WEBVTT
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Good morning.
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This meeting in the Railroad
Commission of Texas
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will come to order to consider matters
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which have been duly posted
with the Secretary of State
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for September 28th, 2021.
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Under our public participation policy,
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anyone desiring to
offer public testimony
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on any items that are not noticed
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on today's agenda was
required to register in advance.
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And I didn't have anybody
registering in advance
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in accordance with our policy.
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The Commission will consider
the items on the agenda,
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as posted on the agenda.
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But before we get started,
we've got service awards.
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So Robbi, if you'll come up,
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and let's all tell everybody
how great they are.
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We've got some good folks
who've been with us for awhile.
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Good morning, Chairman
and Commissioners.
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My name is Robbi Craig
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and I'm the chief human capital officer.
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I'm here today to present
our fiscal year 2021
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third and fourth quarter service awards.
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First up with five years of service
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from our Hearings
division is Dana Lewis.
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(clapping)
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Next, celebrating 10 years of service,
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also from our Hearings division,
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we'd like to recognize
Kristi Reeve in our audience.
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(clapping)
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Next, celebrating 15
years from our oversight
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and safety division, Angie Whitehead.
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(clapping)
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Next, celebrating 20 years
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from our Hearings division is Rose Ruiz.
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(clapping)
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Also celebrating 20 years from our oil
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and gas division is Richard Behal.
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(clapping)
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Also celebrating 20 years from our oil
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and gas division, Lorenzo Garza.
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(clapping)
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Our next award celebrates
25 years of service
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from our oversight and safety division
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in San Angelo, Adam Rodriguez.
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(clapping)
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Next, celebrating 30 years of service
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from our oil and gas
division, Deborah Davis.
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(clapping)
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And last but not least,
celebrating 30 years of service
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from our oversight and safety
division, Bruce Waterman.
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(clapping)
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This concludes today's
service award presentation.
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(clapping)
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Well, thank you all
for the work you do.
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That means none of you can retire.
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You're here for the rest of your life.
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We have some great staff, by the way.
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So this is a nice
recognition and y'all know
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that they make our worlds
run and the trains run on time.
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You got it.
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All right, we're at
item number one.
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Good morning.
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Good morning, Chairman
and Commissioners.
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I'm Jennifer Cook,
Administrative Law Judge
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with the Hearings division.
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I am presenting items
one through seven today,
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starting with item one.
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In item one, Waterbridge
Texas operating LLC,
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and Permian Water LLC filed a complaint
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against NGL Water Solutions Permian LLC
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and NGL Water Solutions Eagleford LLC
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regarding protests NGL
files against applications
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for injection wells under
Statewide rules nine and 46.
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Complainants maintain
NGL's protests of application
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for injection, when it
is merely a competitor
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are for purposes of delaying
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and impeding potential competitors.
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In its protest, and in
response to motions
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to dismiss its protests, NGL
consistently asserts claims
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that are routinely rejected.
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NGL has claimed and continues to claim
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it has a right to be a party
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when it is not an affected person.
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Complainants asked the
Commission to issue sanctions
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prohibiting NGL's pleadings
and protests from compelling
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the hearing when NGL
is not an affected person.
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Complainants also request
the Commission order NGL
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to pay complainants'
attorney fees in this case.
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NGL continues to maintain
it has a right to file a protest
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and be a party, even though
it is not an affected person.
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It is recommended that the
Commission issue an order
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that allows Commission staff
to treat a protest from NGL
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as not from an affected person
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unless NGL affirmatively
states it is an affected person.
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The examiners recommend
the Commission order NGL
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to pay complainants' attorney fees.
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Exceptions and replies were filed,
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and I am available for questions.
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Thank you, Christie.
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As noted, there are several
people from both NGL
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and Waterbridge, if
anybody has any questions,
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they have pre-registered as well.
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So if they have a
question to those people
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or Christie this morning.
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Jennifer, good god, I'm sorry.
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Well, I'm looking at her behind you.
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No, I'm looking at her behind you.
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I know I shouldn't be in
charge of some things.
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It happens, it does.
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I know, but it happens.
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I'm sorry, Jennifer.
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Madam Chairman,
as my chief of staff
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and legal counsel worked on
this case in the private sector,
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I would normally recuse
myself from decision
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and voting on this matter.
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However, I instead consulted
with the Commission's
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general counsel, Mr. Alex Schoch,
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to ensure that I would
not be unduly influenced.
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With that, I'm ready to discuss
the matter here in motion.
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Thank you, thank you for that.
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Anybody have any
questions for the other people
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that are here?
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Okay, I've got some
comments in a separate motion
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if y'all would give me a minute to read
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a big long page for just a second.
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All right.
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In my view, no substantive
rule has been broken.
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The examiners based a
recommendation on the phrase
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from the interest of justice
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found in procedural rule 1.102.
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I don't agree that respondent's conduct
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rises to the level of the sanctions
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the examiners have recommended
under procedural 1.102.
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So it's a stretch for me
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that procedural 1.102 has been broken.
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Much of the record
evidence does not concern
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the complainant, but
rather third parties.
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The record has not
established to my satisfaction
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that respondent's
pleadings were in violation
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of procedural rule 1.102
and the proposed sanction
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restricting further participation
and future participation
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in protest holds the respondent
to a different standard
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than any other party
before the Commission.
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As a result, I cannot
support any of the proposed
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protest process or to the
proposed monetary sanctions.
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So I've got a motion
unless either one of y'all
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have additional questions
or comments about that.
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All right, I move that the
examiners prepare an order
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denying the complaint in its entirety
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and bring it back at
the next open meeting.
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Is there a second?
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Second.
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Second by Commissioner
Christian, all in favor, say aye.
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Aye.
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Motion passes.
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And I have a final comment
just because this docket,
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and I spent a lot of time reading this,
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this docket has brought to my attention
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inefficiencies related
to the current process
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of protesting disposal
well applications.
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It appears that it can lead to delays,
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increased cost, and waste of resources
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for applicants, as well as our staff.
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I'd like staff to look at ways
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to alleviate these inefficiencies.
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In particular, I've asked
staff to give a fresh look
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at determination of
affected party status
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and to an opportunity for sanctions,
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if warranted in the
context of individual cases.
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Thank you, Madam Chairman.
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Yes, sir.
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Thank you for the
work you've done on this.
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I agree with you and
I don't believe there's
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been a violation here and I look forward
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to how the staff will bring
back that recommendation.
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And thank you for doing
the work you did on this.
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Thank you.
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And I do too, thank
you Madam Chairman.
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Thank you, thank you,
Jennifer, and you're up.
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Thank you.
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Item two is a
motion for rehearing.
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On August 3rd, 2021, the
Commission issued an order
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approving the subject application.
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A timely motion for
rehearing was received
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from protestant Leon A. Greenland.
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The applicant filed a reply
in opposition to the motion.
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None of the issues raised in the motion
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for rehearing are new.
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All issues raised in the
motion were already raised
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by the protestant and
considered by the Commission
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prior to the Commission
issuing the order in this case.
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It is recommended that the Commission
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deny the motion for rehearing.
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The motion will be
overruled by operation of law
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on November 12th, 2021.
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And I'm available for questions.
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Thank you.
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Any questions for
Jennifer, any comments?
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Well, Madam Chairman
again, as you may recall,
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I recused myself in this matter
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at the August 3rd Commission conference.
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It was at that conference that you
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and Commissioner
Christian voted on the merits
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of the matter and to approve
the subject permit application.
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Since this agenda item
does not involve the merits
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that you and Commissioner
Christian voted on previously,
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and instead deals only
with the motion for rehearing,
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which brings up no
new issues of fact or law,
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I feel as though it is proper
for me to vote on this matter,
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would that I am ready for your motion.
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Thank you, any other
questions or comments?
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Right, I move we approve the
examiners' recommendation.
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Is there a second?
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Second.
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Second by
Commissioner Christian,
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all in favor, say aye.
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Aye.
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Motion passes,
that item's approved.
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Three and four.
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And items three and four
are also a motion for rehearing.
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They're presented together
with one order and one vote.
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On August 3rd, 2021, the
Commission issued an order
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granting the subject application.
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A timely motion for
rehearing was received
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from Dallas Petroleum Group LLC.
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The applicant filed a reply
in opposition to the motion.
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None of the issues raised in the motion
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for rehearing are new, all
issues raised in the motion
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were already raised by
respondent and considered
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by the Commission
prior to the Commission
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issuing the order in this case.
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It is recommended that the Commission
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deny the motion for rehearing.
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The motion will be
overruled by operation of law
00:14:26.440 --> 00:14:28.853
on November 12th, 2021.
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I'm available for questions.
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Thank you, are
there any questions?
00:14:35.052 --> 00:14:37.713
And we have two people
from Dallas Petroleum Group
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that have pre-registered.
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Are there any questions
of those two gentlemen?
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All right, I'll move we approve
00:14:43.940 --> 00:14:45.370
the examiners' recommendation.
00:14:45.370 --> 00:14:46.280
Is there a second?
00:14:46.280 --> 00:14:47.113
Second.
00:14:47.113 --> 00:14:50.120
Second by Commissioner
Wright, all in favor, say aye.
00:14:50.120 --> 00:14:50.953
Aye.
00:14:50.953 --> 00:14:53.692
Motions passes, those
two items are approved.
00:14:53.692 --> 00:14:55.235
Five, six, seven.
00:14:55.235 --> 00:14:57.183
All right, items
five through seven
00:14:57.183 --> 00:14:58.700
also involve a motion for rehearing.
00:14:58.700 --> 00:15:01.860
They are also presented
together with one order.
00:15:01.860 --> 00:15:05.420
On July 26th, 2021, the
Hearings division issued an order
00:15:05.420 --> 00:15:09.760
dismissing the subject
applications without prejudice.
00:15:09.760 --> 00:15:11.940
A timely motion for
rehearing was received
00:15:11.940 --> 00:15:15.706
from Blackwell Exploration
and Development LLC.
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In it Blackwell argues
that the application
00:15:18.340 --> 00:15:20.760
should be dismissed with prejudice.
00:15:20.760 --> 00:15:22.370
Four more originals filed a brief
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concurring with Blackwell's motion.
00:15:24.700 --> 00:15:26.970
The applicant Pure Oil filed a reply
00:15:26.970 --> 00:15:28.370
in opposition to the motion.
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In the motion, Blackwell
complains the applicant
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should not be rewarded for untimely
00:15:33.640 --> 00:15:36.980
withdrawing its application
after three days of hearing.
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At the end of three days,
the hearing was recessed
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and scheduled to resume at a later date.
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The applicant had rested its direct case
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and the protestants had
presented part of their direct case.
00:15:46.800 --> 00:15:49.656
Blackwell relies on the
Texas rules of civil procedure,
00:15:49.656 --> 00:15:52.442
which does not allow a
party to withdraw its case
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and refile later, if the party
has rested its direct case.
00:15:56.186 --> 00:15:58.680
This rule applies to petitions filed
00:15:58.680 --> 00:16:00.800
in Texas district courts,
00:16:00.800 --> 00:16:03.760
not Commission
administrative proceedings.
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Blackwell also asserts the wells
00:16:05.340 --> 00:16:07.180
and subject salt caverns will never
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be suitable for disposal.
00:16:09.542 --> 00:16:12.040
The applicant maintains
that the salt caverns
00:16:12.040 --> 00:16:14.710
are suitable for disposal and notes
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that its applications were
administratively complete.
00:16:18.055 --> 00:16:21.180
It claims it would drew its applications
00:16:21.180 --> 00:16:22.940
to reconfigure the wellbores
00:16:22.940 --> 00:16:26.123
with additional safeguards
and plans to resubmit.
00:16:27.300 --> 00:16:29.370
An application for a
permit from the Commission
00:16:29.370 --> 00:16:31.610
does not merely consist of a claim filed
00:16:31.610 --> 00:16:36.018
as part of a legal
proceeding as in district court,
00:16:36.018 --> 00:16:39.750
it is an administrative process
required for authorization
00:16:39.750 --> 00:16:41.603
to operate a regulated activity.
00:16:42.560 --> 00:16:43.860
It is recommended that the Commission
00:16:43.860 --> 00:16:45.930
deny the motion for rehearing.
00:16:45.930 --> 00:16:47.360
The motion will be overruled
00:16:47.360 --> 00:16:50.510
by operation of law on
November 3rd, 2021.
00:16:50.510 --> 00:16:52.620
And I'm available for questions.
00:16:52.620 --> 00:16:55.690
Thank you, are there
any questions for Jennifer?
00:16:55.690 --> 00:16:59.601
All right, the people
pre-registered for both parties,
00:16:59.601 --> 00:17:03.580
Pure Oilfield and Blackwell Exploration.
00:17:03.580 --> 00:17:07.600
Does anybody want to hear
from either one of their parties?
00:17:07.600 --> 00:17:10.280
All right, I move we approve
the examiners' recommendation.
00:17:10.280 --> 00:17:11.240
Is there a second?
00:17:11.240 --> 00:17:12.073
Second.
00:17:12.073 --> 00:17:13.410
Second by
Commissioner Christian.
00:17:13.410 --> 00:17:15.303
All in favor, say aye.
00:17:15.303 --> 00:17:16.302
Aye.
00:17:16.302 --> 00:17:17.180
Motions passes, those
items are approved.
00:17:17.180 --> 00:17:18.180
Thank you, Jennifer.
00:17:19.454 --> 00:17:20.931
All right, number eight.
00:17:20.931 --> 00:17:21.831
Good morning, Joe.
00:17:25.050 --> 00:17:27.047
Good morning,
Chairman, Commissioners.
00:17:27.047 --> 00:17:28.780
For the record, Joe Menefe,
00:17:28.780 --> 00:17:31.140
paralegal in the Hearings division.
00:17:31.140 --> 00:17:33.970
I'll be presenting items eight and nine,
00:17:33.970 --> 00:17:36.813
both of which are P-5
motions for rehearing
00:17:36.813 --> 00:17:39.242
filed as a result of a final order,
00:17:39.242 --> 00:17:43.038
denying renewal of the
operator's P-5 because of wells
00:17:43.038 --> 00:17:46.958
non-compliant with Statewide rule 15.
00:17:46.958 --> 00:17:50.470
Item number eight, in
its motion for rehearing,
00:17:50.470 --> 00:17:55.470
CXL Energy LLC states its
failure to request a hearing
00:17:55.970 --> 00:17:58.148
was due to mistake or accident,
00:17:58.148 --> 00:18:01.490
that compliance is
eminent and that granting
00:18:01.490 --> 00:18:05.050
the rehearing will not delay
or injure the Commission.
00:18:05.050 --> 00:18:07.270
Staff opposes the motion.
00:18:07.270 --> 00:18:11.300
At this time, 25 wells
remain noncompliant
00:18:11.300 --> 00:18:13.470
with Statewide rule 15.
00:18:13.470 --> 00:18:15.800
It is recommended the motion be denied.
00:18:15.800 --> 00:18:17.210
The motion will be overruled
00:18:17.210 --> 00:18:20.350
by operation of law on November 11th.
00:18:20.350 --> 00:18:22.570
I'm available for questions.
00:18:22.570 --> 00:18:23.950
Thank you, are
there any questions?
00:18:23.950 --> 00:18:27.550
25 is better than 77,
but still that's quite a few.
00:18:27.550 --> 00:18:30.160
I move we approve the
examiners' recommendation.
00:18:30.160 --> 00:18:30.993
Is there a second?
00:18:30.993 --> 00:18:31.826
Second.
00:18:31.826 --> 00:18:32.840
Second by Commissioner Wright.
00:18:32.840 --> 00:18:34.854
All those in favor, say aye.
00:18:34.854 --> 00:18:35.687
Aye.
00:18:35.687 --> 00:18:36.770
Motion passes,
that item's approved.
00:18:36.770 --> 00:18:37.720
Number nine.
00:18:37.720 --> 00:18:39.110
Item number nine.
00:18:39.110 --> 00:18:42.290
Subsequent to filing
its motion for rehearing,
00:18:42.290 --> 00:18:45.960
Texron Operating LLC
has come into compliance
00:18:45.960 --> 00:18:47.960
with Statewide rule 15.
00:18:47.960 --> 00:18:50.800
Therefore it's recommended
that the motion be granted
00:18:50.800 --> 00:18:53.860
and the underlying
docket dismissed as moot.
00:18:53.860 --> 00:18:55.220
I'm available for questions.
00:18:55.220 --> 00:18:57.522
Thank you,
we like good news.
00:18:57.522 --> 00:18:59.600
All right, I move we approve
the examiners' recommendation.
00:18:59.600 --> 00:19:00.433
Is there a second?
00:19:00.433 --> 00:19:01.800
Second.
00:19:01.800 --> 00:19:02.633
Second by
Commissioner Christian,
00:19:02.633 --> 00:19:03.990
all in favor say aye.
00:19:03.990 --> 00:19:04.823
Aye.
00:19:04.823 --> 00:19:06.000
Motion passes,
that item's approved.
00:19:06.000 --> 00:19:07.210
Thank you, Joe.
00:19:07.210 --> 00:19:09.081
All right, let's move to the oil
00:19:09.081 --> 00:19:13.400
and gas Consent Agenda
items 10 through 30.
00:19:13.400 --> 00:19:17.300
Are there any ones we need to discuss
00:19:17.300 --> 00:19:18.683
or take up individually?
00:19:20.770 --> 00:19:22.082
Okay.
00:19:22.082 --> 00:19:24.330
There are 21 items on this.
00:19:24.330 --> 00:19:27.080
I move we approve items 10 through 30.
00:19:27.080 --> 00:19:28.183
Is there a second?
00:19:29.060 --> 00:19:31.490
Before we do that, I
do have some comments.
00:19:31.490 --> 00:19:33.490
I'm sorry, Chairman, I know y'all
00:19:33.490 --> 00:19:34.480
are probably shocked again,
00:19:34.480 --> 00:19:37.810
but I'm considering agendas
I'm very passionate about.
00:19:37.810 --> 00:19:39.910
First off, we just
received data from staff
00:19:39.910 --> 00:19:42.550
containing the latest
statistics regarding flaring
00:19:42.550 --> 00:19:45.260
and as expected, Texas has again reduced
00:19:45.260 --> 00:19:47.120
the amount of gas flared.
00:19:47.120 --> 00:19:49.580
According to the
statistics for gas wells
00:19:49.580 --> 00:19:52.680
and oil wells combined,
the amount of gas flared
00:19:52.680 --> 00:19:56.840
was 0.57%, just over one half percent.
00:19:56.840 --> 00:20:01.580
For gas wells, the amount of
gas flared was a paltry 0.16%.
00:20:01.580 --> 00:20:03.500
For casinghead gas in oil wells,
00:20:03.500 --> 00:20:06.573
the amount of gas flared was 1.22%.
00:20:07.810 --> 00:20:12.810
This number is the one we
are constantly struggling with.
00:20:13.020 --> 00:20:15.100
And for good reason,
this occurs typically
00:20:15.100 --> 00:20:17.983
in areas where
infrastructure hasn't caught up,
00:20:17.983 --> 00:20:19.920
but compared to other states
00:20:19.920 --> 00:20:21.600
who are doing extraordinarily well,
00:20:21.600 --> 00:20:24.030
North Dakota, for instance recently hit
00:20:24.030 --> 00:20:26.700
their best flaring rate at 6%,
00:20:26.700 --> 00:20:30.409
We were at 0.57% capturing almost 99.5%
00:20:30.409 --> 00:20:34.000
of all gas produced in the state.
00:20:34.000 --> 00:20:36.600
Refreshingly, our Consent
Agenda has just a few
00:20:36.600 --> 00:20:38.540
flaring exceptions requests,
00:20:38.540 --> 00:20:40.810
but at least two of them concern me.
00:20:40.810 --> 00:20:45.810
Item number 11 features an
operator, Verdugo-Pablo Energy
00:20:46.520 --> 00:20:49.013
with three rails to a single flare stack
00:20:49.013 --> 00:20:51.930
and which have always
remained unconnected
00:20:51.930 --> 00:20:53.940
to a takeaway provider.
00:20:53.940 --> 00:20:55.320
There are mitigating factors.
00:20:55.320 --> 00:20:58.360
The flare exception volume
requested is 80% lower
00:20:58.360 --> 00:21:00.100
than the previous exception.
00:21:00.100 --> 00:21:03.340
The gas is unfortunately rich in H2S
00:21:03.340 --> 00:21:05.530
and there is evidence in
the record that it would cost
00:21:05.530 --> 00:21:07.350
more than a million
dollars to lay a line
00:21:07.350 --> 00:21:08.503
to these three wells.
00:21:09.830 --> 00:21:13.330
I fully understand that not
every pipeline for takeaway
00:21:13.330 --> 00:21:15.860
of casinghead gas is
going to be economical,
00:21:15.860 --> 00:21:18.580
especially if the operator
doesn't factor in the value
00:21:18.580 --> 00:21:21.000
of the oil in its equation.
00:21:21.000 --> 00:21:23.380
Now, since the examiners
in this agenda item
00:21:23.380 --> 00:21:25.070
reduce the flaring exception term
00:21:25.070 --> 00:21:26.530
from two years to one year,
00:21:26.530 --> 00:21:30.290
and since the hearings process
has taken quite some time,
00:21:30.290 --> 00:21:32.518
the expiration date for
this particular exception,
00:21:32.518 --> 00:21:35.180
if approved, will be in
November of this year.
00:21:35.180 --> 00:21:37.580
It is for this reason that I will vote
00:21:37.580 --> 00:21:39.170
to approve this agenda item.
00:21:39.170 --> 00:21:41.810
This gives the operator a
chance to review its options
00:21:41.810 --> 00:21:44.241
for utilizing its gas
rather than flaring it
00:21:44.241 --> 00:21:46.952
prior to requesting
another exception term.
00:21:46.952 --> 00:21:50.562
In addition, the operators
should be prepared to explain
00:21:50.562 --> 00:21:54.490
to the examiners what steps
it's taking to reduce flaring.
00:21:54.490 --> 00:21:56.780
It is for this reason that
I invite representatives
00:21:56.780 --> 00:21:59.615
of Verdugo-Pablo to sit
down with me and figure out
00:21:59.615 --> 00:22:03.282
how we can most effectively
utilize this stranded gas.
00:22:03.282 --> 00:22:06.110
As I have said before, I am
not inclined to keep voting
00:22:06.110 --> 00:22:09.320
to approve flaring exceptions
where no improvement
00:22:09.320 --> 00:22:12.320
has shown and the gas
is simply being wasted.
00:22:12.320 --> 00:22:15.918
Next, agenda item number
12 is a perfect example
00:22:15.918 --> 00:22:19.359
of my concerns for the
broader natural gas markets.
00:22:19.359 --> 00:22:23.740
In this case, we have an
operator Unitex Oil and Gas LLC,
00:22:23.740 --> 00:22:26.480
who was originally
connected to a midstream
00:22:26.480 --> 00:22:29.930
takeaway operator, West Texas Gas, WTG.
00:22:29.930 --> 00:22:32.939
However, WTG deemed
the gas plant that serviced
00:22:32.939 --> 00:22:36.244
the subject field as
unprofitable, closed the plant,
00:22:36.244 --> 00:22:38.991
and deconstructed the gathering system,
00:22:38.991 --> 00:22:42.370
leaving Unitex unconnected to any line.
00:22:42.370 --> 00:22:45.179
Now the closest pipeline
is nearly 15 miles away
00:22:45.179 --> 00:22:49.407
and will cost Unitex approximately
$1.6 million to connect.
00:22:49.407 --> 00:22:51.480
I feel for both parties here,
00:22:51.480 --> 00:22:54.990
I have said repeatedly that
the economics have to work.
00:22:54.990 --> 00:22:56.560
On the other hand, we cannot simply
00:22:56.560 --> 00:22:58.380
shrug our shoulders and keep flaring.
00:22:58.380 --> 00:23:01.008
Therefore I would also
like to invite both Unitex
00:23:01.008 --> 00:23:02.937
and WTG to sit down with me separately
00:23:02.937 --> 00:23:06.506
to discuss how we can
make situations like this work.
00:23:06.506 --> 00:23:09.600
You have my commitment
that I will do everything I can
00:23:09.600 --> 00:23:12.270
to improve the marketing of natural gas
00:23:12.270 --> 00:23:14.810
as a safe and efficient fuel source.
00:23:14.810 --> 00:23:16.770
In Texas, we can do better.
00:23:16.770 --> 00:23:19.210
That's all the comments
I have, thank you.
00:23:19.210 --> 00:23:20.400
Thank you.
00:23:20.400 --> 00:23:21.550
And thank you for
staying on top of flaring
00:23:21.550 --> 00:23:23.740
and our numbers continue to improve.
00:23:23.740 --> 00:23:25.553
They do, I'm very proud of it.
00:23:25.553 --> 00:23:27.266
So I appreciate
the industry and staff
00:23:27.266 --> 00:23:28.690
being aware of that as well.
00:23:28.690 --> 00:23:29.700
Anything else?
00:23:29.700 --> 00:23:34.370
All right, I move that we
approve items 10 through 30.
00:23:34.370 --> 00:23:35.203
Is there a second?
00:23:35.203 --> 00:23:36.150
Second.
00:23:36.150 --> 00:23:39.100
Second by Commissioner
Wright, all in favor, say aye.
00:23:39.100 --> 00:23:39.933
Aye.
00:23:39.933 --> 00:23:41.710
Motion passes, those
items are approved.
00:23:41.710 --> 00:23:45.467
Let's go to master default
orders, items 31 through 34.
00:23:45.467 --> 00:23:48.840
Are there any we need to discuss?
00:23:48.840 --> 00:23:51.930
All right, I move that we
approve items 31 through 34.
00:23:51.930 --> 00:23:52.763
Is there a second?
00:23:52.763 --> 00:23:53.596
Second.
00:23:53.596 --> 00:23:56.650
Second by Commissioner
Christian, all in favor, say aye.
00:23:56.650 --> 00:23:57.483
Aye.
00:23:57.483 --> 00:23:59.590
Motion passes, those
items are approved.
00:23:59.590 --> 00:24:01.432
Agreed enforcement orders.
00:24:01.432 --> 00:24:05.540
These are items 35 through 45,
00:24:05.540 --> 00:24:08.280
but I understand staff
wants to pass number 39.
00:24:08.280 --> 00:24:09.845
Is that correct, all right.
00:24:09.845 --> 00:24:14.310
I move that we approve
items 35 through 45,
00:24:14.310 --> 00:24:16.700
except for item number 39.
00:24:16.700 --> 00:24:17.533
Is there a second?
00:24:17.533 --> 00:24:18.366
Second.
00:24:18.366 --> 00:24:20.730
Second by Commissioner
Wright, all in favor say aye.
00:24:20.730 --> 00:24:21.850
Aye.
00:24:21.850 --> 00:24:24.180
Motion passes, those
items are approved.
00:24:24.180 --> 00:24:26.150
That concludes the
hearings sections matter,
00:24:26.150 --> 00:24:28.550
and we'll now take up
administrative, thank you.
00:24:30.820 --> 00:24:32.020
And we've got Robbi again.
00:24:32.020 --> 00:24:33.700
Good morning again.
00:24:33.700 --> 00:24:35.160
My name is Robbi Craig.
00:24:35.160 --> 00:24:37.820
Staff seeks approval
of proposed revisions
00:24:37.820 --> 00:24:39.150
to the employee handbook.
00:24:39.150 --> 00:24:41.670
Once approved the revised
handbook will supersede
00:24:41.670 --> 00:24:43.670
the prior version and
will serve as the guiding
00:24:43.670 --> 00:24:45.460
human resources policy document
00:24:45.460 --> 00:24:47.320
for the Railroad Commission staff.
00:24:47.320 --> 00:24:49.450
Attached is a chart of the revisions
00:24:49.450 --> 00:24:52.020
and the relevant handbook
pages with the draft language
00:24:52.020 --> 00:24:53.930
for which staff seeks approval.
00:24:53.930 --> 00:24:55.540
I'm available for questions.
00:24:55.540 --> 00:24:57.863
Thank you,
are there any questions?
00:24:57.863 --> 00:24:59.820
All right, I'll move we approve
staff's recommendation.
00:24:59.820 --> 00:25:00.900
Is there a second?
00:25:00.900 --> 00:25:01.733
Second.
00:25:01.733 --> 00:25:04.640
Second by Commissioner
Christian, all in favor, say aye.
00:25:04.640 --> 00:25:05.473
Aye.
00:25:05.473 --> 00:25:06.970
Motion passes,
that item is approved.
00:25:06.970 --> 00:25:07.803
Thank you.
00:25:09.258 --> 00:25:10.893
Item 47, good morning Jason.
00:25:14.912 --> 00:25:17.214
Good morning,
Chairman, Commissioners.
00:25:17.214 --> 00:25:20.170
For the record, Jason Clark,
director of agency projects.
00:25:20.170 --> 00:25:22.460
Item number 47 is the proposal to post
00:25:22.460 --> 00:25:24.770
on the Commission's
website, the new forms,
00:25:24.770 --> 00:25:29.325
CID, CIX, and proposed new table CCI,
00:25:29.325 --> 00:25:34.325
all related to the new 16
Texas Administrative Code 3.65
00:25:35.610 --> 00:25:40.066
proposed at the September
14th, 2021 open meeting.
00:25:40.066 --> 00:25:44.380
As part of the Senate bill
three and house bill 36 48,
00:25:44.380 --> 00:25:47.140
both passed during the 87th legislature,
00:25:47.140 --> 00:25:49.040
the agency must establish a process
00:25:49.040 --> 00:25:51.400
for designating certain
natural gas entities
00:25:51.400 --> 00:25:54.200
as critical during an energy emergency.
00:25:54.200 --> 00:25:57.550
In accordance with this
process and the implementation
00:25:57.550 --> 00:25:59.620
of other aspects of Senate bill three,
00:25:59.620 --> 00:26:02.210
the agency was also provided
the authority and funding
00:26:02.210 --> 00:26:05.230
to create the new critical
infrastructure division,
00:26:05.230 --> 00:26:07.542
which will be responsible for
ensuring proper registration,
00:26:07.542 --> 00:26:10.044
inspection, and operation of facilities
00:26:10.044 --> 00:26:14.720
within its regulatory authority
during an energy emergency,
00:26:14.720 --> 00:26:17.398
As such, the new division
is proposing to publish
00:26:17.398 --> 00:26:21.184
two new forms, the
form CID, which is for
00:26:21.184 --> 00:26:23.640
critical infrastructure designation,
00:26:23.640 --> 00:26:25.410
which an operator
will use to acknowledge
00:26:25.410 --> 00:26:28.410
its critical facilities,
and the form CIX,
00:26:28.410 --> 00:26:31.330
critical infrastructure
exception, which will allow
00:26:31.330 --> 00:26:34.040
operators to seek an
exception to critical designation
00:26:34.040 --> 00:26:38.948
pursuant to natural
resources code section 81.073.
00:26:38.948 --> 00:26:41.856
Proposed new table CCI, which stands for
00:26:41.856 --> 00:26:45.264
critical customer information,
dictates the information
00:26:45.264 --> 00:26:48.290
and critical facilities
operators as responsible
00:26:48.290 --> 00:26:50.520
for submitting to electric entities
00:26:50.520 --> 00:26:55.520
described by section 38.074,
subsection B paragraph one
00:26:55.720 --> 00:26:57.360
of the utilities code.
00:26:57.360 --> 00:26:59.660
Staff is seeking approval
to post the proposed
00:26:59.660 --> 00:27:02.090
form revisions to the
Commission's website
00:27:02.090 --> 00:27:04.540
for a comment period
no longer than 30 days.
00:27:04.540 --> 00:27:06.490
After the comment period has ended,
00:27:06.490 --> 00:27:08.860
staff will review all
submitted comments,
00:27:08.860 --> 00:27:11.189
determine if changes
are necessary, and if so,
00:27:11.189 --> 00:27:13.900
prepare responses that will
be presented for your review
00:27:13.900 --> 00:27:16.370
and approval at a future conference.
00:27:16.370 --> 00:27:17.980
I'm available for questions.
00:27:17.980 --> 00:27:19.820
Thank you, are
there any questions?
00:27:19.820 --> 00:27:21.830
I appreciate us
continuing to move forward
00:27:21.830 --> 00:27:23.900
as the legislature is over
having a hearing today
00:27:23.900 --> 00:27:25.498
that we've sent way to.
00:27:25.498 --> 00:27:27.950
We're making good
progress at this agency
00:27:27.950 --> 00:27:29.800
and thank you for helping
us put this together.
00:27:29.800 --> 00:27:31.614
Thank you to the staff
00:27:31.614 --> 00:27:32.447
for their hard work on this.
00:27:33.330 --> 00:27:35.340
I move we approve per
the staff's recommendation.
00:27:35.340 --> 00:27:36.985
Is there a second?
00:27:36.985 --> 00:27:38.003
Second.
00:27:38.003 --> 00:27:40.078
Second by Commissioner
Wright, all in favor, say aye.
00:27:40.078 --> 00:27:40.911
Aye.
00:27:40.911 --> 00:27:41.920
Motion passes,
that item is approved.
00:27:41.920 --> 00:27:43.370
Thank you, Jason.
00:27:43.370 --> 00:27:46.167
Item 38, good morning Alex.
00:27:46.167 --> 00:27:47.470
Good morning, Chairman
and Commissioners.
00:27:47.470 --> 00:27:49.662
For the record, my name is Alex Schoch,
00:27:49.662 --> 00:27:51.103
general counsel of the
Railroad Commission of Texas.
00:27:51.103 --> 00:27:52.930
Item 48 is an update for you today.
00:27:52.930 --> 00:27:55.430
There won't be any action
requested or vote required
00:27:55.430 --> 00:27:59.320
for this item, but I'm
reporting on a new case
00:27:59.320 --> 00:28:00.350
that's come to our attention.
00:28:00.350 --> 00:28:03.492
It's a case that was
filed in the Travis County
00:28:03.492 --> 00:28:05.420
district court in the
53rd judicial district
00:28:05.420 --> 00:28:07.067
it's case D1GN21005412,
00:28:11.690 --> 00:28:14.890
public Goldston Oil Company against TCQ.
00:28:14.890 --> 00:28:17.633
And it relates to a final
order entered by TCQ
00:28:17.633 --> 00:28:20.649
that included Goldston and
other oil and gas operators
00:28:20.649 --> 00:28:22.530
in a Superfund site,
00:28:22.530 --> 00:28:26.280
the so-called McBay Oil
and Gas Superfund site.
00:28:26.280 --> 00:28:28.890
In the defense of Goldston,
and some of the other
00:28:28.890 --> 00:28:31.750
all gas operators is
that all they alleged
00:28:31.750 --> 00:28:34.090
that the record would
show that there were only
00:28:34.090 --> 00:28:36.940
waste transmit to the
site was oil and gas waste,
00:28:36.940 --> 00:28:39.040
which would be covered
by the petroleum exclusion
00:28:39.040 --> 00:28:40.993
under the Superfund laws.
00:28:40.993 --> 00:28:43.722
That will be their defense
in the case going forward.
00:28:43.722 --> 00:28:46.650
They, in our view,
the law in this matter
00:28:46.650 --> 00:28:49.080
is fairly well settled,
that petroleum waste
00:28:49.080 --> 00:28:51.220
is jurisdictional to the
Railroad Commission.
00:28:51.220 --> 00:28:52.930
It's the hazardous material, solid waste
00:28:52.930 --> 00:28:55.320
that are jurisdictional to the TCQ.
00:28:55.320 --> 00:28:58.100
Those differences are
well laid out in the statute.
00:28:58.100 --> 00:28:59.650
So again, we're just
bringing this to your attention.
00:28:59.650 --> 00:29:01.420
We're gonna continue monitoring it
00:29:01.420 --> 00:29:05.350
and see how this develops
as it gets to the court system.
00:29:05.350 --> 00:29:07.210
Thank you, are there
any questions or comments?
00:29:07.210 --> 00:29:08.740
I'd like to add this and Alex,
00:29:08.740 --> 00:29:11.390
thank you for staying on top of this.
00:29:11.390 --> 00:29:15.043
Your comments have
been really well received
00:29:15.043 --> 00:29:18.712
because this case could
have far reaching implications
00:29:18.712 --> 00:29:20.910
for the oil and gas industry.
00:29:20.910 --> 00:29:23.230
I have taken great interest in it.
00:29:23.230 --> 00:29:26.935
Specifically I worry about
improper retroactive liability
00:29:26.935 --> 00:29:29.247
for activities clearly within
00:29:29.247 --> 00:29:31.970
the Railroad Commission jurisdiction.
00:29:31.970 --> 00:29:35.558
I sent a letter to the
TCQ explaining why I feel
00:29:35.558 --> 00:29:38.960
that Goldston should not
be held as a responsible party
00:29:38.960 --> 00:29:43.830
in this matter, selling one
load of crude oil in 1986
00:29:43.830 --> 00:29:47.575
simply does not equate to the
disposal of hazardous waste.
00:29:47.575 --> 00:29:50.680
I want to make clear that I
support the TCQ's mission
00:29:50.680 --> 00:29:52.240
to hold industry responsible,
00:29:52.240 --> 00:29:54.640
where it's appropriate
and where it's warranted.
00:29:55.639 --> 00:29:57.870
But in this case, it appears
that Goldston and possibly
00:29:57.870 --> 00:30:01.860
other operators are being
held to an impossible standard.
00:30:01.860 --> 00:30:04.305
I will request our office
of general counsel monitor
00:30:04.305 --> 00:30:06.900
the various lawsuits against the TCQ,
00:30:06.900 --> 00:30:08.900
and please keep me updated.
00:30:08.900 --> 00:30:09.940
Thank you.
00:30:09.940 --> 00:30:11.792
We'll do that.
00:30:11.792 --> 00:30:13.298
We'll keep all the Commissioners
updated on that matter.
00:30:13.298 --> 00:30:14.287
Thank you.
00:30:14.287 --> 00:30:16.610
Jim, Commissioner Wright,
we appreciate the work
00:30:16.610 --> 00:30:19.200
you're doing on this
and I support you in this
00:30:19.200 --> 00:30:22.090
and keep an eye on it and
thanks for watching it close.
00:30:22.090 --> 00:30:23.107
Thank you both.
00:30:23.107 --> 00:30:24.960
And you too for the
good work staff's doing.
00:30:24.960 --> 00:30:26.222
Yes, sir.
00:30:26.222 --> 00:30:27.055
Thank you for
being on top of things,
00:30:27.055 --> 00:30:27.888
I appreciate it.
00:30:27.888 --> 00:30:29.888
Nothing for the
item is settled.
00:30:29.888 --> 00:30:31.502
Okay, great, thank you, Alex.
00:30:31.502 --> 00:30:33.093
All right, 49.
00:30:34.777 --> 00:30:38.560
Well, I'm moving my notebooks over here.
00:30:38.560 --> 00:30:41.621
(laughing)
00:30:41.621 --> 00:30:42.933
Do I need to get my purse?
00:30:44.734 --> 00:30:46.013
I didn't say anything.
00:30:47.600 --> 00:30:50.040
Today, I'm proud to nominate
my fellow Commissioner,
00:30:50.040 --> 00:30:52.940
Wayne Christian, be
chairman of this agency.
00:30:52.940 --> 00:30:55.960
And this last year, this
agency's gone through
00:30:55.960 --> 00:30:57.819
an interesting legislative session
00:30:57.819 --> 00:30:59.740
and I'm very proud of the work we did
00:30:59.740 --> 00:31:01.380
to address our budget needs
00:31:01.380 --> 00:31:04.380
and our winter storm Uri
response, which is underway.
00:31:04.380 --> 00:31:07.240
And thank you for the
staff for being good partners
00:31:07.240 --> 00:31:09.050
as we've moved forward.
00:31:09.050 --> 00:31:11.950
Commissioner Christian's
proven leadership has provided
00:31:11.950 --> 00:31:14.060
this agency with the ability to advance
00:31:14.060 --> 00:31:16.778
several key initiatives
and his return to Chairman
00:31:16.778 --> 00:31:20.182
will keep the important
work we do on the right track.
00:31:20.182 --> 00:31:23.623
Wayne, thank you, and
Jim, thank you for allowing me
00:31:23.623 --> 00:31:25.980
to serve as chairman for a third time.
00:31:25.980 --> 00:31:30.390
And for that, I'm happy to
pass the middle seat over to you.
00:31:30.390 --> 00:31:33.420
So I move that Wayne
Christian be elected
00:31:33.420 --> 00:31:35.336
as Chairman of the Railroad Commission,
00:31:35.336 --> 00:31:36.520
and is there a second?
00:31:36.520 --> 00:31:39.150
I certainly second that,
but I'd also like to add,
00:31:39.150 --> 00:31:40.803
I've had the good
fortune to serve alongside
00:31:40.803 --> 00:31:43.990
two outstanding
colleagues since my arrival
00:31:43.990 --> 00:31:46.300
at the Railroad Commission in January
00:31:46.300 --> 00:31:47.920
and want to thank Commissioner Craddick
00:31:47.920 --> 00:31:51.120
for her leadership and
congratulate my friend
00:31:51.120 --> 00:31:54.130
Wayne Christian on
his election to Chairman.
00:31:54.130 --> 00:31:55.816
Chairman Christian
will be forceful advocate
00:31:55.816 --> 00:31:58.340
on behalf of our agency
00:31:58.340 --> 00:32:01.700
and domestic energy
production here in Texas.
00:32:01.700 --> 00:32:03.500
And I look forward to working with him
00:32:03.500 --> 00:32:05.571
in this capacity to
advance our shared goals.
00:32:05.571 --> 00:32:07.430
Thank you both.
00:32:07.430 --> 00:32:08.263
Thank you.
00:32:08.263 --> 00:32:09.391
Second.
00:32:09.391 --> 00:32:10.230
So, we have a
motion on the second.
00:32:10.230 --> 00:32:11.150
All in favor, say aye.
00:32:11.150 --> 00:32:12.180
Aye.
00:32:12.180 --> 00:32:14.299
Motion passes, congratulations.
00:32:14.299 --> 00:32:15.299
Thank you.
00:32:15.299 --> 00:32:17.549
(clapping)
00:32:23.480 --> 00:32:24.490
I'm taking the water.
00:32:24.490 --> 00:32:26.980
This always seems so
rude though, taking the seat.
00:32:26.980 --> 00:32:28.277
I'm willing to leave it to you.
00:32:28.277 --> 00:32:30.810
One time we had
a fight over that.
00:32:30.810 --> 00:32:32.150
I recall, I do.
00:32:32.150 --> 00:32:34.360
Do I stay here or are
we supposed to switch?
00:32:34.360 --> 00:32:37.380
You can go sit down there
with them if you want. (laughs)
00:32:37.380 --> 00:32:40.560
You can move in any, I
sat and didn't offer you a seat.
00:32:42.400 --> 00:32:46.030
Now I will first apologize
for the dress this morning.
00:32:46.030 --> 00:32:46.863
I heard there were pictures
00:32:46.863 --> 00:32:49.699
and I see that y'all
dressed for the pictures.
00:32:49.699 --> 00:32:50.680
I thought it was for the Christmas card.
00:32:50.680 --> 00:32:53.008
That's right,
you look nice though.
00:32:53.008 --> 00:32:54.800
No red and green,
I apologize for that.
00:32:54.800 --> 00:32:58.760
But thank y'all, it's a
great honor to be asked.
00:32:58.760 --> 00:33:00.710
Let me tell you, Christi, you did
00:33:00.710 --> 00:33:03.449
such a fabulous job during session.
00:33:03.449 --> 00:33:06.130
You made us very proud as an agency,
00:33:06.130 --> 00:33:08.820
as fellow Commissioners, the job you did
00:33:08.820 --> 00:33:10.611
in a horrible time, the storm,
00:33:10.611 --> 00:33:13.200
and you stood there
and defended this agency
00:33:13.200 --> 00:33:15.970
and its producers across the state,
00:33:15.970 --> 00:33:18.240
like no one could have done it better
00:33:18.240 --> 00:33:20.660
and could we be more proud
and I think it was summed up
00:33:20.660 --> 00:33:22.910
in the statement of
one of the centers of end
00:33:22.910 --> 00:33:25.410
that said natural gas saved Texas.
00:33:25.410 --> 00:33:27.710
And I appreciate the work that you did.
00:33:27.710 --> 00:33:29.600
Of course, the budget that we did,
00:33:29.600 --> 00:33:32.400
this is historically successful.
00:33:32.400 --> 00:33:35.030
And I think you get kudos again
00:33:35.030 --> 00:33:36.930
for doing an excellent job with that.
00:33:36.930 --> 00:33:39.700
And I make sure I do
not want to give any credit
00:33:39.700 --> 00:33:41.040
to your Dad for having anything to do
00:33:41.040 --> 00:33:43.129
with any of the work
you've done over there.
00:33:43.129 --> 00:33:44.533
No, he didn't do anything.
00:33:44.533 --> 00:33:48.056
And Jim, you brought
to the table, honestly,
00:33:48.056 --> 00:33:52.269
an intense desire to
watch over, as have I,
00:33:52.269 --> 00:33:55.542
the flaring issue, and all
of us have looked over that.
00:33:55.542 --> 00:33:58.266
And I think the success
is there, of an issue
00:33:58.266 --> 00:34:02.670
that had been brought
up by various sources,
00:34:02.670 --> 00:34:05.070
that there was a terrible
tragedy going on with flaring
00:34:05.070 --> 00:34:08.210
in the state of Texas
and tremendous waste.
00:34:08.210 --> 00:34:10.840
And I think from the good
work you do in this agency
00:34:10.840 --> 00:34:13.330
and the staff and all across
the state and the industry
00:34:13.330 --> 00:34:16.400
has done has followed
your leadership on this.
00:34:16.400 --> 00:34:19.770
And the task force that we
had assigned to look into it.
00:34:19.770 --> 00:34:21.840
The industry has
worked very hard on this,
00:34:21.840 --> 00:34:23.510
but I appreciate your leadership.
00:34:23.510 --> 00:34:24.970
You're watching very close to it
00:34:24.970 --> 00:34:27.360
and making sure it stays
on track, and it's amazing
00:34:27.360 --> 00:34:29.830
we've gone from what
2.7 just three years ago
00:34:29.830 --> 00:34:34.290
to now just little over
a half a percent flaring
00:34:34.290 --> 00:34:37.360
and yet you still hearing
in the media continually
00:34:37.360 --> 00:34:41.534
how this is a terrible,
tragic climate issue.
00:34:41.534 --> 00:34:44.078
And it's amazing, I did not know this,
00:34:44.078 --> 00:34:49.078
I'm reading a book,
it's called "Woke Inc."
00:34:49.290 --> 00:34:50.300
If you've haven't read it,
00:34:50.300 --> 00:34:52.480
it's a tremendously frightening novel,
00:34:52.480 --> 00:34:54.280
but you know the first
person that brought up
00:34:54.280 --> 00:34:57.240
these ESG funds own
flaring as being the reason
00:34:57.240 --> 00:35:02.010
or methane and flaring being
the reason for it was Al Gore.
00:35:02.010 --> 00:35:05.810
I did not know that the
common, you know, person
00:35:05.810 --> 00:35:07.680
that originated a lot of this talk
00:35:07.680 --> 00:35:10.498
because they needed, I
guess, a job after Bush beat it,
00:35:10.498 --> 00:35:13.660
but it is again continuing this.
00:35:13.660 --> 00:35:16.285
But being the agency is
a hard job of this agency.
00:35:16.285 --> 00:35:18.060
And the main reason it's hard is
00:35:18.060 --> 00:35:20.634
because the agency is
so successful, professional,
00:35:20.634 --> 00:35:23.275
and I cannot tell you
working for the world's
00:35:23.275 --> 00:35:27.011
most respected regulatory
agency for oil and gas
00:35:27.011 --> 00:35:30.080
as Forbes magazine
stated, or the many people
00:35:30.080 --> 00:35:31.390
that serve us across the state
00:35:31.390 --> 00:35:33.410
in the Railroad Commission of Texas.
00:35:33.410 --> 00:35:37.503
And it's an honor to serve
you, as your Chairman.
00:35:38.830 --> 00:35:40.497
We're having an impact.
00:35:40.497 --> 00:35:42.850
It's not an accident that
flaring is going this right,
00:35:42.850 --> 00:35:45.796
and the liberal media
distorts the issue's record,
00:35:45.796 --> 00:35:48.236
the education system
teaches our future generation
00:35:48.236 --> 00:35:50.850
the oil and gas consumption is bad.
00:35:50.850 --> 00:35:53.280
The federal government's
gotten in the act
00:35:53.280 --> 00:35:55.820
and trying to keep it in the
ground and shut it down,
00:35:55.820 --> 00:35:58.783
yet they'll go over and
bow to OPEC to pay,
00:35:58.783 --> 00:36:00.820
please increase the production
00:36:00.820 --> 00:36:02.510
while we shut you down in America.
00:36:02.510 --> 00:36:05.310
So the logic has been lost on this
00:36:05.310 --> 00:36:07.210
and the oil and gas industry accounts
00:36:07.210 --> 00:36:09.350
for roughly one sixth
of the state's economy
00:36:09.350 --> 00:36:12.130
and employs almost 400,000 Texans.
00:36:12.130 --> 00:36:17.130
Average salary of $129,000,
has paid 163 billion in cash
00:36:17.193 --> 00:36:20.106
in the last 15 years alone.
00:36:20.106 --> 00:36:21.980
And this does far more
than fuel our vehicles
00:36:21.980 --> 00:36:26.340
and warm our homes, oil
has over 6,000 products,
00:36:26.340 --> 00:36:29.530
over 6,000 that come from oil alone.
00:36:29.530 --> 00:36:31.680
And so many are just not even
aware, they think of gasoline
00:36:31.680 --> 00:36:34.080
in the tank and understand gasoline,
00:36:34.080 --> 00:36:36.068
when you look at an automobile,
00:36:36.068 --> 00:36:40.780
the gasoline in the tank
is the least percentage
00:36:40.780 --> 00:36:44.000
represented by oil in that automobile.
00:36:44.000 --> 00:36:44.833
Think of that.
00:36:44.833 --> 00:36:47.486
And that's all you
hear is the fuel issue.
00:36:47.486 --> 00:36:49.780
Advancing technology
builds our infrastructure,
00:36:49.780 --> 00:36:51.210
protects us from natural disasters,
00:36:51.210 --> 00:36:53.420
provides healthcare and education.
00:36:53.420 --> 00:36:55.330
And it's just too much at stake
00:36:55.330 --> 00:36:57.380
not to stand up and defend this.
00:36:57.380 --> 00:37:01.630
And I think the best
defense is successful offense
00:37:01.630 --> 00:37:05.300
and never have I been a part
of an agency that for 150 years
00:37:05.300 --> 00:37:07.280
has the reputation
as I've already stated.
00:37:07.280 --> 00:37:10.980
And that's the best offense
for what oil and gas is great.
00:37:10.980 --> 00:37:13.000
You know, the last hundred years,
00:37:13.000 --> 00:37:15.290
we've decreased
environmental deaths by 99%.
00:37:15.290 --> 00:37:18.410
And the Texas Railroad
Commission has been leading
00:37:18.410 --> 00:37:22.520
that charge for 150, or at
least that hundred year period.
00:37:22.520 --> 00:37:24.880
And as Chairman, I'll work
to protect this progress,
00:37:24.880 --> 00:37:27.710
ensure the Commission
its continues long history
00:37:27.710 --> 00:37:30.010
of energy production and responsible
00:37:30.010 --> 00:37:31.460
that creates good paying jobs,
00:37:31.460 --> 00:37:33.950
provides a consistent
predictable regulatory environment,
00:37:33.950 --> 00:37:36.230
allows businesses to succeed,
00:37:36.230 --> 00:37:39.170
and preserving public safety
and protecting the public.
00:37:39.170 --> 00:37:40.710
The Governor's
appointed the Interstate Oil
00:37:40.710 --> 00:37:42.420
and Gas Compact Commission.
00:37:42.420 --> 00:37:45.700
I found that Washington
continues to dump almost
00:37:45.700 --> 00:37:47.864
as best they can in every way they can
00:37:47.864 --> 00:37:50.510
to attack our industry.
00:37:50.510 --> 00:37:54.104
And I've often passed
resolutions back to Congress
00:37:54.104 --> 00:37:57.620
on many of these social
and government's ESG funds,
00:37:57.620 --> 00:38:01.440
and other items that I will
mention from time to time.
00:38:01.440 --> 00:38:04.160
Texas, not Washington,
the private sector,
00:38:04.160 --> 00:38:06.370
not government knows best
how to meet our energy needs
00:38:06.370 --> 00:38:09.800
and that's a fight
that we will never quit.
00:38:09.800 --> 00:38:12.280
Radicals should have you
believe that you must choose
00:38:12.280 --> 00:38:14.846
between reliable energy
and environmental progress.
00:38:14.846 --> 00:38:17.000
That's a false choice.
00:38:17.000 --> 00:38:21.000
We have in the past, Texas will continue
00:38:21.000 --> 00:38:23.560
to have cheap,
plentiful, reliable energy
00:38:23.560 --> 00:38:26.560
while advancing technology
to clean our environment.
00:38:26.560 --> 00:38:29.240
So thank you for allowing
me to be the Chairman
00:38:29.240 --> 00:38:31.120
and look forward to
continuing the progress
00:38:31.120 --> 00:38:32.913
and work that y'all have lead.
00:38:40.072 --> 00:38:40.905
Thank you.
00:38:40.905 --> 00:38:43.715
Item 50 is our public participation.
00:38:43.715 --> 00:38:48.240
And while maybe it
was not, I'm going to ask
00:38:48.240 --> 00:38:51.490
for an exception that
we allow us some folk
00:38:51.490 --> 00:38:53.902
to speak today because
they've volunteered to,
00:38:53.902 --> 00:38:55.053
and we want to make sure that is
00:38:55.053 --> 00:38:57.273
that the Commissioners
have no objection.
00:38:58.180 --> 00:39:00.912
I'm going to ask Sarah
Stagner and Ashley Watt,
00:39:00.912 --> 00:39:03.800
if they would like to speak
for a couple of minutes each,
00:39:03.800 --> 00:39:06.250
we'd love to hear what you have to say.
00:39:06.250 --> 00:39:08.490
Thank you, good morning.
00:39:08.490 --> 00:39:09.730
My name is Sarah Stagner.
00:39:09.730 --> 00:39:12.530
I am here on behalf of the Antina Ranch.
00:39:12.530 --> 00:39:14.950
I last stood in front
of you one month ago
00:39:14.950 --> 00:39:16.890
and asked for your help with an ongoing
00:39:16.890 --> 00:39:19.450
Chevron subsurface blowout on the ranch
00:39:19.450 --> 00:39:21.150
in Ward and Crane counties.
00:39:21.150 --> 00:39:23.210
And I wanted to give you an update.
00:39:23.210 --> 00:39:26.520
As a reminder, the
Estes 24 is a legacy well
00:39:26.520 --> 00:39:28.741
drilled by Gulf in the 1950s,
00:39:28.741 --> 00:39:32.056
operated as a waterflood
injection well by Chevron
00:39:32.056 --> 00:39:35.332
and plugged in the 1990s by Chevron.
00:39:35.332 --> 00:39:39.398
We now know the 24 is one
of several former injection wells
00:39:39.398 --> 00:39:42.846
that has failed and
flowed brine to surface.
00:39:42.846 --> 00:39:45.205
After nearly three months of efforts,
00:39:45.205 --> 00:39:48.720
the Estes 24 is no
longer flowing its surface.
00:39:48.720 --> 00:39:50.202
It might be replugged.
00:39:50.202 --> 00:39:55.090
However, the last pressurized
zone was above 189 feet deep.
00:39:55.090 --> 00:39:56.740
We now have conclusive evidence
00:39:56.740 --> 00:39:59.030
of multiple surface casing failures.
00:39:59.030 --> 00:40:01.950
The wall has been blowing
out toxic radioactive brine
00:40:01.950 --> 00:40:05.170
directly into three separate
freshwater aquifers.
00:40:05.170 --> 00:40:06.920
We still have no idea of the extent
00:40:06.920 --> 00:40:10.340
of this field wide blowout,
which well will blow out next,
00:40:10.340 --> 00:40:11.900
or if any other wells are already
00:40:11.900 --> 00:40:14.530
blowing out subsurface
through failed casing.
00:40:14.530 --> 00:40:16.470
We do know that Chevron water flooded
00:40:16.470 --> 00:40:19.450
this field for over 30 years,
00:40:19.450 --> 00:40:21.335
they regularly exceeded their allowed
00:40:21.335 --> 00:40:23.770
produced water injection limits
00:40:23.770 --> 00:40:26.800
and suffered multiple
mechanical integrity test failures
00:40:26.800 --> 00:40:29.340
on these injection wells
throughout the years.
00:40:29.340 --> 00:40:32.410
It appears the reservoirs
under this ranch have been filled
00:40:32.410 --> 00:40:34.805
past the breaking point
and are forcing their way
00:40:34.805 --> 00:40:39.010
to surface through 70
year old casing and cement.
00:40:39.010 --> 00:40:40.630
It is our understanding that Chevron
00:40:40.630 --> 00:40:42.910
and the Railroad Commission
are currently negotiating
00:40:42.910 --> 00:40:46.190
the extent of testing and
remediation that Chevron
00:40:46.190 --> 00:40:48.630
will be required to
perform on the ranch.
00:40:48.630 --> 00:40:51.247
We have asked for a seat
at that table for our experts
00:40:51.247 --> 00:40:53.566
to participate and have been denied.
00:40:53.566 --> 00:40:55.990
These are decisions that will impact
00:40:55.990 --> 00:40:58.600
this land for generations to come.
00:40:58.600 --> 00:41:00.630
And Ms. Watt has a couple
of things to say as well.
00:41:00.630 --> 00:41:01.463
Thank you.
00:41:07.990 --> 00:41:11.055
Good morning, my name
is Ashley Williams Watt
00:41:11.055 --> 00:41:14.150
and I am the landowner
of the Antina Ranch.
00:41:14.150 --> 00:41:16.114
I'm a fourth generation
West Texas rancher
00:41:16.114 --> 00:41:18.600
in the Permian Basin.
00:41:18.600 --> 00:41:20.100
My family's been in the Permian since
00:41:20.100 --> 00:41:21.520
before the oil industry came
00:41:21.520 --> 00:41:23.170
and will be long after it's gone.
00:41:24.130 --> 00:41:25.730
To be clear, I'm broadly supportive
00:41:25.730 --> 00:41:27.720
of Texas oil and gas industry.
00:41:27.720 --> 00:41:29.660
As Commissioner Christian
noted, it's an important
00:41:29.660 --> 00:41:32.820
economic driver for
the state and the nation,
00:41:32.820 --> 00:41:35.410
but the citizens of Texas
and especially those of us
00:41:35.410 --> 00:41:37.050
who live in the oil fields,
00:41:37.050 --> 00:41:39.143
deserve safe and clean groundwater.
00:41:40.070 --> 00:41:42.570
The oil and gas industry can
not be allowed to permanently
00:41:42.570 --> 00:41:45.391
destroy the land and
waters of West Texas.
00:41:45.391 --> 00:41:48.294
If it does, that cost was too great.
00:41:48.294 --> 00:41:51.494
This entire subsurface
blowout has been a nightmare.
00:41:51.494 --> 00:41:54.014
I've been forced to
sell most of my cattle,
00:41:54.014 --> 00:41:56.180
the water well next to my house
00:41:56.180 --> 00:41:58.016
is now saltier than the ocean
00:41:58.016 --> 00:42:00.617
and this contaminated well water
00:42:00.617 --> 00:42:03.845
likely caused my
mother's death in late 2018
00:42:03.845 --> 00:42:07.512
from a rare and aggressive
cancer of the kidney.
00:42:07.512 --> 00:42:09.630
And what has the response been,
00:42:09.630 --> 00:42:11.710
from the operator and the regulator?
00:42:11.710 --> 00:42:14.360
Chevron hid the first
two blowouts from me
00:42:14.360 --> 00:42:16.216
and refused to replug the Estes 24
00:42:16.216 --> 00:42:20.380
until I complained
loudly enough on Twitter.
00:42:20.380 --> 00:42:22.160
The Railroad Commission's
immediate response
00:42:22.160 --> 00:42:27.160
was to lawyer up against me,
the landowner, through counsel.
00:42:27.500 --> 00:42:31.440
This entire incident has
been absolutely embarrassing
00:42:31.440 --> 00:42:33.043
for us as a state.
00:42:33.043 --> 00:42:35.300
I would like to remind the Commissioners
00:42:35.300 --> 00:42:37.940
that you work for the
citizens of the state of Texas,
00:42:37.940 --> 00:42:40.413
not the operators, not
your campaign donors,
00:42:40.413 --> 00:42:43.350
not the drilling mud contractors.
00:42:43.350 --> 00:42:45.610
You're legally required
to protect the groundwater
00:42:45.610 --> 00:42:47.670
from oil and gas operations.
00:42:47.670 --> 00:42:50.280
When these operations do
contaminate groundwater,
00:42:50.280 --> 00:42:52.760
we must have a
comprehensive, transparent,
00:42:52.760 --> 00:42:55.100
and fair plan for remediation.
00:42:55.100 --> 00:42:57.070
I asked you for a seat at that table
00:42:57.070 --> 00:42:59.820
and your staff has told me no.
00:42:59.820 --> 00:43:03.017
My question to the three of
you today is what are you going
00:43:03.017 --> 00:43:07.499
to do to fulfill your
statutory obligations
00:43:07.499 --> 00:43:10.353
to protect my groundwater?
00:43:15.277 --> 00:43:18.691
I will tell you that I've
been here since January.
00:43:18.691 --> 00:43:22.335
I'm trying to study everything
I can about your situation.
00:43:22.335 --> 00:43:25.470
I'm still studying everything
I can about your situation.
00:43:25.470 --> 00:43:27.940
And you have my commitment
that I will stay on top
00:43:27.940 --> 00:43:30.550
of everything I can do within the law
00:43:30.550 --> 00:43:33.550
to make sure that
things are done correctly.
00:43:33.550 --> 00:43:35.377
Thank you, Commissioner Wright.
00:43:35.377 --> 00:43:37.570
And you mentioned
that you had not been able
00:43:37.570 --> 00:43:38.540
to meet with us here.
00:43:38.540 --> 00:43:41.240
I was understanding,
and I asked my office
00:43:41.240 --> 00:43:43.530
for my staff to meet
with you this past month.
00:43:43.530 --> 00:43:44.520
I thought we had.
00:43:44.520 --> 00:43:46.780
Yes, Commissioner Christian,
I met actually in your office
00:43:46.780 --> 00:43:50.170
two weeks ago today,
your staff was helpful.
00:43:50.170 --> 00:43:53.170
They listened, I've
asked the representative
00:43:53.170 --> 00:43:55.750
from your office legal
counsel, Mr. David Cooney
00:43:55.750 --> 00:43:58.006
for input, and he has denied it.
00:43:58.006 --> 00:44:01.470
He said they have taken my
presentation into consideration
00:44:01.470 --> 00:44:04.072
and they will negotiate with
Chevron behind closed doors
00:44:04.072 --> 00:44:06.113
without the landowner being privy to it.
00:44:06.975 --> 00:44:09.330
Well, we certainly
will look into that.
00:44:09.330 --> 00:44:11.584
Appreciate so much you being here.
00:44:11.584 --> 00:44:13.383
And it is your right
as a citizen to be here
00:44:13.383 --> 00:44:16.850
and our job to listen and
to respond to your request.
00:44:16.850 --> 00:44:18.990
And I assure you that your being here
00:44:18.990 --> 00:44:22.830
is appreciated and respected,
and the most important thing
00:44:22.830 --> 00:44:24.860
we do is represent
the citizens of Texas,
00:44:24.860 --> 00:44:26.657
which is what we're here to do.
00:44:26.657 --> 00:44:28.820
And I appreciate that,
Commissioner Christian.
00:44:28.820 --> 00:44:30.890
I'm not some liberal environmentalist.
00:44:30.890 --> 00:44:32.200
Ranchers of West Texas are not
00:44:32.200 --> 00:44:35.229
a particularly liberal, green crowd,
00:44:35.229 --> 00:44:36.960
but the environment's important to us
00:44:36.960 --> 00:44:38.670
and we can't do what we
do without groundwater.
00:44:38.670 --> 00:44:40.170
Frankly, I
believe you ranchers
00:44:40.170 --> 00:44:42.720
and the farmers of this state
are the best environmentalist
00:44:42.720 --> 00:44:45.470
and most green people
we have in the nation.
00:44:45.470 --> 00:44:46.700
Absolutely.
00:44:46.700 --> 00:44:47.540
Thank
you for being here.
00:44:47.540 --> 00:44:48.884
Thank you.
00:44:48.884 --> 00:44:51.051
Yes, thank you.
00:44:53.630 --> 00:44:55.233
Let's see the next thing
on the program here.
00:44:58.360 --> 00:45:02.330
All right, item 51 is our
executive session item,
00:45:02.330 --> 00:45:04.730
which we will not be going into today.
00:45:04.730 --> 00:45:06.440
Are there any other duly posted matters
00:45:06.440 --> 00:45:09.670
that could be brought before
the Commission at this time?
00:45:09.670 --> 00:45:12.540
If not this meeting of the
Railroad Commission of Texas
00:45:12.540 --> 00:45:13.373
is adjourned.
00:45:14.850 --> 00:45:16.150
Thank you everyone.
00:45:16.150 --> 00:45:19.733
Thank you all very
much, I appreciate it.