WEBVTT
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This meeting
I apologize
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on behalf of healthy people.
If y'all see
me humping around,
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bent over like that. It's
the pain back here, I
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got X-rayed yesterday? Okay.
This meeting of
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the Railroad Commission of Texas will come
to order to consider matters which have been
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duly posted with the
Secretary of State for
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August 20, 2019. The
Commission will consider
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the items on the agenda
as posted on the agenda.
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Under our public
participation policy, anyone
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designed to offer public testimony
on any items that are not noticed on
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today's agenda will need
to fill out a testimony
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form found in the back
of the room and submit
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it to this Commission. Secretary Kathy Way.
Please silence all your cell phones before
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we begin. Okay, let's start with item number one.
Morning, Chairman, Commissioners.
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Kyle Lubbey with the Hearings division, I'll
be presenting items one and two on today's
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agenda. The subject of
both items is replacement
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bond applications filed
about Texas Municipal
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Power Agency, or TMPA,
for its permits, Number
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26D and 38D for the
Gibbons Creek Lignite
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Mine, located in Grimes County. Regarding
item one, permit 26D is currently bonded
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by collateral bond and
letter of credit issued
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by Wells Fargo Bank NA,
or Wells Fargo, in
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the amount of $10 million.
TMPA requests acceptance
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of a replacement collateral
bond with an amendment to
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accepted letter of credit, also issued by
Wells Fargo, that effectively increases the
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amount of bond to 11.4 million.
The proferred
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amendment also includes
language that specifies the
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Commission may draw on a
letter of credit pursuant
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to Section 12.309(g)2
of the regulations that
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addresses when forfeiture proceedings are
to commence, if a suitable replacement bond
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or collateral was not
accepted prior to the
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expiration of the current collateral.
All other terms
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of the existing letter
credit are unaffected by
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the subject amendment,
including the expiration
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date of June 9, 2020.
Acceptance of the replacement
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collateral bond with
amendment will result
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in bonding that exceeds
the amount of staff's
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most recent reclamation
cost estimate for
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the permit, and all
other issues have been
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sufficiently addressed
by TMPA for acceptance.
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Ordering paragraphs were
included in the proposed
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order to ensure the
timely submittal and
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processing of replacement
bond instruments
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prior of the expiration
of the accepted letter
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of credit. Staff and TMPA
are the only parties
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to the proceeding. No
exceptions were filed.
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It is recommended the
Commission accept the
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proferred collateral bond
with amendment to the
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existing letter of credit to replace the
current bond. I'm available for questions.
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Are
there any questions? I
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move we approve the
examiners' recommendation.
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Is there a second?
Second.
All in favor say aye.
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Any opposed? Motion passes. That
item is approved. Item number two.
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In item two, permit number
38D is currently bonded by a self bond
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in the amount of $3.3
million in a collateral
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bond with letter of
credit issued by Wells
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Fargo in the amount of 9.3 million. TMPA
requests acceptance of a collateral bond with
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amendment to the current letter of credit
to replace the existing collateral bond. No
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changes to the accepted
self bond are proposed in
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the application. The
proferred amendment to the
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letter of credit increases
the amount of the
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instrument to $11.9 million
and includes language
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to specifies the
Commission can draw on the
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letter of credit pursued
the sections 12.309(g)2
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of the regulations. No other terms of the
existing letter of credit are altered by
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the subject amendment,
including the expiration
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date of June 9, 2020.
Upon acceptance of
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the replacement collateral
brown, an amendment
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with the existing self
bond remaining in place.
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Total amount of bond
for the permit will be
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$15.2 million, an amount
that exceeds staff's
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most recent reclamation cost estimate. Our
requirements for acceptance of collateral
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bond with amendment to the current letter of
credit have been met. Additional ordering
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paragraphs are included
in the proposed order
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to ensure the timely
submittal and processing
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of replacement bond instruments. Staff and
TMPA are the only parties to the proceeding.
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Neither filed exceptions.
It is recommended the
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Commission accept the
proferred collateral
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bond with amendment to
the letter of credit to
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replace the existing collateral bond.
I'm available for questions.
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Are there any questions?
I move we approve
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the examiners' recommendation.
Is there a second?
Second.
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Second by
Commissioner Craddick. All
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in favor say aye. Any opposed?
Motion passes. That
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item is approved. Item
number three.
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Good morning, Chairman,
Commissioners. Robert Music,
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technical examiner for
the hearings division.
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Item number three is an
application by Valence
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Operating Company to amend field rules for
the Girlie Caldwell Goodland LM Field in
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Smith, Henderson and Van
Zandt counties, Texas.
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This item is an amended
proposal for decision.
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The initial PFD was
considered by the Commission
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at the December 11,
2018, conference. The
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Commission issued an order
approving the examiners
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recommendation regarding
the field rules,
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which did not contain a
tubing exception. Prior
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to the issuance of the
initial PFD, the examiners
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believed that the applicant
had withdrawn its
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request for a tubing exception.
The applicant
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filed a motion for rehearing on January 7,
2019, stating the applicant had not intended
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to withdraw its request
for a tubing exception
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and requested that the
case be remanded for
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consideration. The Commission remanded this
case at the February 5, 2019, conference so
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that Valence's request
for a tubing exception
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could be considered. On
June 11, 2019, Valence
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withdrew its request for a tubing exception
due to the fact that the subject field is
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now classified as a UFT field and has a
tubing exception in accordance with Statewide
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Rule 86. In the amended
proposal for decision,
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the recommendation by
the examiners remain
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the same as considered
and approved by the
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Commission at the December
11, 2018, conference.
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No exceptions were filed.
I'm available for questions.
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Any questions?
I move we approve
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the examiners' recommendation.
Is there a second?
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Second.
All in favor, say
aye. Any opposed? Motion
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passes. Item is approved. Item number four.
Good Morning,
Chairman and Commissioners.
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I'm John Moore, technical
hearings Examiner.
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I'll be presenting items
four and five this morning.
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Item four is the application of Barrow-Shaver
Resources Company to establish a
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new field designated as
the Hidden Rock Cotton
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Valley Line field and to
adopt temporary field
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rules for the new field.
The final part of the
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application is to
transfer Barrow-Shavers
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existing wells into the new field.
The evidence
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supports that Barrow-Shaver
has completed
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its wells in a previously
untapped reservoir,
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and that a new field
designation is warranted.
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Barrow-Shavers first five
wells drilled and completed
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in the new reservoir
were vertically drilled.
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One of the wells was
subsequently recompleted
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uphole in a separate reservoir.
Barrow-Shaver
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anticipates they will
more fully develop the
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reservoir with horizontal
wells and has requested
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field rules that will
accommodate an efficient
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development of the reservoir
with both vertical
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and horizontal wells. The application was
protested by Brook Petroleum Company, which
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did not offer a material case in opposition
to the application. The recommendation is
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to establish the Hidden Rock
Cotton Valley Line Field
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as a new field, adopt the
field rules as requested,
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and transfer four Barrow-Shavers wells into
the newly designated field. There were no
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exceptions filed. I'm
available for questions.
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Any questions?
I move we approve the examiners'
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recommendation. Is there a second?
Second.
Second by
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Commissioner Craddick.
All in favor say aye.
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Motion passes. That item is approved.
Item number five.
Item five is a consideration
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of a motion for rehearing
pertaining to the
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application of Western
Disposal Systems Inc.
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to increase the maximum daily injection
volume from 2000 barrels of fluid per day,
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to 5000 barrels of fluid
per day under its
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existing permit. On June
18, 2019, the Commission
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issued an order approving
the application,
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subject to special
condition number one, that
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a cement squeeze and
plug be performed on a
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nearby well. In its
motion, applicant requests
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that the Commission reopen the record for
the limited purpose of receiving additional
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information and analysis
as to whether special
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condition one is needed.
Applicant provides
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information about the original plugging of
the nearby, plugged and abandoned well, and
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attaches a plugging
report on file with the
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Commission. The information
provided suggests
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that the nearby plugged
and abandoned well may
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be sufficiently plugged,
such that special
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condition one is not necessary.
The recommendation
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is to grant the motion
for rehearing for the
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limited purpose of reopening the record to
consider additional evidence and analysis
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as to whether special condition one should
be removed from the permit. No reply to
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the motion was filed. The
motion will be overruled
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by Operation of Law on
September 26, 2019.
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I'm available for questions.
Are there
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any questions?
I do
have one question.
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John, I want to make sure
in the, granting the motion
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for rehearing in the
limited case to consider
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that this well is maybe now plugged.
Am I recalling
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correctly in reading the
record that the protestant's
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issue was this, that the new disposal
would impact production, so we had come back
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and said, alll right,
but if we, there may be
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this well that's at issue.
So part of considering
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that this well, let's suppose the well
has been plugged, that there might be other
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communications, some other issue that's
causing impact to production of the formation.
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In other words, yes, we're
gonna only consider
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that this well may be
plugged, therefore do we
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need this special condition? But in that
context, will we be able to consider any
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other issues with that well? You understand
my question?
I think that I do
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Maybe
this way, I don't want to limit
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so far that we can't consider
that the well was plugged
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adequately or that there may be other
issues that could be causing production out
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of the formation. I may
be splitting hairs
00:11:04.464 --> 00:11:08.220
here, but I want to make
sure I'm being clear.
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So we can take
your direction on on that matter.
00:11:10.491 --> 00:11:12.680
Okay. Yes,
that's it. I don't have a formal
00:11:12.680 --> 00:11:14.596
motion. I just wanna make
sure as we limit, we
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don't limit too far.
Did you have a comment
00:11:16.389 --> 00:11:22.200
that you wanted to make?
Miss Lewis said, I was gonna say,
we can consider whatever scope the Commissioners decide.
00:11:22.225 --> 00:11:27.829
So I believe the current order
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does have the limiting, limits it to a review
of what the examiner just mentioned.
00:11:35.199 --> 00:11:43.329
If we need to broaden that, we can at your
direction.
I don't think we do.
00:11:43.329 --> 00:11:45.600
Because when we consider
whether or not the special
00:11:45.625 --> 00:11:48.089
condition needs to be removed,
I think that incorporates
00:11:48.089 --> 00:11:50.961
that, look, if this well,
if there's something
00:11:50.986 --> 00:11:53.649
else or something around
this well, that is
00:11:53.649 --> 00:11:55.973
causing still communication
or causing production
00:11:55.998 --> 00:11:58.019
issues in the formation,
I think that still
00:11:58.019 --> 00:12:00.097
needs to be discussed.
I just want to make
00:12:00.122 --> 00:12:02.321
sure and if so, then we're good.
I think your
00:12:02.321 --> 00:12:05.445
language captures it.
If I may clarify.
00:12:05.470 --> 00:12:08.769
Excuse me. The injection
was into a non productive horizon.
00:12:08.769 --> 00:12:12.400
Yes,
sir, but the, I want to
00:12:12.425 --> 00:12:16.170
make sure I'm recalling
it correctly, however,
00:12:16.170 --> 00:12:18.010
the issue of the well not
being plugged was that
00:12:18.035 --> 00:12:19.699
we could be causing
issues in the productive
00:12:19.699 --> 00:12:23.369
horizon. Which is what
the protestant brought
00:12:23.394 --> 00:12:26.959
up, correct?
No, sir. It was
an issue on the
00:12:26.959 --> 00:12:33.489
usable groundwater communication through the
other plugged and abandoned well bore.
00:12:33.489 --> 00:12:38.989
Into ground water rather than production.
Okay. Yeah. Sorry? I
00:12:38.989 --> 00:12:40.519
remembered incorrectly.
Still though I guess I
00:12:40.544 --> 00:12:42.049
want to make sure that
it's not just whether
00:12:42.049 --> 00:12:43.866
this well is plugged, but
if there's any other
00:12:43.891 --> 00:12:45.490
issues around this old
well that could be
00:12:45.490 --> 00:12:47.533
causing an issue, which
I think is incorporated
00:12:47.558 --> 00:12:49.449
in this language. So I'm good.
I just wanted
00:12:49.449 --> 00:12:54.350
to comment to make sure that we're thinking
that way, which sounds like we are.
00:12:54.350 --> 00:12:57.416
We are going, if
the Commission approves the
00:12:57.441 --> 00:13:00.689
recommendation, we will look at
all aspects of the old plugged
00:13:00.689 --> 00:13:03.351
an abandoned well,
whether it impacts and
00:13:03.376 --> 00:13:06.519
productive horizon or
usable quality groundwater.
00:13:06.519 --> 00:13:09.872
Perfect. Thank
you, that's all.
Any more questions?
00:13:09.897 --> 00:13:13.290
I move we approve the
examiners' recommendation.
00:13:13.290 --> 00:13:16.430
Is there a second?
Second.
Second, Commissioner Sitton.
00:13:16.455 --> 00:13:19.439
All in favor say aye.
All opposed? That
00:13:19.439 --> 00:13:27.610
item passes. Thank you. Item number six.
Good morning.
Chairman, Commissioners. For the
00:13:27.610 --> 00:13:31.429
record, Christie Reeve, administrative law
judge with the hearings division. I'll be
00:13:31.429 --> 00:13:34.549
presenting items number six and seven.
Item number
00:13:34.574 --> 00:13:37.240
six was to be a motion
for rehearing, which
00:13:37.240 --> 00:13:42.629
was resulting from a Commission order signed
on June 18, 2019. However, the motion has
00:13:42.629 --> 00:13:48.519
since been withdrawn, the effect of which is
the June 18th order is now final, and the
00:13:48.519 --> 00:13:50.652
matter is moot. The
Commission does not need
00:13:50.677 --> 00:13:52.879
to take any action. If
there are no questions,
00:13:52.879 --> 00:13:57.240
I'll proceed to item number seven.
Doing nothing is
something I'm talented at doing
00:13:57.240 --> 00:14:01.047
I'm glad I could assist.
Item number
00:14:01.072 --> 00:14:04.369
seven. On June 18, 2019,
the Commission entered
00:14:04.369 --> 00:14:09.699
an enforcement default order, finding NOXXE
Oil and Gas LLC in violation of Statewide
00:14:09.699 --> 00:14:13.841
Rules 8D1 and 20 and
ordering the violations
00:14:13.866 --> 00:14:18.720
resolved and assessing a
penalty of $46,800. On June
00:14:18.720 --> 00:14:25.410
5th, sorry, on July 15, 2019, NOXXE filed a
timely motion for rehearing. In its motion,
00:14:25.410 --> 00:14:30.910
NOXXE argues that there was no intent to be
found in its Statewide Rule Eight violation
00:14:30.910 --> 00:14:37.240
and the Statewide Rule 20 violation was the
result of a misunderstanding. On July 19,
00:14:37.240 --> 00:14:41.749
enforcement staff filed its response. Staff's
response states that notice was perfected
00:14:41.749 --> 00:14:46.889
via certified mail and NOXXE failed
to answer. Staff further states that NOXXE
00:14:46.889 --> 00:14:51.660
motion fails all prongs of the Craddick
test and should be denied as a matter of
00:14:51.660 --> 00:14:54.569
law. It is recommended the
motion for rehearing be
00:14:54.594 --> 00:14:57.421
denied. The motion will
be overruled by Operation
00:14:57.421 --> 00:15:04.360
of Law on September 26, 2019. I'm available
for questions.
Any questions? Is there a second?
00:15:04.360 --> 00:15:09.790
I move we approve the examiners' recommendation.
Is there a second?
Second.
00:15:09.790 --> 00:15:12.964
Second by Commissioner
Craddick. All in favor say aye.
00:15:12.989 --> 00:15:15.109
And opposed? Motion passes.
The item is approved.
00:15:15.109 --> 00:15:17.901
Thank you very much.
Item number eight.
00:15:17.926 --> 00:15:21.740
Good morning, Chairman, Commissioners.
For the record,
00:15:21.740 --> 00:15:24.674
my name's Joe Menifee,
paralegal in the Hearings
00:15:24.699 --> 00:15:27.249
division. I will be
presenting items eight
00:15:27.249 --> 00:15:33.819
through 10, all of which are P5 motions
for rehearing filed as a result of final orders
00:15:33.819 --> 00:15:37.259
denying renewal of the
operators P5 because of
00:15:37.284 --> 00:15:40.480
wells not compliant
with Statewide Rule 15.
00:15:40.480 --> 00:15:43.851
Item number eight is happy news.
Subsequent
00:15:43.876 --> 00:15:47.299
to filing its motion for
rehearing, American
00:15:47.299 --> 00:15:50.451
Pperating Company A has
come into compliance.
00:15:50.476 --> 00:15:53.809
Therefore it's recommended
the motion be granted
00:15:53.809 --> 00:15:59.430
and the underlying docket dismissed as moot.
I'm available for questions.
Any questions?
00:15:59.430 --> 00:16:01.796
I like good news.
Good news. I
00:16:01.821 --> 00:16:04.239
move we approve the examiners' recommendation.
Is there a second?
00:16:04.239 --> 00:16:07.051
Second.
Second by Commissioner Sitton.
00:16:07.076 --> 00:16:09.730
All in favor, say aye. Any
opposed? Motion passes. That
00:16:09.730 --> 00:16:13.652
item is approved.
00:16:13.677 --> 00:16:18.009
The good news continues. Item number nine. Subsequent to filing
its motion for rehearing,
00:16:18.009 --> 00:16:21.211
Breeze Oil LLC has come into compliance.
Therefore
00:16:21.236 --> 00:16:23.910
it's recommended the
motion be granted and
00:16:23.910 --> 00:16:29.689
the underlying docket dismissed as moot.
I'm available for questions.
Any questions?
00:16:29.689 --> 00:16:32.758
I move we approve the examiners'
recommendations. Is there a second?
00:16:32.783 --> 00:16:34.760
Second.
Second by
Commissioner Craddick. All
00:16:34.760 --> 00:16:41.379
in favor say aye. Any opposed? Motion passes.
That item is approved.
00:16:41.379 --> 00:16:44.511
Item number 10.
In its motion for rehearing,
00:16:44.536 --> 00:16:47.069
Energas Corp states they
mistakenly believed its
00:16:47.069 --> 00:16:52.239
compliance issues would be resolved prior
to hearing and therefore response was not
00:16:52.239 --> 00:16:56.108
necessary. Staff opposes the motion.
Two wells
00:16:56.133 --> 00:16:59.730
remain noncompliant
with Statewide Rule 15.
00:16:59.730 --> 00:17:05.049
It's recommended the motion be denied. The
motion will be overruled by operational law
00:17:05.049 --> 00:17:08.332
on September 12. I'm
available for questions.
00:17:08.357 --> 00:17:11.829
Any questions?
I move we approved the examiners'
00:17:11.829 --> 00:17:15.236
recommendation. Is there a second?
Second.
Second by Commissioner
00:17:15.261 --> 00:17:18.250
Sitton. All in favor, say aye.
Any opposed? Motion
00:17:18.250 --> 00:17:24.539
passes. Let's move to the
Oil and Gas Consent agenda.
00:17:24.564 --> 00:17:29.430
There are 44 items on
the consent agenda.
00:17:29.430 --> 00:17:31.418
I'm gonna get this, maybe
in the third round,
00:17:31.443 --> 00:17:33.320
you know. There are 44
items on the Consent
00:17:33.320 --> 00:17:36.501
Agenda. I move we approve
items 11 through 54.
00:17:36.526 --> 00:17:39.411
Is there a second?
Second.
Second by Commissioner
00:17:39.411 --> 00:17:42.526
Craddick. All in favor say aye.
Any opposed?
00:17:42.551 --> 00:17:45.710
Motion passes. These
items are approved. Move
00:17:45.710 --> 00:17:51.580
on to the Master Default Orders. There are 87
Master Default Orders. I move we approve
00:17:51.580 --> 00:17:54.681
items 55 through 141.
Is there a second?
Second.
00:17:54.706 --> 00:17:57.920
Second by
Commissioner Sitton. All in favor say
00:17:57.920 --> 00:18:04.020
aye. Any opposed? Motion passes. Those
items are approved. Move to Agreed Enforcement
00:18:04.020 --> 00:18:07.906
Orders. There are 352
Agreed Enforcement Orders.
00:18:07.931 --> 00:18:11.871
I move we approve items
142 through 493. Is there
00:18:11.871 --> 00:18:14.584
a second?
Second.
2nd by Commissioner Craddick.
00:18:14.609 --> 00:18:17.481
All in favor say aye.
Any opposed? Motion
00:18:17.481 --> 00:18:19.881
passes. Those items are approved.
That concludes
00:18:19.906 --> 00:18:24.380
the Hearing section. We will now
take up the Administrative agendas.
00:18:24.406 --> 00:18:30.930
Morning, Chairman, Commissioners.
For the record, Wei Wang, Executive
00:18:30.930 --> 00:18:37.600
Director. Just a quick, quick update
on the regulatory conference. This is the first
00:18:37.600 --> 00:18:43.400
day of the 2019 Regulatory Conference going
on in the AT&T Center, and this is the
00:18:43.400 --> 00:18:45.865
second year we combined
the oil & gas and
00:18:45.890 --> 00:18:48.800
pipeline conferences
together, and it is another
00:18:48.800 --> 00:18:56.610
sold out event. So just wanna invite staff
to stop by and attend some of the sessions.
00:18:56.610 --> 00:19:00.026
Good learning opportunity.
And as of today,
00:19:00.051 --> 00:19:03.520
our head count is 808 employees.
We continue
00:19:03.520 --> 00:19:09.370
to hire many positions. We currently have
about 40 some openings posted and encourage
00:19:09.370 --> 00:19:17.220
anybody that's interested to apply
for that. On the well plugging front, we are
00:19:17.220 --> 00:19:21.508
at 1669 wells we have
completed year to date,
00:19:21.533 --> 00:19:25.610
399 site remediation activity.
So as we get
00:19:25.610 --> 00:19:31.310
closer to year end, I imagine that number
will continue to go up and continue to exceed
00:19:31.310 --> 00:19:35.066
the performance measures. And
with that, that concludes
00:19:35.091 --> 00:19:38.420
my report this morning. Thank you.
Any questions?
00:19:38.420 --> 00:19:44.300
Okay. Thank you much, Wei. Appreciate your
work, again, that you've done is excellent.
00:19:44.300 --> 00:19:49.185
Good morning.
Chairman and Commissioners.
00:19:49.210 --> 00:19:52.930
Corey Crawford, chief
financial officer. Item
00:19:52.930 --> 00:19:59.270
495 is the Fiscal Year 2020 Operating
Budget. This budget is just over $138
00:19:59.270 --> 00:20:02.323
million and it ties to the
General Appropriations
00:20:02.348 --> 00:20:05.070
Act for the 86th Legislature.
Staff recommends
00:20:05.070 --> 00:20:08.039
the Commission adopt the
proposed budget and authorize
00:20:08.064 --> 00:20:10.630
staff to make any necessary
conforming changes.
00:20:10.630 --> 00:20:14.416
I'm available for any questions.
Are there any questions?
00:20:14.441 --> 00:20:17.980
No.
Do we need to vote
today to approve that budget?
00:20:17.980 --> 00:20:26.350
Are there any comments?
Thank you for the work.
Yes. I move that we accept
00:20:26.350 --> 00:20:32.560
the recommendation of the executive office.
Any questions? Is there a second?
Second.
00:20:32.560 --> 00:20:35.851
Second
by Commissioner Sitton. All
00:20:35.876 --> 00:20:39.020
in favor say aye. Any opposed?
It's approved.
00:20:39.020 --> 00:20:47.380
Now we move to, anything
else?
Item 496. Good morning,
00:20:47.380 --> 00:20:50.503
Chairman. Commissioners, for the
record, my name is Alex Schott,
00:20:50.528 --> 00:20:53.530
General Counsel for the Railroad
Commission of Texas. For item
00:20:53.530 --> 00:20:58.700
496, we don't have any report on pending
litigation today. Vanessa has some reports
00:20:58.700 --> 00:21:07.311
on item 497 and 498.
Good Morning, Commissioners.
00:21:07.336 --> 00:21:14.200
Vanessa Burgess, Assistant
General Counsel, for
00:21:14.200 --> 00:21:18.970
the record. Item number 497 on the agenda
pertains to Commissioner approval of certain
00:21:18.970 --> 00:21:23.013
contracts pursuant to the
Commission's delegation
00:21:23.038 --> 00:21:26.490
of authority and sections
2261.254 and
00:21:26.490 --> 00:21:29.882
2155.8 of the Texas Government Code.
The Commission's
00:21:29.907 --> 00:21:32.520
internal delegation
of authority requires
00:21:32.520 --> 00:21:35.346
Commissioner approval of
contracts and associated
00:21:35.371 --> 00:21:37.890
amendments greater than
or equal to $500,000
00:21:37.890 --> 00:21:41.520
Section 2261.254 of the
Texas Government Code
00:21:41.545 --> 00:21:45.150
requires approval of
contracts and associated
00:21:45.150 --> 00:21:48.507
amendments greater than
$1 million and Section
00:21:48.532 --> 00:21:51.650
2155.88 requires
Commissioner consideration
00:21:51.650 --> 00:21:57.980
of material changes to contracts, including
increases greater than 10%. At issue today
00:21:57.980 --> 00:22:00.981
are contracts for well
plugging, site remediation,
00:22:01.006 --> 00:22:03.570
and fleet. Approval of
this item today will
00:22:03.570 --> 00:22:05.913
ensure agency operations
remain on schedule
00:22:05.938 --> 00:22:08.310
and the necessary approvals
will be in place
00:22:08.310 --> 00:22:10.731
pursuant to the
Commission's delegation of
00:22:10.756 --> 00:22:13.320
authority and state law.
The summary of these
00:22:13.320 --> 00:22:17.970
agreements, including requisition numbers and
amounts, was included in your notebooks.
00:22:17.970 --> 00:22:20.385
Staff asks the Commission
approve these agreements
00:22:20.410 --> 00:22:22.280
pursuant to the
Commission's delegation
00:22:22.280 --> 00:22:27.133
and state law.
Okay, Are
there any questions?
00:22:27.158 --> 00:22:31.880
More trucks,
all for more trucks.
Good trucks is good
00:22:31.880 --> 00:22:36.080
It's the TxDoT and the roads that we're worried about.
Well, that's a
different problem.
00:22:36.080 --> 00:22:39.312
That's right.
I move we approve Item 497.
00:22:39.337 --> 00:22:41.750
Is there a second?
Second.
All in favor say
00:22:41.750 --> 00:22:48.480
aye. Any opposed? Motion passes. That
item is approved.
Thank you. Item 498
00:22:48.480 --> 00:22:50.965
pertains to the adoption
of revisions to the
00:22:50.990 --> 00:22:53.450
Commission Employee
Handbook and replacement
00:22:53.450 --> 00:22:59.580
of the 2007 Electronic Communications Policy
with an updated Electronic Communications
00:22:59.580 --> 00:23:03.940
Guidelines document that will be housed within
the ITS division, along with its other
00:23:03.940 --> 00:23:06.577
standard user guidelines
and processes. If
00:23:06.602 --> 00:23:09.520
approved, the handbook
revisions will supersede
00:23:09.520 --> 00:23:15.330
all prior agency revisions and serve as the
guiding human resources policy document
00:23:15.330 --> 00:23:17.933
for Railroad Commission
staff on those matters.
00:23:17.958 --> 00:23:20.320
The new, excuse me,
draft versions of these
00:23:20.320 --> 00:23:25.300
revisions and guidelines are included
in your notebook materials, and I am available
00:23:25.300 --> 00:23:28.007
to answer any questions.
Are there any questions?
00:23:28.032 --> 00:23:30.551
I move we approve Item 498.
Is there a second?
00:23:30.551 --> 00:23:33.960
Second.
Second by Commissioner Sitton. l
00:23:33.985 --> 00:23:37.220
All in favor say aye.
Any opposed? Motion
00:23:37.220 --> 00:23:45.790
passes. That item is approved.
Thank you very much. Okay. Item 499.
00:23:45.790 --> 00:23:49.451
Good morning, Chairman.
Commissioners.
00:23:49.476 --> 00:23:52.840
For the record, my name
is Jason Clark, assistant
00:23:52.840 --> 00:23:55.551
director for the Oil and Gas division.
Administrative
00:23:55.576 --> 00:23:57.710
Compliance. Today, we're
bringing one item
00:23:57.710 --> 00:24:02.700
item 499. We're requesting the approval
of non substantive revisions to the following
00:24:02.700 --> 00:24:06.140
oil and gas forms, and
I'll read them off for
00:24:06.165 --> 00:24:09.730
you. The form P1B,
form PR, the form
00:24:09.730 --> 00:24:17.610
P15, the form W3, the form W3C,
and the form W3X. We're also addressing
00:24:17.610 --> 00:24:20.246
form PSA12. But we're
gonna remove that form
00:24:20.271 --> 00:24:22.940
because it's no longer in use.
So these forms
00:24:22.940 --> 00:24:24.934
were identified as part
of the Oilfield Relief
00:24:24.959 --> 00:24:26.800
Initiative, and the non
substantive changes
00:24:26.800 --> 00:24:29.756
will be made to correct
typographical errors,
00:24:29.781 --> 00:24:32.520
remove forms no longer
in use, correct the
00:24:32.520 --> 00:24:35.351
Commission's website address,
correct Commission's
00:24:35.376 --> 00:24:37.960
return address, and reflect
the revision date.
00:24:37.960 --> 00:24:40.187
I'm available for questions.
Are there any questions?
00:24:40.212 --> 00:24:42.320
To say thank you.
It's continuing and getting
00:24:42.320 --> 00:24:44.907
rid of a form. What a big
thing at this agency,
00:24:44.932 --> 00:24:47.440
so I appreciate it. Thanks, Jason.
00:24:47.440 --> 00:24:50.462
Move we approve
item 499. Is there a second?
00:24:50.487 --> 00:24:53.700
Second.
All in favor say aye.
Motion passes. That
00:24:53.700 --> 00:25:00.180
item is approved. Thank you very much. And
I before you move on. Any other report that
00:25:00.180 --> 00:25:04.730
you have? Okay, before we move
on, I'd like to acknowledge
00:25:04.755 --> 00:25:08.431
from the Commission,
Secretary Kathy Way. Kathy
00:25:08.431 --> 00:25:13.860
will be retiring on August 31st. And this
will be her last Conference as Commission
00:25:13.860 --> 00:25:16.794
Secretary. She's devoted
the last 38 an a half
00:25:16.819 --> 00:25:19.540
years of her life to
public service in this
00:25:19.540 --> 00:25:24.250
Commission. My fellow Commissioners, please
join me inviting Kathy up to the front to
00:25:24.250 --> 00:25:29.310
present her with some of items that I believe
we have from some dignitaries. Hey. Oh, this
00:25:29.334 --> 00:25:51.034
(crowd chatter)
00:25:51.058 --> 00:25:54.658
I've got a
certificate from Senator Charles Perry.
Big smile.
00:25:59.410 --> 00:26:01.160
This one is a proclamation from the governor.
00:26:01.184 --> 00:26:09.808
(inaudible) This is
a flag to keep in memory of us being
00:26:09.833 --> 00:26:17.978
here and all that you've done and all
the pins on your lapel (laughter)
00:26:18.002 --> 00:26:26.455
It's amazing, it truly is. We thank
you, Kathy. We appreciate you so much.
00:26:26.480 --> 00:26:34.932
We just wish you the best on your
retirement and being grandma. (applause)
00:26:34.956 --> 00:26:57.856
(crowd chatter)
00:26:57.880 --> 00:27:04.880
(applause)
00:27:04.904 --> 00:27:07.246
So
now we all get to roast you
00:27:07.271 --> 00:27:09.504
for just a minute. So for
those of you who don't know,
00:27:09.520 --> 00:27:11.737
Kathy started our map
room with the cloth maps.
00:27:11.762 --> 00:27:13.630
Think how far we've come.
We're actually
00:27:13.630 --> 00:27:18.310
online. With the cloth maps. You've been
in pretty much every piece of the oil and
00:27:18.310 --> 00:27:21.163
gas division, haven't you, I think?
So if you really
00:27:21.188 --> 00:27:23.640
want to know where the
dead bodies are buried
00:27:23.640 --> 00:27:26.433
or how to find things
and or the mainframe,
00:27:26.458 --> 00:27:29.290
Kathy's your person and
always has been. And
00:27:29.290 --> 00:27:32.690
so we're gonna miss you. I think you're going
to get some phone calls as we're morphing
00:27:32.690 --> 00:27:35.043
from a mainframe. I know
you've already started
00:27:35.068 --> 00:27:37.150
that conversation. Thank
you for that. And
00:27:37.150 --> 00:27:39.102
you've been wonderful
to us as Commissioners
00:27:39.127 --> 00:27:41.010
with a smile on your
face every day when we
00:27:41.010 --> 00:27:45.290
walk through the door and knowing the inner
workings and for me, I always ask questions
00:27:45.290 --> 00:27:51.770
and you get a lot of phone calls. So thank
you for being part of the solution at this
00:27:51.770 --> 00:27:57.710
agency. I'm sure you can't count the
thousands of people you have helped at this,
00:27:57.710 --> 00:28:00.695
while you've been at this agency.
What an amazing
00:28:00.720 --> 00:28:03.680
legacy you've left for all of us.
And an example.
00:28:03.680 --> 00:28:06.614
So those who you don't
answer your phone, I'm
00:28:06.639 --> 00:28:09.740
gonna tell you Kathy's gonna call you.
But after
00:28:09.740 --> 00:28:13.920
almost 40 years of service, thank you for
what you've done for us. But I think
00:28:13.920 --> 00:28:19.530
her most important job has been mom and now
grandmother. And so I hope that you enjoy
00:28:19.530 --> 00:28:24.241
the next phase of your life. And I'm gonna
say to you what you always said to me. Thank
00:28:24.241 --> 00:28:29.580
you. And it has been an honor to work for
you.
00:28:29.604 --> 00:28:35.004
(applause)
00:28:35.028 --> 00:28:41.822
Kathy, you know, this is my first
time in public office. And
00:28:41.847 --> 00:28:48.170
as long as I've been here,
you've been at the front desk
00:28:48.170 --> 00:28:52.420
and you've had stories
about your 38 and a half
00:28:52.445 --> 00:28:56.670
years from crazy stories
about former executive
00:28:56.670 --> 00:29:08.320
directors to taking cards, punch cards, home
to do prorations. You know, and the
00:29:08.320 --> 00:29:13.870
warmth of your smile when I come in in the
morning is really special. And sometimes
00:29:13.870 --> 00:29:17.710
I'm breezing through really quickly and hey,
Good morning, Kathy. And always a big smile
00:29:17.710 --> 00:29:24.750
to welcome me. But the thing that will live
with me the longest is two or three times
00:29:24.750 --> 00:29:27.603
when I have done something
or said something,
00:29:27.628 --> 00:29:30.270
you have had the most
sincere appreciation
00:29:30.270 --> 00:29:32.484
for it. You would say
something like I thought
00:29:32.509 --> 00:29:34.650
what you did today was
good or I thought what
00:29:34.650 --> 00:29:37.702
you said was good, and
because of your history
00:29:37.727 --> 00:29:40.559
and your sincerity,
when you say that, it's
00:29:40.559 --> 00:29:46.560
really meaningful. Not often do we hear
that between news stories and political
00:29:46.560 --> 00:29:49.521
banter. So thank you
for that, because your
00:29:49.546 --> 00:29:52.550
personal touch, to me in
my limited time here,
00:29:52.550 --> 00:29:56.630
has been really special. Thank you.
00:29:56.654 --> 00:30:01.754
(applause)
00:30:01.778 --> 00:30:03.778
Do you have your
daughter back there? Will you introduce her?
00:30:06.330 --> 00:30:09.226
Welcome
to the, your mom is a hero to
00:30:09.251 --> 00:30:12.070
a lot of people in this room
and in this organization.
00:30:12.070 --> 00:30:14.724
And may I say, being
the child on the block
00:30:14.749 --> 00:30:17.559
here with more experienced
Commissioners here,
00:30:17.559 --> 00:30:21.651
it has been absolutely, to
walk into the reception
00:30:21.676 --> 00:30:25.020
room of our offices
up there on the floor
00:30:25.020 --> 00:30:30.920
12, and have you be the one that greets each
day. What an encouraging way to start the
00:30:30.920 --> 00:30:33.466
day. I mean, it's the
greatest thing of the
00:30:33.491 --> 00:30:36.070
Texas Railroad Commission,
beyond any doubt,
00:30:36.070 --> 00:30:39.637
are the employees. The 806 we have now?
But Kathy
00:30:39.662 --> 00:30:42.990
has been one that has
always been encouraging,
00:30:42.990 --> 00:30:45.424
supportive. When things
don't seem very good,
00:30:45.449 --> 00:30:47.910
Kathy always has the smile
and encourages. Oh,
00:30:47.910 --> 00:30:50.317
come on, we can do it.
And she's been through
00:30:50.342 --> 00:30:52.620
the fights that she
seen at this place. And
00:30:52.620 --> 00:30:57.860
she knows the long term is if you have good
people, you're gonna have good results. And
00:30:57.860 --> 00:31:00.262
Kathy is the example of
the employees throughout
00:31:00.287 --> 00:31:02.320
this Commission that
make it the greatest
00:31:02.320 --> 00:31:05.856
on planet Earth. And
Kathy, the thing that's
00:31:05.881 --> 00:31:09.550
astounding, is that the
reason you're leaving,
00:31:09.550 --> 00:31:16.920
I love what you told me, you said that it
was time to do, be a mom and a grandma, and
00:31:16.920 --> 00:31:19.291
that's quite important.
And to understand that
00:31:19.316 --> 00:31:21.460
you do recognize the
most important things
00:31:21.460 --> 00:31:24.312
of life is very humbling
to all of us and
00:31:24.337 --> 00:31:27.640
encouraging. And so you'll
always be an example,
00:31:27.640 --> 00:31:31.730
a reason that we look forward to coming
to work in this place. So thank you for all
00:31:31.730 --> 00:31:44.970
that you've done.
Kathy. One last thing because
I just don't think we could come in every
00:31:44.970 --> 00:31:48.031
day and not see Kathy Way
when we walk in the office.
00:31:48.056 --> 00:31:50.809
So the three Commissioner's
offices have decided
00:31:50.809 --> 00:31:53.185
that, or discussed, that
we'd like to rename
00:31:53.210 --> 00:31:55.561
the conference room, the
the upstairs, from the
00:31:55.560 --> 00:32:08.250
Willa Mae to the Kathy Way Conference room.
(applause)
So I'd like to
00:32:08.250 --> 00:32:10.883
make a motion that we
rename the main conference
00:32:10.908 --> 00:32:13.570
room upstairs to The Kathy
Way Railroad Commission
00:32:13.570 --> 00:32:17.435
Conference Room.
Is there a second?
Second.
00:32:17.460 --> 00:32:21.300
All in favor of renaming
the room to the Kathy Way Room, say
00:32:21.300 --> 00:32:47.910
aye. Any opposed? There are none. That
motion is approved. (applause)
Okay, Before we move on
00:32:47.910 --> 00:32:54.130
with the rest of our meeting, let me just
invite all the Railroad Commission employees
00:32:54.130 --> 00:32:57.093
are celebrating, our
reception celebrating.
00:32:57.118 --> 00:33:00.460
Kathy's retirement, will
be held in room 111-106A
00:33:00.460 --> 00:33:07.020
immediately following the conference today.
So make sure you make your way there
00:33:07.020 --> 00:33:12.147
to congratulate Kathy, and let
me get to the last page here.
00:33:12.172 --> 00:33:15.761
Item 500 our public
participation item. No
00:33:15.761 --> 00:33:18.500
one has turned in cards
indicating that they
00:33:18.525 --> 00:33:21.179
wish to speak on any
non posted items. Item
00:33:21.179 --> 00:33:25.860
501 is our executive session item, which we
will not be going into today. Are there any
00:33:25.860 --> 00:33:28.570
other duly posted matters
to be brought before
00:33:28.595 --> 00:33:31.050
the Commission at this time?
Hearing none.
00:33:31.050 --> 00:33:33.450
This meeting of the Railroad Commission of
Texas is adjourned.