WEBVTT 00:00:04.309 --> 00:00:07.190 Meeting of the Railroad Commission of Texas will come to order. To 00:00:07.198 --> 00:00:10.198 consider matters which have been duly posted with the 00:00:10.210 --> 00:00:14.810 Secretary of State for April 25, 2023. Under our Public 00:00:14.819 --> 00:00:18.149 Participation Policy, anyone desiring to offer public 00:00:18.158 --> 00:00:21.000 testimony on any items that are not noticed on today's 00:00:21.010 --> 00:00:24.539 Agenda. Was required to register in advance and we had 00:00:24.548 --> 00:00:27.638 2 people. The Commission will also consider the items 00:00:27.649 --> 00:00:30.728 on the Agenda, as posted on the Agenda. But first, we're 00:00:30.739 --> 00:00:34.529 going to start with Service Awards. So, the important 00:00:34.539 --> 00:00:38.868 people are going to come out. Let's do this. 00:00:38.868 --> 00:00:45.929 Thanks. 00:00:45.929 --> 00:00:49.840 (inaudible) I think they replaced them, 00:00:49.848 --> 00:00:54.310 it looks brighter in here. Good morning, Chairman and Commissioners. 00:00:54.319 --> 00:00:57.130 I'm Wendy O'Neill in Human Resources. For the 2nd 00:00:57.139 --> 00:01:00.250 Quarter of fiscal year 2023. We are excited to recognize 00:01:00.259 --> 00:01:04.058 16 employees celebrating a milestone anniversary. 00:01:04.278 --> 00:01:07.838 So first up, celebrating 5 years of service is Cristian 00:01:07.870 --> 00:01:24.290 Astorga in the Oil and Gas Division. Congratulations. Thank you very much. 00:01:24.290 --> 00:01:34.189 You know, there's two questions at the Commission (inaudible). Thank you. 00:01:34.189 --> 00:01:36.638 Celebrating 5 years of service is Johnny Galvan 00:01:36.730 --> 00:01:45.010 in Operations. 00:01:45.010 --> 00:01:47.049 Congratulations 00:01:47.049 --> 00:01:53.918 Thank you. Congratulations. 00:01:53.918 --> 00:01:56.849 Also, celebrating 5 years of service is MJ in the 00:01:56.859 --> 00:02:11.830 Oil and Gas Division. Thank you. Congratulations. 00:02:11.830 --> 00:02:14.379 Celebrating 5 years of service is Megan Neal in 00:02:14.389 --> 00:02:21.508 Legal Enforcement. Thank you. 00:02:21.508 --> 00:02:28.990 Good job. 00:02:28.990 --> 00:02:31.719 Celebrating 5 years of service is Ronald Perez 00:02:31.729 --> 00:02:49.008 in the Oversight and Safety Division. Thank you. Appreciate it. 00:02:49.008 --> 00:02:54.919 (inaudible) 00:02:54.919 --> 00:02:57.969 Celebrating 5 years of service is Juan Guzman in 00:02:57.979 --> 00:03:06.860 Facilities and Support Services. 00:03:06.860 --> 00:03:09.069 See everybody knows you. 00:03:09.069 --> 00:03:17.149 Thank you very much. Appreciate it. 00:03:17.149 --> 00:03:20.740 Also celebrating 5 years is Paula Swenson in Financial 00:03:20.750 --> 00:03:32.139 Services. Thank you. Thank you. 00:03:32.139 --> 00:03:36.429 (inaudible) 00:03:36.429 --> 00:03:38.520 Uh oh. 00:03:38.520 --> 00:03:44.669 (inaudible) 00:03:44.669 --> 00:03:47.588 Celebrating five years of service is Whitney Washington 00:03:47.599 --> 00:04:05.550 in the ITS division. 00:04:05.550 --> 00:04:08.149 Smile (inaudible). 00:04:08.149 --> 00:04:11.659 Celebrating 10 years of service is Kathleen Hayden 00:04:11.669 --> 00:04:20.459 in Chairman Craddick's office. 00:04:20.459 --> 00:04:23.519 Congratulations. 00:04:23.519 --> 00:04:26.629 Congrats Ms. Kathleen. Thank you. 00:04:26.629 --> 00:04:28.608 I'll tell you nobody works more hours than this 00:04:28.879 --> 00:04:31.108 woman right here. 00:04:31.108 --> 00:04:35.100 Y'all can cover for me. 00:04:35.100 --> 00:04:38.798 Also celebrating 10 years is Miriam Winetroub in the 00:04:38.809 --> 00:04:46.160 Oversight and Safety Division. 00:04:46.160 --> 00:04:48.588 Thank you. Congratulations. 00:04:48.588 --> 00:04:56.480 Thank you very much. 00:04:56.480 --> 00:04:59.769 Celebrating 10 years of service is our Executive Director 00:04:59.778 --> 00:05:10.670 Wei Wang. 00:05:10.670 --> 00:05:12.709 (inaudible) 00:05:12.709 --> 00:05:16.108 (inaudible) 00:05:16.108 --> 00:05:19.899 Thank you. Celebrating 15 years of service is Jennifer 00:05:19.910 --> 00:05:28.899 Gilmore in the Oil and Gas. Thank you. 00:05:28.899 --> 00:05:35.250 (inaudible) 00:05:35.250 --> 00:05:38.540 Also celebrating 15 years of service is John Gonzales 00:05:38.548 --> 00:05:45.910 and the Oversight and Safety Division. 00:05:45.910 --> 00:05:52.809 Good work, appreciate it. Thank you, John. 00:05:52.809 --> 00:05:58.209 (inaudible) 00:05:58.209 --> 00:06:01.149 Celebrating 15 years of service is Marquita Horton 00:06:01.160 --> 00:06:09.519 in the Oil and Gas Division. 00:06:09.519 --> 00:06:15.379 Congratulations. Thank you. 00:06:15.379 --> 00:06:22.928 Didn't mean to throw that on the floor. You don't need it. 00:06:22.928 --> 00:06:26.559 Also celebrating 15 years of service is Alicia Matos 00:06:26.678 --> 00:06:34.040 in the ITS Division. 00:06:34.040 --> 00:06:44.319 Thank you. Nice to see you, appreciate it. 00:06:44.319 --> 00:06:47.790 And last but not least, celebrating 25 years of service 00:06:47.798 --> 00:07:00.889 is Tommy Maldonado in Facilities and Support Services. 00:07:00.889 --> 00:07:06.329 No, my mother is not here. Yeah. 00:07:06.329 --> 00:07:18.988 Congratulations everyone, thank you. 00:07:18.988 --> 00:07:26.250 Oh. 00:07:26.250 --> 00:07:28.439 Thank you Wendy, and thank you all. We have a lot of 00:07:28.449 --> 00:07:31.759 great people, who make our job look easy. So we appreciate 00:07:31.769 --> 00:07:36.269 the work everybody who is Staff does for us. 00:07:36.269 --> 00:07:39.540 10 years. Do what? I'm 10 years. 00:07:39.540 --> 00:07:47.309 You're 10 years. I'm 10 years. Congratulations. Did you get a pen? I'm not gonna get a pen. Oh, okay. (inaudible) 00:07:47.309 --> 00:07:54.889 Okay, I'm glad I did. Yeah, it was sincere. 00:07:54.889 --> 00:07:58.139 All right. Hey, I wanna comment about the team that did EarthX 00:07:58.439 --> 00:08:00.619 and I appreciate that, 00:08:00.619 --> 00:08:04.220 whenever it is appropriate. You wanna do it at the end or now? I can do it now. Okay. 00:08:04.220 --> 00:08:07.579 I just want just for a second, to brag on uh Wei 00:08:07.588 --> 00:08:09.980 and all the team. That went up to EarthX this weekend 00:08:09.988 --> 00:08:13.108 in Dallas. I think they did an excellent job of, of 00:08:13.220 --> 00:08:15.619 uh, educating a lot of folks that many times criticize 00:08:15.629 --> 00:08:18.204 us. In that the Railroad Commission was green, before 00:08:18.213 --> 00:08:21.704 green was cool. I mean back in the '50s and even 00:08:21.713 --> 00:08:24.595 earlier than that. Whenever we provided all the energy 00:08:24.605 --> 00:08:27.894 to World War II generation back in the, the '40s. 00:08:27.903 --> 00:08:30.634 Uh it was Winston Churchill, I've said many times said 00:08:30.644 --> 00:08:33.715 that. Uh, it was a sea of oil from East Texas that 00:08:33.724 --> 00:08:36.408 helped win World War II. And I remember in Kilgore 00:08:36.418 --> 00:08:38.769 as a child, I'd go around and the oil derricks were just 00:08:38.779 --> 00:08:41.250 one house after the next. It was muddy roads, it was 00:08:41.259 --> 00:08:43.190 just terrible. And it was the Railroad Commission of 00:08:43.200 --> 00:08:46.479 Texas that did the original cleanup back in those days, 00:08:46.489 --> 00:08:49.359 and even before. And so, I think it's an education that 00:08:49.369 --> 00:08:52.779 I think the public has not understood. Is that the probably 00:08:52.788 --> 00:08:55.869 the first and most effective regulator of the environment. 00:08:56.048 --> 00:08:58.869 In our fossil fuel industry, was indeed the Railroad 00:08:58.879 --> 00:09:02.058 Commission of Texas. And uh if they, we were. Again, 00:09:02.129 --> 00:09:04.129 and we were green, before green was cool. And all these 00:09:04.139 --> 00:09:07.500 folks up in uh, Dallas that were there from the environmental 00:09:07.509 --> 00:09:10.658 perspective. I think we're uh, because of the good work 00:09:10.668 --> 00:09:12.389 of Wei and the team that went up there. And the good 00:09:12.399 --> 00:09:14.700 folks that put it all together. I really appreciate 00:09:14.710 --> 00:09:17.298 you, and I think that's very valuable. For that message 00:09:17.308 --> 00:09:21.009 to be uh, out there. Of uh the truth, the whole truth. 00:09:21.019 --> 00:09:24.190 Of what we, what you have done for years. And this organization 00:09:24.200 --> 00:09:26.649 has done for years. So thank you Wei. Thank you for the 00:09:26.658 --> 00:09:28.798 team, and I think you're doing a great service in that. 00:09:29.158 --> 00:09:32.219 Thank you and thanks. Thank you for the, for going 00:09:32.229 --> 00:09:34.519 up and being our representative. And we do have a great 00:09:34.529 --> 00:09:37.649 team, we have a good message. So um are you, are 00:09:37.658 --> 00:09:41.950 you all ready? Anything else? All right. Item Number 1. Come on 00:09:41.960 --> 00:09:45.399 up and good morning. 00:09:45.399 --> 00:09:47.529 Good morning, Chairman and Commissioners. Good morning. 00:09:48.200 --> 00:09:50.259 For the record, my name is Ryan Rutledge. Administrative 00:09:50.269 --> 00:09:53.879 Law Judge for the Hearings Division. Item Number 1 00:09:53.889 --> 00:09:57.340 is an application by Jewett Mine LLC. Requesting Phase 00:09:57.349 --> 00:10:01.649 I release for 220.4 acres within Jewett E/F Mine. 00:10:01.739 --> 00:10:06.580 Permit No. 47B located in Freestone County. The 00:10:06.590 --> 00:10:09.099 approved post mine land use for the area is pasture 00:10:09.109 --> 00:10:12.158 land. Evidence in the record supports that Jewett has 00:10:12.168 --> 00:10:14.580 satisfied all requirements for Phase I release of 00:10:14.590 --> 00:10:17.389 the subject area. As required by the act and the coal 00:10:17.399 --> 00:10:20.719 mining regulations. Based on the terms of the approved 00:10:20.729 --> 00:10:23.119 permit, there is no eligible bond reduction amount 00:10:23.129 --> 00:10:25.678 for acreage approved for release of Phase 1 reclamation 00:10:25.690 --> 00:10:28.418 requirements. Given that the bonded areas within Permit 00:10:28.428 --> 00:10:31.658 No. 47B are bonded based upon the worst case bond 00:10:31.668 --> 00:10:35.719 estimation method. Following public notice, no comments 00:10:35.729 --> 00:10:38.460 or requests for a hearing were received. Jewett and 00:10:38.469 --> 00:10:42.599 Staff are the only parties to the proceeding. No exceptions 00:10:42.609 --> 00:10:44.678 were filed to the proposed order and no changes to 00:10:44.690 --> 00:10:48.058 the current bond are requested in the docket. It is recommended 00:10:48.070 --> 00:10:50.369 that the request for Phase I release of reclamation 00:10:50.379 --> 00:10:53.918 obligations be approved. And being a worst case bond, 00:10:53.928 --> 00:10:56.359 determined that Jewett is not eligible to reduce the 00:10:56.369 --> 00:10:58.599 amount of bond attributable to the approved acreage 00:10:58.609 --> 00:11:01.320 at this time. I'm available for questions. Thank you. 00:11:01.330 --> 00:11:04.029 Are there any questions? No. I move we approve the Examiner's 00:11:04.038 --> 00:11:07.029 recommendation. Is there a second? Second by Commissioner 00:11:07.038 --> 00:11:10.399 Christian? All in favor, say aye. Aye. Motion passes, that 00:11:10.408 --> 00:11:18.320 item's approved. Thank you, Ryan. Item Number 2. 00:11:18.320 --> 00:11:21.129 Good morning Chairman, Commissioners. Morning. I am Administrative 00:11:21.139 --> 00:11:23.558 Law Judge Adam Taylor with the Hearings Division. Item 00:11:23.570 --> 00:11:26.950 Number 2 is the application of Dos Republicas Coal Partnership 00:11:26.960 --> 00:11:30.229 for acceptance of a rider to a surety bond. For the Eagle Pass Mine, 00:11:30.279 --> 00:11:34.570 Permit No. 42B in Maverick County. Permit No. 42B 00:11:34.580 --> 00:11:41.969 is currently bonded by two surety bonds totaling $31,553,785. 00:11:42.519 --> 00:11:45.450 DRCP requests acceptance of a rider to the existing 00:11:45.460 --> 00:11:51.590 surety bond no. SUR 0031837. Which will reduce 00:11:51.599 --> 00:11:59.820 the bond amount to $8,171,147.57. And when combined 00:11:59.830 --> 00:12:02.250 with the existing charity bond that is staying in place. 00:12:02.440 --> 00:12:05.048 Will be the same amount as the approved reclamation 00:12:05.058 --> 00:12:07.989 cost estimate. Evidence has been presented that all 00:12:08.000 --> 00:12:09.668 requirements for acceptance of the rider have been 00:12:09.678 --> 00:12:13.869 met. DRCP and Staff are the only parties to the proceedings. No exception 00:12:13.879 --> 00:12:16.460 were filed to the proposed order. And the party's way of preparation 00:12:16.469 --> 00:12:18.759 of PD. 00:12:18.759 --> 00:12:20.859 It is recommended that the Commission accept the proffered 00:12:20.869 --> 00:12:23.200 rider for this permit. I'm available for questions. 00:12:23.379 --> 00:12:26.070 Thank you. Is there any questions? No. I move we approve 00:12:26.080 --> 00:12:29.288 the Examiner's recommendation. Is there a second? Second. Second. 00:12:30.158 --> 00:12:32.788 What is Wright. 00:12:32.788 --> 00:12:37.440 See you've got come over here. Will y'all swap so I can just. 00:12:37.440 --> 00:12:40.440 Just kidding. Second by Commissioner Wright. All the favor say, 00:12:40.450 --> 00:12:43.940 aye. Aye. Motion passes, that item's approved. I do know your 00:12:43.950 --> 00:12:47.428 name by the way. 00:12:47.428 --> 00:12:51.788 Uh thank you, Adam. Item Number 3. Good morning 00:12:51.798 --> 00:12:54.750 Chairman, Commissioners. Morning. Morning. For the record, my name is John 00:12:55.090 --> 00:12:57.428 Merculief. Administrative Law Judge with the Hearings Division. 00:12:58.149 --> 00:13:00.519 Item Number 3 is the application of Maverick Energy 00:13:00.529 --> 00:13:04.090 Group Inc., for unrestricted renewal of its P-5. And 00:13:04.099 --> 00:13:06.668 to contest the Staff determination that Maverick P- 00:13:06.678 --> 00:13:09.369 5 cannot be renewed due to non-compliance with Statewide 00:13:09.379 --> 00:13:12.918 Rule 15. Staff provided evidence that Maverick is the 00:13:12.928 --> 00:13:15.849 operator of record of 36 wells that are non-compliant 00:13:15.859 --> 00:13:19.149 with the inactive well requirements. Maverick did not 00:13:19.158 --> 00:13:22.580 and does not dispute Staff's evidence. It is recommended 00:13:22.590 --> 00:13:25.389 the application be denied, exceptions were filed. I'm 00:13:25.399 --> 00:13:29.158 available for questions. Thank you. Are there any questions? No. 00:13:29.440 --> 00:13:32.759 All right. We have a representative from um, the applicant 00:13:32.769 --> 00:13:35.928 Maverick Energy Group. Is there any questions of him? 00:13:36.879 --> 00:13:39.639 No. All right. I move we approve the Examiner's recommendation. 00:13:39.649 --> 00:13:42.879 Is there a second? Second by Commissioner Christian. All in 00:13:42.889 --> 00:13:46.570 favor, say aye. Aye. Motion passes, that item's approved. Thank 00:13:46.580 --> 00:13:48.979 you. All right. We're gonna move on to the Oil and 00:13:48.989 --> 00:13:51.830 Gas Consent Agenda. There are 31 items on the Oil and 00:13:51.840 --> 00:13:55.269 Gas Consent Agenda. Items 4-34. Are there 00:13:55.279 --> 00:13:59.279 any questions? All right. I move we approve items 4- 00:13:59.288 --> 00:14:02.599 34. Is there a second? Second by Commissioner Wright. 00:14:02.609 --> 00:14:06.029 All in favor, say aye. Aye. Motion passes, those item's are 00:14:06.038 --> 00:14:09.000 approved. Let's go to Master Default Orders. There are 00:14:09.009 --> 00:14:13.500 26 Master Default Orders. Items 35-60. I move 00:14:13.509 --> 00:14:17.609 we approve items 35-60. Is there a second? Second by 00:14:17.619 --> 00:14:20.750 Commissioner Christian. All in favor, say aye. Aye. Motion 00:14:20.759 --> 00:14:24.080 passes, those item's are approved. And Agreed Enforcement 00:14:24.090 --> 00:14:28.288 Orders. There's 204 Agreed Enforcement Orders. I move 00:14:28.298 --> 00:14:32.139 that we approve Items 61-264. Is there a second? 00:14:32.369 --> 00:14:36.070 Second by Commissioner Wright. All in favor, say aye. Aye. Motion 00:14:36.080 --> 00:14:38.619 passes, those item's are approved. And that concludes 00:14:38.629 --> 00:14:42.019 the Hearings Division. Thank you. Um, we'll now take 00:14:42.029 --> 00:14:48.330 up our Administrative Agenda and General Counsel, 00:14:48.340 --> 00:14:53.509 265. Good morning. 00:14:53.509 --> 00:14:55.719 Good morning Chairman, Commissioners. Morning. I'm Betsy Peticolas 00:14:56.099 --> 00:14:58.840 with the Office of General Counsel. And I have 3 00:14:58.849 --> 00:15:01.379 pending litigation matters to provide Commission 00:15:01.389 --> 00:15:05.979 with updates on this morning. First, is this um, litigation 00:15:05.989 --> 00:15:09.519 concerning the Lesser Prairie Chicken. In November of 00:15:09.529 --> 00:15:13.070 2022, the U.S. Fish and Wildlife Service listed the Lesser 00:15:13.080 --> 00:15:15.830 Prairie Chicken as threatened in the Northern Distinct 00:15:15.840 --> 00:15:19.029 Population Segment, and Endangered in the Southern Distinct 00:15:19.038 --> 00:15:22.509 Population Segment. The Commission approved referring 00:15:22.519 --> 00:15:25.548 this listing to the Office of Attorney General on December 00:15:25.558 --> 00:15:31.808 13th, 2022. On January 19th, 2023, the State sent a 00:15:31.820 --> 00:15:35.038 60 day notice of intent to sue to the Department of 00:15:35.048 --> 00:15:38.548 Interior and U.S. Fish and Wildlife Service. That notice 00:15:38.558 --> 00:15:42.308 outlined the violations of the Endangered Species Act, 00:15:42.320 --> 00:15:45.548 the Administrative Procedure Act, as well as the National 00:15:45.558 --> 00:15:50.168 Environmental Policy Act. Subsequently, the State filed 00:15:50.178 --> 00:15:55.190 its complaint on March 21. An amended complaint was 00:15:55.200 --> 00:15:59.219 filed on April 11. The amended complaint added the 00:15:59.229 --> 00:16:03.048 states of Oklahoma and Kansas as parties to the lawsuit. 00:16:04.609 --> 00:16:06.950 Um, we're currently awaiting the federal government's 00:16:06.960 --> 00:16:10.229 answer to that lawsuit, which is due on Monday, June 00:16:10.239 --> 00:16:15.389 11. The next matter is the Ozone Transport State 00:16:15.399 --> 00:16:19.519 Implementation Plan/Federal Implementation Plan. 00:16:19.940 --> 00:16:24.908 Um on February 28, the Commission approved joining 00:16:24.918 --> 00:16:28.048 the challenge of the United States Environmental Protection 00:16:28.058 --> 00:16:32.479 Agency's disapproval of Texas's Interstate Transport 00:16:32.489 --> 00:16:37.469 State Implementation Plan or SIP. And proposed Federal 00:16:37.479 --> 00:16:42.259 Implementation Plan or FIP. For the 2015 Ozone National 00:16:42.269 --> 00:16:45.899 Ambient Air Quality Standard. And as you may recall 00:16:45.908 --> 00:16:49.779 disapproval of the SIP is a prerequisite to EPA 00:16:49.788 --> 00:16:53.519 implementing its Federal Implementation Plan. That would 00:16:53.529 --> 00:16:57.649 federalize air quality regulation in 23 states, including 00:16:57.658 --> 00:17:02.899 Texas. And in addition to a host of other federal regulations. 00:17:02.908 --> 00:17:06.309 That FIP would establish emission limits and additional 00:17:06.318 --> 00:17:09.390 regulatory requirements for stationary engines used 00:17:09.400 --> 00:17:13.509 in the pipeline transportation of natural gas. The 00:17:13.519 --> 00:17:16.479 Railroad Commission joined by the Public Utility Commission. 00:17:16.489 --> 00:17:21.588 Filed a petition for review on March 8 of this year 00:17:21.598 --> 00:17:25.799 in the 5th Circuit. Um, the Court consolidated that 00:17:25.809 --> 00:17:28.920 challenge with the existing state litigation. As well 00:17:28.930 --> 00:17:32.400 as, several other petitions filed by industry groups. 00:17:33.328 --> 00:17:37.689 Um on March 15, EPA filed a motion to transfer the 00:17:37.699 --> 00:17:40.719 litigation to the D.C. Circuit or to dismiss the case 00:17:40.729 --> 00:17:43.838 for improper venue. The State and industry part uh, 00:17:43.848 --> 00:17:47.949 petitioners have filed responses to EPA's motion on 00:17:47.959 --> 00:17:53.199 March 27. Um, those motions as well as several motions 00:17:53.209 --> 00:17:56.880 for a stay of the rule, um are currently pending before 00:17:56.890 --> 00:18:01.529 the Court. Um, and as of last time I updated you, EPA 00:18:01.539 --> 00:18:06.209 has finalized their um, Federal Implementation Plan. 00:18:06.219 --> 00:18:09.108 But it has not yet been published in the Federal Register, 00:18:09.118 --> 00:18:12.818 so we're watching for that. And finally, um to update 00:18:12.828 --> 00:18:16.680 the Commission on the Waters of the U.S. or WOTUS litigation. 00:18:17.078 --> 00:18:21.939 On January 18, um the Commission approved referring 00:18:22.088 --> 00:18:26.709 um the EPA, and uh Corp of Engineers. New definition 00:18:26.719 --> 00:18:29.439 of Waters of the United States to the Office of Attorney 00:18:29.449 --> 00:18:32.759 General. And a complaint and petition for review was 00:18:32.769 --> 00:18:36.989 filed that same day. An amended complaint was filed 00:18:37.000 --> 00:18:40.549 on February, uh February 27. To reflect the joinder 00:18:40.559 --> 00:18:44.078 of the State of Idaho as a plaintiff. Um, the matter 00:18:44.088 --> 00:18:46.848 was also consolidated with several similar challenges 00:18:46.858 --> 00:18:50.660 brought by industry groups. On March 15, the Court 00:18:50.670 --> 00:18:54.890 held a Hearing on Motions uh, for preliminary injunction. 00:18:55.180 --> 00:18:58.529 And on March 19, the Court issued a memorandum opinion 00:18:58.539 --> 00:19:01.769 and order granting that preliminary injunction, within 00:19:01.779 --> 00:19:05.868 the states of Idaho and Texas. Um, the Office of General 00:19:05.880 --> 00:19:08.608 Counsel is continuing to work with and support the 00:19:08.618 --> 00:19:10.900 office of the Attorney General on these matters. Um, 00:19:10.910 --> 00:19:14.479 and I'm happy to answer any questions you may have. 00:19:14.479 --> 00:19:16.939 Thank you. Thank you. Anybody have any questions? We 00:19:16.949 --> 00:19:19.180 seem to be spending a lot of our tax dollars, fighting 00:19:19.189 --> 00:19:22.150 our own government, so. Just uh, uh can I make a comment 00:19:22.160 --> 00:19:24.858 here? This news flash. This weekend or, or this last 00:19:24.868 --> 00:19:29.059 week. There was a release that the attack methane 00:19:29.068 --> 00:19:31.098 One of these many things that they're, they're telling 00:19:31.108 --> 00:19:33.809 us that it is horrible and bad. They, they have just 00:19:33.818 --> 00:19:38.108 released that the from settled science. That methane 00:19:38.118 --> 00:19:41.969 decreases the sun's rays and temperatures by up to 00:19:41.979 --> 00:19:45.259 1/3. And that the dangers that they had identified 00:19:45.269 --> 00:19:48.019 previously with, with you know the science community. 00:19:48.029 --> 00:19:52.828 Is that methane is like 30% less uh, negative effects 00:19:52.838 --> 00:19:56.199 than they had before. And so it kind of put a kink 00:19:56.209 --> 00:19:58.459 in this argument that the science is settled on any 00:19:58.469 --> 00:20:00.608 of this. You know, going back to Time Magazine and 00:20:00.618 --> 00:20:03.578 The Great Arctic Ice Age of the '70s. So I just 00:20:03.588 --> 00:20:05.818 thought I'd bring you put that. Uh, for some reason 00:20:05.828 --> 00:20:08.229 the settled science doesn't seem to be settled on these 00:20:08.239 --> 00:20:14.818 things. It's a moving target. It is. Thank you. Thank you. Thank you for your work. 00:20:14.818 --> 00:20:24.318 All right. Item 266. 00:20:24.318 --> 00:20:26.529 Morning. 00:20:26.529 --> 00:20:31.358 How are y'all? Good. How are you? Morning. Doing okay. Good. So good morning 00:20:31.368 --> 00:20:35.949 Chairman, Commissioners. Morning. I'm Joe Stasulli, Assistant Director 00:20:35.959 --> 00:20:40.279 within the Oil and Gas Division. Um, as part of the Agency's 00:20:40.289 --> 00:20:43.969 ongoing effort to improve operating efficiencies. Staff 00:20:43.979 --> 00:20:46.900 is requesting your approval on the following item. 00:20:47.358 --> 00:20:51.039 Item 266 is the proposed revision of the Form P-18, 00:20:51.689 --> 00:20:56.229 Skim Oil/Condensate Report. 00:20:56.229 --> 00:21:02.150 Staff is requesting to post the proposed changes, uh 00:21:02.160 --> 00:21:06.459 of the Form P-18. And associated instructions on the Commission's 00:21:06.469 --> 00:21:11.529 website for public comment until May 31. Proposed 00:21:11.539 --> 00:21:15.900 changes to the form and instructions will provide greater 00:21:15.910 --> 00:21:20.348 clarity on filing requirements, reducing submission 00:21:20.358 --> 00:21:25.239 errors. If no adverse comments are received on the proposed 00:21:25.250 --> 00:21:29.680 material. Staff asks that the proposed changes go into 00:21:29.689 --> 00:21:32.759 effect automatically at the end of the comment period. 00:21:34.640 --> 00:21:36.880 I'm available for questions. Thank you. Are there any 00:21:36.890 --> 00:21:40.779 questions? 00:21:40.779 --> 00:21:44.959 Do we, do we have a form that um, it on theft 00:21:44.969 --> 00:21:49.930 of crude oil? I'm sorry, I can't hear you. On theft of crude oil, and my mic's working. 00:21:50.509 --> 00:21:53.219 Theft of crude oil that people report to us on. There's 00:21:53.229 --> 00:21:56.670 a Form H-8. If there's spills, fires or theft and 00:21:56.689 --> 00:21:59.088 it's greater than 5 barrels. They file that form with 00:21:59.098 --> 00:22:01.890 the Commission. You know it, was yesterday that I was 00:22:01.900 --> 00:22:04.108 talking with some producers. Said that their theft 00:22:04.118 --> 00:22:08.299 was up almost 1000% since January of this year, which 00:22:08.309 --> 00:22:12.269 is concerning. And then what do we do with that? We 00:22:12.279 --> 00:22:14.699 file it, we go investigate and then don't we generally 00:22:14.709 --> 00:22:19.328 work with local authorities as well? That's accurate. Okay. 00:22:19.328 --> 00:22:22.000 Thank you. Thank you. Thank y'all. Are there any other questions 00:22:22.009 --> 00:22:25.789 on this? All right. I move we approve Staff's recommendation. 00:22:25.799 --> 00:22:29.000 Is there a second? Second by Commissioner Christian. All in 00:22:29.009 --> 00:22:32.348 favor, say aye. Aye. Motion passes, that items approved. Thank 00:22:32.358 --> 00:22:34.650 you, Joe. 00:22:34.650 --> 00:22:39.578 Item 267. 00:22:39.578 --> 00:22:42.229 Good morning, Chairman and Commissioners. For the record, 00:22:42.239 --> 00:22:44.358 my name is Keith May with the Oil and Gas Division. 00:22:45.068 --> 00:22:48.358 Uh, Item 267. Uh, Staff is seeking your approval to make 00:22:48.368 --> 00:22:50.900 available for public comment. The Commission's Oil 00:22:50.910 --> 00:22:53.269 and Gas Monitoring Enforcement Plan for Fiscal Year 00:22:53.279 --> 00:22:57.559 2024. Uh, the plan was required by House Bill 1818 from 00:22:57.568 --> 00:23:01.250 the 85th Legislator. And House Bill 1818 also requires 00:23:01.259 --> 00:23:03.239 the Commission to seek public input as the plan is 00:23:03.250 --> 00:23:06.519 being developed. With your approval, the plan will be 00:23:06.529 --> 00:23:09.009 made available on our website in both English and Spanish 00:23:09.019 --> 00:23:11.910 later today. And the plan will be available until May 00:23:11.920 --> 00:23:15.000 26, with the option to submit feedback via web-based 00:23:15.009 --> 00:23:18.588 survey or via U.S. Mail. And we will return to conference 00:23:18.598 --> 00:23:21.180 on June 13, with the final version of the plan for 00:23:21.189 --> 00:23:23.858 your approval. And that version of the plan will reflect 00:23:23.868 --> 00:23:28.559 any public comments received by May 26. The final version 00:23:28.568 --> 00:23:30.868 of the plan must be posted to the Commission's website 00:23:30.880 --> 00:23:33.410 no later than July 1. May I answer any questions? 00:23:33.809 --> 00:23:36.900 Thank you. Are there any questions? No. All right. I move 00:23:36.910 --> 00:23:39.189 we approve the Staff's recommendations. Is there a second? 00:23:39.559 --> 00:23:43.140 Second. Second by Commissioner Wright. All in favor, say aye. Aye. Motion 00:23:43.150 --> 00:23:45.828 passes, item's approved. Thank you. Are you staying 00:23:45.858 --> 00:23:51.588 up? Yes. Item 268. Okay go ahead, 268. Okay, 268 is the Oil Field Cleanup 00:23:51.598 --> 00:23:54.650 Program's 2nd Quarter Status Report, uh for fiscal 00:23:54.660 --> 00:23:58.779 year 2023. And during the 2nd quarter of 2023, plugging 00:23:58.789 --> 00:24:01.670 operations were completed and files were closed on 00:24:01.680 --> 00:24:09.930 363 wells at a cost of $11,661,309. Of those 00:24:09.939 --> 00:24:14.049 363, 119 were plugged using OGRC funds or state 00:24:14.059 --> 00:24:18.318 funds. And 244 were plugged using Infrastructure Investment 00:24:18.328 --> 00:24:22.029 and Jobs Act, IIJA Funds for short. And this 00:24:22.039 --> 00:24:24.459 includes only those walls that are plugged, invoiced 00:24:24.469 --> 00:24:26.910 by the plug and contractor, and approved for payment 00:24:26.920 --> 00:24:30.799 by field operations. And during the same period, 492 00:24:30.809 --> 00:24:35.318 new wells were approved for plugging. A total of 832 00:24:35.328 --> 00:24:37.368 wells were physically plugged through the end of the 00:24:37.380 --> 00:24:41.150 2nd Quarter. Of which 685 have been invoiced and 00:24:41.160 --> 00:24:44.729 paid. And the state managed cleanup program completed 00:24:44.739 --> 00:24:51.459 and closed 53 cleanup activities at a cost of $831,657, 00:24:51.469 --> 00:24:55.239 using OGRC funds. And during that same period, 70 00:24:55.250 --> 00:24:58.150 new activities were authorized for clean up with uh, state 00:24:58.160 --> 00:25:02.049 funds. And a total of 97 cleanup activities were completed 00:25:02.059 --> 00:25:04.430 and closed through the end of the second quarter using 00:25:04.439 --> 00:25:07.858 OGRC funds. May I answer any questions? Were there 00:25:07.868 --> 00:25:11.338 any questions? Y'all are doing a great job. Thank you very 00:25:11.348 --> 00:25:13.489 much. Thank you. 00:25:13.489 --> 00:25:17.519 All right. Item 269 is our Public Participation Item. 00:25:17.529 --> 00:25:20.890 We've had 2 people register to speak. Mr. White, if you'd like 00:25:20.900 --> 00:25:23.598 to come on up. 00:25:23.598 --> 00:25:30.098 Please state your name for the record. 00:25:30.098 --> 00:25:33.598 Skylar White, uh I'm here representing myself. I paid 00:25:33.608 --> 00:25:36.150 my own way to come here. Uh no, I don't work for 00:25:36.160 --> 00:25:41.250 anybody. Nobody's paid me to come here. Uh, when I was 00:25:41.259 --> 00:25:44.568 growing up my Dad always told me. You got a problem 00:25:44.578 --> 00:25:46.989 on the ranch, you got a problem with an entity or a company 00:25:47.000 --> 00:25:50.000 or somebody. Always go talk to the boss. So that's, 00:25:50.209 --> 00:25:54.068 that's why I'm here. Ms. Craddick, you're the boss. So I'm 00:25:54.279 --> 00:25:57.608 talking to you. You know, I think it's on. I've got 00:25:57.618 --> 00:26:00.858 11 of these wells flowing on the ranch right now. I 00:26:00.868 --> 00:26:03.180 think it's unreasonable to expect that these wells 00:26:03.189 --> 00:26:06.130 are gonna get plugged tomorrow. I think that's unreasonable. 00:26:06.368 --> 00:26:09.259 But my question is, and this well by the way. Is 00:26:09.269 --> 00:26:12.539 is starting to flow a lot worse. Uh, they did come out 00:26:12.608 --> 00:26:15.098 and look at the darn thing. But they don't have any 00:26:15.108 --> 00:26:18.410 plugging rigs operating on ranch right now. So my question 00:26:18.420 --> 00:26:22.219 is, you've been here over a decade. You've been through 00:26:22.559 --> 00:26:26.289 sunset review, multiple Legislative Sessions, budgeting, 00:26:26.299 --> 00:26:30.618 planning, administrative rulemaking, all of that. My 00:26:30.630 --> 00:26:35.229 question is real simple. This, this problem on my ranch 00:26:35.239 --> 00:26:37.818 is just a symptom of, of what's going on statewide 00:26:37.828 --> 00:26:40.769 with these orphan wells. These unplugged wells are 00:26:40.779 --> 00:26:43.568 polluting groundwater all across the state, not just 00:26:43.578 --> 00:26:46.750 on my ranch. My question is, what have you done in 00:26:46.759 --> 00:26:51.328 the decade that you've been here to, to uh prevent 00:26:51.338 --> 00:26:54.279 this from happening? I mean, the orphan well count ought 00:26:54.289 --> 00:26:59.068 to be going down over time. Because you know, y'all 00:26:59.078 --> 00:27:01.890 ought to be tightening up your rulemaking and, and 00:27:01.900 --> 00:27:05.709 trying to do things to prevent these. Uh, what have 00:27:05.719 --> 00:27:08.279 you done in the decade you've been here to help, help 00:27:08.289 --> 00:27:15.309 this problem? 00:27:15.309 --> 00:27:18.529 Thank you, Mr. White for being here. I, I think your 00:27:18.539 --> 00:27:30.769 silence speaks very loudly. Ms. Palacios? 00:27:30.769 --> 00:27:33.039 Good morning. Good morning. Good morning. My name is 00:27:33.049 --> 00:27:35.660 Virginia Palacios. I'm the Executive Director of Commission 00:27:35.670 --> 00:27:40.818 Shift. Um, I wanted to comment on prior year's draft 00:27:40.828 --> 00:27:44.088 monitoring and enforcement plans. Um and first of all, 00:27:44.098 --> 00:27:46.689 I just wanna say, thank you for publishing a Spanish 00:27:46.699 --> 00:27:49.519 language draft for folks to comment on this year. That's 00:27:49.529 --> 00:27:52.519 very important, especially in my region of Texas. Where 00:27:52.529 --> 00:27:55.309 a lot of families prefer speaking Spanish in the home. 00:27:55.318 --> 00:27:58.229 And even though they might speak some English, um they're 00:27:58.239 --> 00:28:02.489 not fully um I guess literate in, in the English language. 00:28:02.500 --> 00:28:05.150 And so having a Spanish language draft is really important. 00:28:05.400 --> 00:28:08.469 Um, and it's really helpful for people who own land 00:28:08.479 --> 00:28:10.939 and minerals, and live next to oil and gas facilities 00:28:10.949 --> 00:28:15.699 that y'all regulate. Um in the past we've, we've commented 00:28:15.709 --> 00:28:19.239 on this plan the, the last two years. And uh, some of 00:28:19.250 --> 00:28:21.838 our formatting suggestions have been incorporated into 00:28:21.848 --> 00:28:26.549 the final plans. Um, but we also commented uh, on with 00:28:26.559 --> 00:28:29.309 a lot of detail on all parts of the plan. And, and 00:28:29.318 --> 00:28:32.789 not all of those comments have been accepted. Um, we 00:28:32.799 --> 00:28:35.239 went ahead and reached out to folks, other folks who 00:28:35.250 --> 00:28:38.578 commented on the plan the last two years. And uh, they 00:28:38.588 --> 00:28:40.979 told us that they haven't received any acknowledgement 00:28:40.989 --> 00:28:44.068 from the Commission on their comments or any resolution. 00:28:44.078 --> 00:28:47.160 Or sort of uh, any of their concerns really being addressed 00:28:47.170 --> 00:28:49.769 by the Commission. And so, we would hope to see that 00:28:49.779 --> 00:28:53.410 um, this year if it's possible. Um, one of the more kind 00:28:53.420 --> 00:28:56.150 of important things that we see. Is that folks have 00:28:56.160 --> 00:29:00.009 pointed out inconsistencies in the protocol that Commissioners 00:29:00.019 --> 00:29:02.549 follow, when they're responding to public complaints. 00:29:02.699 --> 00:29:05.500 And the kind of inspections that take place afterward. 00:29:05.509 --> 00:29:07.578 There's supposed to be a certain time period in which 00:29:07.588 --> 00:29:09.799 the Railroad Commission responds to those complaints, 00:29:09.809 --> 00:29:13.039 and conducts an inspection. And lets people know when 00:29:13.049 --> 00:29:15.630 the inspection is complete or when the complaint is 00:29:15.640 --> 00:29:18.689 closed. And those protocols are not always followed, 00:29:18.699 --> 00:29:20.939 um based on the comments that people have been making. 00:29:22.209 --> 00:29:26.979 Um, another issue is that the, there's a definition 00:29:26.989 --> 00:29:29.549 of major violations presented in the Monitoring and 00:29:29.559 --> 00:29:33.039 Enforcement plan. And it appears that, that definition 00:29:33.049 --> 00:29:35.410 is subjective. And so the Director of the Oil and Gas 00:29:35.420 --> 00:29:38.930 Division gets to say how severe the violation is. Um, 00:29:38.969 --> 00:29:42.529 and so we would ask that the Commission consider looking 00:29:42.539 --> 00:29:45.410 into that. And maybe applying some kind of metric so 00:29:45.420 --> 00:29:48.199 that it's not just based on, you know, something that 00:29:48.209 --> 00:29:50.920 can change over time. And so that we can actually evaluate 00:29:50.930 --> 00:29:55.809 that in a clear manner over time. Um, the last thing 00:29:55.818 --> 00:29:58.719 that I wanted to address today. Is that we're where 00:29:58.729 --> 00:30:01.630 the Commission is uh getting, getting ready for and 00:30:01.640 --> 00:30:04.259 gearing up for a big rulemaking on Statewide Rule 00:30:04.269 --> 00:30:08.500 8. Related to uh groundwater protection, water quality 00:30:08.509 --> 00:30:11.259 and waste pits. And so, you know, we know that y'all 00:30:11.269 --> 00:30:13.818 have been meeting with industry representatives for 00:30:13.828 --> 00:30:16.459 years now. And discussing potential changes to that 00:30:16.469 --> 00:30:21.469 rule. In the past years in 2002, and I think 2012. The 00:30:21.479 --> 00:30:24.098 Commission has held public hearings across the state. 00:30:24.108 --> 00:30:27.630 To engage community members and find out what the public 00:30:27.640 --> 00:30:30.890 wants to see in that rulemaking. And so, we would ask 00:30:30.900 --> 00:30:34.029 you to plan for and conduct similar hearings across 00:30:34.039 --> 00:30:36.049 the state, in different parts of the state again this 00:30:36.059 --> 00:30:39.098 year. As you all know, it takes many hours to get to 00:30:39.108 --> 00:30:42.500 Austin from West Texas, from East Texas, from South 00:30:42.509 --> 00:30:45.519 Texas, in the Panhandle. And so it really makes more 00:30:45.529 --> 00:30:47.910 sense to be able to have the community involved in 00:30:47.920 --> 00:30:50.559 these rulemakings in their, in their communities. And 00:30:50.568 --> 00:30:52.858 in a place that's more convenient for them to access. 00:30:53.029 --> 00:30:58.209 So, thank you for your consideration. Thank you. Thank you. 00:30:58.209 --> 00:31:01.130 Item 270 is our Executive Session Item, which we won't 00:31:01.140 --> 00:31:03.779 be going into today. Is there anything else to be brought 00:31:03.789 --> 00:31:06.489 before the Commission at this time hearing? Hearing none. This 00:31:06.500 --> 00:31:08.539 meeting of the Railroad Commission is adjourned. Thank you 00:31:08.549 --> 00:31:08.670 all. Thank you.