WEBVTT 00:00:00.040 --> 00:00:03.629 Alright. This meeting of the Railroad Commission 00:00:03.629 --> 00:00:06.450 of Texas will come to order to consider matters which 00:00:06.450 --> 00:00:09.119 have been posted, duly posted with the Secretary of 00:00:09.119 --> 00:00:13.220 State for December 7, 2021. Under our public participation 00:00:13.220 --> 00:00:16.339 policy, anyone desiring to offer public testimony on 00:00:16.350 --> 00:00:19.760 any items that are not noticed on today's register 00:00:19.760 --> 00:00:23.460 was required to register in advance. We did not have 00:00:23.469 --> 00:00:26.170 anyone register in advance for this meeting. The Commission 00:00:26.170 --> 00:00:28.820 will consider the items on the agenda as posted on 00:00:28.820 --> 00:00:31.859 the agenda. And before we get started with agenda item 00:00:31.859 --> 00:00:35.570 one. We have some celebrations to make of the 00:00:35.579 --> 00:00:38.630 oldest and most respected regulatory agency on planet 00:00:38.640 --> 00:00:41.170 Earth with some of the finest people that have made 00:00:41.170 --> 00:00:43.759 it that way on Planet Earth. And that's honoring some 00:00:43.759 --> 00:00:45.759 employees that we have here today. So it's a great 00:00:45.759 --> 00:00:52.840 time. So let's go down and smile. 00:00:52.840 --> 00:00:55.670 Good morning, Chairman and Commissioners. My name is 00:00:55.670 --> 00:00:58.520 Robbie Craig, chief human capital officer, and today 00:00:58.520 --> 00:01:02.600 I'm here to recognize our Fiscal Year 2021 Outstanding 00:01:02.600 --> 00:01:06.189 Service Awards. Employees and teams were nominated by 00:01:06.189 --> 00:01:08.780 their managers, and all nominations were reviewed by 00:01:08.780 --> 00:01:12.000 the Executive Director and Human Resources. This year, 00:01:12.000 --> 00:01:15.150 we are recognizing 64 individuals and three teams for 00:01:15.150 --> 00:01:19.049 their contributions. 2021 was another unprecedented 00:01:19.049 --> 00:01:22.120 year in our Commission's history, thanks to the dedication 00:01:22.120 --> 00:01:24.890 and commitment of the employees being recognized today 00:01:24.969 --> 00:01:27.359 the Railroad Commission was able to successfully carry 00:01:27.359 --> 00:01:29.819 out our mission, despite the challenges caused by the 00:01:29.819 --> 00:01:33.069 Covid-19 pandemic. These individuals and teams are 00:01:33.069 --> 00:01:36.140 recognized for their innovation, diligent work and 00:01:36.140 --> 00:01:39.280 outstanding customer service to the public and internally 00:01:39.280 --> 00:01:41.959 to our agency staff during a very challenging year. 00:01:42.439 --> 00:01:45.489 First up is our executive Director Wei Wang to present 00:01:45.489 --> 00:01:50.040 the awards for the Executive Office staff. 00:01:50.040 --> 00:01:51.969 Good morning, for the record and Wei Wang, Executive 00:01:51.980 --> 00:01:56.269 Director. And, we truly have a great team, over 850 00:01:56.269 --> 00:01:59.200 employees, and last year we won national awards, exceeded 00:01:59.200 --> 00:02:01.260 many of our performance measures. So, 00:02:01.840 --> 00:02:05.010 for the Executive Office, I nominated Colleen 00:02:05.019 --> 00:02:09.240 Forest for her work on the Padre Island National Seashore 00:02:09.250 --> 00:02:13.319 well plugging program and also the federal infrastructure 00:02:13.330 --> 00:02:17.930 bill research and also (indistinct) Patel and Brendan (indistinct) 00:02:17.930 --> 00:02:23.439 interest for their work on multiple IT projects as 00:02:23.439 --> 00:02:26.159 part of the Executive Office. 00:02:26.159 --> 00:02:50.340 Thank you. Congratulations. 00:02:50.340 --> 00:02:53.900 Congratulations and thank you. 00:03:02.939 --> 00:03:04.770 Good morning. Chairman and Commissioners, I'm Meghan 00:03:04.770 --> 00:03:07.370 Neal, Assistant general counsel. Alex couldn't be here 00:03:07.370 --> 00:03:09.460 today, so I'll be presenting the awards for the office 00:03:09.460 --> 00:03:12.960 of General Counsel. First off, we have Adam (indistinct) 00:03:16.340 --> 00:03:25.840 Hayley Cochran, Misty Dozier. 00:03:25.840 --> 00:03:30.539 Natalie (indistinct) 00:03:30.539 --> 00:03:39.740 Becky Tate. 00:03:39.740 --> 00:03:44.840 And Haley Wells. 00:03:44.840 --> 00:04:13.439 Congratulations to each of you. 00:04:13.439 --> 00:04:16.240 00:04:16.240 --> 00:04:19.060 Good morning, Daniel Collins on behalf of operations. 00:04:19.069 --> 00:04:26.740 I'd like to recognize Johnny Galvan, 00:04:26.740 --> 00:04:38.740 Jesse Herrera, Tony Maldonado Anna Ruiz, 00:04:38.740 --> 00:04:56.540 Lynn (indistinct). 00:04:56.540 --> 00:05:16.220 00:05:16.220 --> 00:05:21.410 Hey, good morning, Commissioners. Corey Crawford, Chief 00:05:21.420 --> 00:05:23.810 financial officer. This year I'd like to recognize 00:05:23.810 --> 00:05:36.839 (indistinct) Mason for her outstanding this year. 00:05:36.839 --> 00:05:55.439 00:05:55.439 --> 00:05:58.139 Good morning, Commissioners. Boy, that's, it's gonna 00:05:58.139 --> 00:06:01.579 be tough on my rough Post-Chiefs Game voice today. 00:06:01.589 --> 00:06:03.959 For the record, my name is Kari French, and I'm 00:06:03.959 --> 00:06:06.560 going to introduce the awards for oversight and safety. 00:06:07.439 --> 00:06:12.790 First that Priscilla Alfred, Richard Castillo, Kevin 00:06:12.790 --> 00:06:19.850 Clark, Ricardo Gamez, Claudio Godoy, Maury Hebert, 00:06:20.339 --> 00:06:28.720 Mark Hood, Carlos Jaime, Pete Longoria, Andrea Maxwell, 00:06:29.540 --> 00:06:37.240 Janine Metcalf, Nicholas Owari, Blake Road, 00:06:37.639 --> 00:06:44.569 Calvin Roseburg, David Byer, Miguel Valdez, and Angie 00:06:44.569 --> 00:07:03.439 Whitehead. Quite a mob! 00:07:03.463 --> 00:08:00.814 (indistinct chatter) 00:08:00.839 --> 00:08:17.040 Thank you. 00:08:17.040 --> 00:08:18.709 Morning, Chairman, Commissioners, My name is Edgar 00:08:18.709 --> 00:08:21.410 Chavez, IT Service Delivery Director. I'm here to present 00:08:21.410 --> 00:08:25.519 the award for the (indistinct) services division. 00:08:25.519 --> 00:08:32.629 (indistinct) 00:08:32.629 --> 00:08:41.269 Congratulations. 00:08:41.269 --> 00:09:02.340 Thank you very much. 00:09:13.606 --> 00:09:06.610 Morning, Chairman, Commissioners. For the Hearings division 00:09:06.610 --> 00:09:11.370 today, our recipients are Sharon (indistinct), Veronica 00:09:11.370 --> 00:09:15.409 Roberto, Megan Shimcheck and not attending is James 00:09:15.409 --> 00:09:26.039 Courier and Tim Walter. 00:09:26.039 --> 00:09:59.190 Chairman and Commissioners. That 00:09:59.190 --> 00:10:04.769 was just practice. 00:10:04.769 --> 00:10:10.009 The outstanding service award is a really big deal 00:10:10.120 --> 00:10:13.039 If you look at it, it should be the outstanding achievement 00:10:13.039 --> 00:10:16.960 award, I think is another way to express that. But 00:10:17.740 --> 00:10:20.259 it is an honor to present these people to you that 00:10:20.269 --> 00:10:23.389 the management has thought that they have achieved 00:10:23.399 --> 00:10:28.860 over and above beyond their normal duties. Heidi Barr, 00:10:33.659 --> 00:10:37.460 Margo (indistinct). 00:10:37.460 --> 00:10:47.090 Roseanne (indistinct) 00:10:47.090 --> 00:10:51.039 (indistinct) 00:10:51.039 --> 00:10:57.639 Crystal (indistinct) 00:10:57.639 --> 00:11:07.809 (indistinct) Jessica (indistinct) Keith (indistinct) 00:11:07.809 --> 00:11:30.639 (indistinct, applause) 00:11:30.639 --> 00:11:37.000 Mary Yarborough. And not able to attend 00:11:37.000 --> 00:11:42.950 was Diane Beckham. Miriam Moreno, Mark (indistinct), 00:11:42.950 --> 00:11:48.700 Lattimore, Waid (indistinct), David Morland and Anna (indistinct). 00:11:48.700 --> 00:12:26.019 (indistinct chatter) 00:12:26.019 --> 00:12:29.759 Next to present our first team award is Erika Gutierrez 00:12:33.440 --> 00:12:35.309 Good morning, Chairman and Commissioners. My name is 00:12:35.309 --> 00:12:38.049 Erica. Details. I'm the safety officer for the Commission 00:12:38.330 --> 00:12:40.940 I'm here today to present the Fiscal Year 21 Best in 00:12:40.940 --> 00:12:43.950 Safety Award. This is the second year that this award 00:12:43.950 --> 00:12:46.850 has been presented, and last year it went to the Houston 00:12:46.850 --> 00:12:49.789 district office. It's based on location rather than 00:12:51.440 --> 00:12:53.700 an individual. It is meant to acknowledge team efforts that promote 00:12:53.700 --> 00:12:56.379 the safety culture in RRC. To determine the winner 00:12:56.379 --> 00:12:59.299 of this award, I reviewed five safety categories for 00:12:59.299 --> 00:13:02.379 each RRC location. And then I calculated the weighted 00:13:02.379 --> 00:13:05.960 average of those categories for fiscal year 2021. 00:13:07.039 --> 00:13:08.990 So based on those categories, the William B. Travis 00:13:08.990 --> 00:13:11.879 Building wins the Fiscal Year 21 Best in Safety Awards 00:13:11.889 --> 00:13:22.059 Congratulations to William Travis Building. 00:13:22.059 --> 00:13:26.039 (indistinct from audience) 00:13:26.039 --> 00:13:29.860 Good morning, Commissioners. I'm honored to present 00:13:29.860 --> 00:13:35.059 this next award. This next award is for a Padre Island project 00:13:35.070 --> 00:13:40.110 team. As you recall, the Commission was recently recognized 00:13:40.120 --> 00:13:43.210 by the Interstate Oil and Gas Compact Commission with 00:13:43.210 --> 00:13:46.889 the Environmental Partnership Award during the IOGCC's 00:13:46.899 --> 00:13:50.629 annual conference in Santa Fe last month. So this morning 00:13:50.639 --> 00:13:53.929 we would like to recognize the individuals behind this 00:13:53.929 --> 00:13:58.240 project that are instrumental in the success of the 00:13:58.250 --> 00:14:01.399 Padre project. If you're here, please come forward 00:14:01.399 --> 00:14:07.049 as I call your name. Alex Barrel. Brooklyn Clement from 00:14:07.049 --> 00:14:13.559 our Corpus office. Art Korea. Grace Davila from 00:14:13.570 --> 00:14:19.490 Corpus Office. Leo Guerra from our Corpus office. Dario 00:14:19.490 --> 00:14:24.750 Lopez, also from Corpus. Jesse Martin, Corpus Christi. 00:14:25.940 --> 00:14:29.340 Keith May. 00:14:29.340 --> 00:14:32.340 Peter Pope. 00:14:32.340 --> 00:14:37.440 Medina Rios from our Corpus office. 00:14:37.440 --> 00:14:42.139 Larry Shenk Snyder. 00:14:42.139 --> 00:14:45.610 Did I? Did I get it, Larry? All right. There 00:14:45.610 --> 00:14:49.769 you go. And Larry's from our corpus office. Bradley 00:14:49.769 --> 00:14:55.259 Simms. Back up here. He's from Corpus. Mark Stewart. 00:14:55.740 --> 00:15:06.840 David Cooney, Patrick Shelton, Matt Bowman, 00:15:06.840 --> 00:15:29.440 Jesse Herrera, Kimberly Dally and Colleen Forest. 00:15:29.440 --> 00:16:21.240 (audience chatter) 00:16:21.240 --> 00:16:25.789 Morning again, Edgar Chavez with the ITS division, 00:16:25.799 --> 00:16:30.250 and I'm here to present the team award for the 00:16:30.840 --> 00:16:35.320 (indistinct) 32 or Statewide Rule 32 implementation team 00:16:35.330 --> 00:16:39.279 This is the staff in TS who work to implement the 00:16:39.279 --> 00:16:43.019 system that is making our regulation of flaring venting 00:16:43.019 --> 00:16:47.070 safer instead of Texas. So for those who are here, Bryan 00:16:47.070 --> 00:16:52.649 McArdle, David Mosul, Deena Kline, Marty Ridgeway and 00:16:52.649 --> 00:17:00.720 Penny Smith. 00:17:00.720 --> 00:17:21.640 (audience chatter) 00:17:29.010 --> 00:17:30.660 Thank you all for modeling the one agency, 00:17:30.660 --> 00:17:32.700 one team vision through your work for the Commission 00:17:32.700 --> 00:17:35.509 this year. This concludes this year's outstanding service 00:17:35.509 --> 00:17:44.740 award presentation. Thank you. 00:17:44.740 --> 00:18:11.539 Christie ran away from home. 00:18:14.140 --> 00:18:18.130 Now, it looks normal. All right, Let's get started 00:18:18.130 --> 00:18:19.823 with agenda item number one. 00:18:19.847 --> 00:18:22.150 Good morning, Chairman, Commissioners. 00:18:22.220 --> 00:18:24.799 For the record, Veronica Roberto, Administrative Law Judge 00:18:24.799 --> 00:18:27.960 with the Hearings division, I will be presenting items 00:18:27.970 --> 00:18:32.009 1 through 3. Item number one is the application by Luminant 00:18:32.009 --> 00:18:36.289 Mining Company LLC for revision number 34, permit number 00:18:36.289 --> 00:18:40.140 5G, Monticello thermal mine, located in Hopkins 00:18:40.140 --> 00:18:44.450 Hell. Permit #5G is the reclamation-only permit and 00:18:44.450 --> 00:18:48.779 the permit area is approximately 4,506 acres. Luminant's 00:18:48.779 --> 00:18:52.940 revision application proposes to revise post mine topography 00:18:52.950 --> 00:18:56.380 portions of the H area, revise the reclamation plan 00:18:56.380 --> 00:18:59.230 for the final pit in adjoining areas and update the 00:18:59.230 --> 00:19:01.900 information of individuals authorized to act on behalf 00:19:01.900 --> 00:19:05.299 of Luminant. The parties to the proceeding are Luminant, staff, 00:19:05.309 --> 00:19:08.849 and the city of Sulfur Springs. After notice of the applications, 00:19:08.859 --> 00:19:12.009 no comments were received. The city supports Luminant's 00:19:12.009 --> 00:19:15.630 applications. No exceptions were filed 00:19:15.640 --> 00:19:18.900 and no hearing on the merits was held. It is recommended 00:19:18.900 --> 00:19:21.740 Luminant's application be approved for the adoption of 00:19:21.750 --> 00:19:25.730 to permit provisions contained in Appendix 1. . I'm available 00:19:25.740 --> 00:19:26.677 for questions. 00:19:26.701 --> 00:19:29.400 Any questions, Members? I move we adopt 00:19:29.400 --> 00:19:31.907 the Examiner's recommendation. Is there a second? 00:19:31.931 --> 00:19:32.333 Second. 00:19:32.357 --> 00:19:35.809 Second by Commissioner Craddick. All in favor say aye. 00:19:35.819 --> 00:19:40.180 Any opposed? Motion passes. That item is approved. Agenda 00:19:40.180 --> 00:19:41.728 Item number two, Veronica? 00:19:41.752 --> 00:19:43.839 Item number two is the application 00:19:43.839 --> 00:19:47.589 of Jewett Mine LLC for the acceptance of a replacement 00:19:47.589 --> 00:19:49.817 bond for (indistinct) Number 32, 00:19:49.829 --> 00:19:53.049 (indistinct) mine, located in Leon, Greystone 00:19:53.049 --> 00:19:57.500 and Limestone counts. Permit #3H is currently bonded 00:19:57.500 --> 00:20:00.180 by three surety bonds for a total bonded amount of 00:20:00.180 --> 00:20:04.269 62 million. Jewett requests replacement of an existing 00:20:04.269 --> 00:20:07.549 surety bond issued by Aspen American Insurance Company 00:20:07.940 --> 00:20:11.150 with proffered surety bond issued by the United States 00:20:11.160 --> 00:20:14.519 Fire Insurance Company. Both the existing 00:20:14.519 --> 00:20:17.809 and proffered bonds are the same amount of 26,281,000 00:20:17.809 --> 00:20:22.359 The permit's other two surety bonds will remain 00:20:22.359 --> 00:20:26.369 in place. The proposed replacement surety bond and 00:20:26.369 --> 00:20:29.569 the existing surety bonds exceed the most recent reclamation 00:20:29.569 --> 00:20:32.500 cost estimate. It is recommended that the replacement 00:20:32.509 --> 00:20:35.910 bond be accepted. I'm available for questions. 00:20:35.910 --> 00:20:39.250 Any questions, Members? Hearing none, I move we approve 00:20:39.250 --> 00:20:41.271 the Examiner's recommendation. Is there a second? 00:20:41.295 --> 00:20:41.960 Second. 00:20:41.970 --> 00:20:47.420 2nd by Commissioner Wright. All in favor 00:20:47.420 --> 00:20:52.099 say aye. Any opposed? Motion passes. That item 00:20:52.099 --> 00:20:54.599 is approved. Let's move to Agenda item number three. 00:20:54.609 --> 00:20:55.367 (indistinct) 00:20:55.391 --> 00:20:57.690 Yeah, I don't know. I'm just all messed up today. I'm 00:20:57.690 --> 00:20:58.376 sorry 00:20:58.400 --> 00:20:59.948 I put my name in front of you both 00:21:00.480 --> 00:21:04.089 Well, you brought your picture for her. You're not 00:21:04.099 --> 00:21:05.136 gonna bring the picture back? 00:21:05.160 --> 00:21:07.516 I will, I'll put it up there. 00:21:07.540 --> 00:21:12.170 Please don't. Okay, Veronica, let's go to Item 00:21:12.170 --> 00:21:12.945 Number three. 00:21:12.969 --> 00:21:15.319 Item number three is the application by 00:21:15.319 --> 00:21:18.609 Jewett Mine LLC for acceptance of another replacement 00:21:18.609 --> 00:21:23.769 bond for permit number 47B, Jewett area at EF Mine, 00:21:24.140 --> 00:21:27.769 located in Leon and Freestone counties. Permit number 00:21:28.140 --> 00:21:30.940 47B is currently bonded by two surety bonds for 00:21:30.940 --> 00:21:37.630 a total amount of $36,654,123. Jewett requests replacement 00:21:37.630 --> 00:21:41.339 of the existing bonds issued by Aspen American Insurance 00:21:41.339 --> 00:21:44.410 Company, with proferred Surety Bond issued by the United 00:21:44.410 --> 00:21:47.720 States Fire Insurance Company. Both existing and proferred 00:21:47.720 --> 00:21:53.670 bonds are in the same amount of $18,654,123. 00:21:54.039 --> 00:21:56.509 The permit's other surety bond will remain in place. 00:21:56.940 --> 00:21:59.559 The proposed replacement surety bond and existing surety 00:21:59.559 --> 00:22:02.549 bond exceed the most recent reclamation cost estimate. 00:22:03.339 --> 00:22:05.950 It is recommended that the replacement bond be accepted. 00:22:06.339 --> 00:22:07.788 I'm available for questions. 00:22:07.812 --> 00:22:09.000 Any questions, members? 00:22:09.640 --> 00:22:12.220 Hearing none. I move we adopt the Examiner's recommendation. 00:22:12.220 --> 00:22:12.984 Is there a second? 00:22:13.008 --> 00:22:13.522 Second. 00:22:13.546 --> 00:22:14.940 Second by Commissioner Craddick. All 00:22:14.940 --> 00:22:19.769 in favor, say aye. Any opposed? Motion passes. Item 00:22:19.769 --> 00:22:34.339 is approved. Let's move the agenda. Item number four. 00:22:34.339 --> 00:22:36.119 Good morning, Chairman and Commissioners. My name is 00:22:36.119 --> 00:22:38.569 Austin Gascamp, Technical Examiner for the hearings 00:22:38.569 --> 00:22:41.900 division. Item number four is the application of Black Beard 00:22:41.910 --> 00:22:45.220 Operating LLC. This item was presented and recently 00:22:45.220 --> 00:22:48.069 passed by the Commission. Since the last conference 00:22:48.329 --> 00:22:50.240 it has been brought to our attention that the preparation 00:22:50.240 --> 00:22:52.480 schedule for the applicable field did not properly 00:22:52.480 --> 00:22:55.900 reflect or implement the unlimited net GOR status 00:22:56.099 --> 00:22:59.599 resulting in incorrect values of overproduction. Although 00:22:59.599 --> 00:23:02.440 the fundamental issues of the case do not appear to 00:23:02.440 --> 00:23:05.259 be affected, out of an abundance of caution in order 00:23:05.259 --> 00:23:07.500 to ensure the recommendation is based upon the correct 00:23:07.509 --> 00:23:10.740 facts and circumstances of the case, the Examiner suggests 00:23:10.740 --> 00:23:13.970 the case be remanded for the limited purpose of updating 00:23:13.970 --> 00:23:16.539 the over-production values to determine whether this 00:23:16.539 --> 00:23:19.019 will have a material effect on the recommendations 00:23:19.019 --> 00:23:22.019 of the Commission. I'm available for questions. 00:23:22.019 --> 00:23:25.220 Any questions, members? We have, let me mention, we do have 00:23:25.220 --> 00:23:29.259 David Gross and Black Beard Operating with David Jackson 00:23:29.269 --> 00:23:31.950 and David Jackson with (indistinct) Oil. Are there any 00:23:31.950 --> 00:23:35.869 questions for Mr Gross or Mr Jackson? Hearing none 00:23:35.880 --> 00:23:37.581 Commissioner Wright, I recognize you. 00:23:37.605 --> 00:23:40.390 You know, Mr Chairman, I have a couple of comments and a motion I'd 00:23:40.390 --> 00:23:42.440 like to make in this matter. I know it's been kind 00:23:42.440 --> 00:23:44.779 of complicated for me over the past couple of hearings 00:23:44.779 --> 00:23:47.930 and I appreciate all your hard work in this. I really 00:23:47.930 --> 00:23:51.019 do, Austin. I don't want to vote on a contested matter 00:23:51.019 --> 00:23:53.720 knowing some of the underlying facts are incorrect. 00:23:53.730 --> 00:23:56.029 I would much rather fix the mistake and then vote on 00:23:56.029 --> 00:24:00.059 it. Therefore, and in line with your suggestion, I 00:24:00.059 --> 00:24:02.390 move that we remand this matter back to the hearings 00:24:02.390 --> 00:24:04.880 division for the sole purpose of correcting the record 00:24:04.890 --> 00:24:07.849 with regard to recalculated allowable and associated 00:24:07.859 --> 00:24:11.319 overproduction. I would also move that the examiners 00:24:11.319 --> 00:24:14.970 prepare an amended proposal for decision only with 00:24:14.970 --> 00:24:18.400 regard to the allowable and the overproduction. This 00:24:18.400 --> 00:24:20.849 is not a chance for the applicant to relitigate all 00:24:20.849 --> 00:24:23.329 matters in the hearing. It is only to see what the 00:24:23.339 --> 00:24:26.559 recalculated allowable and associated overproduction 00:24:26.569 --> 00:24:30.079 should be and to see if the examiners amend their recommendations 00:24:30.089 --> 00:24:31.055 Thanks. 00:24:31.079 --> 00:24:35.210 I second that motion. All in favor, say aye. 00:24:35.309 --> 00:24:39.650 Any opposed? Motion passes. That item is remanded 00:24:39.660 --> 00:24:42.490 for further proceedings. Let's move to Agenda Item 00:24:42.490 --> 00:24:44.092 number Five. Austin? 00:24:44.116 --> 00:24:47.009 Item number five is the application 00:24:47.009 --> 00:24:49.900 of Barrow Shaver Resources Company to consider amending 00:24:49.900 --> 00:24:52.640 the field rules for the Hidden Rock Cotton Valley Line 00:24:52.640 --> 00:24:56.049 field and proper designation of various wells and (indistinct) 00:24:56.049 --> 00:24:59.640 and Morris County, Texas. Barrow Shaver requests one 00:24:59.829 --> 00:25:04.960 transferal of six Rose City Resources LLC. wells currently 00:25:04.960 --> 00:25:07.559 designated in the Lyndon East Cotton Valley Field. 00:25:09.140 --> 00:25:12.640 Transfer to the Hidden Rock Field. Number two Barrow 00:25:12.640 --> 00:25:14.759 Shaver requests the Commission adopt a one barrel 00:25:14.759 --> 00:25:17.859 per day per acre allocation factor in the Hidden Rock field. 00:25:18.440 --> 00:25:21.210 Rose City Resources LLC protests the adoption of the 00:25:21.220 --> 00:25:24.220 proposed allocation formula. Rose City argues this 00:25:24.220 --> 00:25:26.279 amendment for the field rules would hinder development 00:25:26.289 --> 00:25:29.160 of the Hidden Rock field as a mechanism to discourage 00:25:29.160 --> 00:25:32.480 drilling new wells. Rose City does not oppose transferal 00:25:32.480 --> 00:25:35.500 of its wells to the hidden rockfield, but request 160 00:25:35.500 --> 00:25:38.420 acre density option be added. It is recommended the 00:25:38.430 --> 00:25:41.069 denial of the request for one barrel per day allocation 00:25:41.079 --> 00:25:44.900 factor. But it is recommended that the transfer of 00:25:44.900 --> 00:25:48.119 the six Rose City wells to the Hidden Rock field be 00:25:48.119 --> 00:25:52.140 approved and adopt 160 acre optional density provision 00:25:52.140 --> 00:25:55.230 as requested by the contestant. Exceptions and replies 00:25:55.230 --> 00:25:57.399 were filed and I'm available for questions. 00:25:57.423 --> 00:25:58.190 Any questions, 00:25:58.190 --> 00:26:01.569 members? Hearing none. I move we approve the examiners 00:26:01.569 --> 00:26:04.147 recommendations. Is there a second? 00:26:04.171 --> 00:26:04.411 Second. 00:26:04.435 --> 00:26:05.180 Second by Commissioner 00:26:05.180 --> 00:26:09.240 Wright. All in favor, say aye. Any opposed? Motion 00:26:09.240 --> 00:26:12.140 passes. Examiner's recommendation is approved. Agenda 00:26:12.140 --> 00:26:17.140 Item number six, Christie. 00:26:17.140 --> 00:26:19.619 Good Morning, Chairman Commissioners. For 00:26:19.619 --> 00:26:21.950 the record, Christy Reed, administrative law judge with the 00:26:21.950 --> 00:26:25.529 Hearings division. Item number six is a good faith claim 00:26:25.529 --> 00:26:28.430 review. At the request of the Office of General Counsel 00:26:28.440 --> 00:26:32.279 Legal Enforcement Section. Staff argued Rio fraudulently 00:26:32.289 --> 00:26:36.019 transferred the subject lease to a 3rd Party, then 00:26:36.019 --> 00:26:38.980 transfered the subject leads back to itself knowing 00:26:38.980 --> 00:26:41.690 it did not have a good faith claim to operate the wells 00:26:41.700 --> 00:26:44.839 and that the wells should be plugged. 00:26:44.839 --> 00:26:47.430 Rio failed to provide any evidence showing it has 00:26:47.430 --> 00:26:50.549 a good claim to operate the wells. Rio stated that 00:26:50.549 --> 00:26:53.460 it knows it would not be able to obtain a mineral lease. 00:26:54.539 --> 00:26:58.470 While no exceptions to the PFD were filed, Rio filed a 00:26:58.470 --> 00:27:00.980 letter stating the wells have been plugged in August 00:27:00.980 --> 00:27:04.109 and September and provided copies of two Commission 00:27:04.119 --> 00:27:07.690 form W3, representing that those have been filed 00:27:07.690 --> 00:27:11.869 with the San Antonio District office in October. Staff 00:27:11.869 --> 00:27:15.599 did not file a response to the letter. A recent review 00:27:15.599 --> 00:27:18.710 of Commission records confirms the form W3s have 00:27:18.710 --> 00:27:22.230 been approved. While the wells have been plugged, there 00:27:22.230 --> 00:27:25.140 is no indication that Rio is in compliance with the 00:27:25.150 --> 00:27:28.130 other applicable Statewide rules included in the proposed 00:27:28.140 --> 00:27:31.509 order. Therefore, it is recommended the Commission 00:27:31.519 --> 00:27:35.269 find Rio does not have a good faith claim and order 00:27:35.269 --> 00:27:37.910 Rio to plug and abandon the wells and place the lease 00:27:37.910 --> 00:27:41.009 in compliance with applicable Statewide rules. I'm 00:27:41.009 --> 00:27:42.988 available for questions. 00:27:43.012 --> 00:27:44.990 Any questions, members? I 00:27:44.990 --> 00:27:46.950 move we approve the Examiner's recommendation. Is 00:27:46.950 --> 00:27:47.676 there a second? 00:27:47.700 --> 00:27:48.238 Second. 00:27:48.262 --> 00:27:49.900 Second by Commissioner Craddick. All in 00:27:49.900 --> 00:27:54.250 favor say aye. Any opposed? Motion passes. The 00:27:54.250 --> 00:27:56.660 Examiner's recommendation is approved. Agenda item 00:27:56.660 --> 00:28:02.440 number seven and eight. 00:28:02.440 --> 00:28:04.710 Good Morning, Chairman and Commissioners. I'm Jennifer 00:28:04.710 --> 00:28:07.289 Cook, Administrative Law Judge with the hearings 00:28:07.289 --> 00:28:10.630 division. I am presenting items 7 and 8 together 00:28:10.630 --> 00:28:14.640 and both are in one order and require one vote. 00:28:14.640 --> 00:28:18.440 In item 7 and 8, Sienna Oil and Gas seeks a determination 00:28:18.440 --> 00:28:21.819 that the subject will should not be plugged, and Sienna 00:28:21.819 --> 00:28:24.359 should not be held responsible for plugging or plugging 00:28:24.369 --> 00:28:29.079 costs. Staff provided evidence, and Sienna acknowledges 00:28:29.089 --> 00:28:32.380 that the wells are inactive and have no plugging extensions. 00:28:32.390 --> 00:28:34.789 Staff requests the Commission issue an order denying 00:28:34.789 --> 00:28:38.700 Sienna's request for relief. Sienna maintains it is 00:28:38.710 --> 00:28:42.140 working towards attaining plugging extensions. Such 00:28:42.150 --> 00:28:44.910 that the wells should not be plugged. It is recommended 00:28:44.910 --> 00:28:47.500 that the Commission enter anorder to denying Sienna's request 00:28:47.500 --> 00:28:51.450 for relief and order the wells be plugged. No exceptions were filed and I'm available for questions. 00:28:53.339 --> 00:28:56.869 Any questions, Members? I move we approve the Examiner's 00:28:56.869 --> 00:28:58.299 recommendation. Is there a second? 00:28:58.323 --> 00:28:58.901 Second. 00:28:58.925 --> 00:28:59.710 Second by Commissioner 00:28:59.710 --> 00:29:03.960 Wright. All in favor say aye. Any opposed? Motion 00:29:03.960 --> 00:29:06.809 passes. Those items are approved. Let's move to Agenda 00:29:06.809 --> 00:29:09.839 items 9 through 14. 00:29:09.839 --> 00:29:13.430 I'm presenting items 9 through 14 together and all in one order 00:29:13.440 --> 00:29:15.440 and require one vote. 00:29:15.440 --> 00:29:19.859 In those items, MCM Operating LLC filed six applications 00:29:19.859 --> 00:29:23.150 seeking a spacing exception permits under the provisions 00:29:23.160 --> 00:29:28.049 of Statewide Rule 37 for the subject wells. The applications 00:29:28.049 --> 00:29:32.710 are protested by Midland Petro Partners DC LLC and 00:29:32.710 --> 00:29:37.509 Permian Deep Rock Oil Corporation LLC. Midland Petro 00:29:37.509 --> 00:29:40.930 Partners least an undivided mineral interest in several 00:29:40.940 --> 00:29:43.880 tracks located within the area of the lease covering 00:29:43.880 --> 00:29:49.819 the wells. MCM and Midland Petro are co-tenants. MCM has 00:29:49.829 --> 00:29:52.480 leases and pulling authority for the entire lease and 00:29:52.480 --> 00:29:55.269 productive area where the subject wells will produce, 00:29:55.740 --> 00:29:58.650 including leases covering the tracts in which protestants 00:29:58.750 --> 00:30:02.720 have an interest. Consequently applicant has the right to drill 00:30:02.900 --> 00:30:06.230 and produce the very tracts about which protestants 00:30:06.230 --> 00:30:10.069 complain. Protestants offered no evidence in opposition 00:30:10.069 --> 00:30:14.079 of the applications. Protestants explain their interest 00:30:14.079 --> 00:30:18.160 in this matter is to ensure MCM meets the requirements of Statewide Rule 37. 00:30:18.640 --> 00:30:22.660 It is recommended that the Commission grant applications. 00:30:23.140 --> 00:30:25.359 No exceptions were filed, and I'm available for questions. 00:30:26.140 --> 00:30:29.589 Members, there are available for questions, also, a Bill 00:30:29.599 --> 00:30:35.160 Hayenga, Jessica Mendoza and MCM Operating. Are there 00:30:35.160 --> 00:30:36.026 any questions? 00:30:36.050 --> 00:30:37.223 No, thank you. 00:30:37.247 --> 00:30:38.420 I move we approve the 00:30:38.420 --> 00:30:40.937 Examiner's recommendation. Is there a second? 00:30:40.961 --> 00:30:41.403 Second. 00:30:41.427 --> 00:30:45.220 Second by Commissioner Craddick. All in favor say aye. Any 00:30:45.220 --> 00:30:48.970 opposed? Motion passes. Those items are approved. Let's 00:30:48.970 --> 00:30:55.240 move on to oil and gas Consent Agenda. 00:30:55.240 --> 00:30:58.130 There are 49 items. I got the, okay, there are 49 items 00:30:58.130 --> 00:31:00.700 on the consent agenda. I move we approve items 15 00:31:00.700 --> 00:31:02.923 through 63. Is there a second? 00:31:02.947 --> 00:31:03.491 Second. 00:31:03.515 --> 00:31:05.170 Second by Commissioner 00:31:05.170 --> 00:31:09.230 Wright. All in favor say aye. Any opposed? Motion passes. 00:31:09.230 --> 00:31:13.220 Those items are approved. Let's move to Rule 15 inactive 00:31:13.220 --> 00:31:18.220 wells items. There are 29 Rule 15, there are 29 rule 00:31:18.220 --> 00:31:22.119 15 inactive wells items. I move we approve those 00:31:22.130 --> 00:31:28.049 items 64 through 93 except item number 88 which 00:31:28.049 --> 00:31:29.991 is now in compliance. Is there a second? 00:31:30.015 --> 00:31:30.655 Second. 00:31:30.679 --> 00:31:31.539 Second by 00:31:31.539 --> 00:31:35.279 Commissioner Craddick. All in favor say aye. Any opposed? 00:31:35.289 --> 00:31:38.130 Motion passes. Those items are approved. Let's move 00:31:38.130 --> 00:31:41.869 on to master default orders. There are 12 master default 00:31:41.880 --> 00:31:45.460 orders. I move we approve items 94 through 105. Is 00:31:45.460 --> 00:31:46.126 there a second? 00:31:46.150 --> 00:31:46.575 Second. 00:31:46.599 --> 00:31:47.900 Second by Commissioner Wright. 00:31:47.910 --> 00:31:51.960 All in favor say aye. Any opposed? Motion passes. Those 00:31:51.960 --> 00:31:54.730 items are approved. Let's move to Agreed Enforcement 00:31:54.740 --> 00:31:58.150 orders. There are 183 Agreed Enforcement orders. I 00:31:58.150 --> 00:32:02.450 move we approve those items, 106 through 288. Is there 00:32:02.450 --> 00:32:03.136 a second? 00:32:03.160 --> 00:32:03.668 Second. 00:32:03.692 --> 00:32:05.240 Second by Commissioner Craddick. All in favor 00:32:05.240 --> 00:32:08.880 say aye. Are there any opposed? Motion passes. Those 00:32:08.880 --> 00:32:11.839 items are approved. That concludes the hearing sections. 00:32:11.839 --> 00:32:14.910 We will now take up our administrative agenda. Agenda 00:32:14.910 --> 00:32:18.549 Item 289 is an update from the executive director. 00:32:19.440 --> 00:32:21.900 Morning, Chairman and Commissioners, again for the record, 00:32:21.910 --> 00:32:25.089 Wei Wang, Executive Director. If I may, I'd like to first 00:32:25.089 --> 00:32:28.170 introduce our new critical infrastructure division 00:32:28.170 --> 00:32:31.759 Director Ted Wooten, he is in the audience today. 00:32:33.140 --> 00:32:36.569 I'm going to ask Ted to come up later and 00:32:36.569 --> 00:32:39.269 give us an update on the work that critical infrastructure 00:32:39.269 --> 00:32:43.220 division is doing. So Ted has over 20 years of experience 00:32:43.230 --> 00:32:46.269 working in the industry. He has a degree in petroleum 00:32:46.269 --> 00:32:50.309 engineer engineering, and he briefly served as our 00:32:50.319 --> 00:32:53.259 chief engineer in the oil and gas division, is also 00:32:53.259 --> 00:32:57.990 a registered professional engineer, so as of today 00:32:58.000 --> 00:33:00.950 the critical infrastructure division with the assistance 00:33:00.950 --> 00:33:03.670 from Oil and Gas Division and Pipeline Safety Department, 00:33:04.039 --> 00:33:09.519 have completed over 2300 site visits, and these includes 00:33:09.529 --> 00:33:12.960 facilities such as underground storage facilities, 00:33:13.339 --> 00:33:16.849 processing plants and pipelines. In addition to that 00:33:17.839 --> 00:33:22.269 I think we have visited close to 10,000 producing wells 00:33:22.640 --> 00:33:26.819 and 4000 injection and disposal service wells, so with 00:33:26.819 --> 00:33:29.150 that, I'll turn over to Ted and ask him to give you 00:33:29.150 --> 00:33:32.119 a more detailed update on the work we're doing with 00:33:32.130 --> 00:33:41.339 the preparations for the upcoming winter. 00:33:41.339 --> 00:33:45.190 Good Morning, chairman and Commissioners. For the record 00:33:45.200 --> 00:33:48.960 my name is Ted Wooten. I'm the director for the Critical 00:33:48.960 --> 00:33:52.369 Infrastructure division, and I want to sincerely express 00:33:52.369 --> 00:33:56.049 its a privilege to be here, and I want to also emphasize 00:33:56.539 --> 00:33:59.730 when I speak of what we've been up to, it's the organization, 00:33:59.730 --> 00:34:02.230 it's not our division. Obviously we're a new division, 00:34:02.240 --> 00:34:06.849 quite small and I'd like take a minute to acknowledge the 00:34:06.849 --> 00:34:09.750 help we've been receiving. The oil and gas division 00:34:09.750 --> 00:34:12.309 along with oversight and safety have been helping us 00:34:12.510 --> 00:34:16.489 perform these site visits, along with four of our division 00:34:16.489 --> 00:34:20.679 employees. But we see the cooperation as being a perfect 00:34:20.679 --> 00:34:24.369 example of our executive director's vision of one agency, 00:34:24.369 --> 00:34:27.139 one team has been. It's been a pleasure, to be honest 00:34:27.139 --> 00:34:30.170 with you, to see how much people have offered. In terms 00:34:30.170 --> 00:34:33.289 of the rest of the information< I was guided to 00:34:33.300 --> 00:34:38.619 be brief. My weakness is probably to be overly 00:34:38.630 --> 00:34:41.579 thorough, so I'm gonna try to read it fast. I think it'll be 00:34:41.579 --> 00:34:44.070 three or four minutes as I go through it. 00:34:44.079 --> 00:34:47.929 So please have some patients. And as you know, our emphasis currently 00:34:47.929 --> 00:34:50.769 has been to openly discuss weatherization and preparation 00:34:50.780 --> 00:34:53.139 for the upcoming winter season with operators and their 00:34:53.139 --> 00:34:55.489 representatives. That's kind of the status of where 00:34:55.489 --> 00:34:59.219 we are in that. We're compiling a working database that 00:34:59.219 --> 00:35:02.730 will ultimately help us break down the type of practices 00:35:02.730 --> 00:35:05.869 that have been implemented by geography, by operator 00:35:05.869 --> 00:35:08.800 and by technical needs, meaning different types of gas, 00:35:08.809 --> 00:35:12.929 dry or wet, so on. So we're compiling that as we go and 00:35:12.929 --> 00:35:16.789 then we'll find that more useful in time. But since 00:35:16.789 --> 00:35:21.039 mid November, the Railroad Commission staff as 00:35:21.039 --> 00:35:24.130 Director Wei has pointed out, has done about 2300 site 00:35:24.130 --> 00:35:27.750 visits. Of those, 2100 would be classified as oil and 00:35:27.750 --> 00:35:31.829 gas sites. About 200 of them would fit into a designation 00:35:31.829 --> 00:35:33.849 as being managed by the oversight and safety division. 00:35:35.440 --> 00:35:38.329 Of the more than 2100 oil and gas leases, there are approximately 00:35:38.340 --> 00:35:42.809 14,000 active producers and injectors. 00:35:42.809 --> 00:35:45.809 In addition, we've visited four gas storage facilities 00:35:45.809 --> 00:35:48.820 and with one, four major gas storage facilities and 00:35:48.820 --> 00:35:53.010 one planned for later this week. Two large processing 00:35:53.010 --> 00:35:56.559 plants, one with a capability of over 1 BCF per day. 00:35:57.039 --> 00:35:59.440 Pretty big plant. Pretty important as part of the 00:35:59.440 --> 00:36:03.150 infrastructure. 46 pipelines directly serving gas fire 00:36:03.150 --> 00:36:08.829 generators and 140 additional transmission lines. 00:36:08.829 --> 00:36:11.070 Of these five gas storage facilities, it's important to note 00:36:11.070 --> 00:36:14.190 that's about 46% of the storage capacity of the state 00:36:14.199 --> 00:36:19.590 just in those five. Comes about 213 BCF, working gas 00:36:19.590 --> 00:36:25.059 out of 462 capacity in the state and 25% of the deliverability 00:36:25.059 --> 00:36:29.110 which is about 4.5 BCF a day out of a combined 00:36:29.110 --> 00:36:34.519 1718 BCF capacity. The deliverability, as you would 00:36:34.530 --> 00:36:37.550 know, would be a variable depending on a lot of different 00:36:37.550 --> 00:36:40.860 technical function. Pressure in the reservoir, volume, weather 00:36:40.860 --> 00:36:43.530 conditions, temperatures. 00:36:43.530 --> 00:36:47.070 But it's critical to note, I believe, that each of these 00:36:47.070 --> 00:36:50.750 storage facilities are operated by world class companies 00:36:52.130 --> 00:36:54.969 who are committed to meeting that natural gas deliverability 00:36:54.969 --> 00:36:58.380 needs of the people of Texas. These needs include weatherization 00:36:58.380 --> 00:37:01.539 standards that allowed them provide uninterruptible 00:37:01.539 --> 00:37:05.750 gas supplies to the market under all normal and emergency 00:37:05.750 --> 00:37:08.789 conditions. Their facilities are designed, built and 00:37:08.789 --> 00:37:10.769 maintained the standards that cover everything from 00:37:10.780 --> 00:37:14.400 Gulf Coast type storms to freezing temperatures. I 00:37:14.409 --> 00:37:16.579 want to emphasize that because I think it's important 00:37:16.590 --> 00:37:19.730 strategically and tactically. 00:37:19.730 --> 00:37:21.929 In addition to these site visits, we've held Teams 00:37:21.929 --> 00:37:24.239 calls with senior management from approximately 18 00:37:24.239 --> 00:37:27.280 natural gas producers, the top volume producers in 00:37:27.280 --> 00:37:30.769 the state, 00:37:30.769 --> 00:37:33.050 and that's a function of those calls here at the Railroad 00:37:33.050 --> 00:37:35.710 Commission were also compiling another small database 00:37:35.710 --> 00:37:39.210 of best practices from these calls as we learn them 00:37:39.219 --> 00:37:42.139 from each other and then we share that information 00:37:42.139 --> 00:37:44.610 subsequently with the next call and the other operators 00:37:44.619 --> 00:37:48.670 because these dialogues are going on constantly. And these 00:37:48.670 --> 00:37:50.760 calls and site visits have indicated some relevant 00:37:50.769 --> 00:37:55.210 key issues faced last year that are remaining a focus 00:37:55.210 --> 00:37:57.849 for us all in these coming months. And number one, I 00:37:57.849 --> 00:37:59.860 think, on the list, or at least from my perspective 00:37:59.860 --> 00:38:03.179 the reliability of the saltwater disposal systems in 00:38:03.179 --> 00:38:05.989 our industry played a huge impact on the operator's 00:38:05.989 --> 00:38:09.139 ability to sustain production for those short winter 00:38:09.139 --> 00:38:13.340 days. And all operators that we've spoken to are committed 00:38:13.340 --> 00:38:16.650 to working even better more with their staff and third 00:38:16.650 --> 00:38:19.090 party water handlers for this year to mitigate any 00:38:19.099 --> 00:38:22.119 potential problems there. 00:38:22.119 --> 00:38:25.699 And ironically, the weather related HSE conditions 00:38:26.619 --> 00:38:30.219 caused production curtailments last year as operators 00:38:30.219 --> 00:38:33.960 put employees safety first. Now, HSE, as we know, is 00:38:33.960 --> 00:38:37.530 always the right decision. It will never change. Yet 00:38:39.019 --> 00:38:43.050 planning based on what we learned last year can mitigate 00:38:43.059 --> 00:38:47.420 some of the impact of the HSE decisions. So operators 00:38:47.429 --> 00:38:50.039 are working to mitigate the impact of icy roads, for 00:38:50.039 --> 00:38:52.519 example, by providing temporary shelter and supplies 00:38:52.519 --> 00:38:55.949 on site as needed for brief periods. (indistinct) people 00:38:55.960 --> 00:38:58.900 be there to help keep the facilities going without 00:38:58.909 --> 00:39:02.719 incurring unnecessary safety measures. 00:39:02.719 --> 00:39:05.239 And some of the operators, maybe that weren't as 00:39:05.239 --> 00:39:07.769 aware or weren't practicing that last year, we're helping 00:39:07.769 --> 00:39:09.849 make them aware in our Team's calls. So 00:39:09.849 --> 00:39:11.880 we're disseminating that information and everybody 00:39:11.880 --> 00:39:15.519 is receiving it very positively. 00:39:15.519 --> 00:39:18.119 And of course, we get confirmation of the myriad of 00:39:18.119 --> 00:39:21.650 on site technologies, and I'll just list them briefly. 00:39:21.650 --> 00:39:24.449 Methanol injection, line heaters, heat tracing, installation 00:39:24.449 --> 00:39:27.579 wraps, instrumentation, air filtration, small solar 00:39:27.579 --> 00:39:30.340 wind turbines combined with expanded battery systems 00:39:31.519 --> 00:39:34.260 for instrument control, the weather barriers, enclosures, 00:39:34.269 --> 00:39:36.969 all of these are kind of fit under a category of horses 00:39:36.969 --> 00:39:39.670 for courses, right? Where is it applied? Where is that 00:39:39.670 --> 00:39:41.880 a best practice? But of course, we're gathering 00:39:41.880 --> 00:39:45.690 information on that, too. In addition, and finally, 00:39:45.699 --> 00:39:48.250 we're noting more and more focus on possibly expanding 00:39:48.250 --> 00:39:51.519 the state's natural gas storage capacity. We've had 00:39:51.519 --> 00:39:53.670 operators come to us voluntary, we didn't want seek 00:39:53.670 --> 00:39:57.519 that. They come to us and talk about it. And possibly 00:39:57.519 --> 00:40:00.860 the visibility of former gas contracts for power generators 00:40:00.860 --> 00:40:04.130 at least for critical months. I would dovetail into 00:40:04.139 --> 00:40:07.440 a big operator wanting to commit (indistinct) 00:40:09.909 --> 00:40:13.190 These storage facilities are analogous to large batteries. 00:40:13.190 --> 00:40:15.639 I mean, they have high reliability and on demand delivery 00:40:15.639 --> 00:40:18.000 ability and are easily defended during extreme weather 00:40:18.000 --> 00:40:21.940 conditions. So much more than 100,000 wells. We were 00:40:21.940 --> 00:40:27.349 talking about 60, maybe 70 installations. So all operators 00:40:27.349 --> 00:40:31.230 are candidly discussing these issues with us. Our CID, 00:40:32.510 --> 00:40:34.500 critical infrastructure division, and oil and gas management 00:40:34.500 --> 00:40:37.030 have encountered a positive response with each operator 00:40:37.909 --> 00:40:40.429 without exception. We all share a clear understanding 00:40:40.429 --> 00:40:43.579 of the need for us all to remain focused on being ready 00:40:43.579 --> 00:40:45.849 for any weather condition that might be present in the 00:40:45.849 --> 00:40:48.809 upcoming winter season. 00:40:48.809 --> 00:40:52.090 Thank you again for letting me discuss what I think 00:40:52.099 --> 00:40:54.650 and new to the Railroad Commission. Maybe only get to say 00:40:54.650 --> 00:40:57.300 this once. I think it's remarkable progress for a short 00:40:57.300 --> 00:40:59.409 amount of time, that I've seen people working, and everybody 00:40:59.409 --> 00:41:03.829 working together and I'd like to answer any questions if you have them. 00:41:04.909 --> 00:41:06.048 Any questions, Members? 00:41:06.072 --> 00:41:07.340 I just want to say thank you 00:41:07.340 --> 00:41:10.219 for taking this on. It's a big project, but I appreciate 00:41:10.219 --> 00:41:12.739 the whole agency really working together to move forward. 00:41:13.309 --> 00:41:16.130 Tom. It's amazing how many inspections job made. That's 00:41:16.130 --> 00:41:17.895 incredible. Good job. 00:41:17.919 --> 00:41:20.360 Over 2300 sites visited, you 00:41:20.360 --> 00:41:22.909 know, that's remarkable, since November, and I 00:41:22.909 --> 00:41:28.670 think is a good, a tremendous assurance to the 00:41:28.670 --> 00:41:31.849 public, to the Legislature, to the administration that 00:41:31.849 --> 00:41:35.309 the Railroad Commission has been, has not been sitting 00:41:35.309 --> 00:41:38.130 still. We've been working and intend to do all we can 00:41:38.130 --> 00:41:41.269 to make our neighbors safe at any time. So thank you 00:41:41.269 --> 00:41:43.498 for the dedication of your team. 00:41:43.522 --> 00:41:45.050 Thank you, Tom. 00:41:47.809 --> 00:41:49.769 Okay. Wei, is there any additional? 00:41:49.793 --> 00:41:52.110 No, sir, I just, again, just want 00:41:52.110 --> 00:41:54.429 to echo y'all's comments, thank our staff for doing 00:41:54.440 --> 00:41:56.739 working diligently and in a short period of time that 00:41:56.739 --> 00:42:01.869 we have covered. I think Ted mentioned 46% of underground 00:42:01.869 --> 00:42:04.389 storage capacity. And I think it's really important 00:42:04.389 --> 00:42:07.429 that as you all mentioned during last open meeting 00:42:07.440 --> 00:42:11.199 that there is enough gas available and from our observation 00:42:11.199 --> 00:42:14.969 and site visits, what we're observing is of all of 00:42:14.969 --> 00:42:18.980 these sites we've been to, everybody has taken various degrees 00:42:18.980 --> 00:42:21.409 and different types of technology to weatherize and 00:42:21.420 --> 00:42:24.920 prepare for the upcoming winter. I think that provided 00:42:24.920 --> 00:42:28.340 us with great comfort. And also we're learning this as we're 00:42:28.340 --> 00:42:32.570 developing the weatherization rules. Very informative. So thank you for (indisinct). 00:42:32.570 --> 00:42:35.530 Another item I want to get clarification on, I 00:42:35.530 --> 00:42:39.670 hear that we started the year on flaring with point 00:42:39.679 --> 00:42:43.489 7/10 of a percent of the gas in Texas was being flared, 00:42:43.500 --> 00:42:47.260 first of the year went down, I remember, about 0.5%. Could 00:42:47.260 --> 00:42:49.090 you bring me up-to-date on what the current flaring 00:42:49.090 --> 00:42:51.216 rate in the entire state of Texas is? 00:42:51.240 --> 00:42:52.119 Yeah, I think 00:42:52.119 --> 00:42:54.929 the last number I saw given, this is based on preliminary 00:42:54.940 --> 00:43:00.559 production filing, is 0.2%. So we have seen a 00:43:00.559 --> 00:43:04.780 overall trend going back to, we compare our trend going 00:43:04.780 --> 00:43:08.159 back to August 2019, which at that time it was over 00:43:08.159 --> 00:43:12.070 2%. And then, I think within less than two years, we 00:43:12.070 --> 00:43:15.570 have seen that trend go down significantly to less 00:43:15.570 --> 00:43:20.869 than 1%, point 8, point 7. And most recently, we saw 00:43:20.880 --> 00:43:24.489 0.6% flare rate based on portal production. 00:43:24.500 --> 00:43:27.000 And then the latest report I saw from our technical 00:43:27.000 --> 00:43:30.767 engineering department is around 0.2 0.3%. 00:43:30.791 --> 00:43:32.039 I commend 00:43:32.039 --> 00:43:35.670 you, the agency. I commit the industry for stepping 00:43:35.670 --> 00:43:38.449 on board and doing this good work. And I think it speaks 00:43:38.460 --> 00:43:42.300 volumes for the state of Texas, for the oil and 00:43:42.300 --> 00:43:44.960 gas industry, for all the associations that have 00:43:44.960 --> 00:43:48.019 come together to agree on this project, and for the 00:43:48.300 --> 00:43:50.159 the good folks here at the Texas Railroad Commission, Wei, 00:43:50.159 --> 00:43:53.050 that you've directed. I think it's a great statement, 00:43:53.050 --> 00:43:57.230 an example of the intent, the direction, and counter 00:43:57.230 --> 00:44:00.230 some of the criticism we receive, regularly, showing that 00:44:00.230 --> 00:44:03.780 the proof is in the pudding. And we're less than 2/10 00:44:03.780 --> 00:44:08.559 of a percent, right at 2/10 of percent, of all 100 of 00:44:08.559 --> 00:44:10.860 natural gas being produced. And I mean, that leaves 00:44:10.869 --> 00:44:15.260 almost 98% going to its intended purpose. That's pretty 00:44:15.260 --> 00:44:18.530 efficient for any industry. So I commend you, and thank 00:44:18.530 --> 00:44:21.929 you. And I have, Wei, I have you present 00:44:21.929 --> 00:44:24.340 on item to 89. Is that up for now? 00:44:24.364 --> 00:44:25.159 That was 00:44:25.170 --> 00:44:26.333 the Executive update. 00:44:26.357 --> 00:44:28.079 Okay, what about the 290, item 00:44:28.079 --> 00:44:30.888 for approval of certain agency contracts? 00:44:30.912 --> 00:44:31.840 That's Randall. 00:44:31.840 --> 00:44:34.159 Randall's gonna do it. Randall is not on my deal. Says 00:44:34.159 --> 00:44:37.159 Wei is gonna do it. So you're blamed with, okay, 00:44:37.159 --> 00:44:44.699 well, there's Randall. The program says, yeah, 00:44:44.710 --> 00:44:47.989 We didn't want to miss 00:44:47.989 --> 00:44:49.481 you today, right? 00:44:49.505 --> 00:44:52.500 Good morning. For the record, I'm 00:44:52.500 --> 00:44:55.889 Randall Collins, Chief operating officer, Item 290 00:44:55.889 --> 00:44:58.369 of the agenda seeks Commissioner approval for a contract 00:44:58.369 --> 00:45:01.349 amendment, as required by the Commissioner delegation 00:45:01.349 --> 00:45:06.219 of Authority and Section 2261.254 of the Texas Government Code. 00:45:07.090 --> 00:45:09.570 The Commission's internal delegation of authority requires 00:45:09.570 --> 00:45:12.219 Commissioner approval of contracts and associated amendments 00:45:12.590 --> 00:45:18.530 greater than or equal to $1 million. Section 2261.254 00:45:18.659 --> 00:45:21.630 of The Texas Government Code requires approval of contracts 00:45:21.630 --> 00:45:25.250 and associated amendments greater than $1 million dollars 00:45:25.260 --> 00:45:28.500 or contracts for outside legal services. At issue 00:45:28.500 --> 00:45:31.409 today is one of the contract, is one contract amendment 00:45:31.889 --> 00:45:35.599 for ITs modernization to The Lone Star project. Approval 00:45:35.599 --> 00:45:37.840 of today's item will ensure the agency's continued 00:45:37.849 --> 00:45:42.000 timely, continues timely on its modernization program. 00:45:42.889 --> 00:45:45.320 Summary of the amendment, including details and the 00:45:45.320 --> 00:45:48.070 amount are included in your notebook. Staff recommends 00:45:48.070 --> 00:45:50.300 approval, and I'm available if you have any questions. 00:45:50.789 --> 00:45:55.590 Okay, are there any questions, Members? I move 00:45:55.590 --> 00:45:58.769 we approve this agency contracts pursuant to the Commission's 00:45:58.780 --> 00:46:01.856 delegation of authority Is there a second? 00:46:01.880 --> 00:46:03.250 Second. Oh, sorry. It may not have been, my fault. 00:46:04.190 --> 00:46:07.659 I'll take Commissioner Craddick. Okay, all in favor, 00:46:07.659 --> 00:46:11.460 say aye. Any opposed? Motion passes. That item 00:46:11.460 --> 00:46:15.510 is approved. Agenda Item 291 00:46:15.780 --> 00:46:18.701 is an update from the Office of General Counsel. 00:46:18.725 --> 00:46:19.690 Good 00:46:19.690 --> 00:46:22.090 morning, Chairman Commissioners David Cooney from the 00:46:22.090 --> 00:46:24.840 Office of General Counsel. I have three items to 00:46:24.840 --> 00:46:27.880 report on item or three things to report on item 00:46:27.889 --> 00:46:31.780 291. First of all, the EPA's oil and 00:46:31.780 --> 00:46:35.039 gas methane proposal was published in the Federal Register, 00:46:35.039 --> 00:46:40.510 November 15th for a 60-day comment period. Consistent 00:46:40.510 --> 00:46:43.019 with the of approach multiple parties and the TCEQ, 00:46:43.019 --> 00:46:45.989 we plan to draft a request for an extension of time 00:46:46.380 --> 00:46:50.269 on the comment period to at least another 60 days 00:46:50.280 --> 00:46:53.719 and actually include a request that we can't be allowed 00:46:53.719 --> 00:46:57.840 to comment after the actual regulations themselves 00:46:57.849 --> 00:47:01.289 are published, which for this proposal isn't gonna 00:47:01.289 --> 00:47:05.590 happen till next year. So it's a curious approach 00:47:05.590 --> 00:47:10.150 that they're taking to a rulemaking here. 00:47:10.179 --> 00:47:12.519 The other item is, Commissioner Craddick pointed out 00:47:12.519 --> 00:47:15.820 on my last report, the pipeline safety rule. The FIMSA 00:47:15.820 --> 00:47:18.869 rule extending reporting requirements to all gas 00:47:18.869 --> 00:47:22.880 gathering operators, and applying a set of minimum 00:47:22.880 --> 00:47:25.909 safety standards to larger diameter and higher pressure 00:47:26.179 --> 00:47:30.150 Class one rural locations was published on November 00:47:30.150 --> 00:47:33.980 15th as well, and that won't be effective until May 16th 00:47:33.989 --> 00:47:37.510 of next year. And then this just in, the Waters of the 00:47:37.519 --> 00:47:40.869 US Definition Rule is published this morning in the 00:47:40.869 --> 00:47:43.900 Federal Register, also for a 60 day comment period. 00:47:44.280 --> 00:47:47.460 So we'll be reporting to you on that. That's all I 00:47:47.460 --> 00:47:50.039 have for this morning. Happy to answer any questions. 00:47:50.050 --> 00:47:52.739 Is that the one that the United Nations will basically 00:47:52.739 --> 00:47:56.099 own our water everywhere? Is that Waters of the Nation, 00:47:56.099 --> 00:47:57.285 basically? 00:47:57.309 --> 00:48:00.889 I do not know the answer to that Commissioner. 00:48:00.900 --> 00:48:02.243 Be happy to look into it. 00:48:02.267 --> 00:48:03.610 There was one that we were 00:48:03.610 --> 00:48:07.070 adopting at one point. That was, you know, it was declared 00:48:07.079 --> 00:48:09.139 insane at one point. I don't know if this is another 00:48:09.139 --> 00:48:12.079 insane policy we're looking at, which is consistent 00:48:12.079 --> 00:48:14.110 with some of the rules we're seeing from the administration. 00:48:14.119 --> 00:48:15.032 Item 292-- 00:48:15.056 --> 00:48:17.820 Here they come again. And thank 00:48:17.820 --> 00:48:19.539 you for staying on top. 00:48:19.563 --> 00:48:21.123 I appreciate that. 00:48:21.147 --> 00:48:21.659 You guys 00:48:21.659 --> 00:48:24.699 have not had a chance to look David into tha,.tThe 00:48:24.699 --> 00:48:26.782 one about the water yet? 00:48:26.806 --> 00:48:27.435 No, sir. 00:48:27.459 --> 00:48:27.868 This was published this morning. 00:48:27.892 --> 00:48:28.889 Okay. Thank 00:48:28.889 --> 00:48:29.740 you. 00:48:29.764 --> 00:48:32.340 Let me ask you this. Do you have any estimation 00:48:32.340 --> 00:48:35.510 of the methane rule as proposed by the administration 00:48:35.510 --> 00:48:39.239 is adopted? Do you have any idea what the cost 00:48:39.239 --> 00:48:42.360 approximately would increase for the cost of that methane 00:48:42.360 --> 00:48:43.123 rule? 00:48:43.147 --> 00:48:44.163 Not right now. 00:48:44.187 --> 00:48:45.460 I just wanna look into that. 00:48:45.460 --> 00:48:47.111 Thank you so much. 00:48:47.135 --> 00:48:48.679 And I'm sure there are going 00:48:48.679 --> 00:48:51.760 to be various opinions on that point. 00:48:51.784 --> 00:48:52.889 Don't worry 00:48:52.889 --> 00:48:55.349 about that. Just as it, if it comes up final, let us 00:48:55.349 --> 00:48:57.325 know. We'd like to be able to report that. 00:48:57.349 --> 00:48:58.000 Thank you 00:48:58.010 --> 00:48:59.028 Thank you. 00:48:59.052 --> 00:49:00.719 Thanks, David. 00:49:00.743 --> 00:49:02.130 Okay, We have agenda 00:49:02.130 --> 00:49:04.949 Item 292 is the oilfield cleanup program annual report 00:49:04.949 --> 00:49:08.619 for fiscal year 2021. The staff has requested to pass 00:49:08.619 --> 00:49:10.889 that item to the next regularly scheduled conference. 00:49:11.269 --> 00:49:15.469 Item 293 is the approval of Fiscal Year 2022 well 00:49:15.469 --> 00:49:18.760 plugging and the site remediation work plans. The staff 00:49:18.760 --> 00:49:20.800 has requested to pass that item to the next regularly 00:49:20.800 --> 00:49:23.699 scheduled conference agenda. Item 294 is our public 00:49:23.699 --> 00:49:26.590 participation item. No one is registered indication 00:49:26.590 --> 00:49:30.289 that they wish to speak on any non posted items. 00:49:30.300 --> 00:49:34.079 May I personally, just out of respect, I asked 00:49:34.079 --> 00:49:36.909 last week that a major publication published my response 00:49:36.920 --> 00:49:40.420 to an article they had written and they did 00:49:40.420 --> 00:49:43.489 publish that. So that is publicly appreciated by me. 00:49:43.969 --> 00:49:48.010 Item number 295 is our executive session item, 00:49:48.019 --> 00:49:51.400 which we will not be going into today. There are, 00:49:51.400 --> 00:49:53.989 are there any other duly posted items to be brought before 00:49:53.989 --> 00:49:56.022 the Commission at this time? 00:49:56.046 --> 00:49:58.079 Merry Christmas. 00:49:58.159 --> 00:50:02.030 Can we say that? We're not two weeks out? But, you know, Merry Christmas, Happy New Year. 00:50:03.190 --> 00:50:05.920 To all of our employees and all the folks and the good 00:50:05.929 --> 00:50:08.800 industry and to the good state of Texas, Merry Christmas 00:50:08.800 --> 00:50:12.000 from the Commissioners at the Railroad Commission. Hearing 00:50:12.000 --> 00:50:14.650 none, this meeting of the Railroad Commission of Texas 00:50:14.659 --> 00:50:15.789 is adjourned.