WEBVTT

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Bing. This meeting in the Royal Commission of Texas

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will come to order to consider matters which have been

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duly posted with the Secretary of State for November

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tw 15th 2023. Under our public participation policy

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anyone desiring to offer public testimony on any items

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that are not noticed on today's agenda was required

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to register in advance and we had two people register

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Now, the commission will consider items on the agenda

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as posted on the agenda item number one,

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good morning, chairman and commissioners morning morning

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I'm Brennan Foley Administrative Law judge in the hearings

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division. Item number one is a docket to consider rate

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case expenses associated with Texas gas services. 2022

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Rate case to change rates in the unincorporated areas

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of its West Texas, North Texas and Borger, Skelly town

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service areas. TGS the city of El Paso and the city

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of Borger. Each incurred rate case expenses in the

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completed rate case docket and in this related docket

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the parties filed a unanimous settlement agreement

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that resolves all issues including expense amounts

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in the proposed method of allocation and recovery.

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Following a hearing to consider the settlement, a proposal

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for a decision was issued no party filed exceptions

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to the PFDTGS filed corrections to the PFD and proposed

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final order to correct non substantive typographical

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and clerical errors. Those corrections have been incorporated

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into the PFD and proposed final order presented for

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your consideration. Consistent with the PFD and proposed

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final order. It is recommended that the commissioners

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approve the settlement. I'm available for questions

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Thank you. Are there any questions I have Kate Norman

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representing Texas Gas Services has preregistered and

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is available for questions. Are there any questions

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of Miss Norman? I move. We approve the examiner's recommendation

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Is there a 2nd 2nd 2nd by Commissioner Christian. All

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in favor. Say motion passes that items approved. Thank

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you. Number two,

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number two is the unprotected application of Kinder

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Morgan Texas pipeline LLC for a waiver of certain maximum

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allowable operating pressure requirements for a 0.15

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mile section of the pipeline. The director of the pipeline

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Safety Department administratively reviewed the application

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and recommends approval subject to the conditions set

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forth in its October 17th 2023 memorandum. The applicant

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was given the opportunity to review those conditions

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and does not oppose them. There is no hearing in this

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docket consistent with commission rule section 8.125

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The proposed final order approves the application and

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incorporates pipeline safety conditions. I'm available

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for questions. Thank you. Are there any questions?

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I move. We approve the examiner's recommendation. Is

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there a 2nd 2nd by commissioner, right. All in favor

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Say I my motion passes that approved and number three

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and number three is the application of Centerpoint

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Energy Resources Corp DB A, Centerpoint Energy Intex

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and Centerpoint Energy Texas Gas to change rates. Center

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Point proposes that its rate change become effective

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on or after December 4th 2023 which is 35 days after

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the filing of its application by law. The commission

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has the authority to suspend the effective date by

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150 days. It is recommended that the commissioners

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approve the suspension order suspending the effective

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date by 150 days. In order to allow the commission

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to adequately assess the propriety of Centre Point's

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requested rate change on the available for questions

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Thank you. Are there any questions Mark Santos representing

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Centerpoint has preregistered and is available for

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questions. Does anybody have any questions of him?

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All right, I move. We approve the examiner's recommendations

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There are 2nd 2nd by Commissioner Christian. All in

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favor. Say I my motion passes those items are approved

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Thank you very much.

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Item number four. Good morning. Chamber commissioner

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I'm uh administrative law judge John Raul. And uh,

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with the hearings division, I will be presenting items

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436 this morning. Item number four is an application

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of San Miguel Electric Cooper Inc for release of phases

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12 and three reclamation obligations on 101 acres at

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the San Miguel Mine in Aras Cosa and mcmullin counties

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The approved post mine land use for the area is industrial

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commercial evidence in the record supports that San

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Miguel has satisfied all requirements for phases 12

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and three release on 101 acres as required by the Act

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and the coal mining regulations. After public notice

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no comments or requests for hearing were received.

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San Miguel and staff are the only parties to the proceeding

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No exceptions were filed to the proposed order and

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no changes to the current bond are requested in this

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docket. It is recommended that the request for phases

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12 and three, release of reclamation obligations for

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the aggregate 101 acres be approved and that some Miguel

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be eligible to reduce the amount of bond. I'm available

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for questions. Thank you. Are there any questions I

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move? We approve the examiner's recommendation. Is

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there a 2nd 2nd by Commissioner Wright? All in favor

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Say I my motion passes that item to prove. Number five

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Item number five is the application of Jit Mine LLC

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for release of phases two and three reclamation obligations

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on 934 acres at the Jit Mine in Leon Limestone and

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Freestone counties. The approved post mine land uses

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for the area are pasture land and developed water resources

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Evidence in the record supports that Jewitt has satisfied

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all requirements for phases two and three release of

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reclamation obligations on 497.2 acres and phase three

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release on 436.8 acres for an aggregate total of 934

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acres as required by the act and the coal mining regulations

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After public notice, no comments or requests for hearing

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were received. Jewitt and staff are the only parties

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to the proceeding. No excepts were filed to the proposed

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order and no changes to the current bond are requested

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in this docket. It is recommended that the request

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for phases two and three release of reclamation obligations

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on 497.2 acres and phase three release on 436.8 acres

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for an aggregate total of 934 acres be approved and

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that you would be eligible to reduce the amount of

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bond I'm available for questions. Are there any questions

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No, I if we approve the examiner's recommendation,

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is there 2nd, 2nd, 2nd by Commissioner Christian. All

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in favor. Say motion passes that items approved. Number

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six. Item number six is the application of Texas Municipal

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Power Agency for final closure of permit. Number 26

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D for Gibbons Creek mine in Grimes County. Tm's application

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included stats letter dated January 4th 2023. Approving

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the $0 reclamation cost estimate for the permit. Evidence

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in the record supports that TMP successfully completed

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all surface coal mining and reclamation activities

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for permit number 26 D as required by the act and the

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coal mining regulations and that all bonded areas within

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the permit area have fully been, have been fully released

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from performance obligations by final commission orders

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T MP A and staff are the only parties to the proceeding

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No exceptions were followed to the proposed order.

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It is recommended that the proposed order be issued

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approving the final closure of permit for Gibbs Creek

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mine permit number 26 D Grames County Texas and returning

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the performance bond instrument to TM. I'm available

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for questions. Are there any questions? No final closure

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huh? Yes, ma'am. It's pretty impressive. All right

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I move, we approve the examiner's recommendation. Is

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there a 2nd 2nd by Commissioner Wright? All in favor

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Say I motion passes that I thank you John.

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All right. Number seven and eight. Good morning.

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Good morning, chairman and commissioners for the record

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My name is Austin Gas Camp technical examiner in the

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hearings division. I will be presenting items seven

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and eight. They are presented together and require

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one vote. Item seven and eight are the applications

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of NGL Water Solutions Permian LLC for injection authority

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pursuant to statewide rule nine for commercial permits

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to dispose of oil and gas waste into a formation not

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productive of oil or gas for the Howard Snell lease

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wells. Number one and two in the Sprayberry Trend area

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field located in Howard County, Texas. The application

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is protested by gravity, oil field services LLC gravity

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water, midstream LLC gravity contends this permit should

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not be issued due to a lack of public interest and

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that the injection interval as proposed may not provide

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adequate geological confinement. The examiners find

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the proposed wells have been designed to be protective

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of groundwater and surface fresh water. Additionally

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the examiners find the proposed wells are in the public

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interest and will provide operational support and redundancy

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to NGL nearby big Spring WD operations which is at

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its operational limits. The examiners find the applications

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to meet the requirements of Chapter 27 of the water

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code and statewide rule nine and recommend approval

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of the applications exceptions and replies were filed

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and I'm available for questions. Thank you. Are there

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any questions George Neil and Charles are here representing

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the applicant and preregistered and are available for

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questions. Are there any questions of either one of

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those two? Gentlemen, I move, we approve the examiner's

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recommendation. Is there a 2nd 2nd by Commissioner

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Christian? All in favor. Say I my motion passes those

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items are approved. Thank you. All right. Item number

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nine, good morning, good morning chairman, commissioners

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for the record. My name is Mandy Patel Administrative

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law judge with the hearings division. I'm presenting

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items nine through 11. Item nine is the result of RW

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A LLC contesting staff's determination that renewal

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of its form P five organization report cannot be approved

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due to RWAS failure to comply with the commission's

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inactive. Well, requirements of statewide rule 15 staff

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provided evidence that RW A is the operator record

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of three wells that are non compliant with the inactive

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well requirements. RW A asserts that it is working

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towards bringing the wells into compliance but it has

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been delayed due to weather conditions making the wells

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inaccessible. The examiners find RW A is not in compliance

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with statewide rule 15. The commission cannot renew

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RW A's organization report because the operator is

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non compliant with the inactive well requirements.

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The examiners recommend the commission deny RWAS request

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to allow renewal of the organization report and order

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RW A to bring the wells into compliance. When with

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an act of well requirements, no exceptions were filed

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and I'm available for questions. Thank you. Are there

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any questions? I move. We approve the examiner recommendation

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Is there a 2nd 2nd by commissioner? Right? All in favor

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say I motion passes that items approved 10 and 11 items

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10 and 11 are a motion for a hearing. They are presented

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together with one order requiring one vote on September

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20th. The commission issued an order approving the

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applications of a lagoon water management LLC for injection

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wells, pen operating LLC and penion Midland partners

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LP filed a timely motion for rehearing lagoon filed

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a reply in opposition to the motion. None of the issues

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raised in the motion for renewal are new. All issues

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raised in the motion were already raised by Penn and

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considered by the commission prior to the commission

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issuing the order. In this case, it is recommended

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that the commission deny the motion for rehearing.

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The motion will be overruled by operation of law on

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December 28th. I am available for any questions. Thank

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you. Are there any questions? All right. I have George

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Neil and Charles J representing the applicant have

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preregistered and available for questions. Are there

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any questions of those gentlemen,

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madam chairman I move, we approve the examiner's recommendation

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We have a motion

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and I will um, is there a 2nd 2nd? Ok. Emotion in

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the second,

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all in favor say a motion passes those items are approved

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Thank you very much. All right. Number 12. Good morning

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chairman and commissioners. My name is Trevor Hance

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Administrative Law judge item 12 is a motion for a

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hearing of Petron Oil and Gas following an order entered

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on August 22nd, 2023 related to violations of statewide

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rule. 14. Petra timely filed a motion for a hearing

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indicating it had a plan to transfer the. Well commission

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staff filed a reply. Petra's motion for a hearing did

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not raise any new issues. It's recommended the motion

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be denied. It will be overruled by operation of law

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on November 30th. I'm available for questions. Thank

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you. Are there any questions? No, I move. We approve

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the examiner's recommendation. Is there a 2nd 2nd by

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Commissioner Wright? All in favor. Say I my motion

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passes that I thank you. All right. We're going to

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move to the oil and gas consent agenda. Those are items

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13 through 53 there are 41 items on the consent agenda

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On item number 38 Jessica Mendoza representing resources

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Texas Inc has preregistered and is available for questions

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Are there any questions of Miss Mendoza? Right. Are

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there any other questions? All right, I move. We approve

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the items 13 through 53. Is there a 2nd 2nd by Commissioner

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Christian? All in favor. Say I motion passes. Those

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items are approved. We're going to master default orders

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These are there are 18 master default orders items

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54 through 71. I move we approve items 54 through 71

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Is there a 2nd 2nd by Commissioner Wright. All in favor

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Say I my motion passes those items are approved, agreed

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enforcement orders. There are 324 agreed enforcement

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orders. I move. We approve item 72 through 395. Is

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there a 2nd 2nd by Commissioner Christian? All in favor

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Say I my motion passes, those items are approved and

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that concludes the hearing section and we will now

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take up administrative Randall. Good morning, good

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morning, good morning for the record of Randall Collins

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Staff seeks approval on agenda item number 396. Item

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396 on the agenda pertains to the commissioner approval

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of contract amendments pursuant to the commission's

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delegation of authority and under section 2261.254

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the Texas government code, the commission's internal

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delegation of authority and the government code requires

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commissioner approval of contract or associated amendments

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greater than or equal to $1 million at issue. Today

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is one contract amendment for an emergency purchase

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order for well plugging operations in the Trinity Bay

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approval of this item will ensure that the agency has

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the necessary approvals in place. Pursuant to the commission's

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delegation of authority and state law for the project

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to proceed. Timely, a summary of the amendment terms

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including contract number and amounts are included

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in your notebooks. Staff asked the commission to approve

00:14:42.570 --> 00:14:44.259
the contract amendment pursuant to the commission's

00:14:44.269 --> 00:14:46.149
delegation of authority and I'm available if you have

00:14:46.158 --> 00:14:49.019
any questions. Are there any questions? Is this 396

00:14:49.029 --> 00:14:55.269
or 97? 396? Ok. That's what I have. Did we skip something

00:14:55.509 --> 00:14:57.820
I have three? Nice.

00:14:57.820 --> 00:15:01.869
Ok, I'll call myself 397 but it says 396 in here. I

00:15:01.879 --> 00:15:04.599
don't, I don't have a 396 in my book. So, but I

00:15:04.609 --> 00:15:08.320
do have that in my book is 397. Do you have any

00:15:08.359 --> 00:15:12.149
other questions? I'm just confused. You

00:15:12.149 --> 00:15:16.479
fix the number. I'll scratch through it. Ok. All right

00:15:16.649 --> 00:15:19.119
All right. I'm gonna, if we approve the staff's recommendations

00:15:19.129 --> 00:15:22.548
or 2nd 2nd by Commissioner Wright. All in favor. Say

00:15:22.558 --> 00:15:26.739
I motion passes. Thank you. Now we're going to 397

00:15:26.750 --> 00:15:30.428
with Haley this morning. Good morning. Chairman, commissioners

00:15:30.440 --> 00:15:32.739
Hayley Cochran with the office of General counsel.

00:15:32.750 --> 00:15:35.668
Item number 397 is staff's recommendation to adopt

00:15:35.678 --> 00:15:38.320
amendments to 16 Texas administrative code section

00:15:38.330 --> 00:15:42.668
7.460 relating to suspension of gas utility service

00:15:42.678 --> 00:15:45.500
disconnection during an extreme weather emergency.

00:15:45.808 --> 00:15:49.450
The amendments to section 7.460 were proposed pursuant

00:15:49.460 --> 00:15:54.369
to Texas utilities code section 105023, which requires

00:15:54.379 --> 00:15:57.389
the commission to adopt a classification table to guide

00:15:57.399 --> 00:16:00.330
courts in issuing civil penalties against gas utilities

00:16:00.340 --> 00:16:03.178
that disconnect service during an extreme weather emergency

00:16:03.500 --> 00:16:06.298
On September 19th, the commission approved publication

00:16:06.308 --> 00:16:08.379
of the proposed amendments in the Texas register for

00:16:08.389 --> 00:16:11.779
a public comment period which ended on October 25th

00:16:12.029 --> 00:16:14.639
The commission received six comments on the proposal

00:16:14.940 --> 00:16:17.590
Staff recommends that the commission adopt the amendments

00:16:17.599 --> 00:16:19.710
with changes to the proposed text published in the

00:16:19.719 --> 00:16:22.279
register. The recommended changes are described in

00:16:22.288 --> 00:16:25.210
the adoption preamble in your notebook materials. Staff

00:16:25.219 --> 00:16:28.038
also notes that the commission's September 19th approval

00:16:28.048 --> 00:16:32.690
included approval to publish proposed new rule 7.480

00:16:32.700 --> 00:16:35.808
relating to energy conservation programs. Staff will

00:16:35.820 --> 00:16:38.514
present that for adoption at a later date. May I answer

00:16:38.524 --> 00:16:40.683
any questions? Thank you. Are there any questions?

00:16:41.094 --> 00:16:43.575
All right, I move. We approve. Staff's recommendations

00:16:43.585 --> 00:16:46.663
are 2nd 2nd by Commissioner Christian. All in favor

00:16:46.673 --> 00:16:51.303
Say that item is approved. Thank you very much. All

00:16:51.315 --> 00:16:56.994
right, we're on item 398 which is public participation

00:16:57.004 --> 00:17:00.354
and we've had two people pre register. So Mr White

00:17:01.070 --> 00:17:03.229
if you'd like to come up, state your name. So, you

00:17:03.408 --> 00:17:06.019
see, they just left it out. They didn't want you to

00:17:06.209 --> 00:17:08.348
know.

00:17:08.348 --> 00:17:12.688
I have it in mine. This bird correction. It was 396

00:17:13.568 --> 00:17:15.618
Thank you. He doesn't have it in his notebook, by the

00:17:15.630 --> 00:17:22.368
way. No. Good morning. Good morning. I'm Skyler White

00:17:22.380 --> 00:17:24.739
I'm here to represent myself. I paid my own way to

00:17:24.750 --> 00:17:27.479
be here. Not, uh, speaking for anybody else in this

00:17:27.489 --> 00:17:32.828
room. Oh, good cowboy will take the saddle off a dead

00:17:32.838 --> 00:17:35.890
horse and let the coats have him this uh eating cub

00:17:35.900 --> 00:17:37.969
Number five, y'all screwed up so many things on this

00:17:37.979 --> 00:17:41.140
Well, I'm gonna talk about groundwater protection in

00:17:41.150 --> 00:17:46.269
this. Well, today in this area around this, well, the

00:17:46.279 --> 00:17:50.799
rustler formation, uh the depth of the rustlers 540

00:17:50.809 --> 00:17:56.029
to about 626 130 ft. Your groundwater advisory unit

00:17:56.039 --> 00:18:00.449
put out a letter that they needed to protect to 350

00:18:00.459 --> 00:18:03.848
ft, which wouldn't, would not protect the rustler when

00:18:03.858 --> 00:18:07.049
you plug this. Well, you didn't go to the bottom. You

00:18:07.059 --> 00:18:11.598
just went 700 ft. Uh You pumped cement down there.

00:18:11.608 --> 00:18:15.459
Lost that first plug. Couldn't find that first plug

00:18:15.469 --> 00:18:18.828
popped another plug on top of it. Maybe it held, maybe

00:18:18.838 --> 00:18:23.068
it didn't. You know that y'all have a rule that you're

00:18:23.078 --> 00:18:26.380
supposed to isolate and protect these, these formations

00:18:26.390 --> 00:18:28.500
you know, well, plugging 101 as you go all the way

00:18:28.509 --> 00:18:30.630
to the bottom, you start at the bottom and then you

00:18:30.640 --> 00:18:33.180
plug up, you didn't go to the bottom of this. Well

00:18:33.910 --> 00:18:36.358
why are you not protecting the groundwater? Why are

00:18:36.368 --> 00:18:39.539
you not protect following your own rules? You need

00:18:39.549 --> 00:18:41.549
to follow your own rules when you plug these wells

00:18:41.559 --> 00:18:44.739
and do them, right? MS Cradock. I know you don't care

00:18:44.750 --> 00:18:48.118
too much for West Texas. But uh you know, the people

00:18:48.130 --> 00:18:50.848
out there need water, we need this fresh water in order

00:18:50.858 --> 00:18:54.088
to survive in order to produce the income stream that

00:18:54.098 --> 00:18:56.959
your family depends on and the people out there, we

00:18:56.969 --> 00:19:00.318
need this water. So please please, please. Next time

00:19:00.328 --> 00:19:02.930
you get on these wells and you plug them. Let's plug

00:19:02.939 --> 00:19:07.108
them right? Thank you,

00:19:07.108 --> 00:19:21.890
Maria Reyes.

00:19:21.890 --> 00:19:23.729
Good morning. If you'll state your name and who you

00:19:23.739 --> 00:19:28.920
represent, please. Hello, my name is Maria Reyes and

00:19:28.930 --> 00:19:32.949
I am here from commission shift. Long time listener

00:19:32.969 --> 00:19:35.750
first time speaker.

00:19:35.750 --> 00:19:39.930
Um I am a first generation immigrant. I am a veteran

00:19:39.939 --> 00:19:45.449
I'm a Texan since 1989. And my journey in our beautiful

00:19:45.459 --> 00:19:49.000
state has included teaching higher education, public

00:19:49.009 --> 00:19:52.380
administration government. And one of the things that

00:19:52.390 --> 00:19:56.779
I highlight is that Texans need to govern Texas. So

00:19:56.789 --> 00:20:00.019
thank you for your service.

00:20:00.019 --> 00:20:03.088
I am here today supporting communities all across our

00:20:03.098 --> 00:20:06.358
beautiful state impacted by the development of oil

00:20:06.368 --> 00:20:11.289
and gas. We are concerned about the lack of an overall

00:20:11.299 --> 00:20:14.489
comprehensive understanding from the railroad commission

00:20:14.500 --> 00:20:18.279
of the impact that oil and gas development is having

00:20:18.289 --> 00:20:23.959
in our communities. This is even exacerbated when the

00:20:23.969 --> 00:20:29.328
voice of those impacted is silence through the absence

00:20:29.338 --> 00:20:34.209
of significant public engagement. So I am here to encourage

00:20:34.219 --> 00:20:38.078
you to consider that month after month, this year and

00:20:38.088 --> 00:20:42.078
I just watch all your meetings again last night, month

00:20:42.088 --> 00:20:46.199
after month, we have witnessed through public comments

00:20:46.209 --> 00:20:48.858
in these meetings, the many issues that the public

00:20:48.868 --> 00:20:52.880
is experiencing under your authority from a governance

00:20:52.890 --> 00:20:56.670
perspective, from a professor teaching Texans that

00:20:56.680 --> 00:20:59.348
they should rule themselves. This is the most beautiful

00:20:59.358 --> 00:21:03.410
thing that can take place self agency. Texans coming

00:21:03.420 --> 00:21:06.858
to you and saying the things that you are doing the

00:21:06.868 --> 00:21:10.680
practices, you have the rules under your authority

00:21:10.689 --> 00:21:15.640
are not working. And month after month, we have also

00:21:15.650 --> 00:21:21.868
witnessed your silence. We have also witnessed your

00:21:24.279 --> 00:21:29.299
insinuation or flat out statement that Texans don't

00:21:29.309 --> 00:21:33.539
understand what is happening to their land that don't

00:21:33.549 --> 00:21:36.618
understand your jurisdiction, that don't understand

00:21:36.630 --> 00:21:40.890
the rules. And I just want you to try and think in

00:21:40.900 --> 00:21:45.539
terms of public image. What is that doing to the faith

00:21:45.549 --> 00:21:50.479
that Texans have in our agencies. I consider myself

00:21:50.489 --> 00:21:55.049
an apologist because I love public servants. And so

00:21:55.059 --> 00:21:59.848
I love defending the railroad commission. I love defending

00:21:59.858 --> 00:22:02.539
the employees of the railroad commission because I

00:22:02.549 --> 00:22:06.299
believe there is vocation in what they do spirit for

00:22:06.309 --> 00:22:10.338
service in the protection of our natural resources

00:22:10.348 --> 00:22:14.789
of the posterity of our state, but something is failing

00:22:15.039 --> 00:22:18.858
and what is failing the most is a lack of a true

00:22:18.868 --> 00:22:24.108
system of true engagement with Texans themselves. Last

00:22:24.118 --> 00:22:29.209
month, you address the way speed rule. We came here

00:22:29.219 --> 00:22:32.229
and told you go to the communities that are affected

00:22:32.239 --> 00:22:35.618
listen to the Texans that are affected and you chose

00:22:35.630 --> 00:22:40.989
not to, especially in a state where distance matters

00:22:41.140 --> 00:22:44.489
We need to start considering the systems for public

00:22:44.500 --> 00:22:48.219
engagement in this agency. Thank you. Thank you for

00:22:48.229 --> 00:22:51.410
being here.

00:22:51.410 --> 00:22:54.680
All right. Item 399 is our executive session which

00:22:54.689 --> 00:22:57.588
we won't be going into today. Are there any other daily

00:22:57.598 --> 00:23:00.799
posted matters? Hearing? None. This meeting, the Royal

00:23:00.809 --> 00:23:03.618
Commission is adjourned. Happy Thanksgiving everybody