Announcer: Call will begin momentarily.
Thank you for your patience.
Callie: Morning, this is Callie Farrar,
Commission Secretary.
I'll be serving as the meeting
moderator for today's conference.
Just a few reminders when it's your time to speak,
you will be transferred over to video
and unmuted when transferring.
When transferring, the speaker and audience
may experience a moment of delay.
Speakers will also need to begin their video
and remove themselves from mute
for the video and audio to work.
Commission does reserve the right to remove any audio
or video sharing capabilities from any person
if needed at any time.
Chairman Craddick, we are ready to begin when you are.
-: Morning! I was waiting on Chairman or Mr. Christian.
Here we go.
-: I had to go adjust my whatever.
(laughs)
-: We ready to go this morning?
Thank you, Callie.
Good morning, this is Christi Craddick.
This meeting of the Railroad Commission of Texas
will come to order to consider matters,
which have been duly posted with
the Secretary of State for April 27th, 2021.
Under our public participation policy,
anyone desiring to offer public testimony
on any items that are not noticed on
today's agenda was required to register in advance.
We didn't have anyone register in advance.
The Commission will consider items on the agenda
as posted on the agenda except for item 149,
which if it's okay with everybody,
we're gonna take up first cause I believe
we have a special guest joining us
to help celebrate our 130th anniversary.
So Callie, will you please call up item 149?
Callie: Yes, thank you Chairman.
We have Jeremy Mazur,
our Board Commissions Director of Government Relations,
who will be introducing our invited guest.
Jeremy, we're ready when you are.
-: Thank you, Callie. -: Good morning, Jeremy.
-: Good morning Chairman.
Members of the Commission for the record,
I'm Jeremy Mazur, Board Commissions Director
of Government Relations.
It's my honor to introduce Chairman Craig Boldman
upon this agenda item.
Chairman Goldman represents
house district 97 in Fort Worth.
He currently chairs our energy resources committee.
Last week, Chairman Goldman passed House Resolution 641
commemorating the 130th anniversary
of the Railroad Commission of Texas.
It's been an honor and a privilege
especially to work with chairman Goldman and
his team this session.
We're honored to have you here today and welcome you
to the Railroad Commission, Chairman Goldman.
-: Thank you, Jeremy.
And it's an honor to be with Chairwoman Craddick
Commissioner Wright, Commissioner Christian.
It was my great honor to pass this resolution here.
And here it is.
Congratulating y'all and honoring y'all
for your 130 year anniversary.
You know, the Railroad Commission is so important
in the state of Texas and I can't be more thankful
for all y'all for your help in this session
and helping to craft the legislation
After winter storm URI,
y'all been an integral part and all your Commissioners have,
and everybody associated with the Railroad Commission,
Jeremy, the whole team has been a huge help
to a first time Chairman of Energy Resources.
Committee announced one week a storm,
the winter storm the next week
and then 26 hours of hearings the following week.
So it's been, it's been a heck
of a start to my chairmanship and I would not
have been able to do it without all y'all's help.
So just, I would just want to take this opportunity
to thank all y'all for all your help this session.
And I look forward to working with y'all, continue to work
with y'all throughout the interim, leading
in the next session as well.
Because we're not done this session
with providing solutions to
to what happened after the storm.
We can do as much as we can legislatively
but we need to continue working
and committing to have many interim hearings
throughout the interim and all over the state to
to further the conversation about what went right
what went wrong and then solutions we can all
work together to provide for the people of Texas.
So what happened during the storm doesn't happen again.
So again, just my honor to be with all y'all this morning.
-: Thank you, Chairman Goldman
and thank you for the resolution.
This has been an unusual year and thank you for your help.
As we muddle through the storm, as well as our budget,
we appreciate the help and we look forward to working
with you going forward and thank you for honoring us.
I think for the most important agency, we all say that.
So we regulate what brings in a bunch of dollars
and 130 years is a pretty good milestone,
I think, as an agency.
Thank you for being with us.
And I want to thank the staff
and my fellow Commissioners as well.
Look, this is a great agency
because of the people who we get, who I get to work with.
And I look forward to,
I won't be here 130 years, but I look forward
to this agency continuing going forward.
Cause I think we've, we've got a long way to go
as a leader to continue being a leader.
We got along, we've got a long history
and a long way to go going forward that we're
going to show everybody how it's done well
and we look forward to working with you.
Thank you, Chairman Goldman for being here.
-: Thank y'all.
-: Thanks. Anybody else?
Have any comments, Jim?
-: Yeah, sure.
Chairman Goldman, thank you so much for being here
with us today.
It's an honor working with you over at Legislator.
Excited to be here.
I'm new, as you are.
So all those exciting things faced me as I came
into the agency and, I'm just, hopefully we
don't experience that again.
And we fix the problems that we have.
It's an honor to work with you.
Thank you for being here and thanks to my fellow
Commissioners and to everyone here at the agency.
It's been exciting.
And, and I don't know, I couldn't tell you how
much admiration I have
for this agency and what it does protect us.
Thank you all.
-: Thanks
-: Mr. Christian, got any comments?
-: I thought I was supposed to stay quiet.
(all laugh)
-: That's fine. That's fine.
-: I know, that's an oxymoron to me, right?
Chairman Goldman.
I just appreciate you and, and, and the people in the House
and I love working with Upper Chamber there and knowing
that the, since I'm a former House member
I considered it that, and y'all done a great job.
You are absolutely, it's been, it's a heck of a time to
be involved in energy in Texas.
With the current administration, with the storm we just had,
with all the different things going on, I admire you
for stepping forward in the public service and look forward
to working with you.
As we continue to probably Dodge some additional rockets
that'll be coming from DC and other places.
So thank you for your interest and your support
and it is most honored.
Well, I just want to say it's nice to see the three all
at the same time.
I've never yelled all y'all individually
but it's nice to see y'all on an, a meeting
at the same time.
So that was great.
-: Well, and I was here for the last big anniversary
and we had cake, and like former Commissioners.
So come back next year and we'll try that again.
And you can see us all in person again.
-: That sounds great, looking forward to it.
-: Thank you, Chairman Goldman.
We appreciate it and have a great day.
We look forward to continuing to work with you.
-: Thank y'all.
Appreciate it.
Talk to you soon.
Bye-bye -: Bye-bye.
-: Well, so we did, we had cake last time.
We had a great time celebrating
with former Commissioners for, I guess,
on 121st or 122nd.
I lose track.
So at our 131st, let's hope we're all in person
and we get to have cake and get to see friends
and all of our great staff who really makes this, this go.
So thank you.
What a great, what a great accomplishment for 130 years.
I appreciate it.
All right, Callie.
We're going back to work this morning.
So if you'll call it item number one, I'd appreciate it.
Callie: Thank you.
Veronica Roberta will be presenting agenda item one.
Veronica, we are ready when you are.
Good Morning Chairman and Commissioners, Veronica
Roberto, Administrative Law Judge for the Hearings division.
Item number one is the application
for transfer of permit number 32G
from Texas Westmoreland Coal Company to Jewett Mine, LLC
for the Jewett Mine located in Leon, Freestone,
and Limestone Counties, Texas.
Texas Westmoreland Coal Company is the current permitee
to permit number 32G,
and is in reclamation status, only.
The application for transfer was initiated
to reflect the name change
from Texas Westmoreland Coal Company
to Westmoreland Jewett Mining, LLC.
after a bankruptcy proceeding.
During the processing of the transfer application
NRG, Texas LLC purchased Westmoreland Jewett Mining, LLC
And renamed the company, Jewett Mining, LLC.
Jewett is the applicant and the transferring
in this docket is not organizationally related
to the current permitee and original applicant,
Texas WestMoreland.
Jewett has undertaken to transfer the surety bonds
from Texas Westmoreland to Jewett Mining, LLC.
in this proceeding through the implementation
of a rider instrument.
The current bond for permit number 32G is
in the amount of 62 million and will remain
in place as modified by the writers to the surety bonds.
And it is sufficient to cover the most
recent reclamation costs estimates and the approximate
amount of 60 million that was approved in revision 14.
After notice, no comments or requests for a hearing
were received.
Jewett and staff are the only parties to the proceeding.
No exceptions were filed.
No changes to the current bond amount as requested,
other than the name change, and the writers
to the surety bond adequately address the name change
to Jewett Mine, LLC.
Evidence in the record supports
that Jewett has satisfied all requirements
for acceptance of the transfer application.
It is recommended that the transfer application
for permit number 30G be approved
and the permit be renumbered two 32H.
I'm available for questions.
-: Thank you, Veronica.
Are there any questions?
All right, I'm move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian.
All in favor, say aye.
-: Aye.
-: Motion passes.
That item is approved.
Thank you, Veronica.
Let's call up number two, Callie.
Callie: Yes. Thank you.
Marcella Spraggins will be presenting agenda item two.
Marcella, we are ready when you are.
It looks like, there we go.
Good morning.
-: Good morning.
Good morning Commissioners, Chairman.
For the record, Administrative Law Judge Marcella Spraggins
with the Hearings division.
Item number two is an application by Jewett Mine, LLC
for transfer permit number 47A
for the Jewett Mine EF area located
in Leon and Freestone counties.
And for acceptance of surety bond riders
for its two currently accepted bonds.
The initial applicant
for transfer was Westmoreland Jewett Mining, LLC.
The successor in interest to all assets and contracts
of the permitee Texas Westmoreland Coal Company.
Westmoreland Jewett Mining, LLC was then purchased
by NRG, Texas, LLC, and renamed Jewett Mine, LLC,
the applicant.
The application as supplemented includes all
required information to address the requirements
of the act and regulation.
With adoption of the permit provisions contained
in appendix two to the proposal order.
Permit Number 47A is bonded
in the amount of $36,654,123 by two surety bonds,
Under the current permit.
The surety bonds were issued
by Liberty Mutual Insurance Company
in the amount of $18 million dollars.
And by Aspen American Insurance Company
in the amount of $18,654,123.
The total bond amount exceeds the most
recent reclamation cost estimate.
The applicant fell the riders
to the bonds that contained required undertakings
by the applicable surety company,
the applicant, and the guarantor, NRG, Texas Power, LLC.
The riders incorporate the related mutual agreements
between the companies
and meet the requirements of the regulations.
The proposed order was circulated to staff
and the applicant who filed waivers
of preparation and circulation of a proposal for decision.
It is recommended that the Commission issue
the proposed order approving the transfer application
as supplemented with the permit provisions in Appendix 2
and accept the bond riders.
I'm available for questions.
Christi: Thank you, Marcy.
It's nice to see you again.
Are there any questions?
-: Good to see you.
Christi: I move we approve the examiner's recommendation.
Is there a second?
-: Second.
-: All in favor, say aye.
-: Aye.
Motion passes. That item is approved.
Thank you, Marcy.
All right, Callie, if you'll call it number three, please.
Callie: Yes. Thank you.
John Moore would be presenting agenda item three.
John, we are ready when you are.
-: Good morning, Chairman and Commissioners.
For the record, my name is John Moore
and I'm a Technical Examiner in the Hearings division.
Item number three is the application
of APR Operating, LLC pursuant to Statewide rule nine
for the objection for the Armadillo SWD Lease,
well number one, in the Moore South Delaware field,
Culberson County, Texas.
APRs application is protested
by an adjacent landowner.
APR proposes to drill and complete a new disposal well
and inject up to 30,000 barrels a day of salt water
produced from its nearby wells.
The produced water will be piped to the new disposal well
and injected into the Delaware group formation
at a depth from 3,100 feet to 6,050 feet.
The examiners find the proposed disposal well
is compliant with all Commission
and Texas water code requirements.
There was a 2.7 magnitude seismic event recorded
within the a hundred square mile review area.
Accordingly the administrative injection permit
stated special conditions
including a reduced maximum injection pressure
a step rate test, and an addition,
and an initial static bottom hole pressure test.
The recommendation of the examiners is to
approve the injection permit with the special conditions.
No exceptions were filed.
May I answer any questions?
Callie: Commissioners, I also want to mention
that we did have protestants Tom, Tony Luke and Levy Luke,
who were representing themselves register.
Unfortunately, I do not see them on the call at this time,
but I did want to mention that they did register.
-: Thank you, Callie.
Are there any questions of John?
(Shaking heads no)
No.
John, and we do have one that
or an order that has fixed the typos, correct?
In our, in our information.
-: Yes, ma'am.
Great.
Okay.
All right.
Are there any, I move we approve
the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian?
All those in favor, say aye.
-: Aye.
-: Aye. Motion passes that item is approved.
Callie, if you'll call up
presenter four through seven, please.
Callie: Yes. Thank you.
Jennifer Cook will be presenting agenda items four
through seven.
Jennifer. We are ready when you are.
-: Good morning Chairman and Commissioners.
I'm Jennifer Cook, Administrative Law Judge
with the Hearings division.
I'm presenting items four through seven together.
In items four through seven, Redemption Oil and Gas LLC
filed a single signature form P4 requesting
it be designated the operator of record
for this four subject wells. The P4s did not contain the
signature of the current operator of record,
which is Atlas Operating LLC.
Atlas protests a transfer to Redemption.
Redemption is a non-operating working interest owner
in a joint operating agreement referred to
as a JOA covering the Wells.
Redemptions' claims that properly removed Atlas as operator.
And now it is operator.
Atlas claims that it dispute, its dispute
with redemption is a contractual dispute.
Atlas maintains it is still the operator
and comply with all agreements that paid all amounts owed.
It is recommended that the Commission deny
Redemptions applications to have the Wells transferred.
No exceptions were filed.
I'm available for questions.
Callie: Commissioners, we also have Rob Hargrove
representing Atlas operating registered
and available for questions as well.
-: Thank you.
Are there any questions for Mr. Hargrove or Jennifer?
Okay. I move that we approve the examiners recommendation
for items four through seven.
Is there a second?
-: Second.
-: Second by Commissioner Wright.
All those in favor, say aye.
-: Aye
-: Aye. Motion passes. Those items are approved.
Thank you, Jennifer.
Let's move on to the Oil and Gas Consent Agenda.
There are 36 items on this agenda.
I understand that staff wants to pass items,
item number 43.
Are there any comments or questions about any of the,
about anything on items eight through 42?
-: I do, Chairman.
Before we make a motion.
Items eight through 14 are flaring exception applications
for Aventa USA, Inc. in Eagleford in Parns County.
I actually traveled to Parns County
and toured their facility to better understand
how Aventa was planning on reducing
their flare gas volumes in the future.
It is my understanding, however, that Aventa has
since sold their Eagleford assets to another operator.
Since blaring exceptions are non-transferrable.
It is my understanding,
these specific exception applications, if approved,
will be effective retroactively, as well as to the time
the assets are actually transferred.
At that point, the new operator will be required to file
for the flaring exceptions applications,
if they feel they are necessary.
The second group of items.
Items 15 through 35
are a series of blaring exception applications for PDC
Permian in Reeves County.
I noted in our materials that the potential net layer volume
is nearly 50% lower when compared to the previous
administrative authority.
That in itself is really good.
However, it should also be noted
that the examiners recommended shortening the term
of the blaring exception from two years to one year
which is certainly something I support.
Again, I applaud the genuine efforts of both staff
and the industry in reducing the amount
of gas that has been or will be flared in the future.
That's all I have.
I'm ready to hear your motion chairman.
Christi: Thank you, Commissioner Wright.
I move that we approve items eight through 42
and that item 43 be passed.
Is there a second?
-: Second
-: Second by Commissioner Christian.
All those in favor, say aye.
-: Aye.
-: Aye. Motion passes. Those items are approved.
Let's go to master default items.
Items 44 through 50 - there are seven master default orders.
I move, we approve items 44 through 50.
Is there a second?
-: Second.
-: Second by Commissioner Wright.
All those in favor, say aye.
-: Aye.
-: Aye. Those items are approved.
Let's go to agreed enforcement orders.
Items 51 through one 148,
there are 98 agreed enforcement orders.
I move that we approve items 51 through 148.
Is there a second?
-: Second
-: Second by Commissioner Christian.
All those in favor, say aye.
-: Aye.
-: Aye. Motion passes.
Those items are approved.
That concludes the hearing section matters.
And we'll now take up administrative agenda.
We've already done 149, so item number 150.
Callie, if you please call up.
Callie: Yes. Thank you.
-: Thank you.
Callie: Yes. Thank you.
April Richardson will be presenting agenda item 150.
April, we are ready when you are.
-: Good morning, Mrs. Chairman and Commissioners.
For the record, my name is April Richardson,
Director of Alternative Fuel Safety
in the Oversight and Safety Division.
Item 150 is the Alternative Fuel Safety Department's
request for approval to adopt minor changes to 43 C and G
and L and G forms.
The changes made to these forms are corrections to
remove previous designations used for the alternative fuel
safety department and update those references
to the current department name.
All headers and contact information were updated
on these forms to the current division and department names
and any outdated contact information was also corrected.
May I answer any questions?
Christi: Thank you April.
Are there any questions?
All right, I move we approve the staff's recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Wright. All in favor, say aye.
-: Aye.
-: Aye. Motion passes. That item is approved.
Let's go to 151, is our public participation item and
that we don't have anyone registered to speak
on any non-posted items.
Item 152 is our executive session,
which we won't be going into today.
Are there any other matters which we need to consider?
(Commissioner Christian raises finger)
Yes sir?
-: Can I say just one thing? I want to commend our staff.
I want to commend the industry.
We, right now, according to the Railroad Commission
statistics are on flaring at 0.04%
of the produced natural gas in the state of Texas.
That means that 99.6% is going
and being processed to its intended purpose without flaring.
So I commend the industry and I think this is an example
for the rest of the nation and the world
that we are doing it right in state of Texas.
So I commend our staff and the industry.
-: Thank you, Commissioner Christian for bringing that
up and reminding us. I think we've come a long way
in a year or under. Leadership of this agency with
with your leadership.
Commissioner Wright, I'm glad that you're taking an interest
and we appreciate that the industry is taking it
very seriously, as well.
-: And our team here at the Commission.
They're doing a wonderful job.
-: I agree.
Thank you.
Thank you both.
Is there anything else this morning?
All right.
Hearing none.
This meeting of the Railroad Commission is adjourned.
Thank you all.
Have a great week.