Announcer: Meet for this streaming event.
-: This meeting of the Railroad Commission of Texas
will come to order to consider matters,
which have been duly posted with the Secretary of State
for January 11th, 2022.
Under our public participation policy,
anyone desiring to offer public testimony
on any items that are not noticed on today's agenda
was required to register in advance.
We did not have anyone registered in advance
for this meeting.
The Commission will consider the items on the agenda
as posted on the agenda.
Let's get started with the agenda item one.
-: Good morning, chairman and Commissioners.
Chairman: Good morning.
-: For the record, my name is Tara Guzman.
I am representing the market oversight section
of the Oversight and Safety Division.
Agenda item number one is case number 7778,
the application of taxes gas service
for the tax year 2020 annual end term rate adjustment
for the unincorporated area
of the Borger, SKellytown service area.
This case is the third antrum rate adjustment
the company has filed
for the Borger, SKellytown service area
since the final order was issued
in the most recent statement of intent,
gas utilities docket number 10766.
This adjustment represent
an incremental increase of $43,796,
of which $3,439 is recoverable from customers
subject to this order.
I recommend approval of the antrum rate adjustment.
I'm available to answer any questions.
-: Are there any questions members?
Wright: No, sir.
-: I move we approve the examiners recommendation.
Is there a second?
Craddick: Second.
-: Second by Commissioner Craddick.
All in favor, say aye.
-: [Chairman, Craddick And Wright] Aye.
-: Any opposed?
Motion passes.
That item is approved.
Tara: Thank you.
-: Thank you.
Item number two, Veronica.
-: Good morning Commissioners,
chairmen. Wright: Good morning.
-: For the record, Veronica Roberto,
Administrative (indistinct) to the Hearings division.
Item number two is the application
by San Miguel Electric Cooperative Inc,
requesting phase three release
on an aggregate 366.4 acres
within San Miguel Lignite Mine,
permit number 11H
located in Atascosa and McLennan counties.
The approved post-mine land uses
are pasture land and industrial commercial.
Evidence in the record supports
that San Miguel has satisfied our requirements
for phase three release of the subject area
as required by the act
in the coal mining regulations.
After public notice,
no comments or requests for hearing were received.
San Miguel and staff are the only parties
to this proceeding.
No exceptions were filed to the proposed order,
no changes to the current bond are requested in this docket.
It is recommended their requests for phase three release
of reclamation obligations be approved
and that San Miguel be eligible
to reduce the amount of bond.
I'm available for questions.
-: Any questions members?
-: [Wright And Craddick] No.
-: I move we approve the examiners recommendation.
Is there a second?
Right: Second.
-: Second by Commissioner Wright.
All in favor, say aye.
-: [Chairman, Craddick and Wright] Aye.
-: Any opposed?
Motion passes.
That item is approved.
Item number three.
Veronica: Thank you.
Joe: Good morning.
-: [Chairman and Wright] Good morning.
Joe: And happy new year chairman,
Commissioners. -: Happy new year.
-: For the record, Joe Menifee,
Paralegal with the Hearings division.
I'll be presenting items three and four.
Both of which are P5 motions for rehearing,
filed as a result of a final order,
denying renewal of the operators P5,
because of wells noncompliant
with Statewide rule 15.
Item number three.
In its motion for rehearing,
Reo Operating LLC states,
it needs more time to come into compliance,
but does not give a reason
for its failure to request a hearing.
Staff opposes the motion.
At this time, three wells remain noncompliant
with Statewide rule 15.
It is recommended the motion be denied.
The motion will be overruled by operation of law
on January 20th.
I'm available for questions.
Chairman: Any questions members,
-: [Craddick And Wright] No.
Chairman: Hearing none,
I move we approve the examiner's recommendation.
Is there a second?
Craddick: Second.
Chairman: Second by Commissioner Craddick.
All in favor, say aye.
-: [Chairman, Craddick And Right] Aye.
Chairman: Any opposed?
Motion passes.
Item number four.
-: Item number four.
In it's motion for rehearing,
South Coast Production Inc states that,
"Further remedial action is needed,"
but does not give a reason
for its failure to request a hearing.
Staff opposes the motion.
Four wells remain non-compliant with Statewide rule 15.
It is recommended the motion be denied.
The motion will be overruled
by operation of law on January 20th.
I'm available for questions.
Chairman: Any questions members?
Wright: No.
Chairman: Hearing none,
I move we approve the examiner's recommendation.
Is there a second?
Wright: Second.
Chairman: Second by Commissioner Wright.
All in favor, say aye.
-: [Chairman, Craddick And Wright] Aye.
Chairman: Any opposed?
Motion passes.
That item is approved.
Thank you, Joseph.
Joe: Thank you.
-: Let's move on to the oil and gas Consent Agenda.
There are 38 items on the Consent Agenda.
I move we approve items five through 42.
Is there a second?
Craddick: Second.
-: Second by Commissioner Craddick.
All in favor, say aye.
-: [Chairman, Craddick and Wright] Aye.
-: Any opposed?
Motion passes.
Let's move to the master default orders.
There are nine master default orders.
I move we approve items 43 through 51.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright.
All in favor, say aye.
-: [Chairman, Craddick and Right] Aye.
-: Any opposed?
Motion passes and those items are approved.
Let's moved to the Greed Enforcement Order.
They're 176 greed enforcement orders.
I move we approve items 52 through 227.
Is there a second?
-: Second.
-: Second by Commissioner Craddick.
All in favor, say aye.
-: [Chairman, Craddick and Wright] Aye.
-: Any opposed?
Motion passes.
Those items were approved.
That concludes the hearing section.
We will now take our administrative agendas.
Agenda item number 228 is an update
from the Executive Director, Mr. Wayne.
Happy new year to you sir.
-: Happy new year.
Good morning Commissioners.
Wright: Good morning.
-: For the record,
Wee Wayne, Executive Director.
And as of last Friday,
the Commission had 853 employees as we start a new year.
And also wanna give you a quick update
on the site visits
our critical infrastructure division has been doing.
As of last Friday,
we have visited 3,700 facilities
and that represents 21,000 producing wells
as well as ingestion wells.
And also we have visited over 350 pipeline facilities.
So altogether looking at the underground storage,
the facility we have visited
represent close to 50% of the total amount
of natural gas stored in underground storage.
And we'll continue that efforts through all this winter.
And with that, I'm available for questions.
Chairman: Any questions members?
Craddick: No.
Chairman: Okay, thank you Mayor
very much. -: Thank you, (indistinct).
-: We appreciate the work that you and all of our team does.
Agenda item 229 is an update
from the office of general counsel.
David: Good morning, Mr. Chairman,
Commissioners. -: Good morning.
-: David Cooney from the Office of General Counsel.
Just wanna briefly report that we were poised
to turn in comments on the waters of the US rule,
comments are due February 7th,
early next month.
And we've circulated among the executive staff,
some draft comments were put together.
So we're planning on using the next couple of weeks
to get input from that
and finalize those.
Also we're poised to join the TCEQ commenting
on the methane rules.
Comments for that are due January 31st.
And we're right now,
the staff is working on providing TCEQ some information
about the impacts of the rule on small operators,
which we think EPA is seriously understated.
And I'm happy to answer any questions.
Chairman: Any questions members?
Craddick: Thank you all for staying engaged with us.
-: Yes.
Wright: Yeah, thank you.
-: Thank you.
Chairman: We certainly appreciate the good work
that y'all are doing.
Thank you for your efforts. -: Thank you, sir.
-: Okay, item number 230.
Is that correct?
Keith: Yeah.
-: Is the Oil Field Clean-Up Program Annual Report
for fiscal year 2021.
-: Good morning, chairman and Commissioners.
-: [Chairman, Craddick And Right] Good morning.
-: For the record,
my name is Keith Mayer with the Oil and Gas Division
and I'll be presenting items 230, 231 and 232.
So item 230 is Oil Field Cleanup Program's annual report
for fiscal year 2021,
Texas natural resource code 81.O69C
requires the Commission to file an annual report
to the legislator
for the oil and gas regulation and cleanup fund.
This report covers the period from September 1st, 2020
through August 31st, 2021.
And contains information on the site
and the state manage plugging and cleanup programs,
enforcement activities,
and financial information related to the programs.
We recommend your approval of this report
for submission to the legislator.
May answer any questions.
Chairman: Any questions members?
Craddick: No.
-: Okay, I move,
we approve the Oil Field Clean-Up Program Annual Report
for fiscal year 2021.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright.
All in favor, say aye.
-: [Chairman, Craddick and Wright] Aye.
-: Any opposed?
Motion passes.
That item is approved.
Keith: Okay.
-: 231.
-: Item 231, the Oil and Gas Division
is seeking your approval
for the state managed plugging
and site remediation work plans
for fiscal year 2022.
During fiscal year 2021,
the state managed plugging
and state managed cleanup programs
exceeded their performance measures
by plugging 1,453 wells
and completing 275 cleanup activities.
This marks the fifth year in a row
that these two programs have collectively exceeded
their performance measure goals.
And we hope to make that six years in a row
by meeting or exceeding these performance measures
for fiscal year 2022.
Which includes plugging 1000 wells
with a budget of 22,754,000
and conducting 200 cleanup activities
with the budget of $10,728,985.
May answer any questions.
Chairman: Any questions members?
Craddick: No.
Chairman: Okay, I move we approve
the fiscal year 2022 well plugging
and site remediation work plans.
Is there a second?
Craddick: Second.
Chairman: Second by Commissioner Craddick.
All in favor, say aye.
-: [Chairman, Craddick and Wright] Aye.
-: Any opposed?
Motion passes.
That item is approved.
Item 232, Oil Field Cleanup Program Quarterly Status Report,
fiscal year 2022.
-: Correct, like you said,
so during the first 1/4 of fiscal year 2022,
plugging operations were completed
and follows were close on 185 wells
at a cost of $4,302,362.
This includes only the wells that were plugged,
invoiced by the plugging contractor
and approved for payment by field operations.
During the same period, 407 new wells were approved
for plugging with state funds.
A total of 308 wells were physically plugged
to the end of the first 1/4
of which 185 have been invoiced and paid.
Site remediations performance during the first 1/4
included 18 cleanup activities completed
and closed at a cost of $226,876.
Additional 98 new activities were approved
in the same period.
May answer any questions.
Chairman: Any questions members?
Craddick: Sure. Wright: No.
Craddick: Thank you all for the work we're doing.
-: Yeah, thank you very much. -: Thank You.
-: And it's amazing to see that
for the fifth year we've exceeded the targets we have been
handed by the legislature. Keith: Yes, yeah.
-: So that's a cleanup.
So good work folks. Wright: Good job.
-: We're proud of you. Keith: Thank you,
thank you. Wright: Yes, sir.
-: Okay, thank you, Keith.
Let's move on to agenda items number 233.
Can you prove it?
Agenda item 233 is a public participation item, okay.
No one is registered indicating
that they wish to speak on any non posted items.
Agenda item 234 is our executive session item,
which we will not be going into today.
Are there any other duly posted matters
to be brought before the Commission at this time?
Hearing none,
this meeting of the Railroad Commission of Texas
is adjourned.