WEBVTT 00:00:00.079 --> 00:00:06.679 Thank you for your patience. 00:00:06.679 --> 00:00:09.000 Good morning. This meeting of the Railroad Commission 00:00:09.009 --> 00:00:11.769 of Texas will come to order. To consider matters which 00:00:11.778 --> 00:00:14.890 have been duly posted with the Secretary of State for 00:00:14.898 --> 00:00:19.649 May 17, 2023. Under our Public Participation Policy, 00:00:19.658 --> 00:00:23.489 anyone desiring to offer public testimony on any items 00:00:23.500 --> 00:00:26.780 that are not noticed on today's Agenda. Was required 00:00:26.789 --> 00:00:29.760 to register in advance and we had two people do so. 00:00:30.059 --> 00:00:32.639 The Commission will consider the items on the Agenda 00:00:32.649 --> 00:00:36.060 as posted on the Agenda. Item No. 1. Good morning, 00:00:36.069 --> 00:00:38.259 you're already up here. Good morning Chairman and 00:00:38.270 --> 00:00:41.789 Commissioners. For the record, my name is David Bauman. 00:00:41.798 --> 00:00:44.079 I'm representing Market Oversight Section of the 00:00:44.090 --> 00:00:47.168 Oversight and Safety Division. Agenda Item No. 00:00:47.179 --> 00:00:51.950 1 is Case No. 12592. The application of Texas 00:00:51.959 --> 00:00:56.189 Gas Service Company for Test Year 2022 Annual Interim 00:00:56.200 --> 00:00:59.270 Rate Adjustment for the Central-Gulf Service Area. 00:01:00.009 --> 00:01:02.899 This case represents the 3rd interim rate adjustment 00:01:02.908 --> 00:01:06.040 since the company's most recent rate case, Gas Utility 00:01:06.049 --> 00:01:10.730 Docket 10928. This adjustment represents an incremental 00:01:10.739 --> 00:01:21.109 increase of $11,506,645 of which $976,815 is allocated 00:01:21.120 --> 00:01:25.099 to customers subject to the order, in this case. Staff 00:01:25.109 --> 00:01:27.680 recommends approval of the interim rate adjustment 00:01:27.808 --> 00:01:31.189 as revised. I'm available to answer any questions. 00:01:31.338 --> 00:01:34.588 Thank you. Are there any questions? No. I move we approve 00:01:34.599 --> 00:01:37.790 the Examiner's recommendation. Is there a second? Second by 00:01:37.799 --> 00:01:40.980 Commissioner Christian. All in favor, say aye. Aye. Motion 00:01:40.989 --> 00:01:44.359 passes, that item's approved. Thank you. Item No. 2. 00:01:46.120 --> 00:01:49.489 Good morning Chairman, Commissioners. Uh for the record, 00:01:49.500 --> 00:01:52.799 my name is Marcie Bolusani, representing the Oversight and Safety 00:01:52.808 --> 00:01:58.500 division. Agenda Item No. 2 is Case No. 12616. 00:01:58.510 --> 00:02:02.829 The application of a Atmos Pipeline - Texas for the Test Year 00:02:02.838 --> 00:02:07.620 of 2022 Annual Interim Rate Adjustment. This case is 00:02:07.629 --> 00:02:11.149 the 7th interim rate adjustment the company has 00:02:11.159 --> 00:02:15.159 filed. Since the final order was issued in the most 00:02:15.169 --> 00:02:19.330 recent statement of intent, Gas Utility Docket 10580. 00:02:19.338 --> 00:02:23.169 This adjustment represents an incremental increase 00:02:23.179 --> 00:02:31.439 of $84,930,551. Which is recoverable from 00:02:31.449 --> 00:02:34.929 citygate service and pipeline transportation customers. 00:02:35.538 --> 00:02:38.550 I recommend approval of the interim rate adjustment 00:02:38.558 --> 00:02:42.500 as revised and I'm available for questions. Thank you. 00:02:42.508 --> 00:02:45.710 Are there any questions? No. All right. I move we approve 00:02:45.719 --> 00:02:48.899 the Examiner's recommendation. Is there a second? Second by 00:02:48.909 --> 00:02:53.750 Commissioner Wright. Hey, I got it today. 00:02:53.750 --> 00:02:58.399 Thank you. All in favor, say aye. Aye. Motion passes, that 00:02:58.409 --> 00:03:01.778 item's approved. Thank you Marcie. Item No. 3, 00:03:01.788 --> 00:03:05.429 you're up again? Yes. Item uh, No. 3 is Case 00:03:05.439 --> 00:03:11.028 No. 12617. The application of this Texas Gas Utility 00:03:11.038 --> 00:03:16.139 LLC for Test Year 2022 Annual Interim Rate Adjustment 00:03:16.149 --> 00:03:20.610 for its Unincorporated service areas. Uh, this case 00:03:20.618 --> 00:03:23.599 represents the 2nd interim rate adjustment since 00:03:23.949 --> 00:03:28.118 um, the company's most recent rate case, Docket No. 00:03:28.129 --> 00:03:35.508 OS-20-0004347. This adjustment represents an incremental 00:03:35.520 --> 00:03:45.520 increase of $162,319. Of which $46,962 is recoverable 00:03:45.528 --> 00:03:48.990 from customers subject to the order, in this case. 00:03:49.240 --> 00:03:52.500 They recommend the adjustment does not include recovery 00:03:52.508 --> 00:03:57.028 of any cost associated with the Winter weather event 00:03:57.038 --> 00:04:01.740 of February 2021. The Staff recommends approval of 00:04:01.750 --> 00:04:05.028 the interim rate adjustment. Um, and I'm available to 00:04:05.038 --> 00:04:07.360 answer any questions. Thank you. Are there any questions? No. 00:04:07.399 --> 00:04:10.088 I move we approve the Examiner's recommendations. 00:04:10.099 --> 00:04:12.669 Is there a second? Second by Commissioner Christian. 00:04:12.679 --> 00:04:15.889 All in favor, say aye. Aye. Motion passes, that item's approved. 00:04:15.899 --> 00:04:18.420 Thank you. 00:04:18.420 --> 00:04:22.709 Item No. 4. Good morning Chairman, and Commissioners. 00:04:23.170 --> 00:04:25.850 My name is Mimi Winetroub and I'm representing the 00:04:25.858 --> 00:04:28.678 Market Oversight Section in the Oversight and Safety 00:04:28.689 --> 00:04:33.970 Division. Item No. 4 is Case No. 12759. The 00:04:33.980 --> 00:04:38.689 application of Atmos Energy Corp., Mid-Tex Division for Test 00:04:38.699 --> 00:04:43.209 Year 2022 Annual Interim Rate Adjustment for the Unincorporated 00:04:43.220 --> 00:04:47.079 Mid-Tex Division. This case represents the 5th interim 00:04:47.088 --> 00:04:49.809 rate adjustment since the company's most recent rate 00:04:49.819 --> 00:04:55.850 case, Gas Utility Docket No. 10742. This adjustment 00:04:55.858 --> 00:05:04.449 represents an incremental increase of $128,696,564. 00:05:04.649 --> 00:05:11.399 Of which $5,982,626 is recoverable from 00:05:11.410 --> 00:05:15.439 jurisdictional customers. Staff recommends approval 00:05:15.449 --> 00:05:18.129 of the interim rate adjustment and I'm available to 00:05:18.139 --> 00:05:20.410 answer questions. Thank you. Are there any questions? No. 00:05:20.959 --> 00:05:23.269 All right. I move we approve the Examiner's recommendation. 00:05:23.278 --> 00:05:26.449 Is there a second? Second by Commissioner Wright. All in favor, 00:05:26.459 --> 00:05:29.850 say aye. Aye. Motion passes, that item's approved. Thank you, Mimi. 00:05:36.108 --> 00:05:37.709 They didn't do you very well. They didn't put you in 00:05:37.720 --> 00:05:39.838 order. Hi. Hey. 00:05:39.838 --> 00:05:41.778 (silence) 00:05:41.778 --> 00:05:45.329 All right. Item No. 5. For the record again, my 00:05:45.338 --> 00:05:48.410 name is David Bauman. I'm representing the Market Oversight 00:05:48.420 --> 00:05:51.500 Section of the Oversight and Safety Division. Agenda 00:05:51.509 --> 00:05:56.149 Item No. 5 is Case No. 12760. The application 00:05:56.170 --> 00:06:00.639 of Atmos Energy for the Test Year 2022 Annual Interim 00:06:00.649 --> 00:06:03.369 Rate Adjustment for the Unincorporated areas of the 00:06:03.379 --> 00:06:06.988 West Texas Division. This case is the 5th interim 00:06:07.000 --> 00:06:09.250 rate adjustment the company has filed for the West 00:06:09.259 --> 00:06:12.139 Texas Division. Since the final order was issued in 00:06:12.149 --> 00:06:15.238 the most recent statement of intent, Gas Utility Docket 00:06:15.250 --> 00:06:20.178 No. 10743. This adjustment represents an incremental 00:06:20.189 --> 00:06:26.709 increase of $16,176,072. Of which 00:06:26.720 --> 00:06:32.670 $1,331,762 is recoverable from customers subject to 00:06:32.678 --> 00:06:35.889 the order of this case. I recommend approval of the 00:06:35.899 --> 00:06:38.899 interim rate adjustment as filed and I'm available 00:06:38.910 --> 00:06:40.928 to answer any questions. Thank you. Are there any questions? 00:06:42.088 --> 00:06:44.838 No. All right. I move that we approve the Examiner's recommendation. 00:06:44.850 --> 00:06:48.028 Is there a second? Second by Commissioner Christian. All in 00:06:48.040 --> 00:06:53.608 favor, say aye. Aye. Motion passes, that item's approved. Thank you. 00:06:53.608 --> 00:06:57.500 Y'all didn't organize this very well. Hi, Marcie. Number 00:06:57.509 --> 00:07:00.809 6. 00:07:00.809 --> 00:07:05.540 Uh for the record again, my name is Marcie Bolusani. I'm representing 00:07:05.548 --> 00:07:09.209 the Oversight and Safety Division. Agenda Item No. 00:07:09.220 --> 00:07:14.869 6 is Case No. 12761 application of Atmos Energy 00:07:14.879 --> 00:07:19.459 Corporation, West Texas Division for Test Year 2022. 00:07:20.108 --> 00:07:23.970 Annual Interim Rate Adjustment for the West Texas Triangle 00:07:23.980 --> 00:07:28.238 Division. This case is the 3rd interim rate adjustment 00:07:28.309 --> 00:07:32.338 the company has filed for the Triangle Division. Since 00:07:32.350 --> 00:07:35.910 the final order was issued in the most recent statement 00:07:35.920 --> 00:07:41.329 of intent, Gas Utilities Docket No. 10900. This 00:07:41.338 --> 00:07:46.250 adjustment represents an incremental increase of 00:07:46.858 --> 00:07:53.129 $716,689. Which will be recovered from customers under 00:07:53.139 --> 00:07:56.869 this proposed rate adjustment. I recommend approval 00:07:56.879 --> 00:07:59.988 of interim rate adjustment as revised and I'm available 00:08:00.000 --> 00:08:02.410 for questions. Thank you. Are there any questions? 00:08:03.358 --> 00:08:05.660 I move we approve the Examiner's recommendations. Is there 00:08:05.670 --> 00:08:09.009 a second? Second by Commissioner Wright. All in favor, say 00:08:09.019 --> 00:08:12.009 aye. Aye. Motion passes, that item's approved. Thank you. 00:08:14.750 --> 00:08:17.738 Item No. 7. Good morning. Good morning, Chairman 00:08:17.750 --> 00:08:20.449 and Commissioners. I'm Brennan Foley, Administrative 00:08:20.459 --> 00:08:23.369 Law Judge in the Hearings Division. Item No. 7 00:08:23.379 --> 00:08:27.759 is the application of SiEnergy, LP to increase rates. SiEnergy 00:08:27.769 --> 00:08:31.199 proposes that its rate increase become effective 35 00:08:31.209 --> 00:08:34.440 days after the filing of its application or June 9, 00:08:34.450 --> 00:08:38.379 2023. By law, the Commission has the authority to suspend 00:08:38.389 --> 00:08:42.139 the effective date by 150 days. It is recommended that 00:08:42.149 --> 00:08:44.538 the Commissioners approve the suspension order, suspending 00:08:44.548 --> 00:08:47.700 the effective date by 150 days. In order to allow the 00:08:47.710 --> 00:08:50.580 Commission to adequately assess the propriety of SiEnergy's 00:08:50.590 --> 00:08:54.090 requested rate increase. Available for questions. Thank 00:08:54.099 --> 00:08:57.428 you. Are there any questions? We have Glenn Atkins on 00:08:57.440 --> 00:08:59.928 behalf of SiEnergy. Do we have any questions of him? 00:09:01.279 --> 00:09:03.960 No. All right. I move we approve the Examiner's recommendations. 00:09:03.969 --> 00:09:07.139 Is there a second? Second by Commissioner Christian. All in favor, 00:09:07.149 --> 00:09:10.609 say aye. Aye. Motion passes, that item's approved. Thank you. 00:09:12.379 --> 00:09:14.729 Number 8. 00:09:14.729 --> 00:09:17.029 Good morning Chairman, Commissioners. I am Administrative 00:09:17.038 --> 00:09:19.548 Law Judge, Adam Taylor with the Hearings Division. Item 00:09:19.558 --> 00:09:21.859 No. 8 is the application of Texas Municipal 00:09:21.869 --> 00:09:24.889 Power Agency for Acceptance of Replacement Cash Bond. 00:09:24.969 --> 00:09:28.609 For the Gibbons Creek Lignite Mine, Permit No. 38D in Grimes 00:09:28.619 --> 00:09:32.820 County. Permit No. 38D is currently bonded by a collateral 00:09:32.830 --> 00:09:36.019 bond with a letter of credit in the amount of $2 million. 00:09:36.750 --> 00:09:39.359 TMPA request acceptance of replacement collateral 00:09:39.369 --> 00:09:42.229 bond with escrow bonding. Which will reduce the bond 00:09:42.239 --> 00:09:46.808 amount for the permit to $1,600,000. Acceptance of 00:09:46.820 --> 00:09:48.739 the replacement bond will result in the amount that 00:09:48.750 --> 00:09:54.250 exceeds the approved reclamation cost estimate by $91,346. 00:09:55.298 --> 00:09:57.739 Evidence has been presented that all requirements for 00:09:57.750 --> 00:10:00.950 acceptance of the bond have been met. TMPA and Staff 00:10:00.960 --> 00:10:03.399 are the only parties to proceedings. No exceptions for 00:10:03.408 --> 00:10:06.428 filed proposed order and the parties waive preparation 00:10:06.440 --> 00:10:09.509 of a PFD. It is recommended that Commission accept 00:10:09.519 --> 00:10:12.399 the proffer replacement bond for this permit. I'm available 00:10:12.408 --> 00:10:14.489 for questions. Thank you. Are there any questions? 00:10:15.489 --> 00:10:18.090 No. All right. I move we approve the Examiner's recommendation. 00:10:18.099 --> 00:10:21.440 Is there a second? Second by Commissioner Wright All in favor, 00:10:21.450 --> 00:10:24.690 say aye. Aye. Motion passes, that item's approved. Thank you. 00:10:25.619 --> 00:10:29.619 All right. Items 9 and 10. 00:10:29.619 --> 00:10:32.158 Good morning Chairman, Commissioners. For the record, 00:10:32.168 --> 00:10:34.609 my name is Mandy Patel. And I'm an Administrative Law 00:10:34.619 --> 00:10:37.389 Judge in the Hearings Division. I will be presenting 00:10:37.399 --> 00:10:41.779 Item Nos. 9 and 10. Items 9 and 10 are presented 00:10:41.788 --> 00:10:44.769 together with one order and one vote. These items are 00:10:44.779 --> 00:10:47.668 a result of a complaint filed by the surface owner 00:10:48.070 --> 00:10:51.960 Ali Lahijani. Alleging Americo Energy Resources, LLC does 00:10:51.969 --> 00:10:55.210 not have a good faith claim to operate the Bash Leases. 00:10:55.639 --> 00:10:58.928 Lahijani argues that the Bash Oil and Gas Mineral Lease 00:10:58.940 --> 00:11:01.509 expired, because there has been no production from the 00:11:01.519 --> 00:11:05.250 Bass, Bash leases in several years. Lahijani filed suit 00:11:05.259 --> 00:11:07.928 against Americo in District Court. But validity of 00:11:07.940 --> 00:11:10.928 the Bash Oil and Gas Mineral Lease was not adjudicated. 00:11:12.029 --> 00:11:15.580 Lahijani did not contest that Americo is the owner of the leasehold. 00:11:16.250 --> 00:11:19.038 Lahijani requests the wells be plugged and abandoned. 00:11:19.969 --> 00:11:22.609 Americo maintains it as a valid oil and gas mineral 00:11:22.619 --> 00:11:25.710 lease to operate the Bash Leases. Americo argued the 00:11:25.719 --> 00:11:29.229 Bash Oil and Gas Lease was held by production from 00:11:29.239 --> 00:11:32.330 other wells that are part of the larger Bash unit. 00:11:32.340 --> 00:11:35.489 A review of Commission records show consistent production 00:11:35.500 --> 00:11:38.090 of the Kendall and Stone Leases held the Bash Oil and 00:11:38.099 --> 00:11:41.168 Gas Mineral Lease. For the contested time period of 00:11:41.178 --> 00:11:44.700 2008 to present. The Bash Oil and Gas Mineral Lease 00:11:44.710 --> 00:11:47.408 did not expire because of the lack of production on 00:11:47.418 --> 00:11:50.879 the Bash Leases. Lakhani failed to meet his burden to 00:11:50.889 --> 00:11:54.340 show Americo does not have a good faith claim. The 00:11:54.349 --> 00:11:57.048 Examiners recommend the Commission find Americo does 00:11:57.058 --> 00:11:59.479 have a good faith claim to operate the Bash Leases. 00:11:59.769 --> 00:12:02.369 And dismiss the complaints brought by Lahijani against 00:12:02.379 --> 00:12:06.048 Americo. No exceptions were filed. I am available for 00:12:06.058 --> 00:12:09.750 questions. Thank you. Are there any questions? All right. 00:12:09.759 --> 00:12:11.879 I move we approve the Examiner's recommendation. Is 00:12:11.889 --> 00:12:15.109 there a second? Second by Commissioner Christian. All in favor, 00:12:15.119 --> 00:12:18.548 say aye. Aye. Motion passes, those items are approved. Thank 00:12:18.558 --> 00:12:20.619 you. 00:12:20.619 --> 00:12:24.349 Item No. 11. Good morning Chairman, Commissioners. 00:12:24.359 --> 00:12:27.389 Morning. I will actually be presenting Item Nos. 11- 00:12:27.399 --> 00:12:30.369 15. For the record, I'm Kristy Reeve. Administrative 00:12:30.379 --> 00:12:33.529 Law Judge with the, with the Hearings Division. Item 00:12:33.538 --> 00:12:37.830 No. 11 is the application of Western Global Oil, 00:12:37.840 --> 00:12:41.509 to supersede a prior Commission order. Finding it does 00:12:41.519 --> 00:12:44.558 not have a good faith claim to operate the subject 00:12:44.570 --> 00:12:48.139 lease. The application was initially protested by the 00:12:48.149 --> 00:12:51.190 original complainants. The parties were able to reach 00:12:51.200 --> 00:12:54.808 a settlement and the protests were withdrawn. The application 00:12:54.820 --> 00:12:58.538 was initially placed on the December 2022 Agenda. But 00:12:58.548 --> 00:13:01.369 had to be removed when it was discovered that Western 00:13:01.379 --> 00:13:04.788 Global had failed to renew its P-5. Without an active 00:13:04.798 --> 00:13:07.690 P-5, an operator may not be found to have a good 00:13:07.700 --> 00:13:11.389 faith claim to operate a lease. Western Global was 00:13:11.399 --> 00:13:15.298 notified of the defect, the defect has not been corrected. 00:13:15.418 --> 00:13:19.009 It is recommended the application be denied. No exceptions 00:13:19.019 --> 00:13:21.928 were filed, I'm available for questions. Thank you. 00:13:21.940 --> 00:13:24.969 Are there any questions? No. I move we approve the Examiner's 00:13:24.979 --> 00:13:28.279 recommendation. Is there a second? Second by Commissioner Wright. 00:13:28.288 --> 00:13:32.029 All in favor, say aye. Aye. Motion passes, that item's approved. 00:13:32.038 --> 00:13:36.279 Twelve and thirteen together, correct? Yes, ma'am. Um, and these 00:13:36.288 --> 00:13:40.599 will require uh, one vote. These items are the enforcement 00:13:40.609 --> 00:13:43.519 actions against TR Offshore for 2 violations of 00:13:43.529 --> 00:13:47.239 Statewide Rule 14(b)(2). TR Offshore stipulated to 00:13:47.250 --> 00:13:50.779 the violations. In Staff's original complaint, it requested 00:13:50.788 --> 00:13:55.450 compliance and a penalty in the amount of $28,808. 00:13:55.788 --> 00:13:58.719 It is recommended the Commission find that 2 violations 00:13:58.729 --> 00:14:02.408 of Statewide Rule 14(b)(2) have occurred. TR Offshore 00:14:02.418 --> 00:14:07.190 be assessed an administrative penalty of $28,808 and 00:14:07.200 --> 00:14:10.219 be ordered to bring the subject leases into compliance. 00:14:10.229 --> 00:14:13.109 No exceptions were filed, I'm available for questions. 00:14:13.149 --> 00:14:16.460 Thank you. Are there any questions? Jessica Misdoes 00:14:16.469 --> 00:14:19.779 on behalf of TR Offshore has registered, is available 00:14:19.788 --> 00:14:21.759 for any questions. Are there any questions of her? 00:14:22.879 --> 00:14:25.580 All right. I move we approve the Examiner's recommendation. 00:14:25.590 --> 00:14:29.349 Is there a second? Second by Commissioner Christian. All those 00:14:29.359 --> 00:14:33.389 in favor, say aye. Aye. Motion passes, those items are approved. 00:14:34.269 --> 00:14:38.710 And fourteen, fifteen. Kristy, I'd like to, to pass this. And I, 00:14:38.719 --> 00:14:41.690 if Commissioners don't mind. I'd like some more time 00:14:41.700 --> 00:14:46.139 to study this, these particular ones. All right, thank 00:14:46.149 --> 00:14:50.500 you very much. Thank you very much. All right, we're going to the Oil and 00:14:50.509 --> 00:14:53.989 Gas Consent Agenda. Items 16-50. There are 00:14:54.000 --> 00:14:57.408 35 items on the Consent Agenda. Are there any questions? 00:14:57.940 --> 00:15:01.119 All right. I move that we approve items 16-50. Is 00:15:01.129 --> 00:15:04.428 there a second? Second by Commissioner Wright. All in favor, 00:15:04.440 --> 00:15:08.450 say aye. Aye. Motion passes, those items are approved. Master 00:15:08.460 --> 00:15:12.500 Default Orders, Items 51-87. There are 37 00:15:12.509 --> 00:15:16.029 Master Default Orders. I move that we approve Items 00:15:16.038 --> 00:15:20.399 51-87. Is there a second? Second by Commissioner Christian. All 00:15:20.408 --> 00:15:24.450 in favor, say aye. Aye. Motion passes, those items are approved. 00:15:24.460 --> 00:15:29.000 Agreed Enforcement Orders, Items 88-330. There 00:15:29.009 --> 00:15:33.200 are 246 agreed enforcement orders. I move that we approve 00:15:33.210 --> 00:15:37.019 Items 88-330. Is there a second? Second by Comm. 00:15:37.820 --> 00:15:41.558 Whoa, sorry. Excuse me. I'm sorry, is there one? 333. It's 333. Oh did, what did I say? 00:15:41.570 --> 00:15:44.950 330. Oh, you're right. 333. Thank you for the catch, 00:15:44.960 --> 00:15:48.090 I appreciate it. Numbers are not always my stronghold 00:15:48.500 --> 00:15:51.340 sometimes. All right. So I move we approve items 88- 00:15:51.349 --> 00:15:55.219 333. Thank you. Uh, is there a second? Second by 00:15:55.229 --> 00:15:58.389 Commissioner Wright. All in favor, say aye. Aye. Motion 00:15:58.399 --> 00:16:01.210 passes, those items are approved. And that concludes 00:16:01.219 --> 00:16:05.178 the Hearings Division. And um, we're gonna take up 00:16:05.190 --> 00:16:08.719 Administrative. Thank you, 00:16:08.719 --> 00:16:12.369 General Counsel. Good morning. Good morning, Chairman and Commissioners. Morning. 00:16:12.379 --> 00:16:15.070 I'm Betsy Peticolas, Staff Attorney with the Office of General 00:16:15.080 --> 00:16:18.200 Counsel. I have 2 updates for the Commission this 00:16:18.210 --> 00:16:23.399 morning. First, an update in the, to the litigation 00:16:23.408 --> 00:16:28.058 challenging EPA's disapproval of Texas's State Implementation 00:16:28.070 --> 00:16:32.899 Plan concerning the transport of ozone emissions. As 00:16:32.908 --> 00:16:36.779 you recall, the issuance or disapproval of the State 00:16:36.788 --> 00:16:40.750 Implementation Plan is a prerequisite to EPA instituting 00:16:40.759 --> 00:16:45.489 a Federal Implementation Plan. The Fifth Circuit recently 00:16:45.500 --> 00:16:49.080 issued an order that denied EPA's motion to dismiss 00:16:49.090 --> 00:16:52.639 or trans or in the alternative to transfer motion, uh transfer 00:16:52.649 --> 00:16:57.119 venue to the D.C. Circuit. In addition, the court granted 00:16:57.129 --> 00:17:00.558 a stay of the rule pending the review of the EPA's 00:17:00.808 --> 00:17:05.269 action. Um, Office of General Counsel is continuing 00:17:05.279 --> 00:17:07.588 to work with the office of the Attorney General on 00:17:07.598 --> 00:17:10.439 this matter. And will keep the Commission apprised of 00:17:10.449 --> 00:17:15.170 any new developments. Second, we have a new rule from 00:17:15.180 --> 00:17:18.719 EPA. That sets new source performance standards for 00:17:18.729 --> 00:17:23.250 greenhouse gas emissions from new, modified and reconstructed 00:17:23.259 --> 00:17:27.348 fossil fuel fired, electric generating units. As part 00:17:27.358 --> 00:17:30.979 of a larger suite of regulatory actions for power plants. 00:17:31.358 --> 00:17:34.670 This rule would establish standards and emission guidelines 00:17:34.680 --> 00:17:38.799 for greenhouse gas emissions. From new fossil fuel fired 00:17:38.809 --> 00:17:42.920 stationary combustion turbines, steam generating units 00:17:42.930 --> 00:17:47.400 that undertake a large modification. Existing fossil 00:17:47.410 --> 00:17:51.130 fuel fired steam generating, electric generating units. 00:17:51.140 --> 00:17:55.930 Including both coal, and oil and gas fired units. And 00:17:55.939 --> 00:18:00.750 certain existing gas fired combustion turbines. In 00:18:00.759 --> 00:18:05.699 addition, this rule proposes to repeal EPAs affordable 00:18:05.709 --> 00:18:09.509 clean energy rule. Staff is currently reviewing the 00:18:09.519 --> 00:18:12.818 prepublication version of this rule. To determine whether 00:18:12.828 --> 00:18:17.009 we should uh, prepare comments and submit. And that concludes 00:18:17.019 --> 00:18:19.009 my updates this morning. But I'm happy to take any 00:18:19.019 --> 00:18:22.868 questions. Thank you. Are there any questions? They 00:18:22.880 --> 00:18:25.959 just keep coming. So, thank you very much for the update. Thank you. 00:18:28.209 --> 00:18:32.400 All right. Item 335. 00:18:32.400 --> 00:18:36.509 Good morning, Chairman and Commissioners. For 00:18:36.519 --> 00:18:39.949 the record, I am Theresa Lopez, Director of Operations. 00:18:40.358 --> 00:18:44.328 Item 335 on the Agenda pertains to the Commissioner 00:18:44.338 --> 00:18:47.789 approval of a contract pursuant to the Commission's 00:18:47.799 --> 00:18:53.930 delegation of authority, under section 2261.254 of the 00:18:53.939 --> 00:18:57.910 Texas Government Code. The Commission's internal delegation 00:18:57.920 --> 00:19:01.380 of authority and the government code requires Commissioner 00:19:01.390 --> 00:19:04.949 approval of contracts and associated amendments. Greater 00:19:04.959 --> 00:19:09.650 than or equal to $1 million. At issue today, are 5 00:19:09.660 --> 00:19:13.189 contract amendments for well plugging and related services. 00:19:13.410 --> 00:19:16.989 Approval of these Agenda Items will ensure the agency 00:19:17.000 --> 00:19:20.910 has the necessary approvals. And will be in place, pursuant 00:19:20.959 --> 00:19:23.900 to the Commission's delegation of authority and state 00:19:23.910 --> 00:19:27.719 law for the projects to proceed timely. A summary of 00:19:27.729 --> 00:19:30.150 the amendment terms including contract numbers and 00:19:30.160 --> 00:19:33.650 amounts are included in your notebooks. Staff asked 00:19:33.660 --> 00:19:36.529 the Commission's, commission to approve the contract 00:19:36.539 --> 00:19:39.078 amendments, pursuant to the Commission's delegation 00:19:39.088 --> 00:19:41.719 of authority. I'm available for any questions. Thank 00:19:41.729 --> 00:19:44.469 you. Are there any questions? I move we approve the 00:19:44.479 --> 00:19:47.949 Staff's recommendation. Is there a second? Second by Commissioner 00:19:47.959 --> 00:19:51.039 Christian. All in favor, say aye. Aye. Motion passes, that 00:19:51.049 --> 00:19:53.400 item approved. Thank you, Theresa. You can come up any time 00:19:53.410 --> 00:19:56.930 We'll just leave Randall, gone. 00:19:56.930 --> 00:19:58.739 You can tell him I said so, when he comes back too. 00:19:58.750 --> 00:20:03.410 All right. Um, Item 336 is our Public Participation. 00:20:03.420 --> 00:20:06.598 Item, we have 2 people registered to speak. Um, Mr. 00:20:06.608 --> 00:20:10.689 White, will you come up. And up and state your name 00:20:10.699 --> 00:20:19.160 and who you represent? Thank you. 00:20:19.160 --> 00:20:23.469 Excuse me, I'm Skyler White from Goldsmith, Texas. 00:20:23.759 --> 00:20:26.920 I'm here representing myself. I don't work for anybody, 00:20:26.930 --> 00:20:28.900 I just work for myself. I paid my own way to get 00:20:28.910 --> 00:20:32.229 here. Uh in fact, I'm gonna go out on a pretty short 00:20:32.239 --> 00:20:34.250 limb. And say that I'm probably the only person in this 00:20:34.259 --> 00:20:38.140 room, that's not being paid to be here. This uh, well 00:20:38.150 --> 00:20:41.959 here on the ranch. Uh, you plugged it last uh, about 00:20:41.969 --> 00:20:46.959 a year and a half ago. Spent $270,000 on this well, 00:20:46.969 --> 00:20:52.239 it's a 1600 ft. well. You only plugged it to 750 ft. 00:20:53.838 --> 00:20:56.969 This well right here, you got to remember it. That's 00:20:56.979 --> 00:21:01.608 the (inaudible) No. 5. You spent $899,000 on this well, 00:21:02.098 --> 00:21:05.769 it's about 1800 ft TD well. You only plugped it to 00:21:05.779 --> 00:21:11.789 550 ft. My question is you know it's, it's beyond 00:21:11.799 --> 00:21:14.368 embarrassing. That y'all are so far behind on these 00:21:14.380 --> 00:21:17.979 orphan wells. But it's really egregious, when you 00:21:17.989 --> 00:21:20.828 get on these wells, you don't plug them properly. You 00:21:20.838 --> 00:21:24.880 make all these operators go to TD. Go down to the 00:21:24.890 --> 00:21:27.219 bottom and plug these wells at the bottom. If you don't 00:21:27.229 --> 00:21:30.598 plug these, start at the bottom and plug up. Bad things 00:21:30.608 --> 00:21:34.400 happen to these wells. Case in point that sink hole 00:21:34.410 --> 00:21:36.979 on FM 1053. They just plugged that thing at the 00:21:36.989 --> 00:21:40.449 top, made a sinkhole. Bad things happen when you don't 00:21:40.459 --> 00:21:43.150 plug these wells from the bottom up. There's pressure 00:21:43.160 --> 00:21:46.368 under there, you gotta isolate them zones. All sorts 00:21:46.380 --> 00:21:49.229 of things you need to do to, to uh make sure you 00:21:49.239 --> 00:21:52.618 get cement where it needs to be. I'm just a dumb rancher. 00:21:52.858 --> 00:21:55.858 I'm not a geologist. Don't have the degrees and all 00:21:55.868 --> 00:21:58.019 that. But I'm smart enough to know, that this ain't 00:21:58.029 --> 00:22:02.000 the way to plug wells. Why are you plugging the wells 00:22:02.009 --> 00:22:04.750 this way? Why are you doing that? There's several of 00:22:04.759 --> 00:22:06.818 these on the ranch. This is just two of them, but there's 00:22:06.828 --> 00:22:09.979 more of them that you're plugging this way. Why are 00:22:09.989 --> 00:22:14.670 you doing that? 00:22:14.670 --> 00:22:16.489 I don't, I don't have the answer for you. But I can 00:22:16.500 --> 00:22:19.578 find the answer for you, Mr. White. I, I'd appreciate 00:22:19.588 --> 00:22:22.650 it. It's gonna cost, this is just a Band-Aid. It's 00:22:22.660 --> 00:22:26.650 not the right way to do this. Also, I got 2 more 00:22:26.660 --> 00:22:31.049 wells to bring to you. This, this well is the Heat Sea 00:22:31.059 --> 00:22:34.689 No. 15. Uh, this well is not flowing the surface 00:22:34.699 --> 00:22:38.709 yet, but it's going to. Uh the uh, uh I think the 00:22:38.719 --> 00:22:44.269 casings parted on it. Uh, this well here is the Eaton 00:22:44.279 --> 00:22:47.729 Kim No. 12. 00:22:47.729 --> 00:22:50.289 Number 12, maybe No. 11. I can't remember. Anyway 00:22:50.299 --> 00:22:53.449 it's right next to the Eaton Kim No. 5. You're gonna have 00:22:53.459 --> 00:22:56.029 fun with this one. Because it's uh, it doesn't have well 00:22:56.039 --> 00:23:00.910 head. It's leaking from down below the surface, no 00:23:00.920 --> 00:23:04.789 telling what's stuck in the hole. You know, the one 00:23:04.799 --> 00:23:07.180 right next to it. You spent 900,000 on it. You're gonna 00:23:07.189 --> 00:23:11.309 have fun with this one. So, uh 00:23:11.309 --> 00:23:14.229 that's all I got to say. Thank you. Thank you, Mr. White. 00:23:17.309 --> 00:23:22.618 Virginia Palacios. 00:23:22.618 --> 00:23:25.029 Good morning. Morning. My name is Virginia Palacios. I'm the 00:23:25.039 --> 00:23:27.920 Executive Director of Commission Shift. Um, our Staff 00:23:27.930 --> 00:23:29.969 has been reading the draft monitoring and enforcement 00:23:29.979 --> 00:23:33.568 plan for fiscal year 2024. We're really happy to see 00:23:33.578 --> 00:23:35.489 that some of the new goals in the plan appear to be 00:23:35.500 --> 00:23:38.650 responsive of our prior comments. And so it's, it's 00:23:38.660 --> 00:23:41.049 just good to see that. Um, and I just want to thank 00:23:41.059 --> 00:23:43.809 you for listening and for working to communicate with 00:23:43.818 --> 00:23:47.368 the public. Um we've been, we will be providing written 00:23:47.380 --> 00:23:50.989 comments by the deadline on May 26th. Uh and last week, 00:23:51.000 --> 00:23:53.430 we held a virtual meeting for members of the public. 00:23:53.439 --> 00:23:56.549 To explain, you know, what we've read in the plan and 00:23:56.559 --> 00:23:59.118 to get their impressions of that. And hear what kind 00:23:59.130 --> 00:24:01.430 of experiences they've had with the Railroad Commission's 00:24:01.439 --> 00:24:04.348 monitoring and enforcement process. And so we'll be 00:24:04.358 --> 00:24:06.640 summarizing that feedback that we heard in our written 00:24:06.650 --> 00:24:09.750 comments. One area that we have some questions about 00:24:09.759 --> 00:24:13.769 is this section that explains barred operators. And 00:24:13.779 --> 00:24:17.598 so the plan explains that when operators are non compliant 00:24:17.608 --> 00:24:21.108 with inactive well requirements. The Commission suspends 00:24:21.118 --> 00:24:23.910 the authority of the company. The officers listed on 00:24:23.920 --> 00:24:27.299 the company's organization report, and any other company 00:24:27.309 --> 00:24:30.118 regulated by the Commission. That has common officers 00:24:30.130 --> 00:24:33.880 listed in its organization report, from conducting Commission 00:24:33.890 --> 00:24:37.519 regulated activities. Noncompliant officers are 00:24:37.529 --> 00:24:40.500 barred from renewal for 7 years and noncompliant 00:24:40.509 --> 00:24:44.680 entities are barred indefinitely. We analyze the list 00:24:44.689 --> 00:24:47.890 of inactive wells that is posted on the Railroad Commission's 00:24:47.900 --> 00:24:52.509 website and is current as of February 9th, 2022. Those 00:24:52.519 --> 00:24:55.578 are not supposed to be um, in those are not supposed 00:24:55.588 --> 00:24:57.608 to include orphaned wells. They're just inactive wells, 00:24:57.618 --> 00:25:00.489 that have been inactive for more than 12 months. From 00:25:00.500 --> 00:25:02.949 that inactive wells list, we noted which operators 00:25:02.959 --> 00:25:05.539 were also on the barred operators list. Which is also 00:25:05.549 --> 00:25:07.930 on the Commission's website and is current as of May 00:25:07.939 --> 00:25:13.539 5, 2021. So just over 5,300 wells on the inactive wells 00:25:13.549 --> 00:25:17.469 list are attributed to barred operators. Most of the 00:25:17.479 --> 00:25:19.529 operators appear to have been on the barred list for 00:25:19.539 --> 00:25:22.868 several years. And most of the wells are listed as having 00:25:22.880 --> 00:25:26.828 had a problem with their H-15 fluid level test or mechanical 00:25:26.838 --> 00:25:30.568 integrity test. Um, and so there might be some plausible 00:25:30.578 --> 00:25:32.809 reasons for this. And I, I just wanted, I was hoping 00:25:32.818 --> 00:25:35.459 that maybe we could get some answers to a few questions. 00:25:35.750 --> 00:25:39.068 Um first, what is the Commission's process for moving 00:25:39.078 --> 00:25:41.519 wells from the inactive wells list to the orphaned 00:25:41.529 --> 00:25:45.170 wells list? And should inactive wells of barred operators 00:25:45.180 --> 00:25:48.170 end up on the orphan wells list, and if not, why not? 00:25:48.789 --> 00:25:51.598 And then finally are, are barred operators are expected 00:25:51.608 --> 00:25:55.118 to be the ones that actually plug inactive wells after 00:25:55.130 --> 00:25:58.469 they've been barred? And you can also see just a summary 00:25:58.479 --> 00:26:02.598 table of, of these wells on Page 2 of my public input 00:26:02.608 --> 00:26:05.789 testimony. I, I don't know if anybody's available to 00:26:05.799 --> 00:26:08.939 answer, these questions. Thank you. Thank you for the questions and 00:26:08.949 --> 00:26:12.789 we'll, we'll um and thank you for commenting by May 00:26:12.799 --> 00:26:18.348 26th. We appreciate that. Thank you. Yes, appreciate it. 00:26:18.358 --> 00:26:22.049 Thank you. Um, Item 337 is our Executive Session Item, which we 00:26:22.059 --> 00:26:24.809 will not be going into today. Is there anything else 00:26:24.818 --> 00:26:28.299 that we need to consider? Hearing none, this meeting 00:26:28.309 --> 00:26:30.949 of the Railroad Commission is adjourned. Thank you all.