The feed for this streaming event brought to you by
adminmonitor. All right, y'all ready. Good morning. 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 March 28th, 2023. 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 had two people register in advance. The Commission
will consider the items on the agenda as posted on
the agenda. And I think Commissioner Wright, you wanted
to start with a couple comments this morning. I wanted
to give a shout out. I had the pleasure and honor yesterday,
to go down and speak to a class down at the UT
Engineering School, which is led by Brian Sullivan.
I just wanted to give a shout out to them. I was
impressed. That class was almost full of people looking
at becoming petroleum engineers in our industry. And
a bunch of them already told me they had gotten commitments
on jobs. So very proud of, of seeing that happening
and what that school is accomplishing. So I just wanted
to kind of praise them a little bit. Thank you. Well, thanks for
thanks for continuing to educate them. They've got
a great program over there. I don't know if I educated 'em any but.
It's always helpful to see that you can still get a
job in this industry. We're looking for good folks
I think. They've got a great program over there. All
right. Um, anything else? Would you like to share your
new book with us? No, I'd better not.
Uh no, I'll mention though the Panola College in, in
uh Carthage, Texas, deep East Texas. Is about to dedicate
their new energy school, they're expanding it. Oh, good. So we
we have a new school in deep East Texas. Which is you
know it's, it's like expanding the knowledge and education
Jim is, is participating in that. It's just good to see it happen.
Yeah, when I went over there. What I was impressed about
Panola College is. If you went to their Technical School,
they would allow those hours to be credited back at
UT to get a further degree. That, that was impressive
to me. That is. Yeah and, and they're using by the way. They
have almost every county in the area. That can use their
high school credit, many of their high school credits
goes directly to Panola. And a lot of our kids in deep East
Texas are graduating high school, and going into their
sophomore year in the, in the Technical College there.
That's great. Which is very good. That's great. Odessa has a good program with
that. Midland do, a lot of them do. A lot of these Junior
Colleges are innovative and smart about what they're
doing, trying to get a workforce educated. So, and
and not just with a degree program, but just certificates
too, which I think is great. We gotta have a workforce.
So I appreciate what's going on out in the world, in
our workforce um, development. Uh, let's see. We're
on Item No. 1. Good morning.
Morning Chairman and Commissioners. Morning. I'm Brennan
Foley, Administrative Law Judge in the Hearings Division.
Item No. 1 is the Statement of Intent of Texas
Gas Service company, the Division of ONE Gas Inc., to
change gas utility rates. At the last conference, the
Commission issued a final order approving an increase
in TGS's rates. Subsequently TGS in the City of
El Paso, timely filed motions for rehearing. The City
of El Paso requests that the Commission reverse its
decisions on consolidation of TGS's service areas,
incentive compensation, bifurcated residential rates
and jurisdiction over TGS's appeal of the City of Borger
rate action. The City of El Paso's motion for rehearing,
raises no new meritorious issues of fact or law. That
have not previously been considered by the Commission.
The Examiner's thus recommend that the Commissioners
deny the City of El Paso's motion for rehearing. TGS's
motion for rehearing requests that the Commission's
final order. Separately state the base year level of pension
and other post employment benefits amounts in Finding
of Fact No. 90. And included Fort Bliss as an additional
customer class in setting the baseline allocation factors.
To be used in future interim rate adjustment filings
and Finding a Fact No. 113F. As recommended that
the Commissioners grant TGS's motion for rehearing.
For the limited purpose of amending the final order
in accordance with TGS's request and it's a motion for
rehearing. Except that the interim rate adjustment factor
should be calculated in accord with the Examiner's
calculation in Hearings Letter No. 28. No party
opposes these changes. Approval of TGS's motion will
not result in a change in rates. And I'm available for
questions. Thank you. Are there any questions? No.
All right. We have someone from TGS and El Paso
are preregistered and are available for questions.
Do we have any questions to those parties? No. Ok, I move
we approve the Examiner's recommendation. Is there
a second? Second. Second by Commissioner Christian. All in favor,
say aye. Aye. Motion passes, that item's approved. Thank you.
Item No. 2.
Good morning Chairman, Commissioners. Good morning.
My name is Peter Buva, Technical Examiner with the Hearings
Division.
Item No. 2 is the application of Complete Energy
Services Inc., pursuant to statewide rule 8.
For renewal of the permit to operate the commercial
wash out pit on the North Charlotte Lease located in
Atascosa County, Texas. The application is protested by
Mr. Kevin Duffy, Ms. Patricia Scott and Mr. Michael
Scott. Who are adjacent landowners and nearby residents.
The protestants contend that the wash out pit will
cause pollution of ground and surface water. Other
concerns raised at the hearing. Such as negative impact
of the Complete Energy's operation on roads, air quality
and real estate value are not within the Commission's
jurisdiction.
Complete Energy presented evidence in support of bid
design as protective of groundwater and surface water.
The pit is a concrete pit with a high density polyethylene
liner underneath. The pit is used to capture and contain
wastewater. Generated from cleaning vacuum truck trailers
and frack tanks utilized in oil and gas operations.
It is surrounded by containment structures that prevent
stormwater run on and wastewater run off. The Examiners
find that the pit as designed. Adequately segregates
contact from noncontact stormwater and prevents the
pollution of surface and subsurface waters. The Examiners
recommend approval of the application. No exceptions
and replies have been filed and I'm available for any
questions. Thank you. Are there any questions? No. All right.
I move we approve the Examiner's recommendation. Is
there a second? Second. Second by Commissioner Wright. All in favor,
say aye. Aye. Motion passes, that item's approved. Thank you.
Item No. 3. Morning. Good morning Chairman, Commissioners.
Good morning. Kristi Reeve, Administrative Law Judge
with the Hearings Division. Item No. 3 is the
application of Tahiti Partners for unrestricted renewal
of its P-5 and to contest the Staff determination
that its P-5 cannot be renewed due to noncompliance
with statewide rule 15. Staff provided evidence that
Tahiti is the operator of record for 3 wells that
are noncompliant with statewide rule 15. Tahiti did
not dispute Staff's evidence. It is recommended the
application be denied. No exceptions were filed. I'm
available for questions. Thank you. Are there any questions?
No. I move we approve the Examiner's recommendation. Is
there a second? Second. Second by Commissioner Christian. All in favor,
say aye. Aye. Motion passes, that item's approved. Thank you. Item
No. 4.
Good morning Chairman, Commissioners. Morning. I am John Merculief,
Administrative Law Judge with the Hearings Division.
Item No. 4 is the result of a complaint by Ashley Watt
contesting Staff determination. That Well No. 87
on the subject lease operated by Walsh & Watts Inc.
Is compliant with statewide rules 8 and 13. Ms.
Watt initiated a complaint with the Midland District
Office. Staff's inspection found violations of statewide
rules 8 and 13. A subsequent inspection found the lease
was in compliance with these rules. Ms. Watt contends that
the follow up inspection was insufficient, because it
was based on the visual inspection alone. Commission
rules do not require soil sampling of the type sought
by Ms. Watt, in the case of minimal spills of hydrocarbons.
No evidence was presented in any spill as the subject
well met or exceeded the thresholds for soil sampling.
It is recommended that the Commission confirm Staff's
findings of the August 4, 2021, inspection. And find
the well and lease were in compliance with statewide
rules 8 and 13 at that time. No exceptions were
received, I'm available for questions. Thank you. Are
there any questions? No. You have somebody here from Ms.
from Walsh & Watts. Do we have any questions of that
gentleman? No. All right. I move we approve the Examiner's
recommendation. Is there a second? Second. Second by Commissioner
Wright. All in favor, say aye. Aye. Motion passes, that item's
approved. Thank you. Item No. 5.
Good morning Chairman, Commissioners. For the record,
My name is Mandy Patel, Administrative Law Judge for
the Hearings Division. Item 5 is a motion for rehearing.
On February 17, 2023, the Hearings Division issued
an order dismissing the application of L & B Oil and
Gas Equipment, LLC. A timely motion for rehearing was
received from L & B and Gabriel Rodriguez. Killam Oil
Co., Ltd filed a reply in opposition to the
motion. None of the issues raised in the motion are
new. All issues raised in the motion were already raised
by L & B and Rodriguez and considered by the Hearings
Division, prior to the Hearings Division issuing the
order in this case. It is recommended that the Commission
deny the motion for rehearing. The motion will be overruled
by operation of law on May 30. I am available for questions
Thank you. Are there any questions? No. All right,
I move we approve the Examiner's recommendation. Is
there a second? Second. Second by Commissioner Christian. All in favor,
say aye. Aye. Motion passes, that item's approved. Thank you.
Let's move on to the Oil and Gas Consent Agenda. There
are 37 items on the Oil and Gas Consent Agenda.
Uh, we've got someone who's preregistered and available
for questions on items 23-26. If anybody has
any questions of her. No. All right. If not um, I move that
we approve Items 6-42. Is there a second? Second. Second
by Commissioner Wright. All in favor, say aye. Aye. Motion
passes, those items are approved. Um, Master Default
Orders. There are 22 Master Default Orders. I move
we approve of items 43-64. Is there a second? Second. Second
by Commissioner Christian. All in favor, say aye. Aye. Motion passes,
those items are approved. Agreed Enforcement Orders.
Um, there are 265 Agreed Enforcement Orders. I move
that we approve item 65-329. Is there a second?
Second. Second by Commissioner Wright. All in favor, say aye. Aye.
Those motions, those items are approved and that concludes the
Hearings Division. Um, we'll now take up our Administrative
Agenda.
Let's see. And y'all wanna pass, Staff wants to pass
item 330, correct? Ok. So 331 is our Public Participation
Item. We have 2 people who have registered to speak.
Um Mr. White, if you'll come up. Please state your name
and who you represent.
I'm a Skyler White, I'm representing myself. Uh, nobody
paid me to come down here. I paid my own way to
get here and I'm representing myself. Uh, I wanna appreciate
y'all come back out and uh, looking at this well on
the ranch. Turns out this well was actively leaking. Uh, counting
that well and the Sulfer well that Jim's working
on, and thank you for that. Uh, there's 12 of these wells
that are flowing on my ranch. According to your scoring system,
these wells all score a top priority. I first uh reported,
started reporting these wells back in December. These
wells have been leaking and flowing since December
since I reported them, you know about them. Uh, the
operator is AWOL. I don't know where the operator is.
Uh I, I'm just curious when you all get gonna get around
to plugging these wells. And also I wanna know how
does that square with your mission statement. To steward
and protect the natural resources and the environment
of this state? It, it doesn't to me, it doesn't make
sense. That you just leave these things leaking and
flowing to surface. You got this plugging program.
You know it's been, it's been a while. It's time to
start showing some action and some movement on these wells.
So I'm, I'm just curious. When are y'all gonna get started
on these things?
And you and I have talked about this, Mr. White. And I, I've
told you before. You've got my commitment to try to
push these as far as I can up the ladder Uh, I
know that we're investigating them. And Clay, Clay has
been in contact with me and giving me updates on where
he is. So, we're doing the best we can at this point. Yeah.
All right, there's several of them that are within
a quarter mile of the reservoir. So, I mean they're
if, if these aren't top priority, I don't know what
is. Understand.
I'm just curious. Thank you Mr. White. Thank you.
Virginia Palacios?
Hello, good morning. Morning. Virginia Palacios, representing
Commission Shift. Um, thanks for the opportunity. Uh
on Friday, I just wanted to let you know that I was
selected to serve on a White House Council of Environmental
Quality Task Force. Um, to provide input to reform,
inform the responsible development of carbon capture
utilization and sequestration on nonfederal lands.
This is especially important in Texas where 95% of
our land is private. Um, as you know, there's a lot
of pressure from the oil and gas industry and from
the Biden Administration to speed CCUS permitting.
And uh, make sure that this happens as quickly as possible.
The task forces have two directives. First is to identify
the challenges and successes that um, pardon me. Challenges
and successes that permitting authorities, project developers
and operators face to permit CCUS projects. In an
efficient, orderly and responsible manner. And second
is to provide recommendations to improve the performance
of the permitting process. And regional coordination
for the purpose of promoting the efficient, orderly
and responsible development of CCUS projects and carbon
dioxide pipelines. Meanwhile, there are several proposals
related to CCUS being considered by the Texas Legislature
right now. One will restrict the public's ability to
make claims against companies whose facilities cause
public health or environmental impacts. And another
will allow operators to transfer liability of carbon
dioxide injection wells to the state within 10 years
of closure. I've spoken to you in the past about Co2
pipeline leaks. That cause hypoxia for dozens of people.
Um, and Co2 can also acidify groundwater and cause certain
contaminants to become more available, including arsenic.
Dealing with these kinds of impacts is difficult for
all kinds of people. But it's especially challenging
for folks from low-income populations, who can't afford
to hire an attorney or go to the doctor. About 14%
of Texans live below the poverty line. And many counties
in Texas with higher rates of poverty. Coincide with
oil and gas development regions and also regions where
we have saline aquifers that are particularly high
potential for CCUS injection. The Railroad Commission's
annual monitoring and enforcement strategic plan will
be released for comment soon. And we hope to see a draft
plan that offers new solutions for educating and engaging
low-income communities, and decision making processes
that could affect their health and safety. Thank you
for your time and I've included some maps. Um, so that you
can see the high poverty regions of Texas, and the areas
where carbon dioxide injection is likely to occur.
Thank you. Thank you.
All right. Item 332 is our Executive Session which
we won't be going into today. Is there anything else?
Any other newly posted matters to be brought before
the Commission? Hearing none. This meeting is adjourned.
Thank you all. Thank you.