WEBVTT

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<v Announcer>Meet for this streaming event.</v>

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<v ->This meeting of the Railroad Commission of Texas</v>

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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 January 11th, 2022.

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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 on today's agenda

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was required to register in advance.

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We did not have anyone registered in advance

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for this meeting.

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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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Let's get started with the agenda item one.

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<v ->Good morning, chairman and Commissioners.</v>

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<v Chairman>Good morning.</v>

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<v ->For the record, my name is Tara Guzman.</v>

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I am representing the market oversight section

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of the Oversight and Safety Division.

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Agenda item number one is case number 7778,

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the application of taxes gas service

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for the tax year 2020 annual end term rate adjustment

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for the unincorporated area

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of the Borger, SKellytown service area.

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This case is the third antrum rate adjustment

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the company has filed

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for the Borger, SKellytown service area

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since the final order was issued

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in the most recent statement of intent,

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gas utilities docket number 10766.

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This adjustment represent

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an incremental increase of $43,796,

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of which $3,439 is recoverable from customers

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subject to this order.

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I recommend approval of the antrum rate adjustment.

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I'm available to answer any questions.

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<v ->Are there any questions members?</v>

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<v Wright>No, sir.</v>

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<v ->I move we approve the examiners recommendation.</v>

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Is there a second?

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<v Craddick>Second.</v>

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<v ->Second by Commissioner Craddick.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick And Wright] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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That item is approved.

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<v Tara>Thank you.</v>

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<v ->Thank you.</v>

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Item number two, Veronica.

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<v ->Good morning Commissioners,</v>

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chairmen.
<v Wright>Good morning.</v>

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<v ->For the record, Veronica Roberto,</v>

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Administrative (indistinct) to the Hearings division.

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Item number two is the application

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by San Miguel Electric Cooperative Inc,

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requesting phase three release

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on an aggregate 366.4 acres

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within San Miguel Lignite Mine,

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permit number 11H

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located in Atascosa and McLennan counties.

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The approved post-mine land uses

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are pasture land and industrial commercial.

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Evidence in the record supports

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that San Miguel has satisfied our requirements

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for phase three release of the subject area

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as required by the act

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in the coal mining regulations.

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After public notice,

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no comments or requests for hearing were received.

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San Miguel and staff are the only parties

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to this proceeding.

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No exceptions were filed to the proposed order,

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no changes to the current bond are requested in this docket.

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It is recommended their requests for phase three release

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of reclamation obligations be approved

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and that San Miguel be eligible

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to reduce the amount of bond.

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I'm available for questions.

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<v ->Any questions members?</v>

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<v ->[Wright And Craddick] No.</v>

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<v ->I move we approve the examiners recommendation.</v>

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Is there a second?

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<v Right>Second.</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick and Wright] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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That item is approved.

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Item number three.

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<v Veronica>Thank you.</v>

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<v Joe>Good morning.</v>

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<v ->[Chairman and Wright] Good morning.</v>

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<v Joe>And happy new year chairman,</v>

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Commissioners.
<v ->Happy new year.</v>

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<v ->For the record, Joe Menifee,</v>

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Paralegal with the Hearings division.

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I'll be presenting items three and four.

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Both of which are P5 motions for rehearing,

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filed as a result of a final order,

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denying renewal of the operators P5,

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because of wells noncompliant

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with Statewide rule 15.

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Item number three.

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In its motion for rehearing,

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Reo Operating LLC states,

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it needs more time to come into compliance,

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but does not give a reason

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for its failure to request a hearing.

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Staff opposes the motion.

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At this time, three wells remain noncompliant

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with Statewide rule 15.

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It is recommended the motion be denied.

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The motion will be overruled by operation of law

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on January 20th.

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I'm available for questions.

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<v Chairman>Any questions members,</v>

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<v ->[Craddick And Wright] No.</v>

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<v Chairman>Hearing none,</v>

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I move we approve the examiner's recommendation.

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Is there a second?

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<v Craddick>Second.</v>

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<v Chairman>Second by Commissioner Craddick.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick And Right] Aye.</v>

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<v Chairman>Any opposed?</v>

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Motion passes.

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Item number four.

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<v ->Item number four.</v>

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In it's motion for rehearing,

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South Coast Production Inc states that,

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"Further remedial action is needed,"

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but does not give a reason

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for its failure to request a hearing.

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Staff opposes the motion.

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Four wells remain non-compliant with Statewide rule 15.

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It is recommended the motion be denied.

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The motion will be overruled

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by operation of law on January 20th.

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I'm available for questions.

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<v Chairman>Any questions members?</v>

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<v Wright>No.</v>

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<v Chairman>Hearing none,</v>

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I move we approve the examiner's recommendation.

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Is there a second?

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<v Wright>Second.</v>

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<v Chairman>Second by Commissioner Wright.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick And Wright] Aye.</v>

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<v Chairman>Any opposed?</v>

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Motion passes.

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That item is approved.

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Thank you, Joseph.

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<v Joe>Thank you.</v>

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<v ->Let's move on to the oil and gas Consent Agenda.</v>

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There are 38 items on the Consent Agenda.

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I move we approve items five through 42.

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Is there a second?

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<v Craddick>Second.</v>

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<v ->Second by Commissioner Craddick.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick and Wright] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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Let's move to the master default orders.

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There are nine master default orders.

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I move we approve items 43 through 51.

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Is there a second?

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<v Wright>Second.</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick and Right] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes and those items are approved.

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Let's moved to the Greed Enforcement Order.

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They're 176 greed enforcement orders.

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I move we approve items 52 through 227.

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Is there a second?

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<v ->Second.</v>

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<v ->Second by Commissioner Craddick.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick and Wright] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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Those items were approved.

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That concludes the hearing section.

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We will now take our administrative agendas.

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Agenda item number 228 is an update

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from the Executive Director, Mr. Wayne.

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Happy new year to you sir.

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<v ->Happy new year.</v>

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Good morning Commissioners.

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<v Wright>Good morning.</v>

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<v ->For the record,</v>

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Wee Wayne, Executive Director.

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And as of last Friday,

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the Commission had 853 employees as we start a new year.

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And also wanna give you a quick update

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on the site visits

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our critical infrastructure division has been doing.

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As of last Friday,

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we have visited 3,700 facilities

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and that represents 21,000 producing wells

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as well as ingestion wells.

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And also we have visited over 350 pipeline facilities.

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So altogether looking at the underground storage,

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the facility we have visited

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represent close to 50% of the total amount

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of natural gas stored in underground storage.

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And we'll continue that efforts through all this winter.

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And with that, I'm available for questions.

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<v Chairman>Any questions members?</v>

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<v Craddick>No.</v>

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<v Chairman>Okay, thank you Mayor</v>

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very much.
<v ->Thank you, (indistinct).</v>

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<v ->We appreciate the work that you and all of our team does.</v>

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Agenda item 229 is an update

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from the office of general counsel.

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<v David>Good morning, Mr. Chairman,</v>

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Commissioners.
<v ->Good morning.</v>

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<v ->David Cooney from the Office of General Counsel.</v>

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Just wanna briefly report that we were poised

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to turn in comments on the waters of the US rule,

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comments are due February 7th,

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early next month.

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And we've circulated among the executive staff,

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some draft comments were put together.

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So we're planning on using the next couple of weeks

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to get input from that

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and finalize those.

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Also we're poised to join the TCEQ commenting

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on the methane rules.

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Comments for that are due January 31st.

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And we're right now,

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the staff is working on providing TCEQ some information

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about the impacts of the rule on small operators,

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which we think EPA is seriously understated.

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And I'm happy to answer any questions.

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<v Chairman>Any questions members?</v>

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<v Craddick>Thank you all for staying engaged with us.</v>

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<v ->Yes.</v>

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<v Wright>Yeah, thank you.</v>

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<v ->Thank you.</v>

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<v Chairman>We certainly appreciate the good work</v>

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that y'all are doing.

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Thank you for your efforts.
<v ->Thank you, sir.</v>

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<v ->Okay, item number 230.</v>

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Is that correct?

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<v Keith>Yeah.</v>

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<v ->Is the Oil Field Clean-Up Program Annual Report</v>

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for fiscal year 2021.

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<v ->Good morning, chairman and Commissioners.</v>

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<v ->[Chairman, Craddick And Right] Good morning.</v>

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<v ->For the record,</v>

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my name is Keith Mayer with the Oil and Gas Division

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and I'll be presenting items 230, 231 and 232.

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So item 230 is Oil Field Cleanup Program's annual report

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for fiscal year 2021,

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Texas natural resource code 81.O69C

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requires the Commission to file an annual report

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to the legislator

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for the oil and gas regulation and cleanup fund.

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This report covers the period from September 1st, 2020

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through August 31st, 2021.

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And contains information on the site

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and the state manage plugging and cleanup programs,

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enforcement activities,

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and financial information related to the programs.

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We recommend your approval of this report

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for submission to the legislator.

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May answer any questions.

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<v Chairman>Any questions members?</v>

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<v Craddick>No.</v>

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<v ->Okay, I move,</v>

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we approve the Oil Field Clean-Up Program Annual Report

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for fiscal year 2021.

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Is there a second?

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<v Wright>Second.</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor, say aye.

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<v ->[Chairman, Craddick and Wright] Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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That item is approved.

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<v Keith>Okay.</v>

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<v ->231.</v>

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<v ->Item 231, the Oil and Gas Division</v>

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is seeking your approval

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for the state managed plugging

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and site remediation work plans

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for fiscal year 2022.

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During fiscal year 2021,

00:09:35.840 --> 00:09:36.950
the state managed plugging

00:09:36.950 --> 00:09:38.360
and state managed cleanup programs

00:09:38.360 --> 00:09:40.160
exceeded their performance measures

00:09:40.160 --> 00:09:43.200
by plugging 1,453 wells

00:09:43.200 --> 00:09:47.294
and completing 275 cleanup activities.

00:09:47.294 --> 00:09:49.260
This marks the fifth year in a row

00:09:49.260 --> 00:09:51.500
that these two programs have collectively exceeded

00:09:51.500 --> 00:09:53.870
their performance measure goals.

00:09:53.870 --> 00:09:55.530
And we hope to make that six years in a row

00:09:55.530 --> 00:09:57.670
by meeting or exceeding these performance measures

00:09:57.670 --> 00:09:59.667
for fiscal year 2022.

00:09:59.667 --> 00:10:02.160
Which includes plugging 1000 wells

00:10:02.160 --> 00:10:05.660
with a budget of 22,754,000

00:10:05.660 --> 00:10:08.050
and conducting 200 cleanup activities

00:10:08.050 --> 00:10:13.050
with the budget of $10,728,985.

00:10:13.350 --> 00:10:14.640
May answer any questions.

00:10:14.640 --> 00:10:15.561
<v Chairman>Any questions members?</v>

00:10:15.561 --> 00:10:16.520
<v Craddick>No.</v>

00:10:16.520 --> 00:10:17.660
<v Chairman>Okay, I move we approve</v>

00:10:17.660 --> 00:10:20.070
the fiscal year 2022 well plugging

00:10:20.070 --> 00:10:22.120
and site remediation work plans.

00:10:22.120 --> 00:10:22.953
Is there a second?

00:10:22.953 --> 00:10:23.786
<v Craddick>Second.</v>

00:10:23.786 --> 00:10:24.660
<v Chairman>Second by Commissioner Craddick.</v>

00:10:24.660 --> 00:10:26.251
All in favor, say aye.

00:10:26.251 --> 00:10:27.084
<v ->[Chairman, Craddick and Wright] Aye.</v>

00:10:27.084 --> 00:10:27.917
<v ->Any opposed?</v>

00:10:27.917 --> 00:10:28.750
Motion passes.

00:10:28.750 --> 00:10:30.410
That item is approved.

00:10:30.410 --> 00:10:35.120
Item 232, Oil Field Cleanup Program Quarterly Status Report,

00:10:35.120 --> 00:10:36.960
fiscal year 2022.

00:10:36.960 --> 00:10:39.370
<v ->Correct, like you said,</v>

00:10:39.370 --> 00:10:41.960
so during the first 1/4 of fiscal year 2022,

00:10:41.960 --> 00:10:43.510
plugging operations were completed

00:10:43.510 --> 00:10:46.850
and follows were close on 185 wells

00:10:46.850 --> 00:10:51.187
at a cost of $4,302,362.

00:10:53.110 --> 00:10:55.580
This includes only the wells that were plugged,

00:10:55.580 --> 00:10:57.430
invoiced by the plugging contractor

00:10:57.430 --> 00:11:00.420
and approved for payment by field operations.

00:11:00.420 --> 00:11:03.250
During the same period, 407 new wells were approved

00:11:03.250 --> 00:11:05.232
for plugging with state funds.

00:11:05.232 --> 00:11:09.260
A total of 308 wells were physically plugged

00:11:09.260 --> 00:11:11.100
to the end of the first 1/4

00:11:11.100 --> 00:11:13.963
of which 185 have been invoiced and paid.

00:11:15.430 --> 00:11:17.590
Site remediations performance during the first 1/4

00:11:17.590 --> 00:11:20.120
included 18 cleanup activities completed

00:11:20.120 --> 00:11:24.207
and closed at a cost of $226,876.

00:11:26.090 --> 00:11:28.370
Additional 98 new activities were approved

00:11:28.370 --> 00:11:29.370
in the same period.

00:11:29.370 --> 00:11:30.680
May answer any questions.

00:11:30.680 --> 00:11:31.513
<v Chairman>Any questions members?</v>

00:11:31.513 --> 00:11:32.346
<v Craddick>Sure.</v>
<v Wright>No.</v>

00:11:32.346 --> 00:11:34.000
<v Craddick>Thank you all for the work we're doing.</v>

00:11:34.000 --> 00:11:34.833
<v ->Yeah, thank you very much.</v>
<v ->Thank You.</v>

00:11:34.833 --> 00:11:37.110
<v ->And it's amazing to see that</v>

00:11:37.110 --> 00:11:40.528
for the fifth year we've exceeded the targets we have been

00:11:40.528 --> 00:11:42.030
handed by the legislature.
<v Keith>Yes, yeah.</v>

00:11:42.030 --> 00:11:43.700
<v ->So that's a cleanup.</v>

00:11:43.700 --> 00:11:45.440
So good work folks.
<v Wright>Good job.</v>

00:11:45.440 --> 00:11:46.451
<v ->We're proud of you.</v>
<v Keith>Thank you,</v>

00:11:46.451 --> 00:11:47.284
thank you.
<v Wright>Yes, sir.</v>

00:11:47.284 --> 00:11:48.470
<v ->Okay, thank you, Keith.</v>

00:11:48.470 --> 00:11:51.743
Let's move on to agenda items number 233.

00:11:54.211 --> 00:11:55.522
Can you prove it?

00:11:55.522 --> 00:11:58.830
Agenda item 233 is a public participation item, okay.

00:11:58.830 --> 00:12:00.150
No one is registered indicating

00:12:00.150 --> 00:12:03.170
that they wish to speak on any non posted items.

00:12:03.170 --> 00:12:06.100
Agenda item 234 is our executive session item,

00:12:06.100 --> 00:12:08.290
which we will not be going into today.

00:12:08.290 --> 00:12:10.670
Are there any other duly posted matters

00:12:10.670 --> 00:12:13.030
to be brought before the Commission at this time?

00:12:13.030 --> 00:12:13.940
Hearing none,

00:12:13.940 --> 00:12:15.830
this meeting of the Railroad Commission of Texas

00:12:15.830 --> 00:12:16.663
is adjourned.