WEBVTT

00:00:06.779 --> 00:00:11.574
Railroad Commission of Texas will come
to order to consider matters which

00:00:11.599 --> 00:00:16.110
have been duly posted with the
Secretary of State for April 23, 2019.

00:00:16.110 --> 00:00:20.735
The Commission will consider the items on
the agenda as posted on the agenda. Under

00:00:20.760 --> 00:00:25.250
our public participation policy, anyone
desiring to offer public testimony on any

00:00:25.275 --> 00:00:29.887
items that are not noticed on today's agenda
will need to fill out a testimony form

00:00:29.913 --> 00:00:34.226
found in the back of the room and submit
it to Commission Secretary Kathy Way.

00:00:34.251 --> 00:00:39.164
And a reminder to turn off your
cell phones. Item number one.
Good morning.

00:00:39.189 --> 00:00:42.911
Morning, Chairman and Commissioners.
My name is Amy

00:00:42.936 --> 00:00:46.705
Bruce. I'm representing the
Market Oversight section

00:00:46.730 --> 00:00:50.225
of the Oversight and Safety Division.
Before you

00:00:50.250 --> 00:00:53.649
today is Gas Utilities
Docket number 10825. The

00:00:53.649 --> 00:00:59.016
application filed by Gulf Coast Express
Pipeline LLC pursuant to the Natural Gas

00:00:59.041 --> 00:01:04.449
Policy Act Section 311 for review of the
reasonableness of a transportation rate.

00:01:04.449 --> 00:01:07.401
Gulf Coast Express Pipeline
LLC provided testimony

00:01:07.426 --> 00:01:09.890
and supporting data
demonstrating that the

00:01:09.890 --> 00:01:15.000
requested rates do not exceed a cost based
rate. Staff recommends approval of the

00:01:15.000 --> 00:01:18.185
requested rates, and I'm
available for any questions.

00:01:18.210 --> 00:01:19.659
- Thank you. Are there any questions?

00:01:19.659 --> 00:01:22.245
I move we approve the
examiners' recommendation.

00:01:22.270 --> 00:01:24.250
Is there a second?
- Second.
All those in favor

00:01:24.250 --> 00:01:33.630
say aye. Motion passes. Item approved. Thank
you, Amy. Item number 2. Good morning.

00:01:33.630 --> 00:01:37.810
- Good morning, Chairman and Commissioners.
For the record, my name is Robert Music,

00:01:37.810 --> 00:01:40.610
technical examiner For
the Hearings division.

00:01:40.635 --> 00:01:43.289
Item number two is the
application of PetCo

00:01:43.289 --> 00:01:46.258
Petroleum Corporation to
increase the injection

00:01:46.283 --> 00:01:48.979
pressure for their
current permit to inject

00:01:48.979 --> 00:01:51.916
fluids into their
reservoir productive of

00:01:51.941 --> 00:01:54.784
oil and gas under
Statewide Rule 46. The

00:01:54.809 --> 00:01:57.734
current permit authorizes
PetCo to inject

00:01:57.759 --> 00:02:00.868
fluids for the secondary
recovery initiative

00:02:00.869 --> 00:02:04.217
on the Annie lease, well
number ten, in Great

00:02:04.242 --> 00:02:07.710
County, Texas. PetCo's
existing permit limits the

00:02:07.710 --> 00:02:10.521
injection pressure to
two hundred pounds per

00:02:10.546 --> 00:02:13.270
square inch. PetCo
asserts that the current

00:02:13.270 --> 00:02:16.493
injection pressure
physically limits their

00:02:16.518 --> 00:02:19.940
injection volume. PetCo's
application request

00:02:19.940 --> 00:02:23.225
to increase the ejection
pressure to one thousand

00:02:23.250 --> 00:02:26.050
pounds to eject a
permitted maximum volume

00:02:26.050 --> 00:02:29.367
of twelve hundred fifty
barrels per day of fresh

00:02:29.392 --> 00:02:32.480
and salt water. The
application is protested

00:02:32.480 --> 00:02:35.603
by Kirkpatrick Oil Company,
and offset operator

00:02:35.628 --> 00:02:38.400
and the operator of the
Blake lease, which

00:02:38.400 --> 00:02:41.248
is on the southern
boundary and contiguous

00:02:41.273 --> 00:02:44.300
with the Annie lease.
Kirkpatrick contends the

00:02:44.300 --> 00:02:46.655
increase injection
pressure will increase

00:02:46.680 --> 00:02:48.954
the injection volumes
and damage mineral

00:02:48.979 --> 00:02:51.322
resources associated
with the Blake lease

00:02:51.347 --> 00:02:53.720
and cause waste by
straining oil that will

00:02:53.720 --> 00:02:57.220
not be recovered. As
such, an increase in

00:02:57.245 --> 00:03:00.970
water injection costs
by a fivefold increase

00:03:00.970 --> 00:03:03.968
from two hundred to one
thousand pounds and

00:03:03.993 --> 00:03:07.170
maximum surface objection
pressure will worsen

00:03:07.170 --> 00:03:10.073
the current conditions.
PetCo failed to meet its

00:03:10.098 --> 00:03:12.680
burden of proof that
the increase injection

00:03:12.680 --> 00:03:16.002
volumes would not harm
Kirkpatrick's mineral

00:03:16.027 --> 00:03:19.250
resources. The examiners
recommend denial

00:03:19.250 --> 00:03:21.590
of PetCo's application
to amend the maximum

00:03:21.615 --> 00:03:23.930
surface injection
pressure from two hundred

00:03:23.930 --> 00:03:27.011
to one thousand pounds.
No exceptions were

00:03:27.036 --> 00:03:30.020
filed. I'm available for questions.

00:03:30.020 --> 00:03:32.459
- Thank you. There any questions?
I move we approved

00:03:32.484 --> 00:03:34.760
the examiners' recommendation.
Is there a second?

00:03:34.760 --> 00:03:37.286
Second by Commissioner Christian.
All

00:03:37.311 --> 00:03:39.879
those in favor say aye.
Motion passes.

00:03:39.879 --> 00:03:44.732
Item's approved. Thank you, Robert. Item
number three. Good morning, Christie.

00:03:44.757 --> 00:03:47.189
- Good morning, Chairman.
Good Morning,

00:03:47.189 --> 00:03:49.054
Commissioners. For the
record, Christie Reeve,

00:03:49.079 --> 00:03:50.760
Administrative Law Judge
with the Hearings

00:03:50.760 --> 00:03:53.336
division. I'll be presenting
items number three

00:03:53.361 --> 00:03:55.590
through fifteen, all
of which are motions

00:03:55.590 --> 00:03:58.766
for rehearing resulting
from default orders

00:03:58.791 --> 00:04:02.159
signed in good faith
claim complaints. Item

00:04:02.159 --> 00:04:06.629
number three. On February 26, 2019,
the Commission entered an order

00:04:06.629 --> 00:04:08.853
finding that Arrowhead
Productions LP does

00:04:08.878 --> 00:04:11.180
not have a good faith
claim right to operate

00:04:11.180 --> 00:04:14.142
the subject lease. On
March 8 Arrowhead filed

00:04:14.167 --> 00:04:16.910
a timely motion for rehearing.
No response

00:04:16.910 --> 00:04:19.390
was filed by complainants.
Arrowhead's motion

00:04:19.415 --> 00:04:21.870
for rehearing fails to
meet any of the prongs

00:04:21.870 --> 00:04:24.121
of the Craddock test and
fails to comply with

00:04:24.146 --> 00:04:26.420
the requirements of the
Texas Government Code.

00:04:26.420 --> 00:04:29.077
It is recommended that
the motion be denied.

00:04:29.102 --> 00:04:31.556
The motion will be
overruled by Operation

00:04:31.581 --> 00:04:34.047
of Law on June 6, 2019.
I'm available for questions.

00:04:34.072 --> 00:04:36.220
- Thank you. Any questions?

00:04:36.220 --> 00:04:38.927
I move we approve the
examiners' recommendation.

00:04:38.952 --> 00:04:41.690
Is there a second? Second
by Commissioner Sitton.

00:04:41.690 --> 00:04:43.977
All those in favor say aye.
Motion passes.

00:04:44.002 --> 00:04:47.705
Item's approved. And you're going to
do four through fifteen together?

00:04:47.729 --> 00:04:51.542
- Yes, ma'am. On February 26, 2019,
the Commission entered an order

00:04:51.567 --> 00:04:55.243
finding that Top Op LLC does not
have a good faith claim right to

00:04:55.269 --> 00:04:59.070
operate various leases in Victoria
County, Texas. The order was the

00:04:59.095 --> 00:05:02.815
result of a good faith claim complaint
filed by the trustee of one

00:05:02.839 --> 00:05:05.348
of the mineral owners
and Top Op's subsequent

00:05:05.373 --> 00:05:07.802
failure to answer the
ALJ's letter requiring

00:05:07.828 --> 00:05:10.270
Top Op to either provide
evidence it holds a

00:05:10.295 --> 00:05:12.712
good faith claim or
request a hearing. These

00:05:12.737 --> 00:05:16.927
dockets had a previous order
signed on August 21, 2018.

00:05:16.952 --> 00:05:20.669
The result of the same
facts. On October 30, 2018,

00:05:20.669 --> 00:05:23.108
a motion for rehearing
was granted for

00:05:23.133 --> 00:05:25.672
Top Op on the prior
order recommended by

00:05:25.697 --> 00:05:28.373
the ALJ out of an
abundance of caution due

00:05:28.398 --> 00:05:30.800
to a possible mailing issue.
As Top Op

00:05:30.800 --> 00:05:33.336
failed to request a
hearing subsequent to

00:05:33.361 --> 00:05:35.690
the prior order being
vacated, the ALJ

00:05:35.690 --> 00:05:38.381
another letter on
December 3, 2018, giving

00:05:38.406 --> 00:05:40.759
notice to Top Op to
schedule a hearing

00:05:40.759 --> 00:05:43.024
or provide evidence that
it has a good faith

00:05:43.049 --> 00:05:45.340
claim. Top Op failed to
respond to the letter

00:05:45.340 --> 00:05:47.535
by the due date or at
any time prior to the

00:05:47.560 --> 00:05:49.630
Commission signing the
February 26, 2019,

00:05:49.630 --> 00:05:52.134
order. On March 21, 2019,

00:05:52.159 --> 00:05:55.440
Top Op filed that second motion

00:05:55.440 --> 00:05:57.808
for rehearing, again
stating that it did not

00:05:57.833 --> 00:06:00.229
receive the ALJ's letter
and that complainant

00:06:00.229 --> 00:06:02.745
had failed to serve it
with the complaints

00:06:02.770 --> 00:06:05.320
so it was unable to respond.
A response was

00:06:05.320 --> 00:06:08.118
received from complainant.
In summary, complainant

00:06:08.143 --> 00:06:10.630
states it finds it
implausible that Top Op

00:06:10.630 --> 00:06:13.346
receives orders mailed
but not letters. And

00:06:13.371 --> 00:06:16.000
that Top Op failed
to provide any

00:06:16.000 --> 00:06:18.368
supporting evidence or
affidavits to support

00:06:18.393 --> 00:06:20.789
its claims. It is
recommended that the motion

00:06:20.789 --> 00:06:23.005
be denied. The motion
will be overruled by

00:06:23.030 --> 00:06:25.530
operation of Law on June 6, 2019.

00:06:25.530 --> 00:06:27.668
I'm available for questions.

00:06:27.693 --> 00:06:32.250
- Thank you. They're any questions?
I have affidavits from

00:06:32.250 --> 00:06:33.654
both parties. Does anybody want

00:06:33.679 --> 00:06:35.194
to hear from either one of them?

00:06:35.220 --> 00:06:38.270
I move we approve the examiners'

00:06:38.270 --> 00:06:41.081
recommendation for items
four through fifteen.

00:06:41.106 --> 00:06:44.250
Is there a second? Second
by Commissioner Christian.

00:06:44.250 --> 00:06:49.393
All those in favor say aye. Motion passes.
Items are approved.

00:06:49.418 --> 00:06:51.270
- Thank you very much.

00:06:51.270 --> 00:06:54.205
Alright, we're going to
items sixteen through

00:06:54.230 --> 00:06:57.139
twenty eight which is
the Oil and Gas Consent

00:06:57.139 --> 00:06:59.579
Agenda. There are thirteen
items on this. I move

00:06:59.604 --> 00:07:01.770
we approve item sixteen
through twenty eight.

00:07:01.770 --> 00:07:04.467
Is there a second?
Second by Commissioner

00:07:04.492 --> 00:07:07.229
Sitton. All those in favor say aye.

00:07:07.229 --> 00:07:09.967
Motion passes. Those items
are approved. Master

00:07:09.992 --> 00:07:12.590
Default Orders. There
are six of those. Items

00:07:12.590 --> 00:07:15.031
twenty nine through thirty four.
I move we

00:07:15.056 --> 00:07:17.699
approve items twenty nine
through thirty four.

00:07:17.699 --> 00:07:20.697
Is there a second? Second
by Commissioner Christian.

00:07:20.722 --> 00:07:23.129
All those in favor say aye.
Motion passes.

00:07:23.129 --> 00:07:24.615
Those items were approved.

00:07:24.640 --> 00:07:26.917
And Agreed Enforcement Orders.
There are a

00:07:26.942 --> 00:07:29.353
hundred fifty one of these.
I move we approve

00:07:29.378 --> 00:07:31.590
items thirty one through
one eighty five.

00:07:31.614 --> 00:07:33.801
Is there a second?
Second by Commissioner

00:07:33.801 --> 00:07:36.571
Sittion. All those in favor say aye.
Motion

00:07:36.596 --> 00:07:39.341
passes. Those items were approved.
I'm sorry

00:07:39.340 --> 00:07:42.133
did I go too fast?
- Did you say one ninety five or one eighty five?

00:07:42.158 --> 00:07:45.129
- One eighty five. I hope.
- You said thirty one through,
- Thirty five. I'm sorry, let

00:07:45.129 --> 00:07:48.840
me start over. Thirty
five through one eighty

00:07:48.865 --> 00:07:52.470
five, yes? One hundred
fifty one items. Do I

00:07:52.470 --> 00:07:56.668
need to redo my motion.
Did I get right?

00:07:56.693 --> 00:08:01.070
Did it clarify it? Okay,
so we've approved

00:08:01.070 --> 00:08:03.661
thirty five through one eighty five.
Thank you.

00:08:03.686 --> 00:08:06.199
And that concludes nearing section.
Thank you.

00:08:06.199 --> 00:08:11.172
We'll now take up Administrative.
Wei, good morning.

00:08:11.197 --> 00:08:15.300
- Good Morning, Chairman
and Commissioners.

00:08:15.300 --> 00:08:18.235
Wei Wang, Executive Director.
As of last

00:08:18.260 --> 00:08:21.099
Thursday, our head
count in this agency

00:08:21.099 --> 00:08:21.836
is seven hundred seventy
one employees. And

00:08:21.861 --> 00:08:22.590
also, as of last Thursday,
we had physically

00:08:22.590 --> 00:08:27.358
plugged one thousand and
eighty five wells. I

00:08:27.383 --> 00:08:32.229
believe Clay would have
a more detailed report

00:08:32.229 --> 00:08:35.978
for the second quarter
for you on well plugging

00:08:36.003 --> 00:08:39.570
and site remediation later.
And I'm also glad

00:08:39.570 --> 00:08:42.727
to report we continue
to make improvements

00:08:42.752 --> 00:08:45.810
on our IT systems. And
for Form ST1, this

00:08:45.810 --> 00:08:49.222
is the form related to
high cost gas incentive.

00:08:49.247 --> 00:08:52.420
We're planning, we plan
to release that form

00:08:52.420 --> 00:08:55.281
online on April 29,
next Monday, as

00:08:55.306 --> 00:08:58.540
part of the Oil Field
Relief Initiative.

00:08:58.540 --> 00:09:01.995
In addition to that, we
also made enhancement

00:09:02.020 --> 00:09:05.150
to RRC oil. This is
the online inspection

00:09:05.150 --> 00:09:08.315
look up. And when we're release
this, in January, I've

00:09:08.340 --> 00:09:11.250
mentioned that we'll continue
to make improvements

00:09:11.250 --> 00:09:13.690
on this online form.
And today, I have with

00:09:13.715 --> 00:09:16.130
me Edgar, and he's going
to do a very quick

00:09:16.130 --> 00:09:19.571
demo to show you the
additional features we

00:09:19.596 --> 00:09:23.090
put on this RRC Oil to
enhance transparency.
Thank you.

00:09:23.090 --> 00:09:26.555
- Good morning,
Commissioners, Chairman.

00:09:26.580 --> 00:09:30.020
For the record, my
name is Edgar Chavez.

00:09:30.020 --> 00:09:32.001
And this morning, I'm
gonna provide you with

00:09:32.026 --> 00:09:34.582
a very quick update on
the enhancements that

00:09:34.681 --> 00:09:37.774
we did to the RRC Oil. During
the last presentations,

00:09:37.799 --> 00:09:40.580
I think, you asked what,
you know, is this gonna

00:09:40.680 --> 00:09:43.280
be like this forever? Are
you gonna continue to

00:09:43.305 --> 00:09:45.880
make enhancements? And
we are going to continue

00:09:45.880 --> 00:09:48.056
to listen to the feedback
that we received

00:09:48.081 --> 00:09:50.130
from our constituents,
our industry, the

00:09:50.130 --> 00:09:53.406
general public. And one
of the things that

00:09:53.431 --> 00:09:56.530
they've been asking a
lot was ability to

00:09:56.530 --> 00:10:00.405
export the results to an Excel file.
So this is our main

00:10:00.430 --> 00:10:04.280
website. Right if you click here.
It will get you to our

00:10:04.280 --> 00:10:09.814
RRC Oil. The obligation,
uh let me reset this.

00:10:09.839 --> 00:10:15.230
So if somebody is
interested in no compliance

00:10:15.230 --> 00:10:18.797
of Statewide Rule 5. And
they click Search, they

00:10:18.822 --> 00:10:22.000
will get, you know,
forty eight inspections

00:10:22.000 --> 00:10:24.517
that were not complying on that rule.
And now

00:10:24.542 --> 00:10:26.760
they want to export
all those results to

00:10:26.760 --> 00:10:29.983
an Excel file. They click
this button and it

00:10:30.008 --> 00:10:33.350
will open up an Excel file.
And now that, they

00:10:33.350 --> 00:10:35.871
can do whatever they
want with it, they can

00:10:35.896 --> 00:10:38.450
share with with their
own, uh, staff if they

00:10:38.450 --> 00:10:42.468
want to. So that is the
primary feature. There's

00:10:42.493 --> 00:10:46.240
additional items like we did.
If there's more

00:10:46.240 --> 00:10:48.383
than a certain number
of records, there's

00:10:48.408 --> 00:10:50.680
messaging, that there's your record.
There's

00:10:50.680 --> 00:10:54.125
a messaging that that shows up.
Uh, but in

00:10:54.150 --> 00:10:57.570
general, that some of
the main things that

00:10:57.570 --> 00:11:01.265
we have heard from the
users of his application.

00:11:01.290 --> 00:11:03.980
And all of this is,
again, with the

00:11:03.980 --> 00:11:07.588
spirit of continual transparency and
improving our reporting capabilities.

00:11:07.613 --> 00:11:10.462
- Thank you. I've heard a lot
about the Excel spreadsheet.

00:11:10.487 --> 00:11:13.071
People wanted that. So I
appreciate you getting that.

00:11:13.070 --> 00:11:14.636
And this is my last night.

00:11:14.661 --> 00:11:18.550
Great. Thank you. Appreciate it.
Thank you.
- Are you are you hire

00:11:18.550 --> 00:11:22.359
on the side? So I've been
trying to move my address book

00:11:22.384 --> 00:11:25.900
for two years to Excel.
Always get the phone numbers

00:11:25.900 --> 00:11:28.752
on the cities, and
it's screwed up.

00:11:28.777 --> 00:11:32.209
- We can do something about.
- No you can't.

00:11:32.234 --> 00:11:36.120
No state resources. Thank you.
Thank you all

00:11:36.120 --> 00:11:38.689
for continuing to improve.

00:11:38.714 --> 00:11:43.586
- That concludes my report this morning.
Thank you.

00:11:43.611 --> 00:11:45.210
- Thank you.

00:11:45.210 --> 00:11:47.945
- Usually, we have to
call the Help Desk.

00:11:47.970 --> 00:11:52.390
- Yeah, but they don't know, if
they speak my language, it's kind

00:11:52.390 --> 00:11:54.818
of a problem. East
Texas compared to

00:11:54.843 --> 00:11:57.770
wherever they're from
is hard to understand.

00:11:57.770 --> 00:11:59.932
- Good morning, Chairman
and Commissioners. For the

00:11:59.957 --> 00:12:02.260
record, my name is Alex Schott,
General Counsel for the

00:12:02.260 --> 00:12:03.894
Railroad Commission of Texas.
We've got nothing to

00:12:03.919 --> 00:12:05.560
report for item one eighty
seven other than to note

00:12:05.560 --> 00:12:09.367
that the proposed
comments we talked about

00:12:09.392 --> 00:12:12.820
last session have
been filed with EPA.

00:12:12.820 --> 00:12:18.616
And Vanessa has the next two items.
- Okay. Thank you. Morning.

00:12:18.641 --> 00:12:22.251
- Good morning. Vanessa Bridges,
Assistant General Counsel,

00:12:22.276 --> 00:12:25.380
for the record. Item one
eighty eight on the agenda

00:12:25.380 --> 00:12:27.535
pertains to Commissioner
approval of certain

00:12:27.560 --> 00:12:29.930
contracts pursuant to the
Commission's delegation

00:12:29.930 --> 00:12:35.290
of Authority and Section
2261.254 of the Texas Government

00:12:35.290 --> 00:12:37.539
Code. The Commission's
internal delegation

00:12:37.564 --> 00:12:39.840
of authority requires
Commissioner approval

00:12:39.840 --> 00:12:42.487
of contracts and associated
amendments greater

00:12:42.512 --> 00:12:45.190
than or equal to five
hundred thousand dollars.

00:12:45.190 --> 00:12:49.830
Section 2261.254 requires approval
of contracts and associated

00:12:49.830 --> 00:12:52.378
amendments greater than
one million dollars.

00:12:52.403 --> 00:12:55.040
At issue today are new
contracts for statewide

00:12:55.040 --> 00:13:00.881
well plugging services. Approval of
this item today will ensure agency

00:13:00.881 --> 00:13:03.623
operations remain on
schedule, and the necessary

00:13:03.648 --> 00:13:06.030
approvals will be in
place pursuant to the

00:13:06.030 --> 00:13:10.246
Commission's delegation of
authority and state law.

00:13:10.271 --> 00:13:13.570
- Thank you. Are
there any questions?

00:13:13.570 --> 00:13:15.619
I move we approve the
staff's recommendation. Is

00:13:15.644 --> 00:13:17.710
there a second? Second by
Commissioner Christian.

00:13:17.710 --> 00:13:21.866
All those in favor say aye. Motion passes.
Item's approved.

00:13:21.891 --> 00:13:23.390
- And Item one eighty nine

00:13:23.390 --> 00:13:25.702
is the quarterly report
on the Commission

00:13:25.727 --> 00:13:28.510
centralization of agency
procurement and contracts

00:13:28.510 --> 00:13:30.941
management and
compliance with Senate

00:13:30.966 --> 00:13:33.180
Bill 20 from the
84th Legislature.

00:13:33.180 --> 00:13:35.247
The Office of General
Counsel's Contracts attorney

00:13:35.272 --> 00:13:37.030
has been working closely
with the Contracts

00:13:37.030 --> 00:13:39.562
Management Group and the
Oil and Gas Division

00:13:39.587 --> 00:13:42.150
on solicitations for
special plugging projects

00:13:42.150 --> 00:13:44.476
that will allow for more
non routine plugging

00:13:44.501 --> 00:13:46.700
efforts to be completed
in a matter that is

00:13:46.700 --> 00:13:50.006
compliant with both
SB20 and comptroller

00:13:50.031 --> 00:13:53.070
best practices.
Additionally, OGC has

00:13:53.070 --> 00:13:55.240
been working with the
Contracts Management

00:13:55.265 --> 00:13:57.360
group and divisions
to ensure that agency

00:13:57.360 --> 00:13:59.885
risk management standards
are in line with

00:13:59.910 --> 00:14:02.410
comptroller best practices
in the areas of

00:14:02.410 --> 00:14:04.807
bonding and insurance requirements.
These

00:14:04.832 --> 00:14:07.490
assessments and resulting
new language changes

00:14:07.490 --> 00:14:10.224
result in the agency having
stronger solicitations

00:14:10.249 --> 00:14:12.850
and contracts that will
allow for more efficient

00:14:12.850 --> 00:14:15.346
future solicitations
on similar projects.

00:14:15.371 --> 00:14:18.080
And finally, the agency's
grants coordinators

00:14:18.080 --> 00:14:21.243
working with staff and
OGC to develop a revised

00:14:21.268 --> 00:14:24.010
reference guide for
divisions contracting

00:14:24.010 --> 00:14:26.445
with federal grant dollars.

00:14:26.470 --> 00:14:33.280
- Thank you, I appreciate the update.
We don't have to take any,

00:14:33.280 --> 00:14:37.515
there's no item, to do
anything, but thank you

00:14:37.540 --> 00:14:41.660
for continuing to work on that.
I appreciate it.

00:14:41.660 --> 00:14:46.551
Thank you. Alex? One ninety.
Morning.

00:14:46.576 --> 00:14:48.570
- Morning, Chairman,
Commissioners.

00:14:50.295 --> 00:14:51.490
For the record, I am Clay Little,

00:14:51.490 --> 00:14:55.511
Oil and Gas division, and I
will be presenting items one

00:14:55.536 --> 00:14:59.180
ninety and one ninety
one.Item one ninety, staff is

00:14:59.180 --> 00:15:01.636
seeking your approval to
make available for public

00:15:01.661 --> 00:15:03.900
comment the Commission's
Oil and Gas division

00:15:03.900 --> 00:15:07.705
monitoring and enforcement
plan for Fiscal Year

00:15:07.730 --> 00:15:11.430
2020. The plan was required
by House Bill 1818

00:15:11.430 --> 00:15:16.930
from the 85th Legislature.
House Bill 1818 also requires

00:15:16.930 --> 00:15:20.318
the Commission to seek
public input as the plan's

00:15:20.343 --> 00:15:23.910
developed. With your approval,
the plan will be made

00:15:23.910 --> 00:15:26.757
available to the public
from today until May 23

00:15:26.782 --> 00:15:29.540
with the option to submit the

00:15:29.540 --> 00:15:34.036
feedback via a web-based
survey form or via US Mail.

00:15:34.061 --> 00:15:37.430
We will return to
conference on June 18

00:15:37.430 --> 00:15:39.261
with a final version
of the plan for your

00:15:39.286 --> 00:15:41.310
approval. That version
will reflect any public

00:15:41.310 --> 00:15:44.193
comment received by May 23.
The final

00:15:44.218 --> 00:15:47.380
version of the plan
must be posted to the

00:15:47.380 --> 00:15:51.573
Commission's website no later than July 1.
May I answer any questions?

00:15:51.598 --> 00:15:54.290
- Any questions? All right,

00:15:54.290 --> 00:15:56.810
I move we approve the
staff's recommendation.

00:15:56.835 --> 00:15:59.111
Is there a second?
Second by Commissioner

00:15:59.111 --> 00:16:04.624
Sitton. All those in favor say aye.
Motion passes. Item is approved.

00:16:04.649 --> 00:16:08.300
Commissioners, item one ninety one
is the Oil Field Clean-up Program

00:16:08.300 --> 00:16:10.859
Second Quarter Status
Report for Fiscal

00:16:10.884 --> 00:16:13.610
Year 2019. I will present
the well-plugging

00:16:13.610 --> 00:16:16.255
report and Peter Pope will
present the site remediation

00:16:16.280 --> 00:16:18.380
section. During the
second quarter, plugging

00:16:18.380 --> 00:16:20.500
operations were completed
and files were closed

00:16:20.525 --> 00:16:22.400
on two hundred ninety
nine wells at a cost

00:16:22.400 --> 00:16:25.325
five million five hundred
ninety six thousand

00:16:25.350 --> 00:16:28.060
four hundred eleven dollars.
This includes

00:16:28.060 --> 00:16:30.767
only those wells that
were plugged, invoiced by

00:16:30.792 --> 00:16:33.530
the plugging contractor,
and approved replacement

00:16:33.530 --> 00:16:36.681
by field operations.
During this same period,

00:16:36.706 --> 00:16:39.536
four hundred fifty two
new wells were approved

00:16:39.561 --> 00:16:41.447
for plugging with state funds.
The memo in your

00:16:41.772 --> 00:16:44.050
notebooks incorrectly
list this as eighteen

00:16:44.150 --> 00:16:46.373
hundred, eight hundred
fifteen new wells.

00:16:47.498 --> 00:16:50.989
The fiscal years bank totals through
the end of the second quarter

00:16:51.014 --> 00:16:54.740
include eight hundred two wells
physically club, of which five hundred

00:16:54.740 --> 00:16:57.280
forty nine have been
invoiced and paid, and

00:16:57.305 --> 00:16:59.760
a total of eight hundred
fifteen new wells

00:16:59.760 --> 00:17:02.876
have been approved for
plugging with state funds.

00:17:02.901 --> 00:17:05.680
As Wei mentioned earlier,
this last Thursday,

00:17:05.680 --> 00:17:09.394
we have a thousand and eighty
five wells physically plugged

00:17:09.419 --> 00:17:12.860
at an estimated cost of twenty
one point eight million.

00:17:12.860 --> 00:17:15.685
And I'll turn this
over to Peter.

00:17:14.910 --> 00:17:17.309
- Before you do, so
how many wells do we

00:17:17.334 --> 00:17:19.650
have left to plug? Roughly?
Do you have

00:17:19.650 --> 00:17:23.320
any idea? Is it still that
six thousand magic number?

00:17:23.344 --> 00:17:26.088
The three thousand
for the two years?

00:17:26.113 --> 00:17:29.844
She's talking about the total.
Not the backlog.

00:17:29.868 --> 00:17:31.868
- What do we have?
What's our backlog?

00:17:31.892 --> 00:17:35.312
- Our backlog? We have, our
orphan well population is still

00:17:35.337 --> 00:17:39.040
running at, I believe the last
month, it was at 6500 orphan wells.

00:17:41.180 --> 00:17:43.074
- I just wanna make sure.
We might get asked that

00:17:43.099 --> 00:17:45.120
question. Thank you. I know,
we're still, we're making

00:17:45.120 --> 00:17:48.820
progress, but we're treading water.
- We are. Keeping our heads slightly above.

00:17:48.845 --> 00:17:51.040
- That's right. Y'all are
doing a great job. Thank you.

00:17:51.040 --> 00:17:55.117
- Good morning, Chairman
and Commissioners, Peter

00:17:55.142 --> 00:17:59.520
Pope, Manager of the Site
Remediation section. During

00:17:59.520 --> 00:18:01.777
the second quarter of
Fiscal Year 19, the

00:18:01.802 --> 00:18:03.980
state managed clean-up
program completed

00:18:03.980 --> 00:18:07.694
and closed forty eight
activities using OGRQ

00:18:07.719 --> 00:18:11.160
funds at a cost of six
hundred twenty nine

00:18:11.160 --> 00:18:14.551
thousand four hundred nine dollars.
An additional

00:18:14.576 --> 00:18:17.670
seventy six activities were
authorized during the quarter.

00:18:17.670 --> 00:18:21.319
At the end of the second
quarter, year-to-date,

00:18:21.344 --> 00:18:23.980
fifty seven cleanup
activities have

00:18:23.980 --> 00:18:25.617
been completed at a cost
six hundred eighty one

00:18:25.642 --> 00:18:27.220
thousand eight hundred
seventy three dollars.

00:18:27.220 --> 00:18:31.333
One hundred sixteen clean
up activities were,

00:18:31.358 --> 00:18:34.820
one hundred sixteen
authorized cleanup

00:18:34.820 --> 00:18:38.520
activities remain to be completed.
For a current,

00:18:38.545 --> 00:18:41.850
for a more current
snapshot, as of April 18,

00:18:41.850 --> 00:18:44.893
the program completed
another forty nine activities

00:18:44.918 --> 00:18:48.299
giving us a total of one
hundred six completed

00:18:48.299 --> 00:18:50.241
activities at a cost of
six million three hundred

00:18:50.266 --> 00:18:52.300
sixty six thousand seven
hundred ninety six dollars.

00:18:52.300 --> 00:18:55.775
And then an additional
forty activities

00:18:55.800 --> 00:18:59.510
have been completed in
the field at a cost

00:18:59.510 --> 00:19:05.045
of one million, about one point two
million, but those are awaiting

00:19:05.070 --> 00:19:10.011
final invoice payment. I'm
available to answer any questions.

00:19:10.011 --> 00:19:11.808
- Thank you. There any questions?
Thank you all

00:19:11.833 --> 00:19:13.530
for the work you're doing.
We sure appreciate

00:19:13.530 --> 00:19:21.050
it. Item one ninety two is public
participation. We don't have anybody

00:19:21.050 --> 00:19:23.112
else. Item one ninety
three's Executive Session,

00:19:23.137 --> 00:19:24.880
which we're not going into.
Are there any

00:19:24.880 --> 00:19:27.168
other duly posted matters?
Hearing none then this meeting

00:19:27.193 --> 00:19:29.244
is adjourned. Thank you all
very much for the work.