WEBVTT 00:00:00.009 --> 00:00:03.740 By adminmonitor.com will begin momentarily. Thank 00:00:03.750 --> 00:00:08.989 you for your patience. Morning, happy June. This meeting 00:00:09.000 --> 00:00:11.300 of the Railroad Commission of Texas will come to order. 00:00:11.310 --> 00:00:14.189 To consider matters which have been duly posted with 00:00:14.198 --> 00:00:18.579 the Secretary of State for June 20, 2023. Under our Public 00:00:18.589 --> 00:00:21.600 Participation Policy, anyone desiring to offer public 00:00:21.609 --> 00:00:25.039 testimony on any items that are not noticed on today's 00:00:25.048 --> 00:00:27.690 Agenda. Was required to register in advance and we had 00:00:27.699 --> 00:00:30.798 one person do so. The Commission will now consider 00:00:30.809 --> 00:00:33.859 Items on the Agenda as posted on the Agenda. Number 00:00:33.868 --> 00:00:37.168 one. 00:00:37.168 --> 00:00:41.179 Good morning. Good morning. 00:00:41.179 --> 00:00:43.079 Good morning, Chairman and Commissioners. Good morning. 00:00:43.118 --> 00:00:45.348 For the record, my name is Gary Gardner. Representing 00:00:45.359 --> 00:00:48.109 the Market Oversight Section, the Oversight and Safety 00:00:48.118 --> 00:00:51.590 Division. I will be presenting Items 1 and 2 today. 00:00:52.918 --> 00:00:57.270 Item No. 1 is Case No. 00012762. The application 00:00:57.279 --> 00:01:00.478 with Hooks Gas Pipeline, LLC for a Test Year in December 00:01:00.490 --> 00:01:05.939 22, 2022, Annual Interim Rate Adjustment. This case is 00:01:05.948 --> 00:01:09.010 the 2nd interim rate adjustment to company files. Since 00:01:09.019 --> 00:01:11.528 the final order was issued in the most recent Statement 00:01:11.540 --> 00:01:18.980 of Intent Docket No. OS20000866. This adjustment 00:01:18.989 --> 00:01:24.500 represents an increase of $660,693 which is recoverable 00:01:24.510 --> 00:01:27.719 from the company's transportation customers. Staff 00:01:27.730 --> 00:01:32.519 recommends approval of interim rate adjustment as advised. And I'm available for questions. 00:01:32.519 --> 00:01:35.879 Thank you. Are there any questions? No. I move that we approve the Examiner's 00:01:35.888 --> 00:01:38.948 recommendation. Is there a second? Second. Second by Commissioner 00:01:38.959 --> 00:01:42.230 Christian? All in favor, say aye. Aye. Motion passes, that 00:01:42.239 --> 00:01:49.569 item's approved. Number two. Agenda Item No. 2 is Case No. 00012782. The application of 00:01:49.579 --> 00:01:54.319 CenterPoint Energy Entex for Test Year 2022 Annual 00:01:54.329 --> 00:01:56.730 Interim Rate Adjustment for the unincorporated areas 00:01:56.739 --> 00:01:59.930 of the Beaumont/East Texas Division and the cities 00:01:59.939 --> 00:02:02.120 that have ceded jurisdiction to the Railroad Commission 00:02:02.129 --> 00:02:05.569 of Texas. This case is the 3rd Interim Rate Adjustment 00:02:05.579 --> 00:02:08.179 the company has filed since the final order was issued. 00:02:08.189 --> 00:02:11.058 In the most recent Statement of Intent Gas Utilities 00:02:11.069 --> 00:02:15.460 Docket No. 10920. This adjustment represents an 00:02:15.469 --> 00:02:26.330 increase of $7,279,247 of which $2,714,238 is allocated 00:02:26.338 --> 00:02:29.129 to customers, subject to the order of this case. The 00:02:29.139 --> 00:02:31.889 Staff recommends approval of the Interim Rate Adjustment. 00:02:31.969 --> 00:02:34.508 I'm available for questions. Thank you. Are there any questions? 00:02:34.520 --> 00:02:37.960 No. All right. I move we approve the Examiner's recommendations. 00:02:37.969 --> 00:02:42.729 Is there a second? Second. Second by Commissioner Wright. Don't mess me up, already. I mean. Okay, I'm trying. 00:02:42.729 --> 00:02:46.179 Um all in favor, say aye. Aye. Motion passes, that item's approved. 00:02:46.189 --> 00:02:49.300 Thank you. Golly, I had it down. I was trying to 00:02:49.300 --> 00:02:50.919 the initials right here. Messed up. 00:02:50.919 --> 00:02:56.038 Number three, good morning. Good morning, Chairman and Commissioners. For the record, 00:02:56.050 --> 00:02:59.710 my name is Mimi Winetroub and I'm representing the Market Oversight 00:02:59.719 --> 00:03:03.038 Section in the Oversight and Safety Division. Agenda 00:03:03.050 --> 00:03:07.338 Item No. 3 is Case No. 12779. The application 00:03:07.349 --> 00:03:10.929 of CenterPoint Energy Entex for the Test Year 2022 00:03:10.939 --> 00:03:14.058 Annual Interim Rate Adjustment for the unincorporated 00:03:14.069 --> 00:03:17.080 areas of the Houston Division and cities that are ceded 00:03:17.088 --> 00:03:20.558 jurisdiction to the Commission. This case is the 6th 00:03:20.689 --> 00:03:23.338 interim rate adjustment the company has filed for the Houston 00:03:23.349 --> 00:03:26.300 Division. Since the final order was issued in the most 00:03:26.308 --> 00:03:29.889 recent Statement of Intent Gas Utility Docket No. 00:03:29.899 --> 00:03:39.558 10567. This adjustment represents an increase of $35,528,207 00:03:39.569 --> 00:03:47.710 of which $18,221,554 is recoverable from customers, 00:03:47.719 --> 00:03:51.080 subject to the order of this case. Staff recommends 00:03:51.088 --> 00:03:54.800 approval of the interim rate adjustment as filed. I'm available 00:03:54.808 --> 00:03:57.588 for questions. Thank you. Are there any questions? I 00:03:57.639 --> 00:04:00.058 move we approve the Examiner's recommendations. Is 00:04:00.069 --> 00:04:03.558 there a second? Second. Second by Commissioner Christian. All in favor, say 00:04:03.569 --> 00:04:06.368 aye. Aye. Motion passes, that item's approved. Thank you, Mimi. 00:04:08.159 --> 00:04:11.838 Item No. 4. 00:04:11.838 --> 00:04:14.979 Good morning, Chairman and Commissioners. For the record, 00:04:14.990 --> 00:04:17.298 My name is David Bauman. I am representing the Market 00:04:17.309 --> 00:04:19.829 Oversight Section of the Oversight and Safety Division. 00:04:20.449 --> 00:04:25.470 Agenda No. 4 is Case No. 12780. The application 00:04:25.480 --> 00:04:29.480 of CenterPoint Energy Entex for Test Year 2022 Annual 00:04:29.488 --> 00:04:32.569 Interim Rate Adjustment for the unincorporated areas 00:04:32.579 --> 00:04:35.759 of the Texas coast, uh Texas Coast Division and the 00:04:35.769 --> 00:04:38.028 cities that have ceded jurisdiction to the Railroad 00:04:38.040 --> 00:04:41.149 Commission of Texas. This case represents the 6th 00:04:41.160 --> 00:04:43.649 interim rate adjustment. Since the company's last Rate 00:04:43.660 --> 00:04:50.040 Case of Gas Utility Docket 10567. This adjustment represents 00:04:50.048 --> 00:04:56.608 an incremental increase of $9,449,108. Of which 00:04:56.619 --> 00:05:02.209 $3,630,117 is recoverable to customers, subject to the 00:05:02.220 --> 00:05:05.108 order in this case. The Staff recommends approval 00:05:05.119 --> 00:05:07.838 of the interim rate adjustment. I'm available for questions. 00:05:08.048 --> 00:05:10.790 Thank you. Are there any questions? I move we approve 00:05:10.798 --> 00:05:14.199 the Examiner's recommendations. Is there a second? Second. Second by Commissioner 00:05:14.209 --> 00:05:17.129 Wright. All in favor, say aye. Aye. Motion passes, that 00:05:17.290 --> 00:05:22.028 item's approved. Thank you. 00:05:22.028 --> 00:05:26.189 Good morning. Good morning. Uh for the record. My name 00:05:26.199 --> 00:05:30.399 is (inaudible) representing the Oversight and Safety Division 00:05:30.750 --> 00:05:37.209 Agenda Item No. 5 is Case No., uh 00012781. 00:05:37.220 --> 00:05:41.199 Application of CenterPoint Energy Entex for Test 00:05:41.278 --> 00:05:46.358 Year 2022 Annual Interim Rate Adjustment. For the unincorporated 00:05:46.369 --> 00:05:50.983 areas of the South Texas Division and cities that have 00:05:51.535 --> 00:05:54.754 ceded jurisdiction to the Railroad Commission of Texas. 00:05:54.894 --> 00:05:58.363 This case is the 5th interim rate adjustment the 00:05:58.375 --> 00:06:02.035 company has filed for the South Texas Division. Since 00:06:02.045 --> 00:06:05.834 the final order was issued in the most recent Statement 00:06:05.845 --> 00:06:11.199 of Intent Gas Utility Docket No. 10669. Um, the 00:06:11.209 --> 00:06:19.290 adjustment represented in this IRA filing is $7,723,694 00:06:19.298 --> 00:06:27.540 of which $2,944,181 is recoverable from the customers 00:06:27.600 --> 00:06:31.660 in the South Texas Division, subject to Commission uh, 00:06:31.670 --> 00:06:35.899 jurisdiction. I recommend approval of the interim rate 00:06:35.920 --> 00:06:40.000 adjustment as filed and I'm available for any questions. Thank you. 00:06:40.009 --> 00:06:43.350 Are there any questions? All right. I move we approve the 00:06:43.358 --> 00:06:46.809 Examiner's recommendations. Is there a second? Second. Second by Commissioner 00:06:46.819 --> 00:06:49.879 Christian. All in favor, say aye. Aye. Motion passes, that 00:06:49.889 --> 00:06:54.439 item's approved. Thank you. Item No. 6. 00:06:54.439 --> 00:07:01.319 Good morning, Chairman and Commissioners. 00:07:01.319 --> 00:07:04.660 For the record, my name is Claudia Godoy. I'm representing 00:07:04.670 --> 00:07:07.838 the Market Oversight Section of the Oversight and Safety 00:07:07.850 --> 00:07:11.269 Division. I will be, I will be presenting Agenda Items 00:07:11.278 --> 00:07:14.838 Nos. 6-7 this morning. Agenda Item No. 00:07:14.850 --> 00:07:19.829 6 is Case No. 12763. The application of Universal 00:07:19.838 --> 00:07:23.809 Natural Gas Inc., for Test Year 2022 Annual 00:07:23.819 --> 00:07:26.319 Interim Rate Adjustment for the unincorporated service 00:07:26.329 --> 00:07:30.939 areas. This case represents the 2nd interim rate adjustment. 00:07:30.949 --> 00:07:33.379 Since the company's most recent Statement of Intent 00:07:33.619 --> 00:07:39.439 Docket No. OS-204865. This adjustment represents 00:07:39.449 --> 00:07:46.428 an incremental increase of $3,366,785 of which 00:07:46.439 --> 00:07:52.410 $3,209,250 is allocated to customers, subject to the 00:07:52.420 --> 00:07:55.415 order in this case. Staff recommends approval of the 00:07:55.423 --> 00:07:58.553 interim rate adjustment as, as revised. I'm available to answer 00:07:58.564 --> 00:08:01.744 questions. Thank you. Are there any questions? I 00:08:01.754 --> 00:08:04.855 move we approve the Examiner's recommendations. Is there a second? Second. 00:08:04.863 --> 00:08:07.994 Second by Commissioner Wright. All in favor, say aye. Aye. Motion 00:08:08.004 --> 00:08:11.665 passes, that item's approved. Number seven, thank you. Agenda 00:08:11.673 --> 00:08:15.514 Item No. 7 is Case No. 12849. The application 00:08:15.524 --> 00:08:20.170 of Texas Gas Service company for Test Year 2022 Annual 00:08:20.178 --> 00:08:22.970 Interim Rate Adjustment for the West North service area. 00:08:23.230 --> 00:08:25.850 This case represents the 1st interim rate adjustment. 00:08:25.858 --> 00:08:28.519 Since the company's last Statement of Intent Docket 00:08:28.528 --> 00:08:33.769 No. OS-229896. The adjustment represents an incremental 00:08:33.779 --> 00:08:42.875 increase of $7,258,023 of which $656,699 is allocated 00:08:42.884 --> 00:08:46.085 to customers, subject to the order in this case. Staff 00:08:46.094 --> 00:08:48.815 recommends approval of the interim rate adjustment as revised. 00:08:48.825 --> 00:08:51.484 I'm available for questions. Thank you. Are there any 00:08:51.494 --> 00:08:54.734 questions? No. I move we approve the Examiner's recommendations. 00:08:54.744 --> 00:08:57.894 Is there a second? Second. Second by Commissioner Christian. All in favor, 00:08:57.904 --> 00:09:01.053 say aye. Aye. Motion passes, that item's approved. Thank you. 00:09:01.205 --> 00:09:03.399 Good morning, John. 00:09:03.399 --> 00:09:07.058 Good morning Chairman, Commissioners. Administrative Law Judge, John Dodson with 00:09:07.070 --> 00:09:12.048 the Hearings Division. Agenda Item 8, OS-2310813 00:09:12.058 --> 00:09:15.678 is an unprotested request filed by INEOS Chocolate 00:09:15.690 --> 00:09:20.099 Bayou Pipeline, LLC. For a waiver of certain remediation 00:09:20.109 --> 00:09:22.619 requirements for a non injurious dent discovered in 00:09:22.629 --> 00:09:25.389 a pipeline segment. The Commission's Pipeline Safety 00:09:25.399 --> 00:09:27.668 Department administratively reviewed the application 00:09:27.678 --> 00:09:30.099 and recommends approval, subject to certain conditions. 00:09:30.629 --> 00:09:32.739 The applicant was given an opportunity to review these 00:09:32.750 --> 00:09:35.538 conditions and does not oppose them. There was no hearing 00:09:35.548 --> 00:09:38.658 in this docket, consistent with Commission Rule 8.125. 00:09:38.668 --> 00:09:41.099 Pipeline Safety forwarded the application to hearings 00:09:41.109 --> 00:09:44.369 to prepare a written order. The proposed order approves 00:09:44.379 --> 00:09:46.658 the applicant's waiver request and incorporates all 00:09:46.668 --> 00:09:49.399 of Pipeline Safety's recommended conditions. I'm available 00:09:49.408 --> 00:09:52.570 for questions. Thank you. Are there any questions? No. I 00:09:52.580 --> 00:09:54.580 move we approve the Examiner's recommendation. Is there 00:09:54.590 --> 00:09:58.080 a second? Second. Second by Commissioner Wright. All in favor, say aye. 00:09:58.090 --> 00:10:01.149 Aye. Motion passes, that item's approved. Thank you, John. Agenda 00:10:01.200 --> 00:10:06.149 Item 9 is, is for a suspension order in OS-23-13758. A 00:10:06.210 --> 00:10:10.178 Gas Utility Rate Case filed by Atmos Pipeline-Texas. For 00:10:10.190 --> 00:10:13.190 this type of proceeding, the Utilities Code authorizes 00:10:13.200 --> 00:10:15.840 the Commission to suspend operation of the proposed 00:10:15.849 --> 00:10:18.690 rates. For up to 150 days from when they otherwise would 00:10:18.700 --> 00:10:21.548 become effective. Consistent with this authority, the 00:10:21.558 --> 00:10:24.379 recommendation here is to issue a 150 day suspension 00:10:24.389 --> 00:10:26.869 order. Which will allow Hearings Division sufficient 00:10:26.879 --> 00:10:29.979 time to evaluate (inaudible). I'm available for questions. 00:10:29.979 --> 00:10:32.690 Thank you. Are there any questions? No. I move we approve 00:10:32.700 --> 00:10:36.119 the Examiner's recommendations. Is there a second? Second. Second by Commissioner 00:10:36.129 --> 00:10:39.239 Christian. All in favor, say aye. Aye. Motion passes, that 00:10:39.250 --> 00:10:42.979 item's approved. Thank you. 00:10:42.979 --> 00:10:49.639 Item Number 10. 00:10:49.639 --> 00:10:51.509 Good morning, Chairman and Commissioners. For the record, 00:10:51.519 --> 00:10:53.769 my name is Brian Rutledge, Administrative Law Judge 00:10:53.779 --> 00:10:57.320 with the Hearings Division. Item No. 10 is an application 00:10:57.330 --> 00:11:00.139 by San Miguel Electric Cooperative, Inc. For acceptance 00:11:00.149 --> 00:11:02.548 of replacement blanket self-bonds with third-party 00:11:02.558 --> 00:11:07.590 guarantees for Permit Nos. 11H, 52A, 60, and proposed 00:11:07.599 --> 00:11:12.229 Area XYZ, San Miguel Lignite Mine located in Atascosa and 00:11:12.239 --> 00:11:16.129 McMullen Counties. Third-Party guarantees and indemnity 00:11:16.139 --> 00:11:18.690 agreements are by National Rural Utilities Cooperative 00:11:18.700 --> 00:11:22.658 Finance Corporation or CFC. Currently, there are two 00:11:22.668 --> 00:11:24.940 approved blanket bond instruments in effect for percent 00:11:24.950 --> 00:11:28.158 San Miguel mine in the amounts of $131 million and $9 million 00:11:28.168 --> 00:11:32.519 for a total of $140 million. Staff's most recent reclamation 00:11:32.529 --> 00:11:35.759 cost estimate for the subject premises is 00:11:35.849 --> 00:11:41.509 $161,842,495. Acceptance of the proffer replacement bond 00:11:41.519 --> 00:11:43.710 will result in an increase of total bond amount from 00:11:43.719 --> 00:11:48.719 $140 million to $166 million. Exceeding approved reclamation 00:11:48.729 --> 00:11:53.820 costs for the subject permits by $4,157,505. 00:11:53.830 --> 00:11:58.570 And is therefore sufficient in amount evidence 00:11:58.580 --> 00:12:00.989 has been presented that San Miguel and CFC meet the 00:12:01.000 --> 00:12:03.719 elements required for self bonding and for acceptance 00:12:03.729 --> 00:12:07.000 of replacement (inaudible) bonds. San Miguel and Staff 00:12:07.009 --> 00:12:09.489 are the only parties to the proceedings and no exceptions 00:12:09.500 --> 00:12:12.590 are filed to the proposed order. It is recommended 00:12:12.599 --> 00:12:15.129 the Commission accept the proffered blanket bonds. To replace 00:12:15.139 --> 00:12:17.719 the existing bonds for San Miguel statewide mining 00:12:17.729 --> 00:12:20.820 operations. Available for questions. Thank you. Are there 00:12:20.830 --> 00:12:24.288 any questions? No. I move we approve the Examiner's recommendation. 00:12:24.298 --> 00:12:27.369 Is there a second? Second. Second by Commissioner Wright. All in favor, 00:12:27.379 --> 00:12:34.889 say aye. Aye. Motion passes, that item's approved. Thank you Brian. 00:12:34.889 --> 00:12:37.739 Good morning. Good morning. Morning. Chairman, commissioners. 00:12:37.750 --> 00:12:40.210 For the record, my name is Christy Reid, Administrative 00:12:40.219 --> 00:12:43.099 Law Judge with the Hearings Division. I will be presenting 00:12:43.109 --> 00:12:48.349 Item Nos. 11-15. Item No. 11 is the Single 00:12:48.359 --> 00:12:52.788 Signature Form P-4 application of WTXR. To be named 00:12:52.798 --> 00:12:56.340 the operator of record for the subject lease. The application 00:12:56.349 --> 00:12:59.690 was protested by Renegade Operating Company, the current 00:12:59.700 --> 00:13:04.500 operator of record. WTXR provided a reasonably satisfactory showing 00:13:04.509 --> 00:13:07.590 of a good faith claim. Sufficient to be named the operator 00:13:07.599 --> 00:13:12.178 of record for the lease. WTXR's form P-5 organization 00:13:12.190 --> 00:13:17.109 report is active. Renegade did not present any evidence 00:13:17.320 --> 00:13:20.090 to oppose WTXR's good faith 00:13:20.090 --> 00:13:23.349 claim. Renegade argued it has a good faith claim right 00:13:23.359 --> 00:13:26.320 to plug the well. Which is a misapplication of the 00:13:26.330 --> 00:13:30.038 definition of a good faith claim. Renegade failed to provide 00:13:30.048 --> 00:13:33.379 any evidence to support its contention. It is recommended 00:13:33.389 --> 00:13:36.879 the application be approved. No exceptions were filed, 00:13:36.889 --> 00:13:39.229 I'm available for questions. Thank you. Are there any 00:13:39.239 --> 00:13:43.158 questions? No. All right. Jessica Mendoza, representing 00:13:43.168 --> 00:13:46.320 WTRX is preregistered and is available for questions. 00:13:46.330 --> 00:13:50.340 Does anybody have any questions of her? No. All right. I 00:13:50.349 --> 00:13:53.000 move we approve the Examiner's recommendations. Is there a second? 00:13:53.450 --> 00:13:56.029 Second. Second by Commissioner Christian. All in favor, say aye. 00:13:56.119 --> 00:13:59.960 Aye. Motion passes, that item's approved. 12 and 13 are together, 00:13:59.969 --> 00:14:03.529 right? Yes ma'am. And this will require one vote and 00:14:03.538 --> 00:14:06.960 it's one order. Okay. Sinclair filed two applications 00:14:06.969 --> 00:14:09.250 for forced pulling under the Mineral Interest Pulling 00:14:09.259 --> 00:14:12.440 Act. The applications are to form two units in the 00:14:12.450 --> 00:14:15.798 Spraberry (Trend Area). Each unit will consist of 00:14:15.808 --> 00:14:19.678 more than one. Well, these applications are not substantially 00:14:19.690 --> 00:14:22.580 different. Than the prior Sinclair applications for 00:14:22.590 --> 00:14:25.940 the city of Big Spring. But for the inclusion of multiple 00:14:25.950 --> 00:14:30.058 wells per unit and the method of determining the applicability 00:14:30.070 --> 00:14:33.269 of the discovery date. Given the Spraberry (Trend Area) 00:14:33.279 --> 00:14:36.558 fields, discovery date is prior to MPAs applicability. 00:14:37.460 --> 00:14:41.149 The Examiners found that the multiple well issue was 00:14:41.158 --> 00:14:44.798 resolved. Given that MPA was codified after the effective 00:14:44.808 --> 00:14:47.830 date of the Code Construction Act. Which provides that 00:14:47.840 --> 00:14:51.928 plural and singular within Texas statutes may be read 00:14:51.940 --> 00:14:56.908 as either, unless specifically prohibited. This leaves 00:14:56.918 --> 00:15:00.590 the discovery date for MPA applicability. In the prior 00:15:00.599 --> 00:15:03.408 City of Big Spring MPA's. The portion of the Spraberry 00:15:03.418 --> 00:15:06.609 where the wells were to be located was previously a 00:15:06.619 --> 00:15:10.369 separate field. Later consolidated into the Spraberry. 00:15:10.538 --> 00:15:14.000 That previous fields discovery date was after the applicability 00:15:14.009 --> 00:15:18.219 of MPA. It was that date that was used as a discovery 00:15:18.229 --> 00:15:21.229 date for the bench within the Sprayberry. In the present 00:15:21.239 --> 00:15:24.769 case, Sinclair stated the prior method used for determining 00:15:24.779 --> 00:15:28.308 the discovery date was not applicable to these wells. 00:15:28.509 --> 00:15:31.769 Sinclair provided several methods by which MPA may be 00:15:31.779 --> 00:15:35.379 applicable. The Examiners do not find any of the methods 00:15:35.389 --> 00:15:39.019 provided by Sinclair appropriate. However, the Examiners 00:15:39.029 --> 00:15:42.070 did find that given the lack of production within the 00:15:42.080 --> 00:15:45.239 formation in the area. The fact that there were no 00:15:45.250 --> 00:15:48.739 wells penetrating the formation in that area until 00:15:48.750 --> 00:15:52.869 1984. And the geological evidence regarding the Wolf 00:15:52.879 --> 00:15:57.859 Camp Formation. The designation as a UFT field applicability 00:15:57.869 --> 00:16:01.139 to MPA is plausible. However, due to the perceived 00:16:01.149 --> 00:16:04.239 expansion of the commission's prior approved methods 00:16:04.250 --> 00:16:06.788 for determining the discovery date for the Spraberry 00:16:06.798 --> 00:16:10.210 (Trend Area) field. For the purposes of MPA, the Examiners 00:16:10.219 --> 00:16:13.389 recommend denial of the application. Exceptions were 00:16:13.399 --> 00:16:16.408 filed, I'm available for questions. Thank you. Are 00:16:16.418 --> 00:16:19.940 there any questions? Uh Commissioners, I have a motion 00:16:19.950 --> 00:16:22.899 that's um different than what they're recommending 00:16:22.908 --> 00:16:26.119 a little bit. Um, I believe the evidence in these dockets 00:16:26.129 --> 00:16:28.989 was sufficient to show that the reservoirs the applicant 00:16:29.000 --> 00:16:32.538 seeks to pool. In the area of the proposed MPA units 00:16:32.548 --> 00:16:35.830 were discovered and produced after March 8, 1961 00:16:35.840 --> 00:16:39.830 for several reasons. The first well that was drilled 00:16:39.840 --> 00:16:42.359 deep enough to encounter any of the reservoirs is in 00:16:42.369 --> 00:16:46.590 the area of these units and was not drilled until 1984. 00:16:46.668 --> 00:16:50.000 The wolf camp formation was consolidated in the Spraberry 00:16:50.009 --> 00:16:54.619 (Trend Area) field, in 1993. The reservoirs in the Spraberry 00:16:54.820 --> 00:16:58.529 (Trend Area) field have been designated an unconventional 00:16:58.538 --> 00:17:02.889 fractured treated or UFT field. Which is not susceptible 00:17:02.899 --> 00:17:07.489 to mobile flow, mobile flow. I move that the applications 00:17:07.500 --> 00:17:10.848 be granted. Is there any discussion, any questions? 00:17:11.400 --> 00:17:15.588 All right. Is there a second? Second. Second by Commissioner Wright. 00:17:15.598 --> 00:17:20.289 All in favor, say aye. Aye. Motion passes. Yes, ma'am. The 00:17:20.299 --> 00:17:22.410 Hearings Division will provide a conforming order. 00:17:22.420 --> 00:17:28.077 Thank you. Item 14. Item No. 14 is the result of a good 00:17:28.087 --> 00:17:31.938 faith claim by Walton Ranch, LP. Alleging REO Operating 00:17:31.948 --> 00:17:34.489 LLC does not have a good faith claim to operate the 00:17:34.499 --> 00:17:38.337 subject lease. Walton Ranch provided sufficient evidence 00:17:38.347 --> 00:17:40.999 to show REO is the operator of record for the lease. 00:17:41.259 --> 00:17:45.420 And the lease has been inactive since 1995 and alleged 00:17:45.430 --> 00:17:48.368 REO does not have a good faith claim to operate. REO 00:17:48.380 --> 00:17:51.650 originally stated it did not have a valid lease and 00:17:51.660 --> 00:17:54.279 then subsequently provided an assignment as proof of 00:17:54.289 --> 00:17:57.809 its good faith claim. REO's assignment on its own is 00:17:57.818 --> 00:18:00.500 insufficient to show it has a good faith claim to operate 00:18:00.509 --> 00:18:03.328 the lease. It is recommended that the Commission find 00:18:03.338 --> 00:18:06.348 REO does not have a good faith claim. Order, the plugging 00:18:06.358 --> 00:18:09.809 extensions cancel, cancelled and order REO to plug and 00:18:09.818 --> 00:18:13.279 abandon the well. No exceptions were filed. I'm available 00:18:13.289 --> 00:18:16.949 for questions. Thank you. Are there any questions? I move 00:18:16.959 --> 00:18:19.019 we approve the Examiner's recommendation. Is there 00:18:19.029 --> 00:18:22.219 a second? Second. Second by Commissioner Christian. All in favor, 00:18:22.229 --> 00:18:25.140 say aye. Aye. Motion passes, that item's approved. Number 00:18:25.150 --> 00:18:29.459 15. Item No. 15 is the motion for rehearing of Vergo 00:18:29.469 --> 00:18:32.709 Patio Gardens, Inc. Following dismissal of the matter 00:18:32.719 --> 00:18:37.019 from the hearings division on April 27, 2023. On 00:18:37.029 --> 00:18:41.338 May 9, 2023, Vergo filed a motion for rehearing. On 00:18:41.348 --> 00:18:45.578 June 1, 2023, CommissionSstaff filed its reply. It 00:18:45.588 --> 00:18:48.088 is recommended the motion be denied. The motion will 00:18:48.098 --> 00:18:52.229 be overruled by operation of law on August 7, 2023. 00:18:52.239 --> 00:18:54.559 I'm available for questions. Thank you. Are there any 00:18:54.568 --> 00:18:57.269 questions? I move we approve the Examiner's 00:18:57.279 --> 00:19:00.578 recommendations. Is there a second? Second. Second by Commissioner Wright. 00:19:00.588 --> 00:19:03.799 All in favor, say aye. Aye. Motion passes, that item's approved. 00:19:03.848 --> 00:19:11.449 Thank you. Thank you. Item No. 16. 00:19:11.449 --> 00:19:13.549 Good morning, Chairman and Commissioners. Good morning. 00:19:13.709 --> 00:19:16.170 For the record, I am John Merculief, Administrative 00:19:16.180 --> 00:19:18.529 Law Judge with the Hearings Division. I will be presenting 00:19:18.539 --> 00:19:22.910 Item Nos. 16-21. Item No. 16 is a motion 00:19:22.920 --> 00:19:26.828 for rehearing. On April 26, 2023, the Commission issued 00:19:26.838 --> 00:19:29.289 an order denying the application of Maverick Energy 00:19:29.299 --> 00:19:33.750 Group, LLC for renewal of its P-5 organization report. 00:19:33.759 --> 00:19:36.689 A timely motion for rehearing was filed. Staff filed 00:19:36.699 --> 00:19:39.769 a timely reply to the motion. None of the issues it 00:19:39.779 --> 00:19:42.150 raised in the motion are new. All issues raised in 00:19:42.160 --> 00:19:44.868 the motion were previously raised by Maverick and considered 00:19:44.880 --> 00:19:47.709 by the Commission, prior to the Commission issuing the 00:19:47.719 --> 00:19:50.338 order, in this case. It is recommended the motion 00:19:50.348 --> 00:19:53.059 be denied. The motion will be overruled by operation 00:19:53.068 --> 00:19:55.420 of law on August 4. I'm available for questions. 00:19:55.630 --> 00:19:58.269 Thank you. Are there any questions? I move we approve 00:19:58.279 --> 00:20:02.118 the Examiner's recommendations. Is there a second? Second. Second by Commissioner 00:20:02.130 --> 00:20:05.299 Christian. All in favor, say aye. Aye. Motion passes, that 00:20:05.309 --> 00:20:09.598 item's approved. Item 17-21. Item No. 00:20:09.608 --> 00:20:12.709 17-21 are also a motion for rehearing. These 00:20:12.719 --> 00:20:15.059 items will be presented together, there is one order 00:20:15.068 --> 00:20:19.969 requiring one vote. On March 31, 2023, the Hearings Division 00:20:19.979 --> 00:20:22.358 signed a final order dismissing the protests of the 00:20:22.368 --> 00:20:25.279 City of Midland. To the applications of Pilot Water 00:20:25.289 --> 00:20:28.759 Gathering Delaware LLC to amend its permits for salt 00:20:28.769 --> 00:20:32.189 water disposal wells from commercial to non commercial. 00:20:32.578 --> 00:20:35.670 A timely motion for rehearing was filed. A timely reply 00:20:35.799 --> 00:20:38.729 opposing the motion was filed as well. None of the 00:20:38.739 --> 00:20:41.680 issues raised in the motion are new. All issues raised 00:20:41.689 --> 00:20:43.578 in the motion were previously raised by the City of 00:20:43.588 --> 00:20:46.588 Midland and considered by the Hearings Division, prior 00:20:46.598 --> 00:20:48.769 to the hearings division issuing the order. In this 00:20:48.779 --> 00:20:51.640 case. It is recommended that the motion be denied. 00:20:51.890 --> 00:20:54.209 The motion will be overruled by operation of law on 00:20:54.219 --> 00:20:57.818 July 10, 2023. I'm available for questions. Thank 00:20:57.828 --> 00:21:00.799 you. Are there any questions? Madam Chairman? I've got 00:21:00.809 --> 00:21:05.759 some people who want to testify, can I do that first. Okay, sure. Okay. Um I have, we 00:21:05.769 --> 00:21:07.959 have Kelly Kenney who's here representing the City 00:21:07.969 --> 00:21:11.375 of Midland and Rob Hartgrove representing Pilot Water. 00:21:11.443 --> 00:21:13.674 Which if you have any questions for the lawyers? And 00:21:13.684 --> 00:21:17.144 then I have uh, preregistered the Mayor of Midland, 00:21:17.154 --> 00:21:19.884 Lori Blong is preregistered. And normally out of courtesy, 00:21:19.894 --> 00:21:23.275 we let any elected official come testify. So if that's 00:21:23.285 --> 00:21:26.890 ok, I'm gonna bring up the Mayor. 00:21:26.890 --> 00:21:30.108 Good morning. Good morning, thank you. Um, good morning 00:21:30.118 --> 00:21:31.750 Chairman and Commissioners. For the record, my name 00:21:31.759 --> 00:21:34.160 is Lori Blong, Mayor of the City of Midland. I'm 00:21:34.170 --> 00:21:37.019 here today, to ask you to reconsider the Hearing Division's 00:21:37.029 --> 00:21:40.130 decision. To deny the City of Midland's as standing and 00:21:40.140 --> 00:21:42.559 for the opportunity to protest Pilot's application for 00:21:42.568 --> 00:21:45.479 5 disposal wells. Um Pilot seeks to construct in 00:21:45.489 --> 00:21:48.439 the city T Bar Ranch Municipal Water Well Field. 00:21:48.449 --> 00:21:51.598 As you are undoubtedly aware, Midland is an independent 00:21:51.828 --> 00:21:54.660 and friendly relationship with the oil and gas industry. 00:21:54.920 --> 00:21:57.489 Uh personally I own and operate an independent oil 00:21:57.500 --> 00:22:00.410 and gas company myself, with my husband. And Midland 00:22:00.420 --> 00:22:04.699 recognizes how essential SWD's are to the oil and gas 00:22:04.709 --> 00:22:08.269 industry. However, I also understand that all SWD 00:22:08.279 --> 00:22:11.568 well construction procedures and applications um, are 00:22:11.578 --> 00:22:15.150 not created equal. And, and across Texas, they must 00:22:15.160 --> 00:22:18.559 demonstrate that groundwater is protected. It is particularly 00:22:18.568 --> 00:22:20.719 important that Midland have standing, to be able to 00:22:20.729 --> 00:22:23.989 carefully evaluate any disposal well on T Bar Water Well 00:22:24.000 --> 00:22:27.368 Field before they are permitted, many of pilots proposed 00:22:27.380 --> 00:22:30.059 disposal wells are less than 1000 ft from a Midland 00:22:30.068 --> 00:22:32.650 water. I'm here today asking the Commission to 00:22:32.660 --> 00:22:35.459 recognize Midland's right to standing and a seat at 00:22:35.469 --> 00:22:38.118 the table. To make certain our undisputed vested property 00:22:38.130 --> 00:22:40.739 interest. That is the source of fresh water for Midland 00:22:40.750 --> 00:22:44.259 residents is protected. Midland's purchased um, the T 00:22:44.328 --> 00:22:48.130 Bar Well Field, um in 1965. And it holds significant 00:22:48.140 --> 00:22:50.689 importance as a reliable fresh water resource for the 00:22:50.699 --> 00:22:53.750 community. The T Bar Water Well Field currently supplies 00:22:53.759 --> 00:22:58.088 30 to 35% of Midland's fresh water for municipal purposes. 00:22:58.358 --> 00:23:00.529 The development and distribution systems in the field 00:23:00.539 --> 00:23:02.779 were designed and constructed at a cost to Midland 00:23:02.789 --> 00:23:06.309 of approximately $200 million. And Midland has completed 00:23:06.318 --> 00:23:09.279 42 water wells in the T Bar Well field. Eight of which 00:23:09.289 --> 00:23:12.434 are located in the same two sections where Pilot proposes 00:23:12.443 --> 00:23:16.035 to locate at least 14 disposal wells. The T Bar Water 00:23:16.045 --> 00:23:18.795 Well field has been in continuous operation since May 00:23:18.805 --> 00:23:22.354 of 2013 and is rated as a 50 year water supply for 00:23:22.364 --> 00:23:25.114 Midland's residents. It's also designated as Midland's 00:23:25.125 --> 00:23:27.664 emergency water supply as required by the Senate Bill 00:23:27.674 --> 00:23:31.150 3. The placement, construction and operation of 00:23:31.160 --> 00:23:34.068 14 disposal wells, so close to Midland's municipal water 00:23:34.078 --> 00:23:37.769 wells and their associated operations. Facilities create 00:23:37.779 --> 00:23:40.439 unnecessary potential disruption for Midland residents. 00:23:40.449 --> 00:23:42.729 For health care systems, agricultural activities and 00:23:42.739 --> 00:23:46.328 other essential needs. A balanced approach that protects 00:23:46.338 --> 00:23:49.219 successful production and valuable water rights and 00:23:49.229 --> 00:23:51.848 considers the quality of life for Midland residents. 00:23:52.019 --> 00:23:54.689 is necessary for a prosperous future that benefits 00:23:54.699 --> 00:23:57.509 both the community and the oil industry. To achieve 00:23:57.519 --> 00:23:59.640 this balance. It is crucial that the City of Midland 00:23:59.650 --> 00:24:02.640 be able to assess and evaluate any salt water disposal 00:24:02.650 --> 00:24:05.785 wells proposed in the T Bar Well field. Once risks are 00:24:05.795 --> 00:24:08.015 assessed Midland and the oil industry can establish 00:24:08.025 --> 00:24:11.144 a coordinated effort to manage industry related activity 00:24:11.154 --> 00:24:14.104 around the T Bar Water Well field. By working together, 00:24:14.114 --> 00:24:16.614 the City of Midland and the industry can ensure that 00:24:16.625 --> 00:24:19.864 any activities near the T Bar Well field are conducted 00:24:19.875 --> 00:24:22.614 sustainably and responsibly. Minimizing the potential 00:24:22.625 --> 00:24:25.005 risk to Midland's water supply and to the community. 00:24:25.500 --> 00:24:27.779 In conclusion, a collaborative effort between the city 00:24:27.789 --> 00:24:30.670 and the industry. Centered around responsible industry 00:24:30.680 --> 00:24:33.150 related activity near the T Bar Water Well field will 00:24:33.160 --> 00:24:35.920 be essential for maintaining a sustainable balance 00:24:35.930 --> 00:24:39.009 between economic development and preservation of fresh 00:24:39.019 --> 00:24:42.029 water resources in Midland. However, Midland must have 00:24:42.039 --> 00:24:44.719 a seat at the table during the permitting process to 00:24:44.729 --> 00:24:47.219 achieve this goal. For these reasons, I asked the Commission 00:24:47.229 --> 00:24:49.750 to grant the City of Midland standing to protest Pilot's 00:24:49.759 --> 00:24:52.358 water wells. Thank you, Mayor. Are there any questions? 00:24:52.500 --> 00:24:54.670 Thank you for coming. Thank you very much. Thank you. Thanks 00:24:54.680 --> 00:24:56.949 for being here. Are there any questions of the 00:24:56.959 --> 00:24:59.739 other two that were registered? Or any questions (inaudible) 00:24:59.750 --> 00:25:03.578 You know, III I would just like to say uh, Mayor. 00:25:03.588 --> 00:25:05.979 That I appreciate you coming here today. And I think 00:25:05.989 --> 00:25:08.789 that uh, our water issues out in the Permian Basin are 00:25:08.799 --> 00:25:11.318 something that we continue to look at here at the Commission 00:25:11.328 --> 00:25:14.509 of getting alternative uses for. And uh it's something 00:25:14.519 --> 00:25:17.009 that's very important for, for I know myself and my 00:25:17.019 --> 00:25:20.118 fellow Commissioners. So thank you for being here. 00:25:20.250 --> 00:25:22.890 Thank you for coming. And Madam Chairman, I have a 00:25:22.900 --> 00:25:26.449 motion for consideration. Yes sir. I move that we grant the 00:25:26.459 --> 00:25:29.789 motion for rehearing. Grant the City of Midland standing 00:25:29.799 --> 00:25:32.979 as to these applications. And consolidate these dockets 00:25:32.989 --> 00:25:40.759 with Oil and Gas Docket No. OG-23-00012401 00:25:40.868 --> 00:25:43.509 for the purposes of the hearing. You've heard the 00:25:43.519 --> 00:25:46.180 motion. Is there any questions? All right, is there a second? 00:25:46.779 --> 00:25:51.269 Second. Second by Commissioner Wright. All in favor, say aye. Aye. Motion 00:25:51.279 --> 00:25:54.989 passes, that item is, those items are approved. As, as 00:25:55.000 --> 00:25:58.309 we've, as we've done the motion. So if you will, please 00:25:58.318 --> 00:26:01.979 get us a new, a new um, or get, get. I 00:26:01.989 --> 00:26:04.920 guess, do we need a different order based on? We will provide. You'll 00:26:04.930 --> 00:26:08.219 get us a new order? Ok, great. We will provide. Thank you very much. 00:26:08.420 --> 00:26:12.338 All right. We're going to the Oil and Gas Consent Agenda. 00:26:12.959 --> 00:26:16.479 There are 18 items on the Oil and Gas Consent Agenda. 00:26:16.489 --> 00:26:20.818 Items 22-39. Are there any questions? All right. 00:26:20.828 --> 00:26:24.199 I move that we approve items 22-39. Is there 00:26:24.209 --> 00:26:27.299 a second? Second. Second by Commissioner Christian. All in favor, 00:26:27.309 --> 00:26:31.500 say aye. Aye. Motion passes, those items are approved. Master 00:26:31.509 --> 00:26:35.479 Default Orders. There are 16 Master Default Orders. 00:26:35.489 --> 00:26:38.769 I move that we approve items 40-55. Is there 00:26:38.779 --> 00:26:42.140 a second? Second. Second by Commissioner Wright. All in favor, say 00:26:42.150 --> 00:26:45.864 aye. Aye. Motion passes, those items are approved. Agreed 00:26:45.875 --> 00:26:49.384 Enforcement Orders. Um, there are 156 Agreed 00:26:49.394 --> 00:26:53.074 Enforcement Orders. I move that we approve Items 56 00:26:53.084 --> 00:26:57.295 through 211. Is there a second? Second. Second by Commissioner Christian. 00:26:57.305 --> 00:27:01.394 All in favor, say aye. Aye. Motion passes, those items are 00:27:01.404 --> 00:27:03.545 approved. That includes the hear, that concludes the 00:27:03.555 --> 00:27:05.713 Hearings Division. We will now take up the Administrative 00:27:05.723 --> 00:27:09.983 Agenda. Wei, good morning. Good morning Commissioners. Um 00:27:10.404 --> 00:27:13.680 for the record, Wei Wang, Executive Director. Um, as 00:27:13.689 --> 00:27:15.979 you know the, the Regular Session ended 00:27:15.989 --> 00:27:19.088 on May 29. So I thought I could provide you an update 00:27:19.098 --> 00:27:22.150 on the changes and the additional responsibilities 00:27:22.160 --> 00:27:26.890 the Legislature has given us. They like us a lot don't they. Yes. Yes, 00:27:26.900 --> 00:27:31.799 ma'am. Um, so the Legislature passed a Bill that authorized 00:27:31.809 --> 00:27:34.809 Railroad Commission jurisdiction over LDC, statewide 00:27:34.818 --> 00:27:38.559 jurisdiction. Over LDC's Energy Conservation Program, 00:27:38.939 --> 00:27:42.578 so we'll be looking at rulemaking for that. And also 00:27:42.588 --> 00:27:47.779 several Bills uh, dealing with orphan wells, um purpose 00:27:47.789 --> 00:27:54.318 for geothermal production. And uh, uh also uh had transferred 00:27:54.598 --> 00:27:57.910 closed loop, closed loop geothermal injection well 00:27:57.920 --> 00:28:02.818 jurisdiction from TCEQ to our agency. And also a Bill 00:28:02.828 --> 00:28:06.500 clarify the ownership of geothermal energy. So geothermal 00:28:06.509 --> 00:28:11.180 seems to be a uh, new area that will be uh, ventured 00:28:11.189 --> 00:28:15.229 into. In addition to our existing resources over geothermal 00:28:15.239 --> 00:28:19.348 wells. Uh in addition to that, uh the Legislature also 00:28:19.358 --> 00:28:22.670 passed a Bill that give us authority for brine mining 00:28:22.680 --> 00:28:26.989 wells. This is to produce brine water and extract mineral 00:28:27.000 --> 00:28:31.049 and metal from that water. And reinject uh, that brine 00:28:31.059 --> 00:28:34.088 water back down below from where it came from. Does 00:28:34.098 --> 00:28:38.959 that include (inaudible) Wei? Uh no, it's lithium, you make sure you 00:28:38.969 --> 00:28:41.818 may be thinking lit. 00:28:41.818 --> 00:28:46.199 And uh, also there is a bill that instruct the agency to 00:28:46.209 --> 00:28:50.500 put together a Texas Hydrogen Policy Council. Uh, aimed 00:28:50.509 --> 00:28:54.269 at providing recommendations to the Legislature, Legislature 00:28:54.279 --> 00:28:58.750 regarding hydrogen policy and statutory changes for 00:28:58.759 --> 00:29:02.578 the state. So, uh on that front, we'll be hiring some 00:29:02.588 --> 00:29:07.180 people as a result. Currently, um our head count as 00:29:07.189 --> 00:29:12.259 of last week, it was 987. That put our vacancy rate 00:29:12.269 --> 00:29:15.019 at less than 3%. So we've been fortunate in the last 00:29:15.029 --> 00:29:18.750 couple of years to maintain a very healthy, uh staffing 00:29:18.759 --> 00:29:22.578 rate. So we, you know, be busy hiring and training 00:29:22.588 --> 00:29:26.430 our new employees. And we'll be coming back with probably 00:29:26.439 --> 00:29:29.640 some rule proposals to implement these wells. Now, 00:29:29.650 --> 00:29:33.039 the uh the deadline for Governor to sign is June 18. 00:29:33.049 --> 00:29:35.838 Some of the Bill has been signed and effective immediately. 00:29:35.848 --> 00:29:38.630 So we're also monitoring that on the effective date 00:29:38.640 --> 00:29:41.880 and I'll bring back more updates as things progress. 00:29:41.930 --> 00:29:46.348 What, what's the timeline on the rules once that's done? Some of the Bills 00:29:46.358 --> 00:29:50.390 are effective immediately. So uh, there's no statutory 00:29:50.400 --> 00:29:54.509 deadline for implementing rules. So and some of the 00:29:54.519 --> 00:29:57.180 bills are effective September 1. So based on that, 00:29:57.189 --> 00:29:59.920 you know, we're putting the team together for implementation. 00:30:01.279 --> 00:30:03.939 Okay, great. Thank you. We had a good Session overall. 00:30:03.949 --> 00:30:06.219 See they like us, they keep giving us more to do. I 00:30:06.229 --> 00:30:09.500 think that speaks volume to uh, their trust and confidence 00:30:09.509 --> 00:30:12.219 in our ability, you know, and our efficiency. So uh 00:30:12.229 --> 00:30:14.868 we, we're seeing more and more programs being transferred 00:30:14.880 --> 00:30:18.189 from other agency to this agency. Great, thank you. We had 00:30:18.199 --> 00:30:20.160 a great Session. Thank y'all for the help. Thank 00:30:20.348 --> 00:30:24.549 you. Thank you for the work you did, you and the Chairman. And our team, 00:30:24.559 --> 00:30:28.689 we had a good team. We did. So, so thank you. All right. Uh, 00:30:28.699 --> 00:30:31.719 Randall. Oh, good you're back. See, you didn't lose 00:30:31.729 --> 00:30:37.390 your job. You just thought you got rid of me. 00:30:37.390 --> 00:30:40.509 You could only be so lucky. 00:30:40.509 --> 00:30:42.930 Good morning Chairman, Commissioners. For the record, 00:30:42.939 --> 00:30:46.199 I'm Randall Collins. Staff, staff seeks approval on 00:30:46.209 --> 00:30:50.900 Agenda Item 213. Item 213 on the Agenda pertains to 00:30:50.910 --> 00:30:52.930 the Commissioner approval of contracts. Pursuant to 00:30:52.939 --> 00:30:55.689 the Commission's delegation of authority, under Section 00:30:55.699 --> 00:31:00.799 2261.254 of the Texas Government Code. The Commission's 00:31:00.809 --> 00:31:02.729 internal delegation of authority and the government 00:31:02.739 --> 00:31:05.039 code requires Commissioner approval of contracts or 00:31:05.049 --> 00:31:08.670 associated amendments, greater than or equal to $1 million. 00:31:09.509 --> 00:31:12.299 At issue today, are several contract amendments for 00:31:12.309 --> 00:31:15.259 site remediation, surface mining and reclamation and 00:31:15.269 --> 00:31:18.299 emergency well plugging and related services. Approval 00:31:18.309 --> 00:31:20.549 of these Agenda Items will ensure that the agency has 00:31:20.559 --> 00:31:23.568 the necessary approvals in place. Pursuant to the Commission's 00:31:23.578 --> 00:31:27.049 delegation of authority and state law. A summary of 00:31:27.059 --> 00:31:30.078 the amendments, amendment terms including the contract 00:31:30.088 --> 00:31:32.380 numbers and amounts are included in your notebooks. 00:31:32.439 --> 00:31:34.568 Staff asked the Commission to approve the contract 00:31:34.578 --> 00:31:36.338 amendments pursuant to the Commission's delegation 00:31:36.348 --> 00:31:38.769 of authority. And I am available if you have any questions. 00:31:39.199 --> 00:31:41.969 Thank you. Are there any questions? I move we approve 00:31:41.979 --> 00:31:45.318 the Staff's recommendations. Is there a second? Second. Second by Commissioner 00:31:45.328 --> 00:31:48.250 Wright. All in favor, say aye. Aye. Motion passes, that item's 00:31:48.338 --> 00:31:54.598 approved. Thank you. Uh, General Counsel. Thank you. 00:31:54.598 --> 00:31:56.838 Good morning. Good morning Chairman, Commissioners. I'm Betsy Peticolas 00:31:57.140 --> 00:31:59.568 with the Office of General Counsel. Here to present 00:31:59.578 --> 00:32:03.449 a few updates to the Commission. First at the last 00:32:03.459 --> 00:32:06.130 conference, I informed the Commission of a proposed 00:32:06.140 --> 00:32:09.489 EPA rulemaking. That would apply greenhouse gas emission 00:32:09.500 --> 00:32:12.739 standards to fossil fuel fired electric generating 00:32:12.750 --> 00:32:16.479 units. We've determined that portions of the rule would 00:32:16.489 --> 00:32:20.160 affect oil and gas and could also have pipeline permitting 00:32:20.170 --> 00:32:23.199 implications. And therefore, we will be working with 00:32:23.209 --> 00:32:27.279 TCEQ to submit, uh joint comments on that proposed rule. 00:32:28.568 --> 00:32:32.118 I also have some updates, um in the litigation challenging 00:32:32.130 --> 00:32:35.828 EPA's disapproval of Texas' state implementation 00:32:35.838 --> 00:32:39.239 plan for the transport of ozone emissions. And their 00:32:39.250 --> 00:32:43.279 attempt to implement or to impose a federal implementation 00:32:43.289 --> 00:32:47.039 plan. Um as you may recall, the 5th Circuit issued 00:32:47.049 --> 00:32:51.608 a stay of the rule disapproving Texas's state implementation 00:32:51.618 --> 00:32:55.828 plan, pending appeal. Which also necessarily stays the 00:32:55.838 --> 00:33:00.479 application of a federal implementation plan. On June 00:33:00.489 --> 00:33:04.650 1, EPA released a memo entitled, Notice of Forthcoming 00:33:04.660 --> 00:33:08.979 EPA Action to address judicial state orders. That memo 00:33:08.989 --> 00:33:11.949 indicated that EPA would be taking action in the near 00:33:11.959 --> 00:33:15.000 future. To ensure that the requirements of the federal 00:33:15.009 --> 00:33:18.229 implementation plan would not take effect in the states 00:33:18.239 --> 00:33:22.368 of Arkansas, Kentucky, Louisiana, Missouri and Texas. 00:33:22.380 --> 00:33:26.239 While the stays of the state implementation plan, state 00:33:26.250 --> 00:33:29.193 implementation plan disapprove actions with respects 00:33:29.203 --> 00:33:33.203 to those states remained in place. However, since EPA 00:33:33.213 --> 00:33:36.834 published its final federal implementation plan on 00:33:36.844 --> 00:33:39.584 June 5. Um, the Railroad Commission joined the state 00:33:39.594 --> 00:33:44.045 of Texas, TCEQ and the PUC. To file a petition for review 00:33:44.055 --> 00:33:47.255 to preserve error on that federal implementation plan. 00:33:48.390 --> 00:33:51.799 Finally, I also have an update on Waters of the U.S. 00:33:52.209 --> 00:33:55.699 On May 25, the United States Supreme Court issued 00:33:55.709 --> 00:33:59.930 its decision in Sackett versus EPA. Which clarified and 00:33:59.939 --> 00:34:02.739 narrowed the reach of federal jurisdiction under the 00:34:02.750 --> 00:34:07.108 Clean Water Act. The Sackett Case was pending before the 00:34:07.118 --> 00:34:11.418 Court. While EPA published and finalized its latest 00:34:11.429 --> 00:34:17.048 rule redefining Waters of the United States. Um, the 00:34:17.059 --> 00:34:21.259 Court unanimously rejected the significant nexus text. 00:34:21.268 --> 00:34:25.498 That EPA and the core relied heavily upon to justify 00:34:25.509 --> 00:34:29.407 that latest rulemaking. And thus, substantially undercut 00:34:29.418 --> 00:34:33.079 the justification for that rule. Um, we'll be watching 00:34:33.088 --> 00:34:36.398 both EPA and the core for any updates on how they plan 00:34:36.407 --> 00:34:39.967 to implement that ruling. And we'll be working with 00:34:39.978 --> 00:34:42.878 the Office of the Attorney General. To um, address that 00:34:42.887 --> 00:34:46.117 in the pending litigation. Um, that's all I have for 00:34:46.128 --> 00:34:48.568 you today. But I'm happy to take any questions. Any 00:34:48.579 --> 00:34:51.878 questions or comments? A lot going on. Thank you for 00:34:51.887 --> 00:34:55.559 continuing that, to give us updates and be very engaged. 00:34:55.568 --> 00:35:01.760 Thank you. Thank you. 00:35:01.760 --> 00:35:04.519 Good morning, how are you? Good morning, well thank 00:35:04.530 --> 00:35:07.039 you. How are you? Good, thanks. Good morning, Chairman 00:35:07.050 --> 00:35:09.449 Commissioners. Haley Cochran with the Office of General 00:35:09.458 --> 00:35:13.030 Counsel. Item No. 215 is Staff's recommendation 00:35:13.039 --> 00:35:16.239 to publish proposed amendments to Chapter 5, relating 00:35:16.250 --> 00:35:19.349 to carbon dioxide. Staff proposes these amendments 00:35:19.360 --> 00:35:22.519 to ensure the rules are as stringent as the EPA's requirements. 00:35:22.750 --> 00:35:25.539 And thus, support the Commission's application for enforcement 00:35:25.550 --> 00:35:28.938 primacy. For the federal Class 6 Underground Injection 00:35:28.949 --> 00:35:32.228 Control Program. The Commission submitted its official 00:35:32.239 --> 00:35:36.559 application for primacy to the EPA on December 19, 2022. 00:35:36.958 --> 00:35:39.719 Included in the application was a crosswalk comparison 00:35:39.728 --> 00:35:42.929 of the state and federal requirements. In March of this 00:35:42.938 --> 00:35:46.349 year, EPA provided comments on the crosswalk and recommended 00:35:46.360 --> 00:35:49.300 rule amendments in a few areas. These proposed amendments 00:35:49.309 --> 00:35:52.619 are intended to respond to EPA's recommendations. We 00:35:52.628 --> 00:35:55.050 request the Commission's approval to publish the proposed 00:35:55.059 --> 00:35:57.280 amendments in the Texas Register for a public comment 00:35:57.289 --> 00:36:00.139 period. If approved today, the proposal should appear 00:36:00.148 --> 00:36:03.590 in the June 30 issue of the Register. The proposal 00:36:03.599 --> 00:36:06.030 would also be made available on the Commission's website 00:36:06.039 --> 00:36:08.070 giving interested persons more than two additional 00:36:08.079 --> 00:36:11.079 weeks to submit comments. Leslie Savage is here as 00:36:11.090 --> 00:36:13.809 well and we're available to answer any questions. Thank 00:36:13.820 --> 00:36:16.260 you. Are there any questions specifically? I want to 00:36:16.269 --> 00:36:19.228 thank you both for moving this pretty quickly, along 00:36:19.239 --> 00:36:22.250 so we don't get lost. So, um I appreciate it and I 00:36:22.260 --> 00:36:25.148 appreciate the time that you've spent on it. And we've 00:36:25.159 --> 00:36:27.139 come a long way and I think I think we're in good 00:36:27.148 --> 00:36:29.409 shape, Leslie. So thank you, Hayley. I appreciate it. 00:36:29.760 --> 00:36:32.449 Um, I move that we approve the Staff's recommendations. 00:36:32.458 --> 00:36:36.168 Is there a second? Second. Second by Commissioner Christian. 00:36:36.179 --> 00:36:39.820 All in favor, say aye. Aye. Motion passes, that item's approved. 00:36:39.829 --> 00:36:46.389 Thank you. All right. Good morning Chairman, Commissioners. Good morning. Uh, for 00:36:46.398 --> 00:36:49.139 the record, I'm Joseph Parks, the Assistant Director 00:36:49.148 --> 00:36:52.829 of the Surface Mining and Reclamation Division. I'll 00:36:52.840 --> 00:36:57.340 be presenting Item uh, 216 and we will take pictures 00:36:57.349 --> 00:37:01.628 afterwards. Great. Uh, every year this uh, Surface Mining Reclamation 00:37:01.639 --> 00:37:04.260 Division of the Texas Railroad Commission receives 00:37:04.269 --> 00:37:08.639 submissions uh, for a Reclamation Award. These submissions 00:37:08.648 --> 00:37:12.389 exemplify environmental stewardship and the efforts 00:37:12.398 --> 00:37:16.090 of Texas coal mining operations. Take to achieve the 00:37:16.099 --> 00:37:19.699 standard set forth by the Commission. The standard 00:37:19.708 --> 00:37:22.958 is to return the land, mine lands to a state that is 00:37:22.969 --> 00:37:28.750 as good or or better uh than the pre-mine state. The 00:37:29.030 --> 00:37:34.148 2023 Reclamation Award recipient is the Texas Municipal 00:37:34.159 --> 00:37:37.750 Power Agency. For the outstanding reclamation of the 00:37:37.760 --> 00:37:41.769 Givens Creek Lignite Mine, specifically the Pond SP 00:37:41.780 --> 00:37:45.958 50 area. They have demonstrated how energy resources 00:37:46.389 --> 00:37:49.869 can be successfully recovered. The land returned to 00:37:49.878 --> 00:37:54.199 natural pre-mine state. And enhanced to provide an area 00:37:54.208 --> 00:37:57.969 that is now flourishing and productive land resource. 00:37:58.550 --> 00:38:05.478 Mr. uh, Jan Horbaczewski and Bob Kahn of the Texas Municipal 00:38:05.489 --> 00:38:08.750 Power Agency have been instrumental in leading the 00:38:08.760 --> 00:38:11.978 reclamation efforts. And will accept the award on their 00:38:11.989 --> 00:38:14.489 behalf. 00:38:14.489 --> 00:38:28.438 And with congratulations for a job well done. 00:38:28.438 --> 00:38:35.010 Thanks. 00:38:35.010 --> 00:38:38.809 Thank you. Congratulations. Good work. Thank you. 00:38:38.809 --> 00:38:41.668 Thank you. Thank you. Thank you for the good work. 00:38:44.418 --> 00:38:51.260 All right. Okay. Who's taking the picture? 00:38:51.260 --> 00:38:55.208 We're here and nobody's here. Come on up. 00:38:55.208 --> 00:39:06.958 (inaudible) 00:39:06.958 --> 00:39:11.280 Perfect. Thank you. Thank you, gentlemen. Thank you for your work. 00:39:11.280 --> 00:39:22.469 Thank you. 00:39:22.469 --> 00:39:25.329 Yes. 00:39:25.329 --> 00:39:27.050 It's always impressive when you go out and look at 00:39:27.059 --> 00:39:30.199 see what people are doing in these mines. Looks better 00:39:30.208 --> 00:39:33.510 than when they got it probably. Amazing. 00:39:33.510 --> 00:39:36.898 Hi, good morning. How are you? I'm doing well. Uh, good 00:39:36.909 --> 00:39:38.769 morning Chairman, Commissioners. For the record, my 00:39:38.780 --> 00:39:41.449 name is Keith May with the Oil and Gas Division. And 00:39:41.458 --> 00:39:45.728 I will be presenting Items 217 and 218. Item 00:39:45.739 --> 00:39:49.010 217 for your approval is the Commission's Oil and Gas 00:39:49.019 --> 00:39:52.409 Monitoring Enforcement Plan for fiscal year 2024. Uh, 00:39:52.418 --> 00:39:56.039 draft of this plan was before you on April 25, and 00:39:56.050 --> 00:39:59.050 was made available for public comment until May 26. 00:39:59.628 --> 00:40:01.378 During that period, the Commission received a total 00:40:01.389 --> 00:40:04.579 of 13 comments from the public, environmental and industry 00:40:04.590 --> 00:40:08.349 groups. The final version of the plan includes items 00:40:08.360 --> 00:40:10.539 that support the goals of demonstrating the Commission's 00:40:10.550 --> 00:40:13.418 oil and gas monitoring and enforcement activities and 00:40:13.429 --> 00:40:16.099 the strategic use of Commission resources. To ensure 00:40:16.110 --> 00:40:19.750 public safety and to protect the environment. Uh, this 00:40:19.760 --> 00:40:21.708 plan must be posted to the Commission's website no 00:40:21.719 --> 00:40:24.938 later than July 1 and that deadline will be met with 00:40:24.949 --> 00:40:27.469 your approval today. May I answer any questions? Are 00:40:27.478 --> 00:40:30.148 there any questions? No. Thank you all for the work. I 00:40:30.159 --> 00:40:32.918 move we approve the Staff's recommendations. Is there a second? Second. 00:40:33.199 --> 00:40:36.199 Second by Commissioner Wright. All in favor, say aye. Aye. 00:40:36.208 --> 00:40:40.340 Motion passes, that item's approved. Uh Item 218 is 00:40:40.349 --> 00:40:42.619 the Oilfield Cleanup program's 3rd quarter status 00:40:42.628 --> 00:40:46.510 report for fiscal year 2023. During the 3rd quarter 00:40:46.519 --> 00:40:50.090 of 2023, plugging operations were completed. And files 00:40:50.099 --> 00:40:58.639 were closed on 546 wells at a cost of $17,915,373. 00:40:59.570 --> 00:41:04.019 Of those three, of those wells, uh 197 were plugged 00:41:04.030 --> 00:41:10.139 using OGRC funds or uh, oil state funds. And 349 00:41:10.148 --> 00:41:12.760 were plugged using funds from the Infrastructure Investment 00:41:12.769 --> 00:41:16.760 and Jobs Act or IIJA funds. 00:41:16.760 --> 00:41:18.929 And this includes only those walls that are plugged, 00:41:18.938 --> 00:41:21.398 invoiced by the plugging contractor and approved for 00:41:21.409 --> 00:41:24.708 payment by Field Operations. During that same period, 00:41:24.719 --> 00:41:28.610 431 new wells were approved for plugging and a total 00:41:28.619 --> 00:41:32.500 of 1327 wells were physically plugged through the end 00:41:32.510 --> 00:41:37.269 of the 3rd quarter. Um of which 1231 have been invoiced 00:41:37.280 --> 00:41:39.478 and paid. 00:41:39.478 --> 00:41:41.599 Uh, the state managed cleanup program completed and 00:41:41.610 --> 00:41:45.530 closed 73 cleanup activities at a cost of 00:41:45.539 --> 00:41:52.179 $1,657,952 using OGRC funds. And during that same period 00:41:52.188 --> 00:41:55.438 50 new cleanup were authorized for clean up with state 00:41:55.449 --> 00:41:59.610 funds. A total of 170 cleanup activities were 00:41:59.619 --> 00:42:01.409 completed and closed through the end of the quarter, 00:42:01.418 --> 00:42:04.909 third quarter using OGRC funds. May I answer any questions? 00:42:05.219 --> 00:42:09.398 Are there any questions? Thank you. Thank you. Thank 00:42:09.409 --> 00:42:13.679 you. All right, Item 219. It's my understanding that 00:42:13.688 --> 00:42:17.079 Staff wants to pass that. Is that correct? All right. 00:42:17.090 --> 00:42:21.489 Let's move to Item 220. Item 220 is a public 00:42:21.500 --> 00:42:24.340 participation item. We have one person who's registered 00:42:24.349 --> 00:42:28.110 to speak Ashley Watt. If you'll come on up and state 00:42:28.119 --> 00:42:39.438 your name and who you're here for. 00:42:39.438 --> 00:42:42.159 Good morning. My name is Ashley Watt. I'm here on behalf 00:42:42.168 --> 00:42:45.909 of myself and my ranch. The last time I was here, it 00:42:45.918 --> 00:42:48.869 was over a year ago. I came asking for your help. We 00:42:48.878 --> 00:42:51.489 had three or four wells that had bubbled to the surface, 00:42:51.500 --> 00:42:55.010 old plugged Chevron wells. And we wanted help to know 00:42:55.019 --> 00:42:58.219 what's going on. You rejected us and wouldn't do a 00:42:58.228 --> 00:43:02.570 thing. You told us nothing was wrong. So we went out 00:43:02.579 --> 00:43:06.728 and we dug up over 100 PNA wells on that ranch. 00:43:07.219 --> 00:43:10.639 They looked generally benign at surface and we got 00:43:10.648 --> 00:43:14.110 down there and every single one of them has failed 00:43:14.119 --> 00:43:20.550 and is leaking brine. We have begun to, we asked you 00:43:20.559 --> 00:43:24.139 to make the operator Chevron go in and log those wells. 00:43:24.148 --> 00:43:27.090 Figure out why are they leaking, PNA wells shouldn't 00:43:27.099 --> 00:43:31.418 leak according to you. If they do, that completely changes 00:43:31.429 --> 00:43:36.329 the paradigm of oil and gas. This is a big problem. 00:43:36.340 --> 00:43:39.389 If we have to consistently replug wells every 50 00:43:39.398 --> 00:43:43.909 years, that changes everything in regards to this industry. 00:43:45.168 --> 00:43:48.168 You wouldn't order the operator to log the wells. So 00:43:48.179 --> 00:43:50.668 we had to get a court order from the Crane County District 00:43:50.679 --> 00:43:54.840 Judge to allow us to go in there and log those wells 00:43:54.849 --> 00:43:57.599 on our dollar. Literally today, I have a logging crew 00:43:57.610 --> 00:44:00.719 as a cattle rancher. Logging Chevron wells in West 00:44:00.728 --> 00:44:03.489 Texas and there's holes in the casing. The casing is 00:44:03.500 --> 00:44:09.059 gone, the cement is gone. They've fallen apart. 00:44:09.059 --> 00:44:11.780 We've had to buy fresh water for the ranch, so we can 00:44:11.789 --> 00:44:14.619 continue to live there and have livestock. I've asked 00:44:14.628 --> 00:44:16.699 for your help. And again, the Railroad Commission has 00:44:16.708 --> 00:44:19.168 done nothing. 00:44:19.168 --> 00:44:22.208 The one thing the Railroad Commission has done is we asked 00:44:22.219 --> 00:44:24.918 for water monitoring wells. Particularly into our Rustler 00:44:24.929 --> 00:44:27.938 and Santa Rosa aquifers. The Rustler and Santa Rosa 00:44:27.949 --> 00:44:30.619 there's a, a rustler well, on our southern end. That 00:44:30.628 --> 00:44:33.300 started flowing brine on its own. Uh, you may remember 00:44:33.309 --> 00:44:36.708 the Crane County Geyser from January of 2022. That 00:44:36.719 --> 00:44:39.179 was a Rustler Well as well. That turned into a 200ft 00:44:39.188 --> 00:44:41.639 tall Brine Geyser in the middle of pasture. That's 00:44:41.648 --> 00:44:44.780 our neighbors just across the road. The benefit that 00:44:44.789 --> 00:44:48.949 we did get there is um, Field Operations Director, Clay 00:44:48.958 --> 00:44:53.349 Whittle. Promised us that we would get Rustler and Santa 00:44:53.360 --> 00:44:56.519 Rosa monitoring wells. That was a year and a half ago. 00:44:57.070 --> 00:45:00.688 Clay, if you tell me that well will get drilled, I'll 00:45:00.699 --> 00:45:04.320 thank you your work. And we'll, okay. 00:45:04.320 --> 00:45:09.250 And I said in the very beginning, I have questions about 00:45:09.820 --> 00:45:14.119 holes in the casing and 158, 189 and 565 00:45:14.128 --> 00:45:17.349 572. How am I going to get answers to those holes in 00:45:17.360 --> 00:45:22.780 the casing? And what happened if those aquifers drill down (inaudible). 00:45:22.820 --> 00:45:36.458 I stand by what I said. Somebody is going to drill a monitor well for the Rustler. And Santa Rosa, the deeper. Yes, I mean 00:45:36.458 --> 00:45:39.119 Yeah, that was over a year ago. We had nothing since 00:45:39.128 --> 00:45:41.590 then. The Railroad Commission has again refused to help 00:45:41.599 --> 00:45:45.590 us. And so I asked myself why? Why is this publicly 00:45:45.599 --> 00:45:48.059 elected body that's supposed to look out for all Texans, 00:45:48.070 --> 00:45:51.239 not just the oil and gas companies refusing. My attorney 00:45:51.250 --> 00:45:53.909 ran against Commissioner Christian and took him to 00:45:53.918 --> 00:45:56.539 a runoff, maybe it's political. Christi, your father 00:45:56.550 --> 00:45:58.530 owns working interest in many of these wells. He's 00:45:58.539 --> 00:46:01.679 gonna have to pay to replug them. He's gonna have to play, 00:46:01.688 --> 00:46:04.728 pay to remediate the environment around them. Maybe 00:46:04.739 --> 00:46:07.760 it's personal. I, I don't know how this works. I'm 00:46:07.769 --> 00:46:10.458 not an oil and gas person. I'm a cattle rancher. I 00:46:10.469 --> 00:46:13.128 I, I've read that I give you overrides and you do what 00:46:13.139 --> 00:46:15.978 I want, but I'm not really sure how that works. So 00:46:15.989 --> 00:46:19.070 I'm here pleading like, what will it take? How many 00:46:19.079 --> 00:46:21.579 wells do I have to dig up that are flowing brine to 00:46:21.590 --> 00:46:24.099 the surface? How many water well tests do we have 00:46:24.110 --> 00:46:26.869 to do? I have spent millions of dollars on this. It's 00:46:26.878 --> 00:46:29.958 not my wells, Chevron's wells. It's the Railroad Commission's 00:46:29.969 --> 00:46:33.309 responsibility. 00:46:33.309 --> 00:46:36.148 So I come to, I come to you today asking for help. 00:46:36.179 --> 00:46:41.050 Uh and I await anything you can provide me. Madam Chairman, 00:46:41.949 --> 00:46:45.958 may I ask some questions? Sure. Uh, to make sure I'm correct 00:46:45.969 --> 00:46:47.769 on what I'm understanding of this? And I, I have a 00:46:47.780 --> 00:46:49.878 different understanding. So let's, you know, I like 00:46:49.889 --> 00:46:52.228 to get corrected if I have a misunderstanding. Uh, 00:46:52.239 --> 00:46:54.889 you say we haven't been there. We haven't done anything. 00:46:55.110 --> 00:46:57.929 I, I understand that within usually 97% of the time. 00:46:58.099 --> 00:47:00.389 Supposedly we're supposed to have inspectors that come 00:47:00.398 --> 00:47:03.360 out. Did we not have inspectors come out to your ranch 00:47:03.369 --> 00:47:06.148 at any time? It's very rare. You inspector. Now rare isn't the word 00:47:06.159 --> 00:47:08.369 the answer. I heard you said never, never is different from 00:47:08.530 --> 00:47:12.228 rare. Uh, usually within 97% of time is our understanding 00:47:12.239 --> 00:47:14.804 is our inspectors arrive at because there's a request 00:47:14.813 --> 00:47:17.454 of some emergency. So you're telling us that we have 00:47:17.465 --> 00:47:20.184 not sent people out. And yet you have, that you presented 00:47:20.195 --> 00:47:23.204 us with testimony of one of our people commenting that 00:47:23.215 --> 00:47:25.114 they have been there. So have they been there? Have 00:47:25.125 --> 00:47:27.554 they not been there? Very rare. Very rare. Your inspector out 00:47:27.563 --> 00:47:30.244 there covers 10 counties. Like we're, we're one little 00:47:30.253 --> 00:47:32.724 county out there. There's millions of wells. Right, 00:47:32.735 --> 00:47:34.793 lots of people we're responsible for. I understand, 00:47:34.804 --> 00:47:38.114 I understand. Uh, the other part is. I understand we 00:47:38.125 --> 00:47:40.385 have negotiated or you know maybe not to what you 00:47:40.655 --> 00:47:43.949 want. But we have negotiated with Chevron as the Railroad 00:47:43.958 --> 00:47:46.958 Commission, uh multiple times. Are you aware that 00:47:46.969 --> 00:47:49.949 we have been doing that? You negotiated an operator 00:47:49.958 --> 00:47:52.659 cleanup program with them? Now the, the ironic part 00:47:52.668 --> 00:47:54.369 about the operator clean up program is there's no clean 00:47:54.378 --> 00:47:57.378 up. We've got multiple operator clean up program sites 00:47:57.389 --> 00:48:00.349 on us. There's never been an ounce of clean up from 00:48:00.360 --> 00:48:02.800 them and they're from the 90s. Like that is a farce 00:48:02.809 --> 00:48:04.820 of a program. And you sit up here trotting how many 00:48:04.829 --> 00:48:06.719 wells you've plugged and how much you've cleaned out. 00:48:06.728 --> 00:48:09.978 Like I've seen the Railroad Commission plug orphan wells. 00:48:09.989 --> 00:48:12.139 And the Railroad Commission will not go the full depth of 00:48:12.148 --> 00:48:14.750 the well, and make sure and plug it the right way. To 00:48:14.760 --> 00:48:17.269 stretch those dollars and they are limited public dollars, 00:48:17.280 --> 00:48:19.619 as far as they go. The Railroad Commission will generally 00:48:19.628 --> 00:48:22.128 only go in the top 200ft of the well and put 00:48:22.139 --> 00:48:24.228 cement. So that way cosmetically at the surface, it 00:48:24.239 --> 00:48:26.300 looks good. Now the problem with that is. If there's 00:48:26.309 --> 00:48:28.949 holes in the casing. You've now just plugged up the 00:48:28.958 --> 00:48:31.849 surface and all that pressure from below is now going 00:48:31.860 --> 00:48:34.688 straight in the aquifers. So you make the problem worse. 00:48:34.849 --> 00:48:38.300 It, it's not a particularly good program. There 00:48:38.309 --> 00:48:40.789 needs to be more oversight on it. And I'm, I'm sitting 00:48:40.800 --> 00:48:42.878 here. And your, your coal mining and surface reclamation 00:48:42.889 --> 00:48:45.030 people. You're saying it takes it back to better than 00:48:45.039 --> 00:48:47.869 it was before the coal companies got there. Like, why 00:48:47.878 --> 00:48:50.809 do coal mines get that? But if you live in an oil 00:48:50.820 --> 00:48:55.168 field, I now live in a super fund site. Question again, 00:48:55.179 --> 00:48:58.219 you know. So, um I understand you say we, we have been 00:48:58.228 --> 00:49:00.789 there. We did not agree with what you feel like should 00:49:00.800 --> 00:49:03.938 have been done. As you present the statements, we have 00:49:03.949 --> 00:49:06.570 been there. Uh, we haven't and we have negotiated with 00:49:06.579 --> 00:49:09.929 Chevron on behalf of your property. Not coming with 00:49:09.938 --> 00:49:12.438 the right. Let me negotiate on behalf of my property. 00:49:12.539 --> 00:49:15.300 That's exactly the next point. We were, we send inspectors 00:49:15.309 --> 00:49:19.418 out later, later time. We were advised if I'm not mistaken 00:49:19.429 --> 00:49:21.840 by you. That we could not enter your property because 00:49:21.849 --> 00:49:24.668 it was under suit from the, you had a suit and a 00:49:24.679 --> 00:49:27.449 Chevron. And may I say that once we were told that 00:49:27.458 --> 00:49:30.179 there is a lawsuit there. And they're told by the owner 00:49:30.188 --> 00:49:32.769 which is you, that we can't enter your property because 00:49:32.780 --> 00:49:35.418 there is a lawsuit. Then we, we have to stay away. 00:49:35.628 --> 00:49:38.708 That was an even better story. Chevron wanted to come 00:49:38.719 --> 00:49:41.320 plug the wells. Uh, but they were afraid I was gonna 00:49:41.329 --> 00:49:44.360 shoot them. So they sent your inspectors to go plug 00:49:44.369 --> 00:49:47.349 them. And so we said no, these are not orphan wells. 00:49:47.530 --> 00:49:51.780 These are Chevron wells, why are we wasting public dollars? You stopped our people from coming 00:49:51.789 --> 00:49:54.750 to your property. No. Under legitimate reason of a lawsuit. 00:49:54.760 --> 00:49:58.188 Well, you just said you did. Look, if you were gonna 00:49:58.199 --> 00:50:01.000 spend public dollars cleaning up Chevron's liabilities. 00:50:01.010 --> 00:50:02.969 I would love you to spend public dollars on any of 00:50:02.978 --> 00:50:06.219 my liabilities too. I didn't realize you were so free spending. 00:50:06.228 --> 00:50:08.539 No, I'm sorry. We, we did not make an agreement with 00:50:08.550 --> 00:50:11.260 Chevron. We were negotiating with Chevron, but our inspectors 00:50:11.269 --> 00:50:14.139 came to your property and you told them to go away, 00:50:14.148 --> 00:50:16.938 because of a legitimate reason. I'm not arguing a reason. 00:50:16.949 --> 00:50:19.719 What I ask is. I'm saying that is a legal reason for us not to go. 00:50:19.949 --> 00:50:23.110 Order. But that was at your order request and a legitimate 00:50:23.119 --> 00:50:25.614 reason. you had a lawsuit pending. Order every operator 00:50:25.625 --> 00:50:29.885 out there to log every failed PNA, top to bottom. The 00:50:29.894 --> 00:50:31.594 whole way up and down. They'll tell you holes in the 00:50:31.603 --> 00:50:33.853 casing. They'll tell you where things are wrong. We 00:50:33.864 --> 00:50:37.284 have crude oil and our Rustler Aquifer. We have radioactivity 00:50:37.954 --> 00:50:39.695 in our Rustler Aquifer that didn't come there. Your, your statement 00:50:39.704 --> 00:50:41.994 was, we have not helped. We have not been there. We 00:50:42.003 --> 00:50:45.603 have not shown up. We have shown up, we did negotiate 00:50:45.614 --> 00:50:48.514 with Chevron on behalf of your property. And then, we 00:50:48.523 --> 00:50:51.215 were told we couldn't come, because you had a lawsuit. 00:50:51.224 --> 00:50:54.958 Legitimate reason, may I say? But it is, it is not 00:50:54.969 --> 00:50:57.159 correct to say. We aren't willing to come when you tell 00:50:57.168 --> 00:51:00.050 us to go. Not, not come on your property for a legitimate 00:51:00.059 --> 00:51:03.590 reason. The Houston Chronicle called on you to resign 00:51:03.599 --> 00:51:07.119 and I think they made a pretty good point. I'm sure you do. Thank you 00:51:07.128 --> 00:51:09.648 for being here. We appreciate it. We're not gonna take, 00:51:09.659 --> 00:51:13.070 do a direct attacks on each other. That's not the way, 00:51:13.079 --> 00:51:15.829 we appreciate it. We appreciate you've got some challenges. 00:51:15.840 --> 00:51:19.179 Again, we'll be glad to send inspectors out there if 00:51:19.188 --> 00:51:22.914 you'll let us on your property. I want logging, logging. If you have 00:51:22.925 --> 00:51:24.614 a well that fails. The first thing you should do is 00:51:24.625 --> 00:51:27.885 log it, see what's happened. Why is that so difficult? 00:51:27.894 --> 00:51:30.333 I want monitoring wells. Clay Whittle promised them. 00:51:30.344 --> 00:51:32.994 Why is that so difficult? Why am I spending millions 00:51:33.003 --> 00:51:35.625 of dollars to do your job regulating the oil and gas 00:51:35.635 --> 00:51:40.199 industry? Thank you for being here. 00:51:40.199 --> 00:51:43.789 All right. Item 221 is our Executive Session which we 00:51:43.800 --> 00:51:45.938 won't be going into. And are there any other duly 00:51:45.949 --> 00:51:48.110 posted matters to be brought before the Commission 00:51:48.119 --> 00:51:50.599 at this time? Hearing none. This meeting of the Railroad 00:51:50.610 --> 00:51:52.619 Commission is adjourned. Thank you all.