-: This meeting of the Railroad Commission of Texas
will come to order to consider matters
which have been duly posted with the Secretary of State,
for February 27th, 2018.
The Commission will consider the items on the agenda
as posted on the agenda.
Under our public participation policy,
anyone desiring to offer public testimony on any items
that are not noticed on today's agenda,
will need to fill out a testimony form
found in the back of the room,
and submit it to Commission Secretary Kathy Way.
A reminder, turn off your cellphones.
And we're gonna start with service awards.
That's what all these people
are here for. -: Yeah.
-: Good morning Commissioners, Chairman.
My name is Robbie Craig, I'm the Director
of Human Resources, and I'll be presenting service awards
for first and second quarter, 2018, this morning.
So first, with five years of service,
we would like to recognize Chairman Christi Craddick.
(audience applauding)
Photographer: Three, two, one.
-: Alright. -: Congratulations, Chairman.
-: Also with five years of service, we would like
to recognize Interim Executive Director Wei Wang.
(audience applauding)
Photographer: Alright, three, two, one.
One more, guys.
Three, two, one.
-: Thank you. -: Congratulations.
Here's your pin. -: Oh.
(laughing)
Christi: They didn't give me a pin.
-: They didn't give me a pin to give you.
I'll send you one. (laughing)
(audience applauding)
-: With five years of service
from our ITS Division, Sean Miller.
(audience applauding)
Photographer: Three, two, one.
One more.
Two, one.
Very good.
-: Congratulations, and you even get a pin.
-: Hey, thank you. (laughing)
-: Everybody gets a pin.
From our Financial Services Division,
with five years of service, Jennifer Garcia.
(audience applauding)
-: Thank you.
Photographer: Three, two, one.
Thank you.
-: Okay.
-: Next, with five years of service,
from our Oil and Gas Division, is Zachary Adkins.
(audience applauding)
-: We can move if you need us to.
(laughing) -: No, you're good.
Actually-- -: Yeah, move over.
Photographer: Yeah, let's slide this way.
Thank you.
Alright.
Alright, three, two, one.
One more.
Three, two. (camera shutter clicking)
-: Thank you. -: Congratulations.
(laughing)
-: Celebrating five years of service,
from our Oil and Gas Division, is Allen Kumasa.
(audience applauding)
-: Are we good? -: Yeah.
Photographer: Three, two, one.
One more.
Three, two, one.
Thanks.
-: Congratulations. -: Thank you.
-: Celebrating 10 years of service,
from our ITS division, is Rolly Reid.
(audience applauding)
Photographer: Three, two, one.
Three, two, one, got it.
-: Thank you. -: Thanks.
Congratulations.
-: Next, from our Hearings Division,
Sandra Elliot is also celebrating 10 years of service.
(audience applauding loudly)
Photographer: Okay, here we go.
Three, two, one.
And again.
Two, one.
Thank you.
-: Thank you.
-: Thanks again.
-: Next, from Chairman Craddick's office,
celebrating five years of service, is Lauren Spring.
(audience applauding)
Photographer: Three, two, one.
One more.
Three, two, one.
Thanks.
(audience applauding)
-: Also from Chairman Craddick's office,
and celebrating five years, is Kathleen Hayden.
(audience applauding)
-: I'm so excited.
The last time I got hands was home.
(laughing)
Man: That didn't work out.
Photographer: Three, two, one.
One more.
Three, two, one.
(audience mumbling) (laughing)
Man: I want the rest of the story.
(laughing)
-: Celebrating 10 years from the Administration Division,
is Roy Phillips.
(audience applauding)
Photographer: Three, two, one.
(camera shutter clicking) One more.
Three, two, one. (camera shutter clicking)
-: You did it on two. (laughing)
-: Also celebrating 10 years,
from the Oil and Gas Division, is Markita Horton.
(audience applauding)
Photographer: Alright, three, two, one.
One more.
Three, two, one.
Thank you.
(audience applauding)
-: Celebrating 15 years,
from our San Antonio office, in the Oil and Gas Division,
is Beatrice Castillo.
(audience applauding)
-: Are we in the right spot?
Do we need to move? -: You're good.
Photographer: Fine, three, two.
(camera shutter clicking) One more.
Three, two, one.
-: Thank you. -: Thank you very much.
Thank you. -: Thank you.
-: Celebrating 20 years, from Oversight and Safety,
is Virgie Frosto.
(audience applauding)
-: Good morning, thank you.
-: Congratulations.
(laughing)
Photographer: Here we go, three, two, one.
One more.
Three, two, one.
-: Thank you.
-: And finally, celebrating 25 years,
from our Oversight and Safety Division,
is Laurie Oviedo.
(audience applauding)
-: Congratulations.
-: Thank you. (mumbling)
Photographer: Three, two, one.
Three, two one. (camera shutter clicking)
Perfect. -: Thank you.
Robbie: This concludes our service awards for today.
(audience applauding)
(audience members chatting indistinctly)
-: Yeah, but we're on that now too.
Same kind, but I still got the single daughter.
-: Yes.
Hey, I'm still single.
What do you think happened? (laughing)
Kidding. (laughing)
Thank you all.
We've got some great staff. -: We do.
-: Alright, we're at Item Number One.
-: Good morning, Chairman, Commissioners.
I'm Randall Collins from the Hearings Division.
Agenda item one, GUD 10455,
is a motion filed by WTXP,
addressed directly to the Commissioners.
WTXP requests reconsideration of the Commissioners'
January 23rd remand order.
And in the alternative, reinstatement
of WTXP's challenged rate amounts.
All materials related to the agenda items
are included in your notebooks.
If you have any questions, I am available,
and also, the ALJ.
-: Thank you.
Are there any questions?
Alright, I move that we deny the motion.
Is there a second? -: Second.
-: Second, Commissioner Christian.
All in favor say aye.
-: Aye. -: Aye.
Any opposed? -: No.
-: One no.
Motion passed, this item is approved, two to one.
Item Number Two.
Marcy: Good morning, Chairman, Commissioners.
-: Morning, Marcy.
How are you? -: I'm fine, thank you.
This is the application,
by Texas Municipal Power Agency,
for release of reclamation obligations,
Phases I through III,
for 4.9 acres, and Phase III for 1.8 acres,
for an aggregate of 6.7 acres,
Permit 26D, Gibbons Creek Lignite Mine,
in Grimes County.
TMPA filed an application for release
of backfilling, regrading, to approximate
original contour and drainage control,
for the 4.9 acres within the mine.
The application was submitted by a letter
dated May 3rd, 2017.
Staff filed its technical analysis,
and building inspection report,
by a letter dated January 2nd, 2018.
The staff report recommends release of Phases I through III
obligations for 4.9 acres as well as release
of Phase III reclamation obligations,
for, excuse me, 1.8 acres.
TMP presented evidence confirmed by staff
that all requirements for backfill and grading,
vegetation, surface, and groundwater protection,
have been met, that are applicable.
Some areas were disturbed after reclamation,
by a third party, the Texas Department of Transportation.
Tex DOT entered into an agreement with the landowner,
an individual not related to TMPA,
whereby Tex DOT took borrowed material for use
in an intersection upgrade,
and also constructed a pond on the property.
There is some erosion in the area of the pond.
Soil has also been stockpiled on the property.
When a third party has conducted operations
not subject to the control of the permitee
and for which the permitee is not responsible,
these areas need not be covered by the bond,
pursuant to section 12.306E of the Regulations.
The land use for the tract is industrial-commercial,
for which vegetation sufficient to control erosion
is the re-vegetation requirement.
Except for the third-party-disturbed areas,
the areas requested for release are re-vegetated
sufficient to control erosion.
All other requirements for the release have been met.
In processing this application,
staff required TMPA to submit an application
for a post mine land-use change,
from industrial-commercial, a defined land use,
to industrial-commercial exempt,
that is not defined in the Regulations.
Because of section 12.306E,
the application for an undefined post-mine
land use was unnecessary.
Public notice and other required notices were provided.
No hearing was requested.
TMPA and staff waived the preparation and circulation
of a proposal for decision.
No changes are requested to the current bond.
An eligible bond reduction not attributable
to the acreage has been calculated
for the aggregate 6.7 acres,
that is $37,061.31.
The Commission may approve this bond reduction amount.
The application is recommended for approval,
and I am available for any questions.
Christi: Thank you, Marcy.
Are there any questions? -: No.
-: I move we approve the examiner's recommendation.
Is there a second? -: Second.
-: Second, Commissioner Sitton.
All in favor, say aye.
-: Aye. -: Aye.
Motion passed, this item is approved.
Thank you.
Item Number Three.
Man: We're requesting that Item Number Three be passed.
-: Alright, passing Item Number Three.
Item Number Four.
Oh, last conference, huh? -: Last conference.
Yes, Ma'am.
Good morning, Chairman, Commissioners.
For the record, my name is Ryan Lammert,
Administrative Law Judge, Hearings Division.
Items number four and five are two proposed orders
of memorializing Commissioner Christian's motions
made at the previous conference.
The first proposed order dismisses without prejudice
RBJ's complaint against COG.
The second proposed order revokes RBJ's disposal authority
at the subject wells,
and directs RBJ to plug each well.
I am available for questions.
-: Madam Chairman, making sure
this is not my second Rosanna Danna Danna moment,
and that may be past generation, okay.
(laughing) This is the right item, okay.
-: This is the right item. -: Okay.
-: I wanna make a motion
to amend this, the last time.
Let me explain.
After further review of the record,
I'd like to move to amend the order
the Commission adopted at the last conference,
regarding this case specifically.
At the conference, the Commission adopted an order
to terminate the permit at RBJ's Delhi Ranch.
Delhi, is that correct?
-: Yes, Sir, Delhi. -: Hey, I said it right.
Ranch lease well number one, and require to plug.
The Commission took this action based on the evidence
that the PDF that produced water with a chemical tracer
was injected down the well, that was later produced
by Henry Resources' wells on the Melinda Lease.
However, further review of the record,
only 1% of the produced water with the chemical tracer
was injected into well number one.
Therefore, I would like to move to amend the order
adopted by the Commission at the last conference,
as follows: do not terminate the permit
for well number one.
Suspend the permit to operate well number one
until such time that RBJ can successfully demonstrate
to the Commission that injected fluids
disposed at the Delhi Ranch Lease well number one
are not being produced from Henry Resources,
on Melinda Lease.
Christi: Are there any questions?
-: Commissioner Christian, I wanna make sure I understand.
You made a comment
about the fact that only 1% chemical tracer
was injected in well number one.
There was no chemical tracer injected
in well number one, right?
It was only well number two?
-: There was a small amount,
give or take, 5,000 barrels, that was injected
into number one.
-: [Commissioner Sitton] But we didn't see that recovered
through the Henry well.
-: I think that was the issue,
is that we could not determine
the chemical tracer was the same that was injected
into each well.
I'm not sure that there was a distinguishing factor
that you could say this was injected into one
and this was injected into two.
-: Right. -: Does that make sense?
-: It does.
I wanna make sure we're being clear
about what the basis of the motion is.
-: Yeah, I made 1%, just a small amount.
-: I wanna make sure that we're not, yeah.
So okay, it's the fact that we couldn't determine
that where the chemical tracer was coming from.
The amounts that were put into the disposal
were predominantly in disposal well two,
so we're assuming that that's where they came from.
Hence the reason to only plug that well.
Ryan: That's correct.
-: Okay, I just wanna be clear on that.
Yup, thank you.
-: Alright.
We've got a motion, I'll second that motion.
Is there any more discussion?
Alright.
All in favor, say aye.
-: Aye. -: Aye.
Motion passed, this item is approved.
And we're on number six.
(clears throat)
-: Item Number Six is the Commission-called hearing
to provide Polk Operating, LLC,
an opportunity to show cause why the operator
is not in violation of Statewide Rules
at the Polk Karnes R3 Facility
located in Karnes County.
Between February, 2015, and December, 2016,
staff visited the facility 24 times.
Staff cited violations at each inspection,
including violations of 8(d)(1),
8(d)(6), and 91,
and other numerous violations of permit conditions.
To be clear, staff asserts, quote:
"The operator is discharging stormwater
"from a non-contact stormwater pond, into a stock pond."
Staff also alleges various pits are, quote:
"over the capacity",
firewalls are not built to permit specifications,
and missing in some areas,
and quote: "Treated material is stockpiled
"outside of the assigned pits,
"and the stormwater collection pond
"contains contact stormwater."
Staff maintains the cited violations persist at the facility
save for a pit that is no longer over capacity.
On three separate occasions,
staff mailed correspondence to Polk,
notifying the operator of violations at the facility,
and directed Polk to discontinue accepting waste
until the violations were resolved.
Polk was also provided the option to request a hearing
on the merits.
Polk exercised that opportunity and requested a hearing.
Shortly thereafter, Evergreen Underground
Water Conservation District intervened into the matter.
A protracted period of discovery
preceded the seven-day hearing.
Staff requests Polk's permit be suspended.
Evergreen seeks revocation.
The examiners are convinced the evidence of record
supports suspending Polk's permit until such time
that the operator performs remediation of the facility,
and otherwise comes into compliance with the permit
and all applicable Commission rules,
and now make that recommendation to the Commissioners.
Exceptions and replies were received.
Evergreen is present to answer questions,
and I am also available for questions.
-: Thank you, and before we
get into six, I'm sorry, I forgot
we had somebody for four and five,
if we had any questions.
And we do have number six.
Sorry, I forgot, too much stuff sitting up here today.
Okay, we're on Item Number Six.
Does anybody have any questions?
-: I just have a comment.
-: Okay.
-: So we had, between February, 2015,
and December, 2016, over a hundred violations.
Correct? -: Alleged, yes, Sir.
-: Looking through the record, looking at the pictures
of the facility, this looks like
one of these facilities that we're gonna end up,
I'm concerned that we're gonna end up having
to do a lot more here.
The Commission's gonna have to take a lot more
prominent role in helping clean this thing up.
Just a comment is, I'm glad
we're taking this enforcement action,
and I think that it has taken a little bit,
this is an area I think, Commissioners,
that we are gonna have to get aggressive,
because these types of facilities, and Boundary Ventures
a couple years ago cost us a lot of money,
and we're gonna need
to be diligent in making sure,
that, you know we've talked before, most operators
in this state do a great job.
They work with us when there are rule violations
that are unintentional,
and we work together.
People in this state do really good business.
Every once in a while there's people that seem
to intentionally go around our rules,
that seem to get away
with whatever they can, and at the end of the day,
we end up holding the bag,
and this is, it's unacceptable.
I'm gonna support the examiner's recommendation here,
but I think in the future, we've gotta figure out a way
to identify these bad apples and take more swift action,
to prevent these things from becoming this size issue
that this one looks like it's gonna become.
My comment.
-: And to clarify, just for me,
we're giving them four months.
Is that correct?
And then if they don't have remediation in four months,
there's a provision that they'll be fined
$10,000 a day.
Is that correct? -: Yes, Ma'am.
Ryan: 120 days, and then
$10,000 per day for non-compliance.
-: Okay.
-: And, Madam Chairman?
May I say, I agree with Chairman, Commissioner Sitton.
-: Chairman?
That was quick. (laughing)
-: No, but I agree.
I've seen that problem, and I agree with you on that.
To combine that, it's a problem that we see
in certain parts of the state, where historically
it's been producing on wells.
They're producing such a minimal amount,
but they're important.
We have small producers doing a minimum profitability.
The problem, and I agree we need to discuss,
is how we can differentiate, because some of these folks
are doing like several wells, and if we impose
any restrictions on them, to any large extent,
and they're doing the best they can,
getting a small check going each month for royalties,
and getting going, but if you start imposing
additional restrictions that may not be necessary,
across the state.
That's the trouble with doing rules,
and I think we need to understand, can we differentiate
from different people?
'Cause if you shut down that one situation,
will they just simply walk off, and we're now imposed
with shutting, closing 30 wells
that are producing just barely each month,
even though they're producing according?
So it's a real problem I'm having
to understand, of how we address legitimate actors
that we can do something and prevent costs in the future.
At the same time, in addressing those,
not hit somebody over here in another part of the state,
that's doing the best they can and not harming anything,
but it's not profitable for them to do whatever
we then require.
So I think, how we can be careful
in protecting both those small, small producers
that are still barely getting something
out of the last few years of some wells,
at the same time that we get the bad actors
that we can go after.
It's a problem, I agree with you, Commissioner,
we need to address.
-: I wanna be clear, I wasn't talking
about small producers here.
This is somebody who, beginning of February of 2015,
our staff started
finding violations, identifying violations,
found a hundred of them over a less-than-two-year period.
So that's a pretty specific application.
That's a pretty specific instance
that differentiates someone, an operator,
or in this case a disposal operator, from other people.
-: I agree totally.
I'm just adding a comment
that we have to be very careful,
because sometimes when we pass a rule over somebody
like that, we need to really consider
we're not touching somebody that's maybe
barely getting by, that's doing the right thing
somewhere else, and wind up closing several wells.
It's a statewide problem.
For example, you go out to Midland,
and some of the Commission employees there complain
because the fines and fees are not enough to be respected
by the large producers there.
But if you change some of those fees,
it would close some of the smaller producers
in other parts of the state.
So that's a challenge we have, on how to enforce correctly,
these things across the state.
It's, believe me, it's a problem
when you have a state as big as Texas,
and thank God we do.
But that's all I'm saying, how we could do that.
-: I appreciate that staff has an aggressive plan,
in 120 days, if this doesn't get fixed.
I move we approve the examiner's recommendation.
Is there a second?
-: Second. -: Second, Commissioner Sitton.
All in favor, say aye.
-: Aye. -: Aye.
Motion is approved.
Thank you, Ryan.
Alright, we are on the Oil and Gas Consent agenda,
items seven through 27.
There are 21 items on this agenda.
I'm told staff wants to pass 26, is that correct?
Number 26.
Alright, I'm gonna move that we approve
items seven through 27, with the exception
of Item Number 26.
Is there a second? -: Second.
-: Second, Commissioner Christian.
All in favor, say aye.
-: Aye. -: Aye.
Motion passes, those items are approved.
Master Default items, they are items 28 through 32.
There are five items on this agenda.
I'm gonna move that we approve items 28 through 32.
Is there a second?
-: Second. -: Second, Commissioner Sitton.
All in favor, say aye.
-: Aye. -: Aye.
Motion passes, those items are approved.
Agreed Enforcement Orders, items 33 through 160.
There are 128 on this docket.
I'm gonna move that we approve items 33 through 160.
Is there a second? -: Second.
-: Second, Commissioner Christian.
All in favor, say aye.
-: Aye. -: Aye.
Motion passes, those items are approved.
That concludes the agreed section.
Thanks, Randall. -: Thank you.
-: Item 161.
Good morning, Wei.
-: Good morning, Chairman, Commissioners.
For the record, I'm Wei Wang, Interim Director.
As we wrap up the second quarter of the state fiscal year,
I'm happy to report that the state of finances is strong.
Thanks to funding certainty, we're able to plan ahead,
which allows us to plug more wells
and hire more inspectors.
As of last Friday, we plugged 635 wells,
which is more than the entire year of 2016.
And today, we have 55 Pipeline Inspectors,
the highest level in Commission history.
So if this trend continues, I'm confident
that we'll see even better numbers during the second half
of the year.
With that, I'm available for questions.
Christi: Thank you.
Are there any questions?
-: Just one comment, Madam Commissioner.
I wanna commend the other two Commissioners here,
and our Interim Executive Director, Mr. Wang,
who helped tremendously during session,
to convince the Legislature to give us the funding
that has provided this additional safety
to the citizens of Texas, and want to extend
this information to our friends at the capitol over there,
when they consider the next session coming up, how much
benefit, did the citizens of Texas, for them
to see the Railroad Commission was properly funded.
-: Thank you.
It was a good point.
Any other things?
-: No. -: Okay.
Thank you.
Wei, did you have anything else?
-: No. -: Okay.
163.
-: 163 is the Commission Employee Handbook.
I just wanna recognize our HR Director, Robbie Craig,
and her staff, for their hard work.
They've been working on this for several months.
And with that, I'll turn over to General Counsel,
and Assistant General Counsel Vanessa, for the presentation.
Christi: Okay, good morning, Vanessa.
-: Good morning.
Vanessa Burgess, Assistant General Counsel, for the record.
Item 163 pertains to the adoption of a new
Commission Employee Handbook.
A little background on this project:
the Human Resources Department, in conjunction
with the Executive Office and the Office of General Counsel,
determined it was the appropriate time
to review the Commission's current Employee Handbook,
and make any necessary updates or changes to it.
Accordingly, the Human Resources Division
organized a work group of 10 employees
with representation from the Oil and Gas,
Oversight and Safety, and Surface Mining Divisions.
This work group met weekly over the course of six months,
in order to draft and review
each and every policy in the new handbook.
The work group consulted multiple handbooks
used by other agencies, state statute,
the State Auditor's inventory, and private sector handbooks,
in order to create and shape this current draft handbook.
Special thanks goes out to all the work group members,
Catherine Dolan, Jason Clark,
Robbie Craig, Carrie French, Eric Patton,
Danny Kingsley, and Travis Wooten.
And I'd like, at this time, to give extra special thanks
to Wendy O'Neill in Human Resources
for her tireless drafting and organization
of the final handbook,
and to Hailey Cochran in the Office of General Counsel,
for her meticulous approach to assigning various tasks
to members of the group, and keeping everyone on track
to meet established internal guidelines.
If approved, this handbook will supersede
all prior agency handbooks, and serve as the guiding
human resources policy document
for Railroad Commission staff.
A draft version of this handbook was included
in your notebook materials.
Staff asks that you adopt this current draft handbook.
And I am available to answer any questions.
-: Thank you.
Are there any questions?
Well thank you all for your work, we appreciate it.
And I know it takes time,
but this is a good product.
So, nice going. -: Well thank you.
-: Nice going forward.
I move we approve the staff's recommendation.
Is there a second?
-: Second. -: Second, Commissioner Sitton.
All in favor, say aye.
-: Aye. -: Aye.
Motion passes, this item is approved.
Thank you.
Alright, 164.
Good morning, Alex.
Alex: Good morning, Chairman, Commissioners.
For the record, my name is Alex Schoch,
the General Counsel of the Railroad Commission of Texas.
For item 164, Mr. Cooney just has a brief update
on some of the recent developments on the Clean Power Plan.
-: Great.
-: Good morning Chairman, Commissioners.
David Cooney, from the Office of General Counsel.
Just wanted to advise that yesterday,
the TCEQ, on behalf of themselves, us,
and the PUC, filed comments
on the EPA's Advance Notice of Proposed Rulemaking
on State Guidelines for Greenhouse Gas Emissions
from Existing Electric Utility Generating Units.
And we are still, our comment
is basically: what are you doing?
(laughing)
-: [Commissioner Sitton] Don't like this high-falutin'
legal language you're using. -: Right, right.
-: [Commissioner Sitton] Tone it down for me, please.
-: The repeal, we also have comments brewing
on the repeal of the Clean Power Plan,
but those are still, the Governor's Office
is reviewing recommendations
that the TCEQ made in response to their comments.
Those will be filed timely, they're due April 26th.
I'm available for any questions.
Christi: Thank you.
Thank you for working with other agencies too.
I think it makes us stronger, so I appreciate that.
Thanks.
-: Don't mess up that repeal.
-: No, don't mess up.
Alright.
Morning.
How are you? -: Great.
Good morning, Chairman. -: 165.
-: Commissioners, for the record,
my name is Mark Everett,
with the Oversight and Safety Division.
Item Number 165 is Gas Utilities Docket
Number 10695, Regulatory Accounting
Related to Federal Income Tax Changes,
Gas Utilities Accounting Order.
On December 22nd, 2017,
the President signed into law the Tax Cuts
and Jobs Act of 2017.
The act made widespread changes
to the Internal Revenue Code,
which included reducing the Federal Corporate
Income Tax Rate from 35 to 21%.
The act became effective on January 1st, 2018.
On January 23rd, Chairman Craddick directed
the Commission staff to assess the impact of the act
on regulated gas utilities,
to ensure that the tax savings are passed on to rate payers
in the State of Texas.
The Federal Corporate Income Tax Rate
is a key component of the cost of service,
used to set natural gas utility rates,
and the reduction of the tax rate has a significant impact
on the cost of service.
Staff recommends the Commission adopt
a Gas Utilities Accounting Order which accomplishes
the following: one, orders gas utilities
subject to the Commission's jurisdiction
to create regulatory liabilities, to record the changes
to rates and deferred income tax,
effective January 1st, 2018, to the actual date
the changes are implemented;
two, orders gas utilities to file with the Commission
to decrease rates to reflect the 21% tax rate,
no later than September 1st, 2018,
for gas utilities serving 10,000 customers or more,
and no later than March 1st, 2019, for gas utilities
serving less than 10,000 customers;
three, orders gas utilities to refund the amount
collected by the utility that reflects the difference
between existing rates and the rates
that would have been charged
had the cost of service been calculated
using a 21% Federal Income Tax rate.
This covers the period between January 1st, 2018,
and the date the rate decrease is effective.
Four, orders gas utilities to implement the rate decreases
and refunds through an administrative filing
pursuant to Texas Utilities Code 104.111,
or through a full Statement of Intent rate filing.
Changes to rates made through a 104.111 filing
will be subject to review in the gas utility's next
Statement of Intent proceeding.
And five, orders that the regulatory liabilities
and amortization established by a gas utility
shall be presented for consideration in setting the cost
of service rates of the gas utility
during the next Statement of Intent proceeding,
or other rate proceeding.
In staff's opinion, the Gas Utilities Accounting Order
effectively ensures that the corporate tax savings
resulting from the Tax Cuts and Jobs Act,
are passed on to rate-payers in the State of Texas.
And staff recommends that the Commission adopt the order.
-: Thank you, Mark.
Are there any questions?
I'd like to thank staff
for looking at this and being timely about it.
I appreciate it, and I think
y'all have done a good job.
And we're gonna pass these tax savings
back down to customers, which I think is a priority.
So thanks, Mark. -: Thank you.
-: I move we approve the staff's recommendation.
Is there a second? -: Second.
-: Second, Commissioner Christian.
All in favor, say aye.
-: Aye. -: Aye.
Motion is approved.
We're on item 166.
We have no public participation
that anybody's turned any cards,
so item 167 is our
Executive Session.
We're going to recess for Executive Session.
So having duly convened
in an open meeting, the Railroad Commission of Texas
will now, at 10, I can't read that far today.
-: 10:10. -: 10:07, on Tuesday,
February 27th, 2018,
hold a closed meeting in the Willa May Conference Room,
on the 12th floor of the William B. Travis
State Office Building,
pursuant to Texas Government Code Chapter 551.
The Commission will discuss personnel matters
related to the position of Executive Director,
pursuant to section 551.074 of the code.
The Commission will reconvene the open meeting
in the Willa May Conference Room,
on the 12th floor of the William B. Travis
State Office Building.
We are recessed.
Thank you.
-: I'm signing.