.970 --> 00:48:15.149
of 20,609 dollars against Jet Black for violations
00:48:15.149 --> 00:48:17.760
and order Jet Black to place the lease
00:48:17.760 --> 00:48:19.160
and the wells in compliance with
00:48:19.160 --> 00:48:21.300
Commission rules and statutes.
00:48:21.300 --> 00:48:23.110
Exceptions and replies were filed,
00:48:23.110 --> 00:48:25.011
I'm available for questions.
00:48:25.011 --> 00:48:25.932
[Commissioner Craddick] Thank you,
00:48:25.932 --> 00:48:26.881
are there any questions?
00:48:26.881 --> 00:48:27.770
[Commissioner Sitton] No.
00:48:27.770 --> 00:48:28.919
[Commissioner Craddick] I move we approve
00:48:28.919 --> 00:48:30.313
the examiner's recommendation, is there a second?
00:48:30.313 --> 00:48:31.146
[Commissioner Christian] Second.
00:48:31.146 --> 00:48:32.070
Second by Commissioner Christian,
00:48:32.070 --> 00:48:33.474
all those in favor say aye.
00:48:33.474 --> 00:48:34.307
Aye.
Aye.
00:48:34.307 --> 00:48:36.368
Motion passes, item is approved.
00:48:36.368 --> 00:48:38.530
Items 12 through 16 you're gonna present together.
00:48:38.530 --> 00:48:39.850
Yes ma'am.
00:48:39.850 --> 00:48:42.563
At their request, Sinclair Oil and Gas Company in 4/7,
00:48:43.500 --> 00:48:47.211
a hearing was noticed, providing applicants
00:48:47.211 --> 00:48:49.785
the opportunity to show five subject applications
00:48:49.785 --> 00:48:52.920
filed under the mineral interest pooling act, MIPA,
00:48:52.920 --> 00:48:54.220
should be approved,
00:48:54.220 --> 00:48:56.030
creating five pooled units within
00:48:56.030 --> 00:48:58.530
the city limits of the city of Big Spring,
00:48:58.530 --> 00:49:00.470
made up of approximately 8,000
00:49:00.470 --> 00:49:03.030
individually owned tracts of land.
00:49:03.030 --> 00:49:05.310
It is what as known as a rooftop play.
00:49:05.310 --> 00:49:07.050
Successfully done by applicants
00:49:07.050 --> 00:49:10.290
in the city of Fortworth and surrounding suburbs
00:49:10.290 --> 00:49:12.010
in Tarrant and Johnson Counties
00:49:12.010 --> 00:49:14.520
for the Barnett Shale Resource Play.
00:49:14.520 --> 00:49:16.020
In this case, the rooftop play
00:49:16.020 --> 00:49:17.620
is the city of Big Spring,
00:49:17.620 --> 00:49:19.100
whose minerals are stranded due
00:49:19.100 --> 00:49:22.630
to the large leased acreage surrounding the town.
00:49:22.630 --> 00:49:24.450
Applicants were successful in leasing
00:49:24.450 --> 00:49:26.400
and or purchasing the mineral rights
00:49:26.400 --> 00:49:30.730
to approximately 6,000 of the approximate 8,000 tracts.
00:49:30.730 --> 00:49:33.650
Applicants assert that force pooling is necessary,
00:49:33.650 --> 00:49:36.200
given the complexity of the urban location.
00:49:36.200 --> 00:49:38.040
The hearing was uncontested.
00:49:38.040 --> 00:49:39.670
Numerous letters of support for
00:49:39.670 --> 00:49:42.520
approving the applications were received.
00:49:42.520 --> 00:49:44.740
Applicants provided sufficient evidence
00:49:44.740 --> 00:49:46.160
to show that granting pooling
00:49:46.160 --> 00:49:48.890
would prevent waste, protect correlative rights,
00:49:48.890 --> 00:49:51.640
and avoid the unnecessary drilling of wells.
00:49:51.640 --> 00:49:53.840
However, the proposed unit sizes
00:49:53.840 --> 00:49:55.833
are in excess of the acreage limit described
00:49:55.833 --> 00:50:00.833
in section 102.011 of the Texas Natural Resources Code.
00:50:01.620 --> 00:50:03.010
But for the size of the units,
00:50:03.010 --> 00:50:06.030
the examiners would recommend approval of the applications.
00:50:06.030 --> 00:50:08.400
However, based on recent Commission action,
00:50:08.400 --> 00:50:10.160
the examiners recommend the Commission
00:50:10.160 --> 00:50:12.100
deny the applications.
00:50:12.100 --> 00:50:14.737
Exceptions were filed, I'm available for questions.
00:50:14.737 --> 00:50:16.898
[Commissioner Craddick] Thank you,
00:50:16.898 --> 00:50:18.768
are there any questions?
00:50:18.768 --> 00:50:23.140
Yeah, Christie, I wanna make sure.
00:50:23.140 --> 00:50:25.760
You go to some length in the PFD
00:50:25.760 --> 00:50:29.570
to talk about the fact that
00:50:29.570 --> 00:50:31.923
all of the provisions were met,
00:50:31.923 --> 00:50:35.580
I wanna make sure I understand your logic here,
00:50:35.580 --> 00:50:38.470
it's simply recent Commission precedents,
00:50:38.470 --> 00:50:40.320
in other words, other votes we've taken,
00:50:40.320 --> 00:50:42.350
that cause you to arrive at this conclusion,
00:50:42.350 --> 00:50:45.810
not the provisions of the MIPA pact?
00:50:45.810 --> 00:50:47.990
Correct.
Okay.
00:50:47.990 --> 00:50:49.456
And it depends,
00:50:49.456 --> 00:50:53.550
there is some controversy as far as the interpretation
00:50:53.550 --> 00:50:58.550
of Natural Resources Code 102.011,
00:50:58.557 --> 00:51:01.613
which is the area that talks about the sizes of the unit.
00:51:02.490 --> 00:51:05.910
There is an argument in .014B
00:51:05.910 --> 00:51:07.820
that that's a muscle-in provision,
00:51:07.820 --> 00:51:10.460
and allows the Commission flexibility
00:51:10.460 --> 00:51:13.050
in altering the size limits created
00:51:13.050 --> 00:51:14.173
in that other section.
00:51:16.100 --> 00:51:17.890
The applicants also argued that
00:51:17.890 --> 00:51:22.590
the Commission can look at section 85
00:51:22.590 --> 00:51:25.730
of the Natural Resources Code to prevent waste
00:51:25.730 --> 00:51:29.040
as another way to alter what it states
00:51:29.040 --> 00:51:31.780
in section 102.011.
00:51:31.780 --> 00:51:34.440
However, in August of last year,
00:51:34.440 --> 00:51:36.710
the Commission voted that that language
00:51:36.710 --> 00:51:38.230
should be strictly construed,
00:51:38.230 --> 00:51:41.103
and that is the reason for the recommendation today.
00:51:47.560 --> 00:51:49.150
No protestants in this case.
00:51:49.150 --> 00:51:50.808
That's correct.
00:51:50.808 --> 00:51:52.490
Okay, 80% of the minerals released,
00:51:52.490 --> 00:51:53.323
did I read that correctly?
00:51:53.323 --> 00:51:54.760
At least 80%, yes sir,
00:51:54.760 --> 00:51:58.470
and they still had a presence on the ground
00:51:58.470 --> 00:52:00.537
when we went to hearing on this,
00:52:00.537 --> 00:52:03.200
two years prior to filing an application,
00:52:03.200 --> 00:52:04.960
they opened an office right across the street
00:52:04.960 --> 00:52:07.050
from the Walmart in the city of Big Spring,
00:52:07.050 --> 00:52:08.900
put up billboards, were sending news,
00:52:10.081 --> 00:52:12.030
you know, advertisements in the newspaper,
00:52:12.030 --> 00:52:13.470
so it is certainly possible that
00:52:13.470 --> 00:52:16.850
they have leased up additional acreage since that hearing,
00:52:16.850 --> 00:52:18.210
but at the time of the hearing,
00:52:18.210 --> 00:52:20.459
they had at least 80%.
00:52:20.459 --> 00:52:23.222
[Commissioner Sitton] You're talking about
00:52:23.222 --> 00:52:24.663
some of the ways, if I can remember the numbers right,
00:52:25.868 --> 00:52:27.740
that if we're able to apply MIPA, in this case,
00:52:27.740 --> 00:52:28.900
they would drill five wells,
00:52:28.900 --> 00:52:30.300
if we don't, they would have to drill
00:52:30.300 --> 00:52:31.320
something like 18 wells,
00:52:31.320 --> 00:52:33.310
which has the chance of making
00:52:33.310 --> 00:52:34.960
this entire development uneconomic.
00:52:34.960 --> 00:52:35.793
Correct.
00:52:35.793 --> 00:52:36.626
Okay.
00:52:39.774 --> 00:52:41.213
[Commissioner Craddick] I have a question,
00:52:41.213 --> 00:52:42.830
it seems to me, before we can even apply MIPA,
00:52:42.830 --> 00:52:45.470
for the first time, instead of looking at fields,
00:52:45.470 --> 00:52:47.550
which the Spraberry Trend is clearly
00:52:47.550 --> 00:52:50.040
an older field than 1961,
00:52:50.040 --> 00:52:51.530
they looked at reservoirs, correct?
00:52:51.530 --> 00:52:52.363
Yes ma'am.
00:52:52.363 --> 00:52:53.906
That's how you got to this,
00:52:53.906 --> 00:52:54.739
because the first time we've ever
00:52:54.739 --> 00:52:56.790
not looked at a field, but looked at a reservoir,
00:52:56.790 --> 00:52:57.623
that I'm aware of.
00:52:57.623 --> 00:53:00.090
Yes ma'am, the MIPA statute
00:53:00.090 --> 00:53:04.780
only applies to reservoirs discovered after March 8, 1961.
00:53:04.780 --> 00:53:06.990
The issue though, with the Spraberry Trend area field
00:53:06.990 --> 00:53:10.150
is it's a consolidation of a bunch of other fields,
00:53:10.150 --> 00:53:12.800
all with different discovery dates.
00:53:12.800 --> 00:53:15.670
And because of technology
00:53:15.670 --> 00:53:17.860
and how it has changed since the sixties.
00:53:17.860 --> 00:53:20.620
So in the sixties, when MIPA would have been written,
00:53:20.620 --> 00:53:23.070
a reservoir was just that pool underground.
00:53:23.070 --> 00:53:26.860
And now with fracking and horizontal wells,
00:53:26.860 --> 00:53:29.680
those boundaries aren't the same
00:53:29.680 --> 00:53:31.000
as what they used to be.
00:53:31.000 --> 00:53:32.750
So with the Spraberry Trend area field,
00:53:32.750 --> 00:53:34.640
you have an initial field that was
00:53:34.640 --> 00:53:35.850
discovered in the fifties,
00:53:35.850 --> 00:53:39.850
and then all of these fields that were surrounding it,
00:53:39.850 --> 00:53:42.270
that have through various Commission orders,
00:53:42.270 --> 00:53:45.590
been moved into the Spraberry Trend area field.
00:53:45.590 --> 00:53:49.350
So, the question raised at the hearing by applicants was,
00:53:49.350 --> 00:53:51.930
do you then date back the entire field
00:53:51.930 --> 00:53:55.230
to the inception of the original Spraberry,
00:53:55.230 --> 00:53:57.610
or do you look at now what would be considered
00:53:57.610 --> 00:54:00.470
the correlative interval, where they're looking at,
00:54:00.470 --> 00:54:03.733
which had a field discovery date much later?
00:54:05.029 --> 00:54:06.620
[Commissioner Craddick] So would your order
00:54:06.620 --> 00:54:10.070
apply just to the correlative field that they're looking at,
00:54:10.070 --> 00:54:12.800
or the entire Spraberry Trend?
00:54:12.800 --> 00:54:14.890
I believe that their argument
00:54:14.890 --> 00:54:16.440
was sufficient to apply it to
00:54:16.440 --> 00:54:18.570
the entire Spraberry Trend Field,
00:54:18.570 --> 00:54:20.840
that certainly is something for
00:54:20.840 --> 00:54:22.590
you all to make a decision on.
00:54:22.590 --> 00:54:25.390
In my understanding, it's something of first impression,
00:54:26.509 --> 00:54:28.210
and it is not something that will not
00:54:28.210 --> 00:54:30.397
be seen again in the future,
00:54:30.397 --> 00:54:32.010
it's just something that people
00:54:32.010 --> 00:54:33.850
are going to keep bumping up against
00:54:33.850 --> 00:54:36.440
with these fields that are now
00:54:36.440 --> 00:54:38.300
consolidations of multiple fields
00:54:38.300 --> 00:54:40.233
with all different discovery dates.
00:54:42.656 --> 00:54:44.340
[Commissioner Sitton] Did they lease the entire
00:54:44.340 --> 00:54:45.820
minerals in this area,
00:54:45.820 --> 00:54:48.690
or just certain trend areas?
00:54:48.690 --> 00:54:50.990
So, their applications state
00:54:50.990 --> 00:54:53.610
that they're for the Spraberry Trend area
00:54:53.610 --> 00:54:55.600
rule 40 exception field.
00:54:55.600 --> 00:54:57.580
There was nothing in the evidence
00:54:57.580 --> 00:55:00.480
that they presented that limits depth
00:55:00.480 --> 00:55:02.520
within the Spraberry--
[Commissioner Sitton] Okay.
00:55:02.520 --> 00:55:04.870
They in fact had some evidence
00:55:04.870 --> 00:55:06.610
where they showed where they were planning
00:55:06.610 --> 00:55:08.250
on initially drilling,
00:55:08.250 --> 00:55:09.920
and that initial one is gonna be
00:55:09.920 --> 00:55:13.630
into the wolf camp, which was discovered in the eighties,
00:55:13.630 --> 00:55:17.610
but they plan to do, I believe, six laterals
00:55:17.610 --> 00:55:18.930
for each of these,
00:55:18.930 --> 00:55:21.330
so they will hit different correlative intervals
00:55:21.330 --> 00:55:23.433
within the Spraberry Trend area field.
00:55:26.426 --> 00:55:27.843
[Commissioner Christian] Now Chairman,
00:55:28.910 --> 00:55:30.940
I wanna respect our staff tremendously
00:55:30.940 --> 00:55:31.990
for the recommendations,
00:55:31.990 --> 00:55:33.887
and hearing that a large part of this decision
00:55:33.887 --> 00:55:37.000
is a part of our previous vote on the issue,
00:55:37.000 --> 00:55:40.330
I'll be voting to deny the recommendation.
00:55:40.330 --> 00:55:42.300
Now, let me just real quick say first,
00:55:42.300 --> 00:55:43.970
no one protested this,
00:55:43.970 --> 00:55:47.000
second, if the application's approved,
00:55:47.000 --> 00:55:48.870
a significant amount of additional minerals
00:55:48.870 --> 00:55:51.460
will likely be produced,
00:55:51.460 --> 00:55:53.240
third, in this case, relatively large
00:55:53.240 --> 00:55:54.731
mineral rights owners forced pooling
00:55:54.731 --> 00:55:56.780
small mineral rights owners,
00:55:56.780 --> 00:55:59.430
instead of the reverse in the previous decision,
00:55:59.430 --> 00:56:01.360
and last, it's not known yet
00:56:01.360 --> 00:56:02.977
whether the wells will be oil or gas wells,
00:56:02.977 --> 00:56:05.290
and unit sizes in the application comply
00:56:05.290 --> 00:56:07.430
with what is allowed for gas wells
00:56:07.430 --> 00:56:09.970
under the MIPA statute, so,
00:56:09.970 --> 00:56:14.170
I'll be opposing staff, respectfully.
00:56:14.170 --> 00:56:15.123
Thank you, sir.
00:56:16.230 --> 00:56:17.760
I will too.
00:56:17.760 --> 00:56:19.110
I agree with Commissioner Christian.
00:56:19.110 --> 00:56:21.060
Does anybody have a motion?
00:56:21.060 --> 00:56:22.200
I'll make a motion.
00:56:22.200 --> 00:56:25.120
I move that we deny staff's recommendation,
00:56:25.120 --> 00:56:30.120
and instead approve the MIPA proposal
00:56:30.700 --> 00:56:34.116
per the details outlined in the PFD.
00:56:34.116 --> 00:56:34.949
Second.
00:56:34.949 --> 00:56:36.750
Alright, we have a motion and a second,
00:56:36.750 --> 00:56:37.980
are there any other questions?
00:56:37.980 --> 00:56:39.710
Alright, all those in favor say aye.
00:56:39.710 --> 00:56:41.310
Aye.
Aye.
00:56:41.310 --> 00:56:43.350
Motion passes, item was approved.
00:56:43.350 --> 00:56:44.183
Okay.
00:56:44.183 --> 00:56:45.150
Chairman, if we could have
00:56:45.150 --> 00:56:47.373
a point of clarification on an item.
00:56:48.780 --> 00:56:53.780
You have denied what the relief requested,
00:56:53.850 --> 00:56:56.130
was there any form of alternative relief
00:56:56.130 --> 00:56:56.963
that y'all were seeking,
00:56:56.963 --> 00:56:58.700
or just a denial of the recommendation
00:56:58.700 --> 00:57:00.410
of the ALJ?
00:57:00.410 --> 00:57:01.850
Yes sir, I was looking that we would
00:57:01.850 --> 00:57:05.163
actually grant the application for MIPA.
00:57:08.320 --> 00:57:10.380
Yes, I'd like to use the word approve.
00:57:10.380 --> 00:57:12.860
Okay, so if you're going to,
00:57:12.860 --> 00:57:16.350
we would submit a proposed order
00:57:16.350 --> 00:57:20.660
that would replace the conclusion of law number six,
00:57:20.660 --> 00:57:22.510
with the conclusion of law sent to
00:57:22.510 --> 00:57:25.390
the examiner's proposed orders,
00:57:25.390 --> 00:57:26.843
and replace--
00:57:30.450 --> 00:57:31.380
Replacing number six
00:57:31.380 --> 00:57:33.556
and adding an additional seven and eight.
00:57:33.556 --> 00:57:34.610
Seven and eight to comply
00:57:34.610 --> 00:57:37.190
with the exceptions filed by the applicant.
00:57:37.190 --> 00:57:38.390
If that's agreeable, then we'll
00:57:38.390 --> 00:57:40.994
submit that substitute order.
00:57:40.994 --> 00:57:42.531
[Commissioner Sitton] That's perfect.
00:57:42.531 --> 00:57:43.715
[Commissioner Christian] Agreed.
00:57:43.715 --> 00:57:44.929
[Commissioner Craddick] So is that clear?
00:57:44.929 --> 00:57:46.961
Do we need to re-do the motion?
00:57:46.961 --> 00:57:48.269
Or is everybody clear where we are?
00:57:48.269 --> 00:57:49.352
I think we're clear,
00:57:49.352 --> 00:57:51.990
I think since y'all voted to approve it,
00:57:51.990 --> 00:57:55.330
then deny theirs but approve another one,
00:57:55.330 --> 00:57:57.410
the substitute one will come forward.
00:57:57.410 --> 00:57:59.233
Okay.
Thanks, Christie.
00:57:59.233 --> 00:58:00.854
Thank you very much.
00:58:00.854 --> 00:58:02.010
Now you have 17 through 28, alright.
00:58:02.010 --> 00:58:03.703
Yes ma'am.
00:58:03.703 --> 00:58:05.660
So items number 17 through 28
00:58:05.660 --> 00:58:07.410
are Motions for Rehearing,
00:58:07.410 --> 00:58:09.090
and will be presented together.
00:58:09.090 --> 00:58:10.380
These dockets are the result of
00:58:10.380 --> 00:58:12.130
a Good Faith claim complaint filed by
00:58:12.130 --> 00:58:14.600
the trustee of one of the mineral owners.
00:58:14.600 --> 00:58:17.070
On August 21, 2018, the Commission entered
00:58:17.070 --> 00:58:18.810
an order, finding Top Op does not have
00:58:18.810 --> 00:58:20.650
a Good Faith claim right to operate
00:58:20.650 --> 00:58:23.370
various leases in Victoria County, Texas.
00:58:23.370 --> 00:58:25.630
The order followed Top Op's failure to respond
00:58:25.630 --> 00:58:27.750
to the Hearings Division's request for evidence
00:58:27.750 --> 00:58:30.860
of its Good Faith claim, or request a hearing.
00:58:30.860 --> 00:58:33.150
Top Op filed a motion for rehearing.
00:58:33.150 --> 00:58:34.390
It was discovered at that time
00:58:34.390 --> 00:58:36.050
that the address to which Top Op
00:58:36.050 --> 00:58:38.076
was sent correspondence was defective.
00:58:38.076 --> 00:58:41.600
The complainant did not file a reply.
00:58:41.600 --> 00:58:43.430
It is recommended the motion be granted.
00:58:43.430 --> 00:58:45.106
I'm available for questions.
00:58:45.106 --> 00:58:45.960
[Commissioner Craddick] Thank you,
00:58:45.960 --> 00:58:46.990
is this the last one?
00:58:46.990 --> 00:58:49.034
We'll fix the problem, right?
00:58:49.034 --> 00:58:50.617
Great, any questions?
00:58:50.617 --> 00:58:51.770
[Commissioner Sitton] No.
00:58:51.770 --> 00:58:53.690
I move we approve the examiner's recommendation,
00:58:53.690 --> 00:58:55.056
is there a second?
00:58:55.056 --> 00:58:55.960
[Commissioner Sitton] Second.
00:58:55.960 --> 00:58:57.330
Second by Commissioner Sitton,
00:58:57.330 --> 00:58:58.710
all those in favor say aye.
00:58:58.710 --> 00:58:59.790
Aye.
Aye.
00:58:59.790 --> 00:59:02.225
Motion passes, items were approved, thank you.
00:59:02.225 --> 00:59:04.637
Thank you very much.
00:59:04.637 --> 00:59:07.950
We're going to the Oil and Gas consent agenda,
00:59:07.950 --> 00:59:10.510
items 29 through 44,
00:59:10.510 --> 00:59:13.670
there are 16 items on this part of the agenda,
00:59:13.670 --> 00:59:17.440
I move we approve Items 29 through 44,
00:59:17.440 --> 00:59:18.773
is there a second?
00:59:18.773 --> 00:59:19.644
[Commissioner Christian] Second.
00:59:19.644 --> 00:59:20.690
Second by Commissioner Christian,
00:59:20.690 --> 00:59:22.151
all those in favor say aye.
00:59:22.151 --> 00:59:23.040
Aye.
Aye.
00:59:23.040 --> 00:59:25.760
Motion passes, all those items are approved.
00:59:25.760 --> 00:59:29.380
Master Default Item Orders, there are 12.
00:59:29.380 --> 00:59:31.350
Items 45 through 56,
00:59:31.350 --> 00:59:34.250
I move we approve Items 45 through 56,
00:59:34.250 --> 00:59:35.294
is there a second?
00:59:35.294 --> 00:59:36.127
Second.
00:59:36.127 --> 00:59:37.300
Second by Commissioner Sitton,
00:59:37.300 --> 00:59:38.783
all those in favor say aye.
00:59:38.783 --> 00:59:39.616
Aye.
Aye.
00:59:39.616 --> 00:59:41.400
Motion passes, those items are approved.
00:59:41.400 --> 00:59:44.950
Agreed Enforcement Orders, 160 of these,
00:59:44.950 --> 00:59:48.480
I move we approve Items 57 through 216,
00:59:48.480 --> 00:59:49.313
is there a second?
00:59:49.313 --> 00:59:50.146
Second.
00:59:50.146 --> 00:59:51.530
Second by Commissioner Christian,
00:59:51.530 --> 00:59:53.076
all those in favor say aye.
00:59:53.076 --> 00:59:53.950
Aye.
Aye.
00:59:53.950 --> 00:59:56.030
Motion passes, those items are approved.
00:59:56.030 --> 00:59:58.697
That concludes hearing session, thank you, Randall.
01:00:01.920 --> 01:00:02.753
Good morning, chairmen, commissioners.
01:00:02.753 --> 01:00:04.980
For the record, Wei Wang, Executive Director.
01:00:06.091 --> 01:00:11.091
As of last Friday, our agency had 750 employees,
01:00:11.200 --> 01:00:13.300
and we're projecting by the end of November
01:00:13.300 --> 01:00:16.800
we should have somewhere close to 760.
01:00:16.800 --> 01:00:20.800
And so we continue to make progress on the hiring front,
01:00:20.800 --> 01:00:23.690
and for our well plugging program,
01:00:23.690 --> 01:00:28.690
as of last Friday, we plugged 228 wells for the year,
01:00:28.790 --> 01:00:33.790
and again, our goal for FY19 is 1,560 wells
01:00:34.200 --> 01:00:35.923
for a total of 3,000 wells.
01:00:38.324 --> 01:00:39.690
The drilling permit department
01:00:40.862 --> 01:00:42.448
and other technical permitting departments
01:00:42.448 --> 01:00:44.040
still make progress in reducing
01:00:44.040 --> 01:00:46.190
the turn around time for permit processing.
01:00:47.100 --> 01:00:49.400
Currently, we're at one business day
01:00:49.400 --> 01:00:51.206
for the drilling department,
01:00:51.206 --> 01:00:53.383
and for the groundwater advisory unit,
01:00:54.520 --> 01:00:57.560
we're at four days for regular letter,
01:00:57.560 --> 01:01:00.093
and three days for expedited letter.
01:01:02.151 --> 01:01:04.817
We have so far conducted 22,000 inspections,
01:01:07.383 --> 01:01:12.383
33,576 wells and facilities,
01:01:12.840 --> 01:01:16.150
so we're also making progress on the inspections.
01:01:16.150 --> 01:01:17.760
So our goal for the year is to
01:01:17.760 --> 01:01:19.520
reduce wells that have not been inspected
01:01:19.520 --> 01:01:22.600
in the last five years to 20% from 33%,
01:01:22.600 --> 01:01:25.173
which was where we ended from last year.
01:01:26.360 --> 01:01:29.497
Things are going well, and we continue to hire employees,
01:01:29.497 --> 01:01:31.103
and conduct more inspections,
01:01:32.617 --> 01:01:34.723
and with a results-driven mentality,
01:01:35.880 --> 01:01:36.840
we think that FY19 will be
01:01:36.840 --> 01:01:39.790
an even better year than what we had in FY18.
01:01:39.790 --> 01:01:41.278
Thank you.
01:01:41.278 --> 01:01:42.743
[Commissioner Craddick] Thank you, good process.
01:01:42.743 --> 01:01:44.212
Thank you for doing the outstanding service awards,
01:01:44.212 --> 01:01:45.810
I had missed doing those.
01:01:45.810 --> 01:01:47.841
I'm glad to put them back in place.
01:01:47.841 --> 01:01:49.924
Some good people, thanks.
01:01:55.707 --> 01:01:59.661
Oh, sorry about that, skipped you, morning.
01:01:59.661 --> 01:02:02.903
That's alright, Corey Crawford, Chief Financial Officer,
01:02:04.010 --> 01:02:06.435
staff seeks your approval for the
01:02:06.435 --> 01:02:08.240
2018 Annual Financial Report.
01:02:08.240 --> 01:02:10.450
You've got a copy there in your binder.
01:02:10.450 --> 01:02:14.330
This report presents the 2018 financial information
01:02:14.330 --> 01:02:17.000
using the generally accepted accounting principles
01:02:17.000 --> 01:02:20.170
established by the governmental accounting standards board.
01:02:20.170 --> 01:02:21.783
I'd be happy to answer any questions if y'all have any.
01:02:22.779 --> 01:02:23.614
[Commissioner Craddick] Thank you,
01:02:23.614 --> 01:02:24.447
are there any questions?
01:02:24.447 --> 01:02:25.309
[Commissioner Sitton] Nope.
01:02:25.309 --> 01:02:26.301
[Commissioner Craddick] Alright,
01:02:26.301 --> 01:02:31.301
I move we approve this, is there a second?
01:02:32.763 --> 01:02:33.596
[Commissioner Sitton] Second.
01:02:33.596 --> 01:02:34.430
Second by Commissioner Sitton,
01:02:34.430 --> 01:02:35.440
all those in favor say aye.
01:02:35.440 --> 01:02:36.590
Aye.
Aye.
01:02:36.590 --> 01:02:38.920
Thank you, Corey, for your work.
01:02:38.920 --> 01:02:39.753
Paul.
01:02:40.632 --> 01:02:41.971
Wouldn't skip you.
01:02:41.971 --> 01:02:44.100
Good morning, chairman and commissioners,
01:02:44.100 --> 01:02:45.510
for the record my name is Paul Delaney,
01:02:45.510 --> 01:02:48.570
I am the Internal Auditor for the Railroad Commission.
01:02:48.570 --> 01:02:51.030
Section 2102 of the Texas Government Code
01:02:51.030 --> 01:02:54.920
requires each state agency to prepare an annual audit plan,
01:02:54.920 --> 01:02:56.930
and then submit a copy of that plan
01:02:56.930 --> 01:03:00.113
to the state auditor's office by November 1 of each year.
01:03:01.090 --> 01:03:02.510
As a result of that requirement,
01:03:02.510 --> 01:03:05.250
I have conducted an agency-wide risk assessment,
01:03:05.250 --> 01:03:07.200
and based upon the risk assessment,
01:03:07.200 --> 01:03:10.410
I developed the audit plan that you have before you.
01:03:10.410 --> 01:03:14.540
If any of the proposed audits are not completed in FY19,
01:03:14.540 --> 01:03:18.020
they'll be rolled over into the following year's audit plan.
01:03:18.020 --> 01:03:20.740
I'm requesting that the proposed audit plan be approved,
01:03:20.740 --> 01:03:22.077
and I'm available to answer any questions.
01:03:22.077 --> 01:03:23.560
[Commissioner Craddick] Thank you, Paul,
01:03:23.560 --> 01:03:24.850
are there any questions?
01:03:24.850 --> 01:03:26.550
Alright, I move we approve staff's recommendation,
01:03:26.550 --> 01:03:27.383
is there a second?
01:03:27.383 --> 01:03:28.216
Second.
01:03:28.216 --> 01:03:29.300
Second by Commissioner Christian,
01:03:29.300 --> 01:03:30.699
all those in favor say aye.
01:03:30.699 --> 01:03:31.532
Aye.
Aye.
01:03:31.532 --> 01:03:34.163
Motion was approved, thank you for your work.
01:03:34.163 --> 01:03:35.677
Thank you.
01:03:35.677 --> 01:03:36.510
Now Alex.
01:03:36.510 --> 01:03:38.242
Good morning, chairmen and commissioners,
01:03:38.242 --> 01:03:39.900
for the record my name is Alex Shock, General Counsel
01:03:39.900 --> 01:03:41.396
for the Railroad Commission of Texas.
01:03:41.396 --> 01:03:43.550
We don't have anything specific
01:03:43.550 --> 01:03:46.560
for Item 220, which is the rules and regulations,
01:03:46.560 --> 01:03:49.490
but we do have some rule-making regarding 221,
01:03:49.490 --> 01:03:51.313
which will be presented by David.
01:03:51.313 --> 01:03:52.834
[Commissioner Craddick] Good morning, David.
01:03:52.834 --> 01:03:54.778
Good morning, chairmen, commissioners.
01:03:54.778 --> 01:03:56.190
David Cooney from the Office of General Counsel.
01:03:56.190 --> 01:03:58.370
I'm here requesting that the Commission
01:03:58.370 --> 01:04:01.100
authorize our executive director to sign,
01:04:01.100 --> 01:04:06.100
along with the executive directors of the PUC and the TCEQ,
01:04:06.100 --> 01:04:09.160
a letter transmitting comments of the TCEQ,
01:04:09.160 --> 01:04:10.700
which we support,
01:04:10.700 --> 01:04:13.940
regarding the regulation of greenhouse gases
01:04:13.940 --> 01:04:17.023
at existing electric generating units.
01:04:22.390 --> 01:04:23.900
The highlights of the comments are,
01:04:23.900 --> 01:04:25.217
I've got three highlights of the comments,
01:04:25.217 --> 01:04:27.720
the rule is premature because
01:04:27.720 --> 01:04:32.100
TPA's legal foundation for regulating in this fashion
01:04:32.100 --> 01:04:34.823
is currently in litigation in the DC circuit.
01:04:35.760 --> 01:04:37.460
There are questions about the necessity
01:04:37.460 --> 01:04:39.056
of some of the information requests that
01:04:39.056 --> 01:04:39.990
are embedded in the rule,
01:04:39.990 --> 01:04:43.670
and there are questions about the cost estimates
01:04:43.670 --> 01:04:46.450
to the states for providing the
01:04:46.450 --> 01:04:48.812
information that's requested in the rule.
01:04:48.812 --> 01:04:51.336
So I'm asking that the Commission
01:04:51.336 --> 01:04:56.180
authorize Mr. Wang to sign or transmit a letter,
01:04:56.180 --> 01:04:57.430
we'll get it to the TCEQ,
01:04:58.302 --> 01:04:59.520
and those comments will get filed.
01:04:59.520 --> 01:05:01.517
I'm available for questions.
01:05:01.517 --> 01:05:02.372
[Commissioner Craddick] Thank you,
01:05:02.372 --> 01:05:03.205
are there any questions?
01:05:03.205 --> 01:05:04.080
Thank y'all for staying on top of this
01:05:04.080 --> 01:05:05.310
and working through it.
01:05:05.310 --> 01:05:06.143
Yes ma'am.
01:05:06.143 --> 01:05:07.059
[Commissioner Craddick] Appreciate it.
01:05:07.059 --> 01:05:08.480
I move we approve the staff's recommendation,
01:05:08.480 --> 01:05:09.313
is there a second?
01:05:09.313 --> 01:05:10.146
Second.
01:05:10.146 --> 01:05:10.979
Second, Commissioner Sitton,
01:05:10.979 --> 01:05:12.239
all those in favor say aye.
01:05:12.239 --> 01:05:13.270
Aye,
Aye.
01:05:13.270 --> 01:05:14.103
Thank you.
01:05:17.838 --> 01:05:19.255
Morning, Vanessa.
01:05:25.139 --> 01:05:27.670
Vanessa Burgess, Assistant General Counsel for the record,
01:05:27.670 --> 01:05:30.070
Item 222 on the agenda pertains to
01:05:30.070 --> 01:05:32.180
commissioner approval of certain contracts
01:05:32.180 --> 01:05:35.400
pursuant to the Commission's delegation of authority,
01:05:35.400 --> 01:05:40.400
and Section 2261.254 of the Texas Government Code.
01:05:40.460 --> 01:05:42.700
The Commission's internal delegation requires
01:05:42.700 --> 01:05:44.440
commissioner approval of contracts
01:05:44.440 --> 01:05:47.277
greater-than or equal to 500,000 dollars,
01:05:47.277 --> 01:05:52.277
and section 2261.24254 of the Texas Government Code
01:05:52.850 --> 01:05:56.290
requires approval of contracts greater than one million.
01:05:56.290 --> 01:05:58.870
At issue today, our new master service agreements
01:05:58.870 --> 01:06:01.030
for the site remediation section,
01:06:01.030 --> 01:06:02.980
and an agreement related to the purchase
01:06:02.980 --> 01:06:05.140
of agency fleet vehicles.
01:06:05.140 --> 01:06:07.030
Approval of this item today will ensure
01:06:07.030 --> 01:06:09.580
agency operations remain on schedule,
01:06:09.580 --> 01:06:11.620
and the necessary approvals will be in place,
01:06:11.620 --> 01:06:15.170
pursuant to the Commission's delegation and state law.
01:06:15.170 --> 01:06:16.550
A summary of these agreements,
01:06:16.550 --> 01:06:18.210
including contract number and amount,
01:06:18.210 --> 01:06:20.290
were included in your notebooks.
01:06:20.290 --> 01:06:22.640
Staff asks the Commission approve these agreements
01:06:22.640 --> 01:06:25.290
pursuant to the Commission's delegation of authority.
01:06:26.404 --> 01:06:27.436
[Commissioner Craddick] Thank you,
01:06:27.436 --> 01:06:28.269
are there any questions?
01:06:28.269 --> 01:06:30.160
I move we approve the staff's recommendation,
01:06:30.160 --> 01:06:31.431
is there a second?
01:06:31.431 --> 01:06:32.264
[Commissioner Christian] Second.
01:06:32.264 --> 01:06:33.180
Second by Commissioner Christian,
01:06:33.180 --> 01:06:34.527
all those in favor say aye.
01:06:34.527 --> 01:06:35.360
Aye.
Aye.
01:06:35.360 --> 01:06:36.610
Motion passes, item was approved.
01:06:36.610 --> 01:06:38.360
Thank you for you work.
Thank you.
01:06:38.360 --> 01:06:41.190
Alright, Alex, you didn't have anything else?
01:06:41.190 --> 01:06:44.380
Item 223 is our public participation item,
01:06:44.380 --> 01:06:46.050
and no one has turned in any cards
01:06:46.050 --> 01:06:48.850
that they wish to speak on any non-posted items.
01:06:48.850 --> 01:06:51.400
Item 224 is our Executive Session item,
01:06:51.400 --> 01:06:53.340
which we will not be going into today.
01:06:53.340 --> 01:06:55.200
Are there any other duly posted matters
01:06:55.200 --> 01:06:56.840
you've brought for the Commission at this time?
01:06:56.840 --> 01:07:00.140
Hearing none, the Commission is adjourned.
01:07:00.140 --> 01:07:01.540
Thank you all for your work.