WEBVTT 00:00:00.270 --> 00:00:06.549 Thank you for your patience. 00:00:06.549 --> 00:00:09.759 Morning. This meeting of the Railroad Commission of Texas will 00:00:09.759 --> 00:00:12.400 come to order. To consider matters which have been duly 00:00:12.400 --> 00:00:16.769 posted with the Secretary of State for February 28, 00:00:16.769 --> 00:00:20.519 2023. Under our Public Participation Policy, anyone 00:00:20.519 --> 00:00:24.074 desiring to offer public testimony on any items 00:00:24.074 --> 00:00:26.824 that are not noticed on today's agenda was required 00:00:26.824 --> 00:00:29.995 to register in advance. We had two people register 00:00:29.995 --> 00:00:33.255 in advance. The Commission will consider items on the 00:00:33.255 --> 00:00:36.695 agenda as posted on the agenda. But, before we get started 00:00:36.704 --> 00:00:39.424 we're gonna do some service awards. So Wendy, come 00:00:39.424 --> 00:00:45.149 on up. Let's go. Appreciate the people that are really 00:00:45.149 --> 00:00:54.090 important in this building. 00:00:54.090 --> 00:00:56.479 Good morning Chairman and Commissioners. I'm Wendy 00:00:56.479 --> 00:00:59.079 O'Neill in Human Resources. For the first quarter of 00:00:59.079 --> 00:01:02.759 fiscal year 2023, we are excited to recognize 12 employees 00:01:02.770 --> 00:01:05.329 of 10 employees, actually two couldn't show today. 00:01:05.340 --> 00:01:08.730 Uh, celebrating a milestone anniversary. So first up, celebrating 00:01:08.730 --> 00:01:11.459 5 years of service is Steven Hilchey in Information 00:01:11.459 --> 00:01:19.819 Technology Services Division. 00:01:19.819 --> 00:01:24.349 Thank you Commissioner. (inaudible) We're glad to have 00:01:24.349 --> 00:01:34.560 you. That's good, getting rid of it too. Thank you. 00:01:34.560 --> 00:01:38.170 Thank you. Celebrating 5years of services is Donald Mcgrew in 00:01:38.170 --> 00:02:02.329 the Information Technology Services Division. Thank you. 00:02:02.329 --> 00:02:07.189 Thank you. Thank you very much. Also with 5 years of service is Megan Schimcek 00:02:07.200 --> 00:02:14.930 from the Hearings Division. 00:02:14.930 --> 00:02:20.069 It's been 5 years. 00:02:20.069 --> 00:02:27.669 (silence) 00:02:27.669 --> 00:02:31.180 Celebrating 5 years of service and I'm not biased. 00:02:31.180 --> 00:02:33.250 But I think this is the most important one of the day, 00:02:33.250 --> 00:02:42.750 is Kathryn Dolan and Human Resources. 00:02:42.750 --> 00:02:44.330 You get to put it all (inaudible) 00:02:44.340 --> 00:02:51.270 (laughing) 00:02:51.270 --> 00:02:54.979 (inaudible) 00:02:54.979 --> 00:02:58.479 Also, celebrating 5 years of service is Ricardo Gamez 00:02:58.479 --> 00:03:06.520 in Pipeline Safety. 00:03:06.520 --> 00:03:21.889 Congratulations. Thank you. Thank you sir. 00:03:21.889 --> 00:03:25.560 Celebrating 5 years of services is Randolph Dillon 00:03:25.560 --> 00:03:33.789 in the Information Technology Services Division. 00:03:33.789 --> 00:03:42.919 Thank you very much. Thank you. 00:03:42.919 --> 00:03:47.729 Also, celebrating 5 years of services is Thomas Moore 00:03:47.740 --> 00:03:57.020 in the Information Technology Services Division. 00:03:57.020 --> 00:04:09.210 Thank you. Good job. 00:04:09.210 --> 00:04:12.490 Celebrating 10 years of service is Kiva Harris in the 00:04:12.490 --> 00:04:21.949 Oil and Gas Division. 00:04:21.949 --> 00:04:34.350 Thank you. 00:04:34.350 --> 00:04:37.759 Celebrating 15 years of service is Colleen Forrest in 00:04:37.759 --> 00:04:54.660 the Executive Office. 00:04:54.660 --> 00:04:57.720 And last but not least, celebrating 15 years of service is 00:04:57.720 --> 00:05:07.250 Roy Phillips in the ITS, Information Services Division. 00:05:07.250 --> 00:05:11.819 That's (inaudible) 00:05:11.819 --> 00:05:21.120 Thank you. 00:05:21.120 --> 00:05:23.939 And that concludes the awards for today. Thank you. 00:05:33.839 --> 00:05:38.709 (silence) 00:05:38.709 --> 00:05:44.480 (silence) 00:05:44.480 --> 00:05:46.569 Thank 00:05:46.569 --> 00:05:49.050 you all very much for your work. We appreciate 00:05:49.050 --> 00:05:53.699 it. Oh see, you're already ready to go John. All right, Item No. 00:05:53.699 --> 00:05:56.350 One. Good morning John. Good morning. Good morning Chairman 00:05:56.350 --> 00:05:58.189 and Commissioners. I'm Administrative Law Judge John 00:05:58.189 --> 00:06:00.930 Dodson, with the Hearings Division. Agenda Item 1, 00:06:00.939 --> 00:06:06.250 OS-22-0576 is a Gas Utility Rate Case that resulted 00:06:06.250 --> 00:06:09.850 in a settlement. Onalaska Water & Gas Supply Corporation 00:06:09.860 --> 00:06:12.889 seeks a rate increase for the service it provides in 00:06:12.889 --> 00:06:16.259 and around the City of Onalaska, Texas. Commission Staff 00:06:16.259 --> 00:06:18.730 intervened and the party is ultimately reached a settlement, 00:06:18.730 --> 00:06:22.060 resolving all issues. Among the agreed relief under 00:06:22.060 --> 00:06:24.310 the settlement is an annual revenue increase for the 00:06:24.310 --> 00:06:30.269 utility totaling $184,116. PFD was issued on February 00:06:30.269 --> 00:06:33.490 8th and Commission Staff to have timely intervened. I'm 00:06:33.490 --> 00:06:35.620 sorry. Timely filed exceptions that address certain 00:06:35.620 --> 00:06:38.910 clerical typographical errors within the PFD itself. 00:06:38.920 --> 00:06:41.629 But that, but that had no impact on the proposed final 00:06:41.629 --> 00:06:44.829 order. We issue those corrected pages on February 15th 00:06:44.829 --> 00:06:47.149 and the PFD version provided to you last week reflects 00:06:47.149 --> 00:06:50.439 those changes. Consistent with the PFD, the recommendation 00:06:50.439 --> 00:06:52.939 is to approve the settlement and today is the last 00:06:52.939 --> 00:06:54.910 scheduled conference prior to the deadline for Commission 00:06:54.910 --> 00:06:57.180 action. I'm available for questions. Thank you. Are 00:06:57.180 --> 00:07:01.100 there any questions? No. I move we approve the Examiner's recommendation. 00:07:01.100 --> 00:07:04.269 Is there second? Second. Second by Commissioner Christian. All 00:07:04.269 --> 00:07:07.889 in favor, say aye. Aye. Motion passes, that item's approved. Thanks John. 00:07:08.240 --> 00:07:11.740 Agenda Item 2 is for a suspension order in OS-23- 00:07:11.740 --> 00:07:15.600 12594. Which is a new Gas Utility Rate Case filed by 00:07:15.600 --> 00:07:18.750 T&L Gas Company. For this type of proceeding, the 00:07:18.750 --> 00:07:21.089 utility's code authorizes the Commission to suspend 00:07:21.089 --> 00:07:24.379 operation of the proposed rates for up to 150 days. 00:07:24.379 --> 00:07:27.540 From when they otherwise would become effective. Consistent 00:07:27.540 --> 00:07:29.720 with this authority, the recommendation here is to 00:07:29.720 --> 00:07:32.529 issue 150 day suspension order. Which will allow the 00:07:32.529 --> 00:07:34.879 Hearings Divisions sufficient time to evaluate T&L's 00:07:34.879 --> 00:07:37.509 request. I'm available for questions. Thank you. 00:07:37.509 --> 00:07:40.339 Are there any questions? No. I move we approve the Examiner's 00:07:40.339 --> 00:07:43.329 recommendation. Is there second? Second. Second by Commissioner 00:07:43.329 --> 00:07:47.519 Wright. All in favor, say aye. Aye. Motion passes, that item's approved. Thanks John. 00:07:50.420 --> 00:07:53.550 Item No. 3. Good morning Chairman, Commissioners. 00:07:53.560 --> 00:07:55.680 I am Administrative Law Judge Adam Taylor with Hearing 00:07:55.680 --> 00:07:58.579 Division. Item No. 3 is the Application of Marshall 00:07:58.579 --> 00:08:01.870 Mine, LLC for acceptance of replacement surety bond 00:08:01.879 --> 00:08:04.949 for the Marshall Mine, Permit No. 59A, located 00:08:04.949 --> 00:08:08.519 Harrison and Panola Counties. Permit No. 59A is 00:08:08.519 --> 00:08:10.870 currently bonded by one surety bond in the amount of 00:08:10.870 --> 00:08:17.500 $16,580,170. (inaudible) Also requests acceptance of a replacement 00:08:17.500 --> 00:08:20.139 surety bond issued by Travelers Casualty and Surety 00:08:20.139 --> 00:08:22.980 Company of America. Which is the same amount as the 00:08:22.980 --> 00:08:25.970 existing bond, as well as matches the approved reclamation 00:08:25.970 --> 00:08:29.110 cost estimate. Evidence has been presented that all 00:08:29.110 --> 00:08:31.459 requirements for acceptance of the bond have been met. 00:08:31.470 --> 00:08:34.019 Marshall and Staff allowing parties proceedings. No 00:08:34.019 --> 00:08:36.440 exceptions were filed proposed order and parties 00:08:36.440 --> 00:08:39.980 waived preparation of a PFD. It is recommended that 00:08:39.980 --> 00:08:41.860 the Commission except the profit replacement bond 00:08:41.860 --> 00:08:44.759 for this permit. I'm available for questions. Thank you. 00:08:44.759 --> 00:08:48.519 Are there any questions? No. I move we approve the Examiner's 00:08:48.519 --> 00:08:51.440 recommendation. Is there a second? Second. Second by Commissioner 00:08:51.440 --> 00:08:54.659 Christian. All in favor, say aye. Aye. Motion passes, 00:08:54.659 --> 00:08:59.049 that item's approved. Thanks Adam. Ryan, you got several, don't you? 00:08:59.149 --> 00:09:01.419 All right. 00:09:01.419 --> 00:09:06.350 I'll be presenting items 4-8 today. Okay, great. 00:09:06.350 --> 00:09:08.100 Morning Chairman and Commissioners. For the record, 00:09:08.100 --> 00:09:10.360 my name is Ryan Rutledge, Administrative Law Judge 00:09:10.360 --> 00:09:14.039 for the Hearings Division. Item No. 4 is an Application 00:09:14.039 --> 00:09:17.090 by Dos Republicas Coal Partnership requesting Phase 00:09:17.090 --> 00:09:21.909 I release for 118.17 acres with an Eagle Pass Mine, 00:09:21.919 --> 00:09:25.500 Permit No. 42B, located in Maverick County. 00:09:26.269 --> 00:09:28.750 The approved, approved post mine land use for the area 00:09:28.759 --> 00:09:32.039 is recreation. Evidence of the record supports the 00:09:32.039 --> 00:09:34.799 DRCP has satisfied all requirements for Phase I 00:09:34.799 --> 00:09:37.360 release of the subject area, as required by the act 00:09:37.370 --> 00:09:40.600 and the coal mining regulations. After public notice, 00:09:40.600 --> 00:09:42.929 no comments or request for a hearing were received. 00:09:43.289 --> 00:09:45.529 DRCP and Staff are the only parties to the 00:09:45.539 --> 00:09:48.750 proceeding. No exceptions are filed to the proposed 00:09:48.750 --> 00:09:50.919 order and no changes to the current bond are requested 00:09:50.919 --> 00:09:53.570 in this docket. It is recommended that the request 00:09:53.570 --> 00:09:55.980 for Phase I release of reclamation obligations for 00:09:55.980 --> 00:10:00.320 the 118.17 acres be approved. And that DRCP and 00:10:00.330 --> 00:10:03.039 be eligible to reduce the amount of bond. Available 00:10:03.039 --> 00:10:06.710 for questions. Thank you. Are there any questions? I 00:10:06.710 --> 00:10:09.299 move we approve the Examiner's recommendation. Is there 00:10:09.299 --> 00:10:13.570 second? Second. Second by Commissioner Wright. All in favor, say aye. Aye. 00:10:13.580 --> 00:10:17.370 Motion passes, that item's approved. Number 5. Item 00:10:17.370 --> 00:10:19.960 No. 5 is an Application by Luminant Mining Company, 00:10:19.960 --> 00:10:24.850 LLC requesting Phase I release of 465.8 acres within 00:10:24.850 --> 00:10:29.059 Big Brown Mine, Permit No. 3F, located in Freestone, 00:10:29.059 --> 00:10:32.610 County. The approved post mine land uses for the area 00:10:32.620 --> 00:10:35.690 our fish and wildlife habitat, pasture land and developed 00:10:35.690 --> 00:10:39.129 water resources. Evidence in the record supports that 00:10:39.139 --> 00:10:41.519 Luminant has satisfied all requirements for Phase 00:10:41.519 --> 00:10:43.970 I release of the subject area, as required by the 00:10:43.970 --> 00:10:47.179 act and the coal mining regulations. After public notice, 00:10:47.179 --> 00:10:49.570 no comments or request for a hearing were received. 00:10:50.320 --> 00:10:52.820 Luminant and Staff are the only parties to the proceeding. 00:10:53.500 --> 00:10:55.309 No exceptions were filed to the proposed order and 00:10:55.309 --> 00:10:57.440 no changes to the current bond are requested in this 00:10:57.440 --> 00:11:00.529 docket. It is recommended the request for Phase I 00:11:00.529 --> 00:11:04.679 release of reclamation obligations for the 465.8 acres 00:11:04.690 --> 00:11:07.519 be approved. And that Luminant be eligible to reduce 00:11:07.519 --> 00:11:10.080 the amount of bond. Available for questions. Are there 00:11:10.080 --> 00:11:14.029 any questions? I move we approve the Examiner's recommendation. 00:11:14.029 --> 00:11:16.960 Is there a second? Second. Second by Commissioner Christian. 00:11:16.960 --> 00:11:20.649 All in favor, say aye. Aye. Motion passes, that item's approved. 00:11:20.659 --> 00:11:24.090 Number 6. Item No. 6 is an Application by 00:11:24.090 --> 00:11:27.470 Jewett LLC for acceptance of riders to existing surety 00:11:27.470 --> 00:11:30.870 bonds for Permit No. 32H, Jewett Mine, located 00:11:30.870 --> 00:11:35.139 in Freestone, Leon, and Limestone Counties. The permit 00:11:35.139 --> 00:11:37.659 is currently bonded by three surety bonds totaling 00:11:37.659 --> 00:11:42.100 $62 million. Staffs most recent reclamation cost estimate 00:11:42.110 --> 00:11:49.159 is in the amount of $97,528,632. Acceptance of the proffered 00:11:49.159 --> 00:11:51.549 riders to the existing surety bonds will result in 00:11:51.549 --> 00:11:54.419 an increase of the total bond amount from $62 million 00:11:54.429 --> 00:11:57.679 to $98 million. Which will exceed the approved reclamation 00:11:57.679 --> 00:12:01.210 costs and is therefore sufficient in amount. Evidence 00:12:01.210 --> 00:12:03.419 has been presented that all requirements for acceptance 00:12:03.419 --> 00:12:06.399 of the riders have been met. Jewett and Staff are the only 00:12:06.399 --> 00:12:08.710 parties to the proceeding and no exceptions were filed 00:12:08.710 --> 00:12:11.519 to the proposed order. It is recommended that the Commission 00:12:11.519 --> 00:12:14.070 except the proffered riders to the existing surety bonds 00:12:14.070 --> 00:12:17.350 for Permit No. 32H. Available for questions. Are there any 00:12:17.350 --> 00:12:20.629 questions? No. I move we approve the Examiner's recommendation. 00:12:20.629 --> 00:12:23.980 Is there a second? Second. Second by Commissioner Wright. All in favor, 00:12:23.980 --> 00:12:28.639 say aye. Aye. Motion passes, that item's approved. Item No. 7 00:12:28.639 --> 00:12:31.490 is an Application by Jewett Mine LLC for acceptance 00:12:31.490 --> 00:12:34.059 of a rider to an existing surety bond for Permit No. 00:12:34.059 --> 00:12:38.470 47B, Jewett Mine, located in Freestone, Leon, and Limestone 00:12:38.470 --> 00:12:41.919 Counties. The permit is currently bonded by two surety 00:12:41.919 --> 00:12:49.230 bonds totaling $36,654,123. Jewett requests acceptance 00:12:49.230 --> 00:12:51.809 of a rider to the existing surety bond issued by Liberty 00:12:51.809 --> 00:12:54.860 Mutual Insurance Company. The proffered rider to the 00:12:54.860 --> 00:12:57.179 Liberty Mutual bond will decrease that bond amount 00:12:57.190 --> 00:13:01.190 from $18 million to $14 million. Jewett also requests 00:13:01.190 --> 00:13:04.490 that the second existing surety bond issued by US Fire 00:13:04.490 --> 00:13:10.169 Insurance in the amount of $18,654,123, be returned 00:13:10.179 --> 00:13:13.509 back to the surety. Staffs most recent reclamation 00:13:13.509 --> 00:13:20.750 cost estimate is in the amount of $13,647,243. Acceptance 00:13:20.750 --> 00:13:23.600 of the proffered rider to the Liberty Mutual bond. Along 00:13:23.600 --> 00:13:25.990 with return of the US Fire Insurance bond back to the 00:13:25.990 --> 00:13:29.519 surety. Will result in a total bond amount to $14 million 00:13:29.519 --> 00:13:32.929 for Permit No. 47B. Which exceeds the approved 00:13:32.929 --> 00:13:39.149 reclamation cost estimate by $352,757. Evidence has 00:13:39.149 --> 00:13:41.340 been presented that all requirements for acceptance 00:13:41.340 --> 00:13:44.360 of the rider have been met. Jewett and Staff are the 00:13:44.360 --> 00:13:47.009 only parties to the proceeding. No exceptions are filed 00:13:47.009 --> 00:13:50.200 to the proposed order. It is recommended the Commission 00:13:50.200 --> 00:13:52.389 accept the proffered writer to the existing surety 00:13:52.389 --> 00:13:55.100 bond from Liberty Mutual. And return the existing 00:13:55.100 --> 00:13:57.759 second bond from US Fire Insurance back to the surety. 00:13:57.769 --> 00:14:01.700 To provide a total bond amount to $14 million for Permit No. 47B 00:14:01.710 --> 00:14:05.080 I'm available for questions. Are there any questions? 00:14:05.799 --> 00:14:08.169 I move we approve the Examiner's recommendation. Is there 00:14:08.169 --> 00:14:11.460 a second? Second. Second by Commissioner Christian. All in favor, 00:14:11.460 --> 00:14:14.820 say aye. Aye. Motion passes, that item's approved. Number 00:14:14.820 --> 00:14:17.730 8. Item No. 8 is an Application by Jewett 00:14:17.730 --> 00:14:20.940 Mine LLC for renewal revision of Permit No. 32H, 00:14:20.940 --> 00:14:24.539 Jewett Mine, located in Freestone, Leon and Limestone 00:14:24.539 --> 00:14:28.480 Counties. Jewett's accepted bonds are three surety bonds 00:14:28.480 --> 00:14:40.179 in the amount of $98 million, and with adoption of Jewett's proposed reclamation cost estimate. Exceeds the reclamation cost estimate amount for the Jewett Mine by $471,368. 00:14:40.830 --> 00:14:43.519 Additionally, as set forth in Appendix 1 to the order. 00:14:44.259 --> 00:14:46.799 A single existing permit provision has been deleted, 00:14:46.809 --> 00:14:49.549 as agreed by the parties. With three additional permit 00:14:49.549 --> 00:14:52.000 provisions being recommended for adoption by Staff. 00:14:53.190 --> 00:14:55.590 Following public notice, comments were received from 00:14:55.590 --> 00:14:57.870 various agencies. All of which are addressed in the 00:14:57.870 --> 00:15:00.779 proposed order. A hearing was not required for this 00:15:00.779 --> 00:15:04.200 application. Jewett and Staff are the only parties 00:15:04.200 --> 00:15:06.600 to the proceeding. No exceptions were filed to the 00:15:06.600 --> 00:15:09.200 proposed order and the parties waived preparation of 00:15:09.200 --> 00:15:13.309 a PFD. It is recommended that the application as supplemented 00:15:13.320 --> 00:15:15.389 be approved. With the permit provisions contained in 00:15:15.389 --> 00:15:18.399 Appendix 1, and the Soil Testing Plan contained in 00:15:18.399 --> 00:15:21.299 Appendix 2. That a renewed and revised permit be 00:15:21.299 --> 00:15:24.000 approved and issued for the Jewett Mine. And that the 00:15:24.000 --> 00:15:27.429 permit be renumbered as Permit No. 32I. I'm available 00:15:27.429 --> 00:15:30.769 for questions. Thank you. Are there any questions? No. I 00:15:30.769 --> 00:15:33.029 move we approve the Examiner's recommendation. Is there 00:15:33.029 --> 00:15:36.480 a second? Second. Second by Commissioner Wright. All in favor say, 00:15:36.480 --> 00:15:41.970 aye. Aye. Motion passes, that item's approved. Thank you. Thank you Ryan. 00:15:41.970 --> 00:15:45.629 All right. Kristi, good morning. Number 9- 00:15:45.629 --> 00:15:49.139 17. Yes, ma'am. Good morning Commissioners. Morning. For the record, 00:15:49.139 --> 00:15:51.350 Kristi Reeve, Administrative Law Judge with the Hearings 00:15:51.350 --> 00:15:55.480 Division. On December 13, 2022, the Commission signed 00:15:55.480 --> 00:15:59.860 a final order denying, denying Callon (Permian) LLC's application 00:15:59.860 --> 00:16:03.990 for retroactive approval. Of excess flare volumes above 00:16:03.990 --> 00:16:06.659 its previously approved exceptions to Statewide Rule 00:16:06.659 --> 00:16:11.049 32. Callon filed a timely motion for rehearing. None 00:16:11.049 --> 00:16:14.340 of the issues raised in the motion are new. All issues 00:16:14.340 --> 00:16:16.970 raised in the motion were already raised by Callon 00:16:16.980 --> 00:16:19.789 and considered by the Commission, prior to the Commission 00:16:19.799 --> 00:16:23.460 issuing its order in these cases. It is recommended 00:16:23.460 --> 00:16:26.379 that the motion be denied. The motion will be overruled 00:16:26.379 --> 00:16:30.649 by Operation of Law on March 23, 2023. I'm available 00:16:30.649 --> 00:16:34.230 for questions. Thank you. Are there any questions? No. I 00:16:34.230 --> 00:16:37.190 move we approve the Examiner's recommendation on Items 00:16:37.190 --> 00:16:41.190 9-17. Is there second? Second. Second by Commissioner 00:16:41.190 --> 00:16:44.480 Christian. All in favor, say aye. Aye. Motion passes, those 00:16:44.480 --> 00:16:49.299 items are approved. Thank you. Thank you. Number 18- 00:16:49.299 --> 00:16:52.200 26. 00:16:52.200 --> 00:16:54.889 Good morning Chairman, Commissioners. For the record, 00:16:54.889 --> 00:16:57.490 my name is Mandy Patel, Administrative Law Judge in 00:16:57.490 --> 00:17:00.580 the Hearings Division. I will be presenting Items No. 00:17:00.590 --> 00:17:05.390 18-27. Items 18-26 are a motion for 00:17:05.390 --> 00:17:08.069 rehearing. They are presented together with one order 00:17:08.069 --> 00:17:12.279 and one vote. On December 8, 2022, the Hearings Division 00:17:12.279 --> 00:17:14.940 signed an order of dismissal for the subject dockets. 00:17:14.950 --> 00:17:19.089 Progenies Operating LLC intentionally withdrew its 00:17:19.089 --> 00:17:24.170 request for hearing. On January 3, 2023, Columbus Energy 00:17:24.180 --> 00:17:29.619 LLC filed a motion for rehearing. On January 13, 2023, 00:17:29.630 --> 00:17:33.769 Staff filed a reply in opposition. Columbus was not 00:17:33.779 --> 00:17:36.730 a party to these dockets. None of the issues raised 00:17:36.730 --> 00:17:39.470 in the motion for rehearing are relevant. Columbus 00:17:39.470 --> 00:17:42.230 cannot provide a meritorious defense, as it is not the 00:17:42.240 --> 00:17:45.250 operator of record for the leases. Nor a party to this 00:17:45.250 --> 00:17:48.529 proceeding. A rehearing would result in further delay 00:17:48.529 --> 00:17:50.799 and potential injury to the Commission by prolonging 00:17:50.799 --> 00:17:53.859 the plugging of these wells. It is recommended that 00:17:53.859 --> 00:17:56.369 the Commission deny the motion for rehearing. The 00:17:56.369 --> 00:17:58.960 motion will be overturned by Operation of Law on March 00:17:58.960 --> 00:18:02.009 20th. I'm available for questions. Thank you. Are there 00:18:02.009 --> 00:18:05.730 any questions? No. I move we approve the Examiner's recommendation 00:18:05.730 --> 00:18:10.450 on items 18-26. Is there a second? Second. Second by Commissioner 00:18:10.450 --> 00:18:13.920 Wright. All in favor, say aye. Aye. Motion passes, those items 00:18:13.920 --> 00:18:17.970 are approved, 27. Item 27 is a motion for rehearing. 00:18:18.269 --> 00:18:21.420 On December 8, 2022, the Hearings Division signed 00:18:21.420 --> 00:18:25.049 an order of dismissal for the subject docket. A timely 00:18:25.049 --> 00:18:27.339 motion for rehearing was received from Progenies. 00:18:27.359 --> 00:18:31.559 Staff filed a reply in opposition to the motion. Progenies 00:18:31.589 --> 00:18:33.809 potentially withdrew its request for hearing, which 00:18:33.809 --> 00:18:36.720 resulted in the dismissal. A rehearing would result 00:18:36.720 --> 00:18:39.099 in further delay and potential injury to the Commission 00:18:39.099 --> 00:18:42.529 by prolonging the plugging of the wells. It is recommended 00:18:42.529 --> 00:18:44.900 that the Commission deny the motion for rehearing. 00:18:45.079 --> 00:18:47.589 The motion will be overruled by Operation of Law on 00:18:47.589 --> 00:18:50.809 March 20. I'm available for questions. Thank you. Are 00:18:50.809 --> 00:18:54.029 there any questions? I move we approve the Examiner's 00:18:54.029 --> 00:18:57.130 recommendation. Is there a second? Second. Second by Commissioner 00:18:57.130 --> 00:19:00.240 Christian. All in favor, say aye. Aye. Motion passes, that 00:19:00.240 --> 00:19:03.440 item's approved. Thank you Mandy. Let's move to the Oil and Gas 00:19:03.440 --> 00:19:08.960 Consent Agenda. We have 87 items on the Oil and Gas 00:19:08.960 --> 00:19:12.369 Consent Agenda, Items 28-114. Are there any 00:19:12.369 --> 00:19:16.440 questions? I move we approve the items 28- 00:19:16.440 --> 00:19:19.869 114. Is there a second? Second. Second by Commissioner Wright. 00:19:19.880 --> 00:19:23.369 All in favor, say aye. Aye. Motion passes, those items 00:19:23.369 --> 00:19:26.839 are approved. Let's go to Master Default Orders. There 00:19:26.839 --> 00:19:30.779 are 16 Master Default Orders. I move we approve Items 00:19:30.789 --> 00:19:35.309 115 through 130. Are there any questions, before I 00:19:35.309 --> 00:19:38.509 go. I'm sorry. Before I make my motion. No. All right. I move 00:19:38.509 --> 00:19:42.250 we approve items 115 through 130. Is there a second? 00:19:42.259 --> 00:19:46.039 Second. Second by Commissioner Christian. All in favor, say aye. Aye. 00:19:46.049 --> 00:19:49.519 Motion passes. Those items are approved. Agreed Enforcement 00:19:49.519 --> 00:19:54.319 Orders. There are 188 Agreed Enforcement Orders, 00:19:54.329 --> 00:19:57.559 Items 131 through 318. Are there any questions or 00:19:57.559 --> 00:20:01.019 comments? No. All right, alright. I move we approve items 00:20:01.019 --> 00:20:04.940 131 through 318. Is there a by Commissioner 00:20:04.940 --> 00:20:08.490 Wright. All in favor, say aye. Aye. Motion passes. Those 00:20:08.490 --> 00:20:11.250 items are approved. That concludes the Hearing Section 00:20:11.250 --> 00:20:14.029 matters. Thanks. We'll now take up the Administrative 00:20:14.029 --> 00:20:20.240 Agenda, Item 319. 00:20:20.240 --> 00:20:23.059 Good morning Chairman, Commissioners. I'm Betsy Peticolas, 00:20:23.059 --> 00:20:25.309 Staff Attorney with the Office of General Counsel. 00:20:25.319 --> 00:20:29.480 Item 319 is the Commission's consideration of the 00:20:29.490 --> 00:20:32.990 General Counsel's recommendation. To refer to related 00:20:33.000 --> 00:20:37.890 EPA rules to the Office of Attorney General. 00:20:37.890 --> 00:20:42.470 On October 1, 2015, EPA revised the National Ambient 00:20:42.480 --> 00:20:45.460 Air Quality Standard or the NAAQS, for ground level 00:20:45.470 --> 00:20:50.779 ozone. After EPA revises the NAAQS, states are required 00:20:50.789 --> 00:20:54.950 to develop and adopt enforceable plans. To achieve and 00:20:54.950 --> 00:20:58.009 maintain the NAAQS. And this is done through a collection 00:20:58.019 --> 00:21:02.079 of state regulations that are known as the State Implementation 00:21:02.079 --> 00:21:07.369 Plan. The Clean Air Act grants states the authority 00:21:07.369 --> 00:21:10.750 to make choices regarding the selection of air pollution 00:21:10.750 --> 00:21:13.599 control strategies. That it will adopt in its State 00:21:13.609 --> 00:21:17.349 Implementation Plan. One of the requirements of the 00:21:17.349 --> 00:21:21.000 Clean Air Act is that State Implementation Plans or 00:21:21.000 --> 00:21:25.309 SIPs. Um, contain emissions limitations that prevent 00:21:25.309 --> 00:21:29.490 emission sources within the state. From significantly 00:21:29.490 --> 00:21:32.990 contributing to nonattainment of the NAAQS in downwind 00:21:32.990 --> 00:21:36.630 states. This is known as the Good Neighbor Position, 00:21:36.640 --> 00:21:40.329 the Good Neighbor Provision or the Interstate Transport 00:21:40.339 --> 00:21:46.410 of Emissions. Excuse me, the spring allergies 00:21:46.410 --> 00:21:53.869 are hitting me today. Mine too. Me too. On August 17, 2018, Texas through 00:21:53.869 --> 00:21:56.539 the Commission on Environmental Quality. Submitted its 00:21:56.549 --> 00:22:00.450 Interstate Transport SIP for the 2015 Ozone Standard. 00:22:00.940 --> 00:22:04.390 The transport SIP contained a technical demonstration 00:22:04.400 --> 00:22:07.549 concluding that emissions from sources within the State 00:22:07.549 --> 00:22:10.849 of Texas, including those sources within the oil and 00:22:10.849 --> 00:22:14.579 gas industry. Will not contribute significantly to 00:22:14.579 --> 00:22:19.779 nonattainment in other states. On February 13, 2023, 00:22:20.309 --> 00:22:24.200 EPA published final disapproval of Texas's transport 00:22:24.200 --> 00:22:29.529 SIP. EPA's disapproval was based in part on guidance 00:22:29.529 --> 00:22:32.730 memoranda that were not available to the states during 00:22:32.730 --> 00:22:37.380 the development of their SIPs. EPA did not provide 00:22:37.380 --> 00:22:40.289 Texas with comments concerning the approvability 00:22:40.299 --> 00:22:43.640 of the transport SIP. And has not otherwise provided 00:22:43.640 --> 00:22:46.980 Texas with an opportunity to make changes. To address 00:22:46.980 --> 00:22:50.960 the issues on which EPA based its disapproval. Prior 00:22:50.960 --> 00:22:54.400 to proposing a federal implementation plan on April 00:22:54.400 --> 00:23:00.059 6, 2022. A federal implementation plan or a FIB is 00:23:00.059 --> 00:23:04.019 an air quality plan. That federalizes air quality 00:23:04.019 --> 00:23:08.259 regulations in the areas in which it applies. EPA 00:23:08.259 --> 00:23:13.200 proposed FIB would apply in 26 states including Texas. 00:23:14.359 --> 00:23:18.029 The proposed ozone transport FIB would establish nitrogen 00:23:18.039 --> 00:23:21.859 oxide emissions budgets for fossil fueled, electric generating 00:23:21.859 --> 00:23:27.069 units. And also proposes nitrogen oxide emissions limitations 00:23:27.079 --> 00:23:29.900 for other, for several other categories of industrial 00:23:29.900 --> 00:23:33.640 stationary sources. Including stationary engines used 00:23:33.650 --> 00:23:38.180 in the pipeline transportation of natural gas. Comments 00:23:38.180 --> 00:23:41.559 were submitted on both EPA's proposed disapproval 00:23:41.569 --> 00:23:45.410 of the transport SIP and the proposed FIB. In general, 00:23:45.420 --> 00:23:48.880 the comments cited numerous technical and legal errors 00:23:48.890 --> 00:23:53.569 in EPA's analysis of Texas's transport SIP. And expressed 00:23:53.569 --> 00:23:57.470 concern about the proposed FIBs impacts on Texas' electric 00:23:57.480 --> 00:24:01.990 grid and economy. Some comments also stated that 00:24:01.990 --> 00:24:04.940 EPA underestimated the number of affected sources 00:24:04.950 --> 00:24:08.250 and the impacts to the pipeline transportation of natural 00:24:08.250 --> 00:24:12.309 gas. So considering the rules impacts on the pipeline 00:24:12.309 --> 00:24:15.059 transportation of natural gas, the Office of General 00:24:15.059 --> 00:24:18.089 Counsel respectfully recommends the Commission approve 00:24:18.089 --> 00:24:21.160 referring these two rules to the Office of the Attorney 00:24:21.160 --> 00:24:24.150 General to challenge their validity. And thank you, 00:24:24.150 --> 00:24:27.000 I'm available for any questions on this. Thank you. 00:24:27.000 --> 00:24:33.369 Are there are any questions or comments? Real shocker. Thank y'all for being on 00:24:33.369 --> 00:24:36.140 top of it. On we're all, we're gonna see a lot more 00:24:36.140 --> 00:24:40.630 lawsuits as we go forward. So, unfortunately. All right. 00:24:40.640 --> 00:24:42.740 I move that we approve the Staff's recommendation. 00:24:42.740 --> 00:24:45.809 Is there a second? Second. Second by Commissioner Christian. All 00:24:45.809 --> 00:24:49.410 in favor, say aye. Aye. Motion passes, that item's approved. 00:24:49.420 --> 00:24:54.309 Thank you. All right, 320. 00:24:54.309 --> 00:24:58.069 Morning Clay. 00:24:58.069 --> 00:25:01.259 Good morning, Chairman and Commissioners. For the record, 00:25:01.259 --> 00:25:03.390 I am Clay Woodul, Assistant Director of the Oil and 00:25:03.390 --> 00:25:07.839 Gas Division, Field Operations. Item 320 is a request 00:25:07.839 --> 00:25:11.420 for authorization to file a claim against the Oil Spill 00:25:11.420 --> 00:25:15.039 Liability Trust Fund, for administrative and contractor 00:25:15.039 --> 00:25:23.250 expenses totaling $440,217.22. Related to an emergency 00:25:23.250 --> 00:25:27.440 restock response by Staff of the Houston Office. For 00:25:27.440 --> 00:25:31.609 an active crude oil release from an orphan well located 00:25:31.609 --> 00:25:35.109 in Trinity Bay, Chambers County. That occurred on Saturday, 00:25:35.109 --> 00:25:40.009 May 28, 2022. After receiving a call from the Texas 00:25:40.009 --> 00:25:44.049 General Land Office at 5:30 pm on the 28th. District 00:25:44.049 --> 00:25:47.029 Staff and commissioned contractors were immediately 00:25:47.029 --> 00:25:50.539 dispatched to the site, and deployed absorbent booms 00:25:50.539 --> 00:25:54.220 to contain the crude oil. Operations to kill the well 00:25:54.230 --> 00:25:57.410 and make repairs continued daily, until the well was 00:25:57.410 --> 00:26:02.480 secured on June 10. The Oil Pollution Act of 1990 established 00:26:02.480 --> 00:26:06.039 the Oil Spill Liability Trust Fund, which is a fund 00:26:06.039 --> 00:26:08.859 available through the U.S. Coast Guard and the Environmental 00:26:08.859 --> 00:26:12.809 Protection Agency. For oil spills that enter or threaten 00:26:12.809 --> 00:26:17.089 navigable waters of the U.S. The Commission's delegation 00:26:17.089 --> 00:26:20.859 of authority, authorizes the Commissioners to submit 00:26:20.869 --> 00:26:24.670 agree and settle claims against the Oil Spill Liability 00:26:24.670 --> 00:26:27.500 Trust Fund. Your approval this morning will give the 00:26:27.500 --> 00:26:30.750 Executive Director, the authority to sign and submit 00:26:30.750 --> 00:26:34.640 this claim. As well as acceptance and release forms 00:26:34.650 --> 00:26:37.890 to the U.S. Coast Guard on behalf of the Commission. 00:26:37.900 --> 00:26:42.910 May I answer any questions? Are there any questions? No. Thank y'all 00:26:42.910 --> 00:26:45.839 for doing the right thing. We appreciate it. Thank you. All right. 00:26:45.839 --> 00:26:48.119 I move we approved the Staff's recommendation. Is there 00:26:48.119 --> 00:26:51.339 a second? Second. Second by Commissioner Wright. All in favor say, 00:26:51.339 --> 00:26:54.569 aye. Aye. Motion passes, that item's approved. Thanks Clay. 00:26:55.519 --> 00:26:59.339 All right. Item 321 is our Public Participation Item. 00:26:59.339 --> 00:27:02.069 We have two people registered. Mr. White, if you'll 00:27:02.079 --> 00:27:06.779 come up and state your name. 00:27:06.779 --> 00:27:12.619 Tell us who you're here on behalf of, please sir. 00:27:12.619 --> 00:27:16.230 Good morning. Good morning. I'm Skyler White from Goldsmith. 00:27:16.240 --> 00:27:19.569 I'm here representing myself. I paid all my expenses 00:27:19.569 --> 00:27:23.349 to come down here. Uh, nobody's writing me any paychecks. 00:27:23.349 --> 00:27:26.460 I'm not working for anybody. I pay other people to 00:27:26.460 --> 00:27:30.720 work for me. So I'm down here on my own money. Uh, I 00:27:30.730 --> 00:27:35.990 want to ask y'all about this well. This is the Magon 00:27:36.000 --> 00:27:40.500 29 Well. I've reported this well here a while back, 00:27:40.509 --> 00:27:45.400 and uh, your Staff came out and looked this well. And they 00:27:45.400 --> 00:27:48.779 said this well is not leaking. Looks to me like it's 00:27:48.779 --> 00:27:52.549 leaking. I don't know. I'm just, I'm just a dumb rancher. 00:27:52.549 --> 00:27:56.890 I don't, I don't know what criteria y'all have for 00:27:56.900 --> 00:27:59.069 for a well to be leaking. Does it have to be running 00:27:59.069 --> 00:28:02.359 off the location? Does it have to be running down the 00:28:02.359 --> 00:28:04.470 highway. Doesn't have to be running down a stream? 00:28:04.470 --> 00:28:07.529 does it? I mean if, if I'm leaking this much, they're 00:28:07.529 --> 00:28:10.890 gonna buy me a new set of Depends. Your inspector came 00:28:10.890 --> 00:28:13.549 out and said this well is not leaking. So I'm, I'm 00:28:13.549 --> 00:28:16.220 just a dumb rancher. Just educate me a little bit and 00:28:16.220 --> 00:28:20.690 tell me. What criteria does a well have to, have to 00:28:20.700 --> 00:28:23.750 be leaking? This is an orphan well. Uh, I've got 12 00:28:23.750 --> 00:28:26.519 of these wells flowing, some of them worse than this 00:28:26.950 --> 00:28:31.950 on the ranch. And, and uh I'm just wondering. Why what, 00:28:31.960 --> 00:28:35.400 what criteria do y'all have to consider a well to be 00:28:35.400 --> 00:28:39.349 leaking? Um, 00:28:39.349 --> 00:28:42.789 I'm just puzzled here. What? 00:28:42.789 --> 00:28:47.250 And you said this was a Megan, Megan 29 well? Magon, 00:28:47.259 --> 00:28:53.279 29. How do you spell the first one? M. A. G. 00:28:53.279 --> 00:28:57.759 It's on the ranch. I'm just, I'm puzzled here. What 00:28:57.769 --> 00:29:00.809 how bad does the well have to be leaking in order for 00:29:00.809 --> 00:29:04.569 y'all to consider it leaking? I mean, it's obviously 00:29:04.569 --> 00:29:07.230 puddled up. It's, it's polluting groundwater. It's 00:29:07.240 --> 00:29:15.109 I mean. I'm just, I'm puzzled here. 00:29:15.109 --> 00:29:17.500 Thank you, Mr. White. If you'll hand your stuff, we'll 00:29:17.500 --> 00:29:19.400 make sure we get somebody back out there and check 00:29:19.400 --> 00:29:25.650 on it. Thank you for being here today. You bet. Thank you. Thank you. Also, 00:29:25.660 --> 00:29:28.250 if any of y'all ever get out to West Texas. I'll be 00:29:28.250 --> 00:29:32.670 glad to show you around. If y'all go out and see what 00:29:32.670 --> 00:29:36.170 I'm seeing and you'll see that I'm, I'm serious about 00:29:36.170 --> 00:29:39.130 this. This is not, I'm not playing games here. This 00:29:39.130 --> 00:29:41.960 is serious to me, protecting groundwater is serious. 00:29:42.079 --> 00:29:44.579 And if y'all ever get out that way, I'd love to show 00:29:44.579 --> 00:29:47.369 you around. And you, you said this this well is on your 00:29:47.369 --> 00:29:52.359 ranch? Yeah. Okay, thank you Mr. White. You bet. 00:29:52.359 --> 00:29:59.049 Ms. Palacios. 00:29:59.049 --> 00:30:01.549 Hi, my name is Virginia Palacios. I'm the Executive 00:30:01.549 --> 00:30:04.190 Director of Commission Shift. We're a statewide nonprofit 00:30:04.200 --> 00:30:06.710 uh, focused on accountability at the Railroad Commission 00:30:06.710 --> 00:30:10.240 of Texas. Um, I just wanted to report back. I went to 00:30:10.240 --> 00:30:13.099 a conference last week in Oklahoma City with the American 00:30:13.099 --> 00:30:17.259 Association of Petroleum Geologists. Um, and there was 00:30:17.269 --> 00:30:19.109 some interesting information there. You know, I'm sure 00:30:19.109 --> 00:30:22.650 y'all know that Texas has the top performing state- 00:30:22.650 --> 00:30:25.059 managed well plugging program out of any other state. 00:30:25.059 --> 00:30:26.910 You know, we've plugged more wells in this state than 00:30:26.910 --> 00:30:30.059 any other state has over the past, you know, couple 00:30:30.059 --> 00:30:34.349 of decades. Um, and that's great, but it's also clear 00:30:34.349 --> 00:30:37.849 that we need to do better, right? And so um, you know, 00:30:37.849 --> 00:30:41.109 I would propose a future where there's no orphan wells 00:30:41.109 --> 00:30:43.859 sitting on the orphan well queue for more than 2 years. 00:30:43.869 --> 00:30:46.640 You know, and how we get there. There's gonna be a 00:30:46.640 --> 00:30:49.369 lot of different strategies we have to employ. I think 00:30:49.369 --> 00:30:51.529 there's a lot that the State Legislature needs to do 00:30:51.529 --> 00:30:54.670 to enable y'all to better enforce well plugging standards 00:30:54.670 --> 00:30:58.299 for active operators, right? Because that's where, how 00:30:58.299 --> 00:31:00.150 we're getting all these orphan wells. Is we have this 00:31:00.150 --> 00:31:03.220 huge queue of hundreds of thousands of inactive unplugged 00:31:03.220 --> 00:31:07.109 wells with active operators. And some of those operators 00:31:07.109 --> 00:31:09.329 are eventually gonna go bankrupt or not be able to 00:31:09.329 --> 00:31:12.269 fulfill their plugging obligations, right? And so we 00:31:12.269 --> 00:31:15.339 need to stop the bleeding and deal with those inactive 00:31:15.339 --> 00:31:19.230 wells. Um, there was a lot of discussion about the federal 00:31:19.230 --> 00:31:21.579 program, DOI was at this conference. It was 00:31:21.579 --> 00:31:24.650 DOE there were a lot of federal agencies there. Thinking 00:31:24.650 --> 00:31:28.390 about how to document undocumented wells. Um, and how 00:31:28.390 --> 00:31:31.680 to make sure that this federal program goes well. Um 00:31:31.690 --> 00:31:35.539 there's, there's a real tension between needing to plug 00:31:35.549 --> 00:31:38.589 as many well as possible, as quickly as possible. And 00:31:38.589 --> 00:31:41.559 needing to make sure that it gets done right. And so 00:31:41.569 --> 00:31:44.490 um, I just wanted to raise that. Because I think the 00:31:44.490 --> 00:31:47.470 end performance metric for this program or the state 00:31:47.470 --> 00:31:49.759 managed well plugging program. Isn't just the number 00:31:49.759 --> 00:31:52.410 of wells we plug. Because if, if the state has to go 00:31:52.410 --> 00:31:54.420 back out there and plug these wells again, because they 00:31:54.430 --> 00:31:56.529 failed. Then we're spending more money and it's not 00:31:56.529 --> 00:32:00.029 as efficient. Um and, you know, I just wanted to agree 00:32:00.029 --> 00:32:03.109 with your remarks yesterday, Chairman Craddick. That 00:32:03.109 --> 00:32:05.109 we can't over rely on that federal program. We have 00:32:05.109 --> 00:32:09.450 to keep the state managed program. Um and so, you know, 00:32:09.450 --> 00:32:11.710 to set up a good foundation for this work. I think 00:32:11.710 --> 00:32:15.029 we gotta pay qualified people to do good work. Part 00:32:15.029 --> 00:32:18.160 of that is these Davis-Bacon standards, right. That require 00:32:18.160 --> 00:32:20.900 the prevailing wage. I hope that we can find a solution 00:32:20.900 --> 00:32:23.349 for that. So that we're hiring really well-qualified 00:32:23.359 --> 00:32:26.829 people to go out there and do this work. Um, and you 00:32:26.829 --> 00:32:29.009 know, it when it comes to the administrative burden 00:32:29.009 --> 00:32:31.259 for all of this. If we set up a good foundation for 00:32:31.259 --> 00:32:33.279 doing this, then we'll be setting our state up for 00:32:33.279 --> 00:32:36.309 better efficiency in the long run. And so um, so I 00:32:36.309 --> 00:32:39.309 just want to support that. Um, there's a lot of new 00:32:39.309 --> 00:32:42.069 types of cement, new types of technology is used to 00:32:42.069 --> 00:32:46.309 fill gaps in uh well plugging analysts. Uh to, to 00:32:46.309 --> 00:32:48.829 make those plugs stronger. So I hope that y'all are 00:32:48.829 --> 00:32:51.569 staying on top of that. There's a resource called Top 00:32:51.569 --> 00:32:54.910 Corp that offers training for state regulators. Uh, both 00:32:54.910 --> 00:32:58.160 on well plugging and all kinds of other ways to manage 00:32:58.160 --> 00:33:01.299 environmental incidents. And there's a new mobile field 00:33:01.299 --> 00:33:04.809 app with the Department of Interior. For folks to document 00:33:04.819 --> 00:33:08.289 undocumented wells and to create a nationwide database 00:33:08.289 --> 00:33:10.900 for these undocumented wells. So, some really interesting, 00:33:10.910 --> 00:33:14.259 interesting stuff. Um and lastly, you know, I just 00:33:14.259 --> 00:33:17.059 want to underscore the importance of ramping up well 00:33:17.059 --> 00:33:20.009 plugging. As we consider bringing Class 6 injection 00:33:20.009 --> 00:33:22.240 wells into this state. As you know, we're seeing a 00:33:22.240 --> 00:33:24.980 lot of breakouts in West Texas. My hunch is that a 00:33:24.980 --> 00:33:27.349 lot of that could be related to Class 2 injection 00:33:27.349 --> 00:33:30.089 that's going on in the area. Y'all have reported 00:33:30.099 --> 00:33:34.049 uh, you know, permitting more than 400 Class 2 injection 00:33:34.049 --> 00:33:38.210 wells in the Permian Basin in 2021, out of 600 statewide. 00:33:38.210 --> 00:33:40.710 And so there's just an incredible amount of injection 00:33:40.710 --> 00:33:43.089 going on in this area. And if we're thinking about 00:33:43.089 --> 00:33:45.549 adding more injection with Class 6 wells. We got 00:33:45.549 --> 00:33:47.519 to make sure that all the holes in the ground right 00:33:47.519 --> 00:33:51.039 now are plugged. And that we have a safe situation that 00:33:51.039 --> 00:33:54.309 we're entering there. Thank you so much. I have a question. 00:33:54.319 --> 00:33:57.410 Ms. Palacios, you said you were in Oklahoma with the DOI, 00:33:57.420 --> 00:34:01.099 was it last week? Yeah, it was the um, American Association of 00:34:01.099 --> 00:34:03.470 Petroleum Geologists Conference. Was there anybody that talked 00:34:03.470 --> 00:34:06.339 about methane mission? Yeah, there was a lot of discussion 00:34:06.339 --> 00:34:09.719 about the whole methane mitigation industry. And you 00:34:09.719 --> 00:34:12.409 know, the part of this federal program. The purpose 00:34:12.409 --> 00:34:14.809 of the funds right, is to create jobs and reduce methane 00:34:14.809 --> 00:34:18.139 emissions. And so, there are a lot of folks learning 00:34:18.139 --> 00:34:21.489 about how to, how to study those methane emissions. 00:34:21.489 --> 00:34:24.090 How to quantify those flow rates. Um, I think what 00:34:24.090 --> 00:34:26.550 we're going to find is that you have these super emitting 00:34:26.550 --> 00:34:30.130 wells. That um, count for more methane emissions and than others. 00:34:30.139 --> 00:34:32.730 Above all, I think we need to protect groundwater as 00:34:32.730 --> 00:34:35.659 a first priority and prevent hazardous blowouts as 00:34:35.659 --> 00:34:38.039 a first priority. And then think about the methane 00:34:38.039 --> 00:34:40.710 emissions. Was there any talk about carbon credits 00:34:40.710 --> 00:34:42.989 for plug oils? There was a a lot of talk about carbon 00:34:42.989 --> 00:34:45.800 credits. Um, and I just want to share my perspective on 00:34:45.800 --> 00:34:48.440 that. I think if we're going to be offering financial 00:34:48.440 --> 00:34:51.500 incentives for folks to plug wells. It shouldn't be 00:34:51.500 --> 00:34:53.300 to the people who are already supposed to be cleaning 00:34:53.300 --> 00:34:56.670 up after themselves. It should be for maybe these situations. 00:34:56.670 --> 00:34:58.789 Where you have an orphan well and there's nobody else 00:34:58.789 --> 00:35:01.719 left behind. Nobody else available to be responsible 00:35:01.719 --> 00:35:05.429 for that. I appreciate the information, thank you. Thank you. 00:35:05.440 --> 00:35:08.829 Thank you. 00:35:08.829 --> 00:35:12.099 All right, item 322 is our Executive Session, which we 00:35:12.099 --> 00:35:15.070 won't be going into today. Are there any duly, other 00:35:15.070 --> 00:35:17.320 duly posted matters that were brought before the Commission 00:35:17.320 --> 00:35:20.030 at this time? Hearing none. This meeting of the Railroad 00:35:20.030 --> 00:35:22.710 Commission of Texas is adjourned. Thank you. Thank you.