WEBVTT 00:00:00.000 --> 00:00:02.210 Call will begin momentarily. 00:00:02.210 --> 00:00:04.427 Thank you for your patience. 00:00:07.433 --> 00:00:09.410 Morning, this is Callie Farrar, 00:00:09.410 --> 00:00:10.730 Commission Secretary. 00:00:10.730 --> 00:00:12.270 I'll be serving as the meeting 00:00:12.270 --> 00:00:15.010 moderator for today's conference. 00:00:15.010 --> 00:00:17.650 Just a few reminders when it's your time to speak, 00:00:17.650 --> 00:00:19.570 you will be transferred over to video 00:00:20.451 --> 00:00:22.470 and unmuted when transferring. 00:00:22.470 --> 00:00:24.410 When transferring, the speaker and audience 00:00:24.410 --> 00:00:26.350 may experience a moment of delay. 00:00:26.350 --> 00:00:28.630 Speakers will also need to begin their video 00:00:28.630 --> 00:00:30.340 and remove themselves from mute 00:00:30.340 --> 00:00:32.480 for the video and audio to work. 00:00:32.480 --> 00:00:34.840 Commission does reserve the right to remove any audio 00:00:34.840 --> 00:00:37.190 or video sharing capabilities from any person 00:00:37.190 --> 00:00:39.200 if needed at any time. 00:00:39.200 --> 00:00:41.913 Chairman Craddick, we are ready to begin when you are. 00:00:43.130 --> 00:00:45.810 Morning! I was waiting on Chairman or Mr. Christian. 00:00:45.810 --> 00:00:47.212 Here we go. 00:00:47.212 --> 00:00:49.000 I had to go adjust my whatever. 00:00:49.000 --> 00:00:50.549 (laughs) 00:00:50.549 --> 00:00:51.960 We ready to go this morning? 00:00:51.960 --> 00:00:53.060 Thank you, Callie. 00:00:53.060 --> 00:00:55.460 Good morning, this is Christi Craddick. 00:00:55.460 --> 00:00:58.030 This meeting of the Railroad Commission of Texas 00:00:58.030 --> 00:01:00.200 will come to order to consider matters, 00:01:00.200 --> 00:01:01.660 which have been duly posted with 00:01:01.660 --> 00:01:06.110 the Secretary of State for April 27th, 2021. 00:01:06.110 --> 00:01:08.360 Under our public participation policy, 00:01:08.360 --> 00:01:10.760 anyone desiring to offer public testimony 00:01:10.760 --> 00:01:12.730 on any items that are not noticed on 00:01:12.730 --> 00:01:16.600 today's agenda was required to register in advance. 00:01:16.600 --> 00:01:18.890 We didn't have anyone register in advance. 00:01:18.890 --> 00:01:21.240 The Commission will consider items on the agenda 00:01:21.240 --> 00:01:24.740 as posted on the agenda except for item 149, 00:01:24.740 --> 00:01:26.610 which if it's okay with everybody, 00:01:26.610 --> 00:01:28.610 we're gonna take up first cause I believe 00:01:28.610 --> 00:01:30.820 we have a special guest joining us 00:01:30.820 --> 00:01:33.880 to help celebrate our 130th anniversary. 00:01:33.880 --> 00:01:37.770 So Callie, will you please call up item 149? 00:01:37.770 --> 00:01:38.870 Yes, thank you Chairman. 00:01:38.870 --> 00:01:40.490 We have Jeremy Mazur, 00:01:40.490 --> 00:01:43.738 our Board Commissions Director of Government Relations, 00:01:43.738 --> 00:01:47.450 who will be introducing our invited guest. 00:01:47.450 --> 00:01:49.070 Jeremy, we're ready when you are. 00:01:49.070 --> 00:01:50.690 Thank you, Callie. Good morning, Jeremy. 00:01:50.690 --> 00:01:51.750 Good morning Chairman. 00:01:51.750 --> 00:01:53.280 Members of the Commission for the record, 00:01:53.280 --> 00:01:55.880 I'm Jeremy Mazur, Board Commissions Director 00:01:55.880 --> 00:01:57.140 of Government Relations. 00:01:57.140 --> 00:01:59.770 It's my honor to introduce Chairman Craig Boldman 00:01:59.770 --> 00:02:01.190 upon this agenda item. 00:02:01.190 --> 00:02:02.410 Chairman Goldman represents 00:02:02.410 --> 00:02:04.750 house district 97 in Fort Worth. 00:02:04.750 --> 00:02:08.220 He currently chairs our energy resources committee. 00:02:08.220 --> 00:02:11.660 Last week, Chairman Goldman passed House Resolution 641 00:02:11.660 --> 00:02:14.050 commemorating the 130th anniversary 00:02:14.050 --> 00:02:15.980 of the Railroad Commission of Texas. 00:02:15.980 --> 00:02:17.940 It's been an honor and a privilege 00:02:17.940 --> 00:02:19.550 especially to work with chairman Goldman and 00:02:19.550 --> 00:02:21.000 his team this session. 00:02:21.000 --> 00:02:23.390 We're honored to have you here today and welcome you 00:02:23.390 --> 00:02:25.255 to the Railroad Commission, Chairman Goldman. 00:02:25.255 --> 00:02:26.900 Thank you, Jeremy. 00:02:26.900 --> 00:02:31.090 And it's an honor to be with Chairwoman Craddick 00:02:31.090 --> 00:02:34.120 Commissioner Wright, Commissioner Christian. 00:02:34.120 --> 00:02:36.950 It was my great honor to pass this resolution here. 00:02:36.950 --> 00:02:38.680 And here it is. 00:02:38.680 --> 00:02:40.500 Congratulating y'all and honoring y'all 00:02:40.500 --> 00:02:43.423 for your 130 year anniversary. 00:02:44.300 --> 00:02:46.450 You know, the Railroad Commission is so important 00:02:46.450 --> 00:02:49.790 in the state of Texas and I can't be more thankful 00:02:49.790 --> 00:02:53.430 for all y'all for your help in this session 00:02:53.430 --> 00:02:56.030 and helping to craft the legislation 00:02:56.030 --> 00:02:58.430 After winter storm URI, 00:02:58.430 --> 00:03:01.690 y'all been an integral part and all your Commissioners have, 00:03:01.690 --> 00:03:04.850 and everybody associated with the Railroad Commission, 00:03:04.850 --> 00:03:08.567 Jeremy, the whole team has been a huge help 00:03:08.567 --> 00:03:11.430 to a first time Chairman of Energy Resources. 00:03:11.430 --> 00:03:14.090 Committee announced one week a storm, 00:03:14.090 --> 00:03:15.420 the winter storm the next week 00:03:15.420 --> 00:03:18.240 and then 26 hours of hearings the following week. 00:03:18.240 --> 00:03:20.900 So it's been, it's been a heck 00:03:20.900 --> 00:03:24.780 of a start to my chairmanship and I would not 00:03:24.780 --> 00:03:27.610 have been able to do it without all y'all's help. 00:03:27.610 --> 00:03:30.530 So just, I would just want to take this opportunity 00:03:30.530 --> 00:03:34.050 to thank all y'all for all your help this session. 00:03:34.050 --> 00:03:37.340 And I look forward to working with y'all, continue to work 00:03:37.340 --> 00:03:39.670 with y'all throughout the interim, leading 00:03:39.670 --> 00:03:40.920 in the next session as well. 00:03:40.920 --> 00:03:43.740 Because we're not done this session 00:03:43.740 --> 00:03:45.710 with providing solutions to 00:03:45.710 --> 00:03:47.150 to what happened after the storm. 00:03:47.150 --> 00:03:49.750 We can do as much as we can legislatively 00:03:50.740 --> 00:03:52.476 but we need to continue working 00:03:52.476 --> 00:03:56.430 and committing to have many interim hearings 00:03:57.270 --> 00:04:01.060 throughout the interim and all over the state to 00:04:01.060 --> 00:04:04.160 to further the conversation about what went right 00:04:04.160 --> 00:04:06.480 what went wrong and then solutions we can all 00:04:06.480 --> 00:04:09.230 work together to provide for the people of Texas. 00:04:09.230 --> 00:04:12.190 So what happened during the storm doesn't happen again. 00:04:12.190 --> 00:04:15.090 So again, just my honor to be with all y'all this morning. 00:04:16.620 --> 00:04:17.700 Thank you, Chairman Goldman 00:04:17.700 --> 00:04:19.070 and thank you for the resolution. 00:04:19.070 --> 00:04:22.620 This has been an unusual year and thank you for your help. 00:04:22.620 --> 00:04:26.930 As we muddle through the storm, as well as our budget, 00:04:26.930 --> 00:04:29.930 we appreciate the help and we look forward to working 00:04:29.930 --> 00:04:32.750 with you going forward and thank you for honoring us. 00:04:32.750 --> 00:04:35.260 I think for the most important agency, we all say that. 00:04:35.260 --> 00:04:39.473 So we regulate what brings in a bunch of dollars 00:04:39.473 --> 00:04:42.230 and 130 years is a pretty good milestone, 00:04:42.230 --> 00:04:44.120 I think, as an agency. 00:04:44.120 --> 00:04:45.390 Thank you for being with us. 00:04:45.390 --> 00:04:47.710 And I want to thank the staff 00:04:47.710 --> 00:04:49.480 and my fellow Commissioners as well. 00:04:49.480 --> 00:04:50.900 Look, this is a great agency 00:04:50.900 --> 00:04:54.040 because of the people who we get, who I get to work with. 00:04:54.040 --> 00:04:55.510 And I look forward to, 00:04:55.510 --> 00:04:57.671 I won't be here 130 years, but I look forward 00:04:57.671 --> 00:05:02.040 to this agency continuing going forward. 00:05:02.040 --> 00:05:04.440 Cause I think we've, we've got a long way to go 00:05:04.440 --> 00:05:07.420 as a leader to continue being a leader. 00:05:07.420 --> 00:05:09.170 We got along, we've got a long history 00:05:09.170 --> 00:05:11.930 and a long way to go going forward that we're 00:05:11.930 --> 00:05:13.630 going to show everybody how it's done well 00:05:13.630 --> 00:05:14.910 and we look forward to working with you. 00:05:14.910 --> 00:05:17.113 Thank you, Chairman Goldman for being here. 00:05:17.113 --> 00:05:18.560 Thank y'all. 00:05:18.560 --> 00:05:19.830 Thanks. Anybody else? 00:05:19.830 --> 00:05:21.580 Have any comments, Jim? 00:05:21.580 --> 00:05:23.150 Yeah, sure. 00:05:23.150 --> 00:05:24.980 Chairman Goldman, thank you so much for being here 00:05:24.980 --> 00:05:25.813 with us today. 00:05:25.813 --> 00:05:28.277 It's an honor working with you over at Legislator. 00:05:28.277 --> 00:05:29.690 Excited to be here. 00:05:29.690 --> 00:05:30.700 I'm new, as you are. 00:05:30.700 --> 00:05:33.553 So all those exciting things faced me as I came 00:05:33.553 --> 00:05:37.200 into the agency and, I'm just, hopefully we 00:05:37.200 --> 00:05:38.560 don't experience that again. 00:05:38.560 --> 00:05:40.600 And we fix the problems that we have. 00:05:40.600 --> 00:05:41.500 It's an honor to work with you. 00:05:41.500 --> 00:05:45.320 Thank you for being here and thanks to my fellow 00:05:45.320 --> 00:05:47.600 Commissioners and to everyone here at the agency. 00:05:47.600 --> 00:05:48.580 It's been exciting. 00:05:48.580 --> 00:05:50.570 And, and I don't know, I couldn't tell you how 00:05:50.570 --> 00:05:51.780 much admiration I have 00:05:51.780 --> 00:05:53.790 for this agency and what it does protect us. 00:05:53.790 --> 00:05:55.270 Thank you all. 00:05:55.270 --> 00:05:56.590 Thanks 00:05:56.590 --> 00:05:59.291 Mr. Christian, got any comments? 00:05:59.291 --> 00:06:01.062 I thought I was supposed to stay quiet. 00:06:01.062 --> 00:06:02.323 (all laugh) 00:06:02.323 --> 00:06:03.183 That's fine. That's fine. 00:06:05.878 --> 00:06:07.850 I know, that's an oxymoron to me, right? 00:06:07.850 --> 00:06:08.683 Chairman Goldman. 00:06:08.683 --> 00:06:11.640 I just appreciate you and, and, and the people in the House 00:06:11.640 --> 00:06:15.390 and I love working with Upper Chamber there and knowing 00:06:15.390 --> 00:06:17.520 that the, since I'm a former House member 00:06:17.520 --> 00:06:21.033 I considered it that, and y'all done a great job. 00:06:22.891 --> 00:06:25.660 You are absolutely, it's been, it's a heck of a time to 00:06:25.660 --> 00:06:28.620 be involved in energy in Texas. 00:06:28.620 --> 00:06:31.350 With the current administration, with the storm we just had, 00:06:31.350 --> 00:06:33.770 with all the different things going on, I admire you 00:06:33.770 --> 00:06:36.180 for stepping forward in the public service and look forward 00:06:36.180 --> 00:06:37.013 to working with you. 00:06:37.013 --> 00:06:41.050 As we continue to probably Dodge some additional rockets 00:06:41.050 --> 00:06:43.830 that'll be coming from DC and other places. 00:06:43.830 --> 00:06:46.530 So thank you for your interest and your support 00:06:46.530 --> 00:06:48.200 and it is most honored. 00:06:48.200 --> 00:06:50.340 Well, I just want to say it's nice to see the three all 00:06:50.340 --> 00:06:52.070 at the same time. 00:06:52.070 --> 00:06:53.710 I've never yelled all y'all individually 00:06:53.710 --> 00:06:56.280 but it's nice to see y'all on an, a meeting 00:06:56.280 --> 00:06:57.113 at the same time. 00:06:57.113 --> 00:06:58.608 So that was great. 00:06:58.608 --> 00:07:00.930 Well, and I was here for the last big anniversary 00:07:00.930 --> 00:07:03.840 and we had cake, and like former Commissioners. 00:07:03.840 --> 00:07:06.220 So come back next year and we'll try that again. 00:07:06.220 --> 00:07:08.910 And you can see us all in person again. 00:07:08.910 --> 00:07:11.260 That sounds great, looking forward to it. 00:07:11.260 --> 00:07:12.370 Thank you, Chairman Goldman. 00:07:12.370 --> 00:07:13.670 We appreciate it and have a great day. 00:07:13.670 --> 00:07:15.387 We look forward to continuing to work with you. 00:07:15.387 --> 00:07:16.302 Thank y'all. 00:07:16.302 --> 00:07:17.135 Appreciate it. 00:07:17.135 --> 00:07:17.968 Talk to you soon. 00:07:17.968 --> 00:07:20.280 Bye-bye Bye-bye. 00:07:20.280 --> 00:07:22.890 Well, so we did, we had cake last time. 00:07:22.890 --> 00:07:25.660 We had a great time celebrating 00:07:25.660 --> 00:07:28.010 with former Commissioners for, I guess, 00:07:28.010 --> 00:07:30.310 on 121st or 122nd. 00:07:30.310 --> 00:07:31.143 I lose track. 00:07:31.143 --> 00:07:34.100 So at our 131st, let's hope we're all in person 00:07:34.100 --> 00:07:37.810 and we get to have cake and get to see friends 00:07:37.810 --> 00:07:41.670 and all of our great staff who really makes this, this go. 00:07:41.670 --> 00:07:42.503 So thank you. 00:07:42.503 --> 00:07:45.890 What a great, what a great accomplishment for 130 years. 00:07:45.890 --> 00:07:46.960 I appreciate it. 00:07:46.960 --> 00:07:47.793 All right, Callie. 00:07:47.793 --> 00:07:49.240 We're going back to work this morning. 00:07:49.240 --> 00:07:53.030 So if you'll call it item number one, I'd appreciate it. 00:07:53.030 --> 00:07:54.090 Thank you. 00:07:54.090 --> 00:07:58.430 Veronica Roberta will be presenting agenda item one. 00:07:58.430 --> 00:08:01.093 Veronica, we are ready when you are. 00:08:04.692 --> 00:08:06.500 Good Morning Chairman and Commissioners, Veronica 00:08:06.500 --> 00:08:09.810 Roberto, Administrative Law Judge for the Hearings division. 00:08:09.810 --> 00:08:11.750 Item number one is the application 00:08:11.750 --> 00:08:14.440 for transfer of permit number 32G 00:08:14.440 --> 00:08:19.100 from Texas Westmoreland Coal Company to Jewett Mine, LLC 00:08:19.100 --> 00:08:22.250 for the Jewett Mine located in Leon, Freestone, 00:08:22.250 --> 00:08:23.883 and Limestone Counties, Texas. 00:08:24.740 --> 00:08:27.730 Texas Westmoreland Coal Company is the current permitee 00:08:27.730 --> 00:08:29.670 to permit number 32G, 00:08:29.670 --> 00:08:32.840 and is in reclamation status, only. 00:08:32.840 --> 00:08:36.150 The application for transfer was initiated 00:08:36.150 --> 00:08:37.550 to reflect the name change 00:08:37.550 --> 00:08:39.680 from Texas Westmoreland Coal Company 00:08:39.680 --> 00:08:42.330 to Westmoreland Jewett Mining, LLC. 00:08:42.330 --> 00:08:44.103 after a bankruptcy proceeding. 00:08:45.100 --> 00:08:48.640 During the processing of the transfer application 00:08:48.640 --> 00:08:53.230 NRG, Texas LLC purchased Westmoreland Jewett Mining, LLC 00:08:53.230 --> 00:08:57.220 And renamed the company, Jewett Mining, LLC. 00:08:57.220 --> 00:08:59.160 Jewett is the applicant and the transferring 00:08:59.160 --> 00:09:02.240 in this docket is not organizationally related 00:09:02.240 --> 00:09:04.660 to the current permitee and original applicant, 00:09:04.660 --> 00:09:05.793 Texas WestMoreland. 00:09:06.760 --> 00:09:09.470 Jewett has undertaken to transfer the surety bonds 00:09:09.470 --> 00:09:12.530 from Texas Westmoreland to Jewett Mining, LLC. 00:09:12.530 --> 00:09:15.140 in this proceeding through the implementation 00:09:15.140 --> 00:09:16.950 of a rider instrument. 00:09:16.950 --> 00:09:19.680 The current bond for permit number 32G is 00:09:19.680 --> 00:09:22.270 in the amount of 62 million and will remain 00:09:22.270 --> 00:09:26.290 in place as modified by the writers to the surety bonds. 00:09:26.290 --> 00:09:28.360 And it is sufficient to cover the most 00:09:28.360 --> 00:09:31.860 recent reclamation costs estimates and the approximate 00:09:31.860 --> 00:09:35.403 amount of 60 million that was approved in revision 14. 00:09:36.390 --> 00:09:38.780 After notice, no comments or requests for a hearing 00:09:38.780 --> 00:09:39.960 were received. 00:09:39.960 --> 00:09:42.690 Jewett and staff are the only parties to the proceeding. 00:09:42.690 --> 00:09:44.200 No exceptions were filed. 00:09:44.200 --> 00:09:47.220 No changes to the current bond amount as requested, 00:09:47.220 --> 00:09:49.370 other than the name change, and the writers 00:09:49.370 --> 00:09:52.650 to the surety bond adequately address the name change 00:09:52.650 --> 00:09:54.273 to Jewett Mine, LLC. 00:09:55.180 --> 00:09:56.550 Evidence in the record supports 00:09:56.550 --> 00:09:58.810 that Jewett has satisfied all requirements 00:09:58.810 --> 00:10:01.240 for acceptance of the transfer application. 00:10:01.240 --> 00:10:03.440 It is recommended that the transfer application 00:10:03.440 --> 00:10:06.330 for permit number 30G be approved 00:10:06.330 --> 00:10:09.560 and the permit be renumbered two 32H. 00:10:09.560 --> 00:10:11.756 I'm available for questions. 00:10:11.756 --> 00:10:12.589 Thank you, Veronica. 00:10:12.589 --> 00:10:13.660 Are there any questions? 00:10:15.000 --> 00:10:17.450 All right, I'm move we approve the examiners recommendation. 00:10:17.450 --> 00:10:18.707 Is there a second? 00:10:18.707 --> 00:10:19.540 Second. 00:10:19.540 --> 00:10:20.890 Second by Commissioner Christian. 00:10:20.890 --> 00:10:22.196 All in favor, say aye. 00:10:22.196 --> 00:10:23.029 Aye. 00:10:23.029 --> 00:10:23.862 Aye. 00:10:23.862 --> 00:10:24.695 Aye. 00:10:24.695 --> 00:10:25.528 Motion passes. 00:10:25.528 --> 00:10:26.361 That item is approved. 00:10:26.361 --> 00:10:27.194 Thank you, Veronica. 00:10:27.194 --> 00:10:30.020 Let's call up number two, Callie. 00:10:30.020 --> 00:10:31.470 Yes. Thank you. 00:10:31.470 --> 00:10:34.403 Marcella Spraggins will be presenting agenda item two. 00:10:35.260 --> 00:10:37.793 Marcella, we are ready when you are. 00:10:41.770 --> 00:10:42.713 It looks like, there we go. 00:10:42.713 --> 00:10:44.290 Good morning. 00:10:44.290 --> 00:10:45.283 Good morning. 00:10:46.830 --> 00:10:48.720 Good morning Commissioners, Chairman. 00:10:48.720 --> 00:10:52.530 For the record, Administrative Law Judge Marcella Spraggins 00:10:52.530 --> 00:10:54.210 with the Hearings division. 00:10:54.210 --> 00:10:57.989 Item number two is an application by Jewett Mine, LLC 00:10:57.989 --> 00:11:01.170 for transfer permit number 47A 00:11:01.170 --> 00:11:04.260 for the Jewett Mine EF area located 00:11:04.260 --> 00:11:05.830 in Leon and Freestone counties. 00:11:05.830 --> 00:11:08.320 And for acceptance of surety bond riders 00:11:08.320 --> 00:11:10.323 for its two currently accepted bonds. 00:11:11.256 --> 00:11:12.390 The initial applicant 00:11:12.390 --> 00:11:15.590 for transfer was Westmoreland Jewett Mining, LLC. 00:11:15.590 --> 00:11:19.180 The successor in interest to all assets and contracts 00:11:19.180 --> 00:11:22.180 of the permitee Texas Westmoreland Coal Company. 00:11:22.180 --> 00:11:24.940 Westmoreland Jewett Mining, LLC was then purchased 00:11:24.940 --> 00:11:29.460 by NRG, Texas, LLC, and renamed Jewett Mine, LLC, 00:11:29.460 --> 00:11:30.323 the applicant. 00:11:31.370 --> 00:11:33.480 The application as supplemented includes all 00:11:33.480 --> 00:11:35.990 required information to address the requirements 00:11:35.990 --> 00:11:37.760 of the act and regulation. 00:11:37.760 --> 00:11:39.950 With adoption of the permit provisions contained 00:11:39.950 --> 00:11:42.433 in appendix two to the proposal order. 00:11:43.430 --> 00:11:46.150 Permit Number 47A is bonded 00:11:46.150 --> 00:11:51.150 in the amount of $36,654,123 by two surety bonds, 00:11:52.660 --> 00:11:54.713 Under the current permit. 00:11:55.700 --> 00:11:56.950 The surety bonds were issued 00:11:56.950 --> 00:11:59.390 by Liberty Mutual Insurance Company 00:11:59.390 --> 00:12:01.690 in the amount of $18 million dollars. 00:12:01.690 --> 00:12:04.530 And by Aspen American Insurance Company 00:12:04.530 --> 00:12:06.300 in the amount of $18,654,123. 00:12:10.090 --> 00:12:12.120 The total bond amount exceeds the most 00:12:12.120 --> 00:12:14.123 recent reclamation cost estimate. 00:12:15.260 --> 00:12:16.920 The applicant fell the riders 00:12:16.920 --> 00:12:19.860 to the bonds that contained required undertakings 00:12:19.860 --> 00:12:21.480 by the applicable surety company, 00:12:21.480 --> 00:12:26.210 the applicant, and the guarantor, NRG, Texas Power, LLC. 00:12:26.210 --> 00:12:28.720 The riders incorporate the related mutual agreements 00:12:28.720 --> 00:12:29.970 between the companies 00:12:29.970 --> 00:12:32.490 and meet the requirements of the regulations. 00:12:32.490 --> 00:12:34.770 The proposed order was circulated to staff 00:12:34.770 --> 00:12:36.950 and the applicant who filed waivers 00:12:36.950 --> 00:12:40.700 of preparation and circulation of a proposal for decision. 00:12:40.700 --> 00:12:43.570 It is recommended that the Commission issue 00:12:43.570 --> 00:12:46.700 the proposed order approving the transfer application 00:12:46.700 --> 00:12:50.690 as supplemented with the permit provisions in Appendix 2 00:12:50.690 --> 00:12:52.400 and accept the bond riders. 00:12:52.400 --> 00:12:53.800 I'm available for questions. 00:12:54.750 --> 00:12:55.583 Thank you, Marcy. 00:12:55.583 --> 00:12:56.416 It's nice to see you again. 00:12:56.416 --> 00:12:58.270 Are there any questions? 00:12:58.270 --> 00:12:59.743 Good to see you. 00:12:59.743 --> 00:13:01.950 I move we approve the examiner's recommendation. 00:13:01.950 --> 00:13:03.007 Is there a second? 00:13:04.322 --> 00:13:05.155 Second. 00:13:06.750 --> 00:13:07.671 All in favor, say aye. 00:13:07.671 --> 00:13:08.504 Aye. 00:13:08.504 --> 00:13:09.370 Aye. 00:13:09.370 --> 00:13:10.350 Aye. 00:13:10.350 --> 00:13:12.230 Motion passes. That item is approved. 00:13:12.230 --> 00:13:13.470 Thank you, Marcy. 00:13:13.470 --> 00:13:16.900 All right, Callie, if you'll call it number three, please. 00:13:16.900 --> 00:13:17.970 Yes. Thank you. 00:13:17.970 --> 00:13:21.123 John Moore would be presenting agenda item three. 00:13:22.460 --> 00:13:24.423 John, we are ready when you are. 00:13:27.465 --> 00:13:28.950 Good morning, Chairman and Commissioners. 00:13:28.950 --> 00:13:31.330 For the record, my name is John Moore 00:13:31.330 --> 00:13:34.093 and I'm a Technical Examiner in the Hearings division. 00:13:34.960 --> 00:13:36.710 Item number three is the application 00:13:36.710 --> 00:13:41.420 of APR Operating, LLC pursuant to Statewide rule nine 00:13:41.420 --> 00:13:45.510 for the objection for the Armadillo SWD Lease, 00:13:45.510 --> 00:13:49.020 well number one, in the Moore South Delaware field, 00:13:49.020 --> 00:13:51.470 Culberson County, Texas. 00:13:51.470 --> 00:13:53.830 APRs application is protested 00:13:53.830 --> 00:13:56.460 by an adjacent landowner. 00:13:56.460 --> 00:14:00.320 APR proposes to drill and complete a new disposal well 00:14:00.320 --> 00:14:04.010 and inject up to 30,000 barrels a day of salt water 00:14:04.010 --> 00:14:06.003 produced from its nearby wells. 00:14:07.060 --> 00:14:10.380 The produced water will be piped to the new disposal well 00:14:10.380 --> 00:14:13.410 and injected into the Delaware group formation 00:14:13.410 --> 00:14:17.880 at a depth from 3,100 feet to 6,050 feet. 00:14:17.880 --> 00:14:20.500 The examiners find the proposed disposal well 00:14:20.500 --> 00:14:22.280 is compliant with all Commission 00:14:22.280 --> 00:14:25.350 and Texas water code requirements. 00:14:25.350 --> 00:14:28.910 There was a 2.7 magnitude seismic event recorded 00:14:28.910 --> 00:14:32.270 within the a hundred square mile review area. 00:14:32.270 --> 00:14:35.240 Accordingly the administrative injection permit 00:14:35.240 --> 00:14:37.390 stated special conditions 00:14:37.390 --> 00:14:40.730 including a reduced maximum injection pressure 00:14:40.730 --> 00:14:43.540 a step rate test, and an addition, 00:14:43.540 --> 00:14:47.170 and an initial static bottom hole pressure test. 00:14:47.170 --> 00:14:49.370 The recommendation of the examiners is to 00:14:49.370 --> 00:14:52.880 approve the injection permit with the special conditions. 00:14:52.880 --> 00:14:54.930 No exceptions were filed. 00:14:54.930 --> 00:14:57.890 May I answer any questions? 00:14:57.890 --> 00:14:59.250 Commissioners, I also want to mention 00:14:59.250 --> 00:15:03.210 that we did have protestants Tom, Tony Luke and Levy Luke, 00:15:03.210 --> 00:15:06.810 who were representing themselves register. 00:15:06.810 --> 00:15:09.140 Unfortunately, I do not see them on the call at this time, 00:15:09.140 --> 00:15:11.590 but I did want to mention that they did register. 00:15:12.650 --> 00:15:13.560 Thank you, Callie. 00:15:13.560 --> 00:15:16.205 Are there any questions of John? 00:15:16.205 --> 00:15:17.950 (Shaking heads no) 00:15:17.950 --> 00:15:18.783 No. 00:15:18.783 --> 00:15:20.260 John, and we do have one that 00:15:20.260 --> 00:15:22.700 or an order that has fixed the typos, correct? 00:15:22.700 --> 00:15:25.477 In our, in our information. 00:15:25.477 --> 00:15:26.420 Yes, ma'am. 00:15:26.420 --> 00:15:27.253 Great. 00:15:27.253 --> 00:15:28.086 Okay. 00:15:28.086 --> 00:15:29.373 All right. 00:15:29.373 --> 00:15:31.082 Are there any, I move we approve 00:15:31.082 --> 00:15:31.915 the examiners recommendation. 00:15:31.915 --> 00:15:33.020 Is there a second? 00:15:33.020 --> 00:15:33.853 Second. 00:15:33.853 --> 00:15:35.470 Second by Commissioner Christian? 00:15:35.470 --> 00:15:37.329 All those in favor, say aye. 00:15:37.329 --> 00:15:38.162 Aye. 00:15:38.162 --> 00:15:38.995 Aye. 00:15:38.995 --> 00:15:41.200 Aye. Motion passes that item is approved. 00:15:41.200 --> 00:15:42.033 Callie, if you'll call up 00:15:42.033 --> 00:15:44.800 presenter four through seven, please. 00:15:44.800 --> 00:15:45.633 Yes. Thank you. 00:15:45.633 --> 00:15:48.270 Jennifer Cook will be presenting agenda items four 00:15:48.270 --> 00:15:49.700 through seven. 00:15:49.700 --> 00:15:51.500 Jennifer. We are ready when you are. 00:15:55.560 --> 00:15:57.130 Good morning Chairman and Commissioners. 00:15:57.130 --> 00:15:59.730 I'm Jennifer Cook, Administrative Law Judge 00:15:59.730 --> 00:16:01.340 with the Hearings division. 00:16:01.340 --> 00:16:04.380 I'm presenting items four through seven together. 00:16:04.380 --> 00:16:08.450 In items four through seven, Redemption Oil and Gas LLC 00:16:08.450 --> 00:16:12.270 filed a single signature form P4 requesting 00:16:12.270 --> 00:16:14.190 it be designated the operator of record 00:16:14.190 --> 00:16:18.050 for this four subject wells. The P4s did not contain the 00:16:18.050 --> 00:16:20.520 signature of the current operator of record, 00:16:20.520 --> 00:16:23.260 which is Atlas Operating LLC. 00:16:23.260 --> 00:16:26.113 Atlas protests a transfer to Redemption. 00:16:26.970 --> 00:16:30.140 Redemption is a non-operating working interest owner 00:16:30.140 --> 00:16:32.180 in a joint operating agreement referred to 00:16:32.180 --> 00:16:34.820 as a JOA covering the Wells. 00:16:34.820 --> 00:16:38.920 Redemptions' claims that properly removed Atlas as operator. 00:16:38.920 --> 00:16:41.210 And now it is operator. 00:16:41.210 --> 00:16:44.350 Atlas claims that it dispute, its dispute 00:16:44.350 --> 00:16:47.170 with redemption is a contractual dispute. 00:16:47.170 --> 00:16:49.030 Atlas maintains it is still the operator 00:16:49.030 --> 00:16:52.670 and comply with all agreements that paid all amounts owed. 00:16:52.670 --> 00:16:55.150 It is recommended that the Commission deny 00:16:55.150 --> 00:16:58.220 Redemptions applications to have the Wells transferred. 00:16:58.220 --> 00:17:00.187 No exceptions were filed. 00:17:00.187 --> 00:17:02.013 I'm available for questions. 00:17:03.120 --> 00:17:05.300 Commissioners, we also have Rob Hargrove 00:17:05.300 --> 00:17:07.520 representing Atlas operating registered 00:17:07.520 --> 00:17:09.363 and available for questions as well. 00:17:10.440 --> 00:17:11.273 Thank you. 00:17:11.273 --> 00:17:14.143 Are there any questions for Mr. Hargrove or Jennifer? 00:17:15.320 --> 00:17:18.480 Okay. I move that we approve the examiners recommendation 00:17:18.480 --> 00:17:20.750 for items four through seven. 00:17:20.750 --> 00:17:22.629 Is there a second? 00:17:22.629 --> 00:17:23.462 Second. 00:17:23.462 --> 00:17:24.610 Second by Commissioner Wright. 00:17:24.610 --> 00:17:25.810 All those in favor, say aye. 00:17:25.810 --> 00:17:26.840 Aye 00:17:26.840 --> 00:17:27.673 Aye 00:17:27.673 --> 00:17:29.600 Aye. Motion passes. Those items are approved. 00:17:29.600 --> 00:17:30.740 Thank you, Jennifer. 00:17:30.740 --> 00:17:33.980 Let's move on to the Oil and Gas Consent Agenda. 00:17:33.980 --> 00:17:37.020 There are 36 items on this agenda. 00:17:37.020 --> 00:17:39.800 I understand that staff wants to pass items, 00:17:39.800 --> 00:17:42.400 item number 43. 00:17:42.400 --> 00:17:46.790 Are there any comments or questions about any of the, 00:17:46.790 --> 00:17:49.033 about anything on items eight through 42? 00:17:49.920 --> 00:17:50.963 I do, Chairman. 00:17:51.810 --> 00:17:54.080 Before we make a motion. 00:17:54.080 --> 00:17:57.627 Items eight through 14 are flaring exception applications 00:17:57.627 --> 00:17:59.968 for Aventa USA, Inc. in Eagleford in Parns County. 00:17:59.968 --> 00:18:02.680 I actually traveled to Parns County 00:18:02.680 --> 00:18:04.600 and toured their facility to better understand 00:18:04.600 --> 00:18:07.190 how Aventa was planning on reducing 00:18:07.190 --> 00:18:09.770 their flare gas volumes in the future. 00:18:09.770 --> 00:18:11.850 It is my understanding, however, that Aventa has 00:18:11.850 --> 00:18:16.020 since sold their Eagleford assets to another operator. 00:18:16.020 --> 00:18:18.870 Since blaring exceptions are non-transferrable. 00:18:18.870 --> 00:18:20.190 It is my understanding, 00:18:20.190 --> 00:18:23.100 these specific exception applications, if approved, 00:18:23.100 --> 00:18:26.720 will be effective retroactively, as well as to the time 00:18:26.720 --> 00:18:29.230 the assets are actually transferred. 00:18:29.230 --> 00:18:31.980 At that point, the new operator will be required to file 00:18:31.980 --> 00:18:33.760 for the flaring exceptions applications, 00:18:33.760 --> 00:18:35.970 if they feel they are necessary. 00:18:35.970 --> 00:18:37.270 The second group of items. 00:18:37.270 --> 00:18:39.690 Items 15 through 35 00:18:39.690 --> 00:18:42.750 are a series of blaring exception applications for PDC 00:18:42.750 --> 00:18:44.640 Permian in Reeves County. 00:18:44.640 --> 00:18:47.670 I noted in our materials that the potential net layer volume 00:18:47.670 --> 00:18:50.390 is nearly 50% lower when compared to the previous 00:18:50.390 --> 00:18:51.936 administrative authority. 00:18:51.936 --> 00:18:54.710 That in itself is really good. 00:18:54.710 --> 00:18:56.740 However, it should also be noted 00:18:56.740 --> 00:18:58.950 that the examiners recommended shortening the term 00:18:58.950 --> 00:19:01.940 of the blaring exception from two years to one year 00:19:01.940 --> 00:19:05.220 which is certainly something I support. 00:19:05.220 --> 00:19:08.000 Again, I applaud the genuine efforts of both staff 00:19:08.000 --> 00:19:10.007 and the industry in reducing the amount 00:19:10.007 --> 00:19:13.750 of gas that has been or will be flared in the future. 00:19:13.750 --> 00:19:15.020 That's all I have. 00:19:15.020 --> 00:19:17.590 I'm ready to hear your motion chairman. 00:19:17.590 --> 00:19:19.843 Thank you, Commissioner Wright. 00:19:19.843 --> 00:19:23.350 I move that we approve items eight through 42 00:19:23.350 --> 00:19:25.400 and that item 43 be passed. 00:19:25.400 --> 00:19:27.286 Is there a second? 00:19:27.286 --> 00:19:28.150 Second 00:19:28.150 --> 00:19:29.610 Second by Commissioner Christian. 00:19:29.610 --> 00:19:30.810 All those in favor, say aye. 00:19:30.810 --> 00:19:31.643 Aye. 00:19:31.643 --> 00:19:32.476 Aye. 00:19:32.476 --> 00:19:35.310 Aye. Motion passes. Those items are approved. 00:19:35.310 --> 00:19:37.550 Let's go to master default items. 00:19:37.550 --> 00:19:42.550 Items 44 through 50 - there are seven master default orders. 00:19:42.980 --> 00:19:46.310 I move, we approve items 44 through 50. 00:19:46.310 --> 00:19:47.550 Is there a second? 00:19:47.550 --> 00:19:48.640 Second. 00:19:48.640 --> 00:19:49.980 Second by Commissioner Wright. 00:19:49.980 --> 00:19:51.584 All those in favor, say aye. 00:19:51.584 --> 00:19:52.417 Aye. 00:19:52.417 --> 00:19:53.250 Aye. 00:19:53.250 --> 00:19:54.580 Aye. Those items are approved. 00:19:54.580 --> 00:19:56.970 Let's go to agreed enforcement orders. 00:19:56.970 --> 00:19:59.340 Items 51 through one 148, 00:19:59.340 --> 00:20:02.140 there are 98 agreed enforcement orders. 00:20:02.140 --> 00:20:06.250 I move that we approve items 51 through 148. 00:20:06.250 --> 00:20:07.748 Is there a second? 00:20:07.748 --> 00:20:08.581 Second 00:20:08.581 --> 00:20:09.900 Second by Commissioner Christian. 00:20:09.900 --> 00:20:11.070 All those in favor, say aye. 00:20:11.070 --> 00:20:11.903 Aye. 00:20:11.903 --> 00:20:12.736 Aye. 00:20:12.736 --> 00:20:13.610 Aye. Motion passes. 00:20:13.610 --> 00:20:15.290 Those items are approved. 00:20:15.290 --> 00:20:18.100 That concludes the hearing section matters. 00:20:18.100 --> 00:20:20.700 And we'll now take up administrative agenda. 00:20:20.700 --> 00:20:23.827 We've already done 149, so item number 150. 00:20:25.302 --> 00:20:26.135 Callie, if you please call up. 00:20:26.135 --> 00:20:27.050 Yes. Thank you. 00:20:27.050 --> 00:20:27.883 Thank you. 00:20:27.883 --> 00:20:29.040 Yes. Thank you. 00:20:29.040 --> 00:20:33.030 April Richardson will be presenting agenda item 150. 00:20:33.030 --> 00:20:34.913 April, we are ready when you are. 00:20:35.800 --> 00:20:38.120 Good morning, Mrs. Chairman and Commissioners. 00:20:38.120 --> 00:20:40.030 For the record, my name is April Richardson, 00:20:40.030 --> 00:20:41.770 Director of Alternative Fuel Safety 00:20:41.770 --> 00:20:44.120 in the Oversight and Safety Division. 00:20:44.120 --> 00:20:47.340 Item 150 is the Alternative Fuel Safety Department's 00:20:47.340 --> 00:20:52.340 request for approval to adopt minor changes to 43 C and G 00:20:52.410 --> 00:20:54.320 and L and G forms. 00:20:54.320 --> 00:20:56.650 The changes made to these forms are corrections to 00:20:56.650 --> 00:21:00.170 remove previous designations used for the alternative fuel 00:21:00.170 --> 00:21:03.150 safety department and update those references 00:21:03.150 --> 00:21:04.700 to the current department name. 00:21:05.690 --> 00:21:07.930 All headers and contact information were updated 00:21:07.930 --> 00:21:11.710 on these forms to the current division and department names 00:21:11.710 --> 00:21:15.460 and any outdated contact information was also corrected. 00:21:15.460 --> 00:21:17.800 May I answer any questions? 00:21:17.800 --> 00:21:19.005 Thank you April. 00:21:19.005 --> 00:21:20.110 Are there any questions? 00:21:20.110 --> 00:21:22.370 All right, I move we approve the staff's recommendation. 00:21:22.370 --> 00:21:23.913 Is there a second? 00:21:23.913 --> 00:21:25.220 Second. 00:21:25.220 --> 00:21:28.302 Second by Commissioner Wright. All in favor, say aye. 00:21:28.302 --> 00:21:29.135 Aye. 00:21:29.135 --> 00:21:29.968 Aye. 00:21:29.968 --> 00:21:31.620 Aye. Motion passes. That item is approved. 00:21:31.620 --> 00:21:36.620 Let's go to 151, is our public participation item and 00:21:37.840 --> 00:21:40.230 that we don't have anyone registered to speak 00:21:40.230 --> 00:21:41.920 on any non-posted items. 00:21:41.920 --> 00:21:44.360 Item 152 is our executive session, 00:21:44.360 --> 00:21:46.380 which we won't be going into today. 00:21:46.380 --> 00:21:49.455 Are there any other matters which we need to consider? 00:21:49.455 --> 00:21:50.288 (Commissioner Christian raises finger) 00:21:50.288 --> 00:21:51.121 Yes sir? 00:21:51.121 --> 00:21:53.720 Can I say just one thing? I want to commend our staff. 00:21:53.720 --> 00:21:56.040 I want to commend the industry. 00:21:56.040 --> 00:21:58.290 We, right now, according to the Railroad Commission 00:21:58.290 --> 00:22:02.317 statistics are on flaring at 0.04% 00:22:03.470 --> 00:22:06.120 of the produced natural gas in the state of Texas. 00:22:06.120 --> 00:22:09.820 That means that 99.6% is going 00:22:09.820 --> 00:22:13.280 and being processed to its intended purpose without flaring. 00:22:13.280 --> 00:22:15.487 So I commend the industry and I think this is an example 00:22:15.487 --> 00:22:17.340 for the rest of the nation and the world 00:22:17.340 --> 00:22:20.410 that we are doing it right in state of Texas. 00:22:20.410 --> 00:22:22.453 So I commend our staff and the industry. 00:22:23.400 --> 00:22:25.330 Thank you, Commissioner Christian for bringing that 00:22:25.330 --> 00:22:27.650 up and reminding us. I think we've come a long way 00:22:27.650 --> 00:22:29.576 in a year or under. Leadership of this agency with 00:22:29.576 --> 00:22:31.860 with your leadership. 00:22:31.860 --> 00:22:35.080 Commissioner Wright, I'm glad that you're taking an interest 00:22:35.080 --> 00:22:37.910 and we appreciate that the industry is taking it 00:22:37.910 --> 00:22:39.363 very seriously, as well. 00:22:40.744 --> 00:22:44.690 And our team here at the Commission. 00:22:44.690 --> 00:22:46.190 They're doing a wonderful job. 00:22:47.870 --> 00:22:48.850 I agree. 00:22:48.850 --> 00:22:49.683 Thank you. 00:22:49.683 --> 00:22:50.516 Thank you both. 00:22:50.516 --> 00:22:52.730 Is there anything else this morning? 00:22:52.730 --> 00:22:53.563 All right. 00:22:53.563 --> 00:22:54.538 Hearing none. 00:22:54.538 --> 00:22:55.550 This meeting of the Railroad Commission is adjourned. 00:22:55.550 --> 00:22:56.383 Thank you all. 00:22:56.383 --> 00:22:57.216 Have a great week.