WEBVTT FILE
1
00:04.757 --> 00:05.912
Good morning.
2
00:05.912 --> 00:07.683
This meeting of the Railroad Commission of Texas
3
00:07.683 --> 00:10.138
will come to order to consider matters
4
00:10.138 --> 00:11.491
which have been duly posted with
5
00:11.491 --> 00:15.171
the Secretary of State for December 11, 2018.
6
00:15.171 --> 00:16.762
The Commission will consider the items
7
00:16.762 --> 00:19.103
on the agenda as posted on the agenda
8
00:19.103 --> 00:22.892
under our public participation policy anyone desiring
9
00:22.892 --> 00:26.340
to offer public testimony on any items that are not noticed
10
00:26.340 --> 00:28.761
on today's agenda will need to fill out
11
00:28.761 --> 00:31.187
a testimony form found in the back of the room
12
00:31.187 --> 00:34.119
and submit it to Commission Secretary Kathy Way.
13
00:34.119 --> 00:36.766
Reminder to please turn off your cell phones
14
00:36.766 --> 00:38.031
and item number one.
15
00:38.031 --> 00:38.864
Good morning.
16
00:38.864 --> 00:40.806
Good morning chairman and commissioners.
17
00:40.806 --> 00:42.954
For the record, my name is Claudia Godoy
18
00:42.954 --> 00:45.125
with the Oversight and Safety Division.
19
00:45.125 --> 00:46.803
Today's first agenda item is
20
00:46.803 --> 00:50.268
Gas Utilities Docket Number 10752.
21
00:50.268 --> 00:54.047
Application of Red Bluff Express Pipeline, LLC pursuant
22
00:54.047 --> 00:57.710
to the Natural Gas Policy Act Section 311
23
00:57.710 --> 01:01.263
for a review of the reasonableness of transportation rates.
24
01:01.263 --> 01:04.537
Red Bluff Express Pipeline, LLC provided testimony
25
01:04.537 --> 01:06.842
in supporting information demonstrating
26
01:06.842 --> 01:10.388
that the requested rates do not exceed cost-based rate.
27
01:10.388 --> 01:13.036
Staff recommends approval of the application.
28
01:13.036 --> 01:15.027
May I answer any questions?
29
01:15.027 --> 01:15.860
Thank you.
30
01:15.860 --> 01:17.676
Are there any questions?
31
01:17.676 --> 01:20.428
I move we approve the examiner's recommendation.
32
01:20.428 --> 01:21.827
Is there a second?
33
01:21.827 --> 01:22.660
Second.
34
01:22.660 --> 01:23.493
Second.
35
01:23.493 --> 01:24.326
Commissioner Sitton.
36
01:24.326 --> 01:25.159
All those in favor say aye.
37
01:25.159 --> 01:26.186
(majority says aye)
38
01:26.186 --> 01:27.370
Motion is approved.
39
01:27.370 --> 01:29.489
Thank you Claudia.
40
01:29.489 --> 01:31.468
Good morning, how are you John?
41
01:31.468 --> 01:32.571
Good morning, commissioners.
42
01:32.571 --> 01:35.021
I'm Administrative Law Judge John Dodson, Hearings Division.
43
01:35.021 --> 01:37.355
I'll be presenting the next two agenda items.
44
01:37.355 --> 01:40.419
Agenda item two is GUD 10742,
45
01:40.419 --> 01:43.496
a rate case filed by Atmos Energy's Mid-Tex Division,
46
01:43.496 --> 01:44.727
to change gas utility rates
47
01:44.727 --> 01:46.799
for its unincorporated customers.
48
01:46.799 --> 01:49.226
Commission staff is the only intervening party.
49
01:49.226 --> 01:50.625
The Commission has jurisdiction in this case
50
01:50.625 --> 01:53.817
over environs rates only, not rates in cities.
51
01:53.817 --> 01:55.419
Atmos and staff reached a settlement,
52
01:55.419 --> 01:59.169
agreeing to a revenue decrease of $2,850,968.
53
02:01.323 --> 02:03.843
Cost of equity set at 9.8 percent,
54
02:03.843 --> 02:05.723
a reduction of the corporate income tax rate
55
02:05.723 --> 02:08.127
from 35 percent to 21 percent,
56
02:08.127 --> 02:12.231
to reflect changes due to the tax cuts in Jobs Act of 2017.
57
02:12.231 --> 02:14.677
Certain affiliate expenses and recovery by Atmos
58
02:14.677 --> 02:19.677
of its rate case expenses totaling no more than $98,762.23.
59
02:21.248 --> 02:23.013
We recommend approval of the settlement.
60
02:23.013 --> 02:24.238
Atmos timely filed the exceptions
61
02:24.238 --> 02:25.759
to the PFD that address certain
62
02:25.759 --> 02:28.133
typographical and clerical errors.
63
02:28.133 --> 02:29.329
We've verified their accuracy
64
02:29.329 --> 02:30.559
and made all the necessary changes
65
02:30.559 --> 02:33.967
in the recommended final order that I have here today.
66
02:33.967 --> 02:36.045
Today is the last scheduled Commission conference
67
02:36.045 --> 02:38.222
prior to the deadline for Commission action.
68
02:38.222 --> 02:39.557
We're available for questions.
69
02:39.557 --> 02:40.390
Thank you.
70
02:40.390 --> 02:41.336
Are there any questions?
71
02:41.336 --> 02:43.432
I move we approve the examiner's recommendation.
72
02:43.432 --> 02:44.265
Is there a second?
73
02:44.265 --> 02:45.098
Second.
74
02:45.098 --> 02:46.126
Second by Commissioner Christian.
75
02:46.126 --> 02:47.304
All those in favor, say aye.
76
02:47.304 --> 02:48.137
(majority says aye)
77
02:48.137 --> 02:49.472
Motion's approved.
78
02:49.472 --> 02:50.579
Number three.
79
02:50.579 --> 02:54.120
Item three is GUD item 10743, a rate case filed
80
02:54.120 --> 02:56.848
by Atmos Energy's West Texas Division to change
81
02:56.848 --> 02:59.780
gas utility rates for its unincorporated customers.
82
02:59.780 --> 03:02.009
Commission staff is the only intervening party.
83
03:02.009 --> 03:04.238
The Commission has jurisdiction, in this case,
84
03:04.238 --> 03:07.199
over environs rates only, not rates in cities.
85
03:07.199 --> 03:09.169
Atmos and staff reached a settlement agreeing
86
03:09.169 --> 03:12.002
to a revenue decrease of $866,090.
87
03:13.650 --> 03:16.332
Cost of equity set at 9.8 percent.
88
03:16.332 --> 03:17.882
A reduction of corporate income tax rate
89
03:17.882 --> 03:20.436
from 35 percent to 21 percent to reflect changes
90
03:20.436 --> 03:23.628
due to the tax cuts in Jobs Act of 2017.
91
03:23.628 --> 03:25.962
Certain affiliate expenses and recovery by Atmos
92
03:25.962 --> 03:30.962
of it's rate-case expenses totaling no more than $48,009.08.
93
03:31.338 --> 03:33.253
We recommend approval of this settlement.
94
03:33.253 --> 03:35.163
Atmos timely filed exceptions to the PFD
95
03:35.163 --> 03:37.926
that address certain typographical and clerical errors.
96
03:37.926 --> 03:39.354
We verified their accuracy and made all
97
03:39.354 --> 03:41.101
the necessary changes and the recommended
98
03:41.101 --> 03:42.970
final order that I have here today.
99
03:42.970 --> 03:44.770
Today is the last scheduled conference prior
100
03:44.770 --> 03:46.558
to the deadline for Commission action.
101
03:46.558 --> 03:47.492
We're available for questions.
102
03:47.492 --> 03:48.325
Thank you.
103
03:48.325 --> 03:49.292
Are there any questions?
104
03:49.292 --> 03:51.556
I move we approve the examiner's recommendation.
105
03:51.556 --> 03:52.389
Is there a second?
106
03:52.389 --> 03:53.222
Second.
107
03:53.222 --> 03:54.055
Second, Commissioner Sitton.
108
03:54.055 --> 03:55.080
All those in favor, say aye.
109
03:55.080 --> 03:55.913
(majority says aye)
110
03:55.913 --> 03:57.230
Motion passes, items approved.
111
03:57.230 --> 03:58.063
Thank you, John.
112
03:58.063 --> 03:59.122
Thank you.
113
03:59.122 --> 04:00.705
Item number four.
114
04:03.685 --> 04:05.403
Good morning, commissioners.
115
04:05.403 --> 04:06.947
Stephen Leary, Administrative Law Judge
116
04:06.947 --> 04:08.573
with the Hearings Division.
117
04:08.573 --> 04:11.348
Item four is the application by the Sabine Mining Company
118
04:11.348 --> 04:13.054
for a lease of phase one through three
119
04:13.054 --> 04:17.733
reclamation obligations on 191.1 acres, and phase two
120
04:17.733 --> 04:21.814
and three reclamation obligations on 36.9 acres.
121
04:21.814 --> 04:23.474
The subject acreage is located within
122
04:23.474 --> 04:27.300
the South Hallsville No. 1 mine in Harrison County, Texas.
123
04:27.300 --> 04:30.928
The approved post-mine land uses industrial and commercial.
124
04:30.928 --> 04:32.687
Sabine has demonstrated and is confirmed
125
04:32.687 --> 04:35.276
by staff's analysis of inspection that reclamation
126
04:35.276 --> 04:38.567
has been accomplished as required under the regulations.
127
04:38.567 --> 04:41.423
Public and other notices required by law were provided.
128
04:41.423 --> 04:43.060
No hearing was requested.
129
04:43.060 --> 04:45.701
Sabine and staff are the only parties to the proceeding.
130
04:45.701 --> 04:47.292
No exceptions were filed.
131
04:47.292 --> 04:51.959
Staff calculated eligible bond reduction of $178,820.40.
132
04:53.602 --> 04:55.779
No change to the current bald instrument
133
04:55.779 --> 04:57.416
is requested at this docket.
134
04:57.416 --> 04:59.372
I recommend approval of the requested releases
135
04:59.372 --> 05:01.282
of the proposed bond reduction amount
136
05:01.282 --> 05:02.786
and I am available to answer questions.
137
05:02.786 --> 05:03.619
Thank you.
138
05:03.619 --> 05:04.730
Are there any questions?
139
05:04.730 --> 05:07.064
I move we approve the examiner's recommendation.
140
05:07.064 --> 05:07.897
Is there a second?
141
05:07.897 --> 05:08.730
Second.
142
05:08.730 --> 05:09.618
Second, Commission Chistian.
143
05:09.618 --> 05:10.773
All those in favor, say aye.
144
05:10.773 --> 05:11.638
(majority says aye)
145
05:11.638 --> 05:12.979
Motion passes, items approved.
146
05:12.979 --> 05:15.324
Thank you, Stephen.
147
05:15.324 --> 05:16.741
Item number five.
148
05:18.256 --> 05:19.841
Good morning, chairman, commissioners.
149
05:19.841 --> 05:21.756
For the record, my name is Petar Buva,
150
05:21.756 --> 05:24.601
Technical Examiner with the Hearings Division.
151
05:24.601 --> 05:28.548
Item number five is the application of Shell Western E&P
152
05:28.548 --> 05:30.777
pursuant to Statewide Rule 46,
153
05:30.777 --> 05:33.424
to inject fluid into a reservoir productive
154
05:33.424 --> 05:37.341
of Oil and Gas for the Sabine 53-215 LOV lease.
155
05:40.146 --> 05:43.931
Well number 1-D, Dimmitt's Delaware Consolidated Field,
156
05:43.931 --> 05:46.491
Loving County, Texas.
157
05:46.491 --> 05:47.442
The application is for
158
05:47.442 --> 05:50.258
non-commercial disposal in a new well.
159
05:50.258 --> 05:52.591
The subject well would be located
160
05:52.591 --> 05:55.267
in the central part of Loving County.
161
05:55.267 --> 05:56.899
The applicant is seeking to inject
162
05:56.899 --> 06:01.334
up to 25 thousand barrels per day of produced salt water
163
06:01.334 --> 06:03.528
from Phantom Wolfcamp Field
164
06:03.528 --> 06:06.099
into the Dimmitt Delaware Consolidated Field
165
06:06.099 --> 06:10.016
into an interval from 4,640 feet to 8,180 feet.
166
06:13.343 --> 06:14.945
The application is protested by
167
06:14.945 --> 06:18.585
Iskandia Energy Operating, Incorporated.
168
06:18.585 --> 06:21.615
The proposed injection interval includes productive zones
169
06:21.615 --> 06:24.193
of the Dimmitt Delaware Consolidated Field.
170
06:24.193 --> 06:26.317
Shell claims that the productive zones
171
06:26.317 --> 06:28.361
in the field are discrete.
172
06:28.361 --> 06:30.404
Iskandia claims that the productive zones
173
06:30.404 --> 06:33.672
in the field have connectivity and continuity
174
06:33.672 --> 06:37.415
and that Shell failed to show they are discrete.
175
06:37.415 --> 06:40.352
Iskandia maintains that the proposed injection operations
176
06:40.352 --> 06:44.685
will adversely affect oil production from the field.
177
06:46.187 --> 06:49.362
Based on evidentiary records, the examiners conclude that
178
06:49.362 --> 06:52.207
Shell Western E&P failed to establish that
179
06:52.207 --> 06:56.143
the application for well number 1-D satisfy the requirements
180
06:56.143 --> 07:00.893
of the Statewide Rule 46 and Texas Water Code chapter 27,
181
07:02.180 --> 07:04.310
relating to injury to oil, gas,
182
07:04.310 --> 07:06.806
and other mineral formations.
183
07:06.806 --> 07:10.191
The examiners recommend denial of the application.
184
07:10.191 --> 07:13.256
Exceptions and replies have been filed.
185
07:13.256 --> 07:16.030
I am available for any questions.
186
07:16.030 --> 07:16.863
Thank you.
187
07:16.863 --> 07:18.863
Are there any questions?
188
07:21.272 --> 07:24.640
Okay, I've got several people, like six,
189
07:24.640 --> 07:26.852
that have signed up to testify
190
07:26.852 --> 07:29.366
if we have any questions of anybody.
191
07:29.366 --> 07:30.748
Alright?
192
07:30.748 --> 07:35.502
I think that there's a concern for my perspective that,
193
07:35.502 --> 07:38.862
we've got a lot of people who already dispose in this area
194
07:38.862 --> 07:42.670
and that doesn't seem to have communication.
195
07:42.670 --> 07:44.707
So, I'm not sure that we've gone
196
07:44.707 --> 07:46.286
the right direction on this.
197
07:46.286 --> 07:49.703
I've got a motion to change the direction
198
07:50.936 --> 07:53.600
on this if anybody's got any thoughts.
199
07:53.600 --> 07:54.433
Ryan?
200
07:54.433 --> 07:56.056
Alright, if y'all want.
201
07:56.056 --> 07:58.889
I was gonna say, I move we approve
202
07:59.922 --> 08:02.589
the application instead of deny.
203
08:03.951 --> 08:05.034
Any comments?
204
08:06.232 --> 08:07.065
Alright?
205
08:07.065 --> 08:07.898
Is there a second?
Well.
206
08:07.898 --> 08:08.731
Oh, I'm sorry, go ahead.
207
08:08.731 --> 08:10.783
Yeah, I was gonna say.
208
08:10.783 --> 08:15.783
I'd like to explore this issue of communication, real quick.
209
08:18.092 --> 08:21.917
In the replies, Shell's exceptions to the PFD,
210
08:21.917 --> 08:25.389
they've provided a table on page 20 that shows
211
08:25.389 --> 08:27.635
the Bottomhole Pressure Tests that were run
212
08:27.635 --> 08:31.542
in six different sections of the field
213
08:31.542 --> 08:35.257
and they all have pretty dramatic pressure differences,
214
08:35.257 --> 08:38.303
which seems to refute that there would
215
08:38.303 --> 08:41.386
be communication between these zones.
216
08:47.515 --> 08:48.409
Can you respond to that?
217
08:48.409 --> 08:51.076
What were your thoughts on that?
218
08:57.401 --> 08:59.484
What I can say, is that
219
09:01.217 --> 09:04.634
wells that are producing from that field,
220
09:05.642 --> 09:10.392
they've been completed at different times and as we know,
221
09:11.432 --> 09:14.682
the radius of depletion depends on time
222
09:17.829 --> 09:21.579
and how long those wells have been producing.
223
09:24.099 --> 09:28.174
So, if I'm looking at a table of Bottomhole Pressure Tests
224
09:28.174 --> 09:32.507
that range from 857 psi all the way up to 2,900 psi,
225
09:35.204 --> 09:40.037
seems that communication between these would be, unlikely?
226
09:43.493 --> 09:45.542
I can agree with you, yes.
227
09:45.542 --> 09:46.375
Yes.
228
09:46.375 --> 09:47.208
Okay.
229
09:51.051 --> 09:52.880
I second the motion.
230
09:52.880 --> 09:54.354
We have a motion and a second.
231
09:54.354 --> 09:57.100
Are there any other questions?
232
09:57.100 --> 09:57.959
Alright.
233
09:57.959 --> 09:59.956
All in favor, say aye.
234
09:59.956 --> 10:01.146
(majority says aye)
235
10:01.146 --> 10:01.979
Motion passes.
236
10:01.979 --> 10:02.812
Items approved.
237
10:02.812 --> 10:06.765
If you'll please bring us a new order.
238
10:06.765 --> 10:09.082
We will have a conforming order
239
10:09.082 --> 10:10.800
directly after conference.
240
10:10.800 --> 10:11.633
Oh, okay.
241
10:11.633 --> 10:12.466
Thank you very much.
242
10:12.466 --> 10:13.462
Thank you.
Thank you.
243
10:13.462 --> 10:15.012
And welcome, by the way.
244
10:15.012 --> 10:15.845
Thank you.
245
10:15.845 --> 10:16.975
Is this your first conference?
246
10:16.975 --> 10:18.415
Yes.
Yes.
247
10:18.415 --> 10:19.355
(laughing)
248
10:19.355 --> 10:20.708
[Commissioner Christian] And you were so mean to it.
249
10:20.708 --> 10:21.541
(laughing)
250
10:21.541 --> 10:22.374
I know.
251
10:22.374 --> 10:23.926
New guy.
252
10:23.926 --> 10:24.759
That's okay.
253
10:24.759 --> 10:26.758
You'll do better on your second one.
254
10:26.758 --> 10:27.591
(laughing)
255
10:27.591 --> 10:29.039
We were really mean to Karl the first time.
256
10:29.039 --> 10:30.763
So, see, Karl, we were really nice, right?
257
10:30.763 --> 10:31.596
He had to grow a beard.
258
10:31.596 --> 10:33.387
(laughing)
259
10:33.387 --> 10:35.030
Good morning, item number six.
260
10:35.030 --> 10:36.388
Good morning, chairman and commissioners.
261
10:36.388 --> 10:38.385
For the record, my name is Karl Caldwell,
262
10:38.385 --> 10:40.968
Technical Examiner, Hearings Division.
263
10:40.968 --> 10:43.778
Item number six is the Commission call of hearing
264
10:43.778 --> 10:46.019
to review the temporary field rules for
265
10:46.019 --> 10:50.285
the Bivens Lit Canyon Line Field in Oldham County, Texas.
266
10:50.285 --> 10:51.963
The Bivens Lit Canyon Line field
267
10:51.963 --> 10:54.880
was discovered on January 29, 2014.
268
10:56.380 --> 10:58.053
Temporary field rules were established
269
10:58.053 --> 11:01.803
by Commission final order on January 27, 2015,
270
11:03.069 --> 11:06.684
with an expiration date of November 12, 2016,
271
11:06.684 --> 11:10.131
or until Commission staffs evaluates appropriate data
272
11:10.131 --> 11:12.830
after noticing an opportunity for hearing.
273
11:12.830 --> 11:16.422
A hearing was held on June 20, 2018,
274
11:16.422 --> 11:18.918
to review the temporary field rules previously adopted
275
11:18.918 --> 11:21.574
and to assess whether the temporary field rules
276
11:21.574 --> 11:25.152
should be modified, continued or terminated.
277
11:25.152 --> 11:27.822
Apache operates the majority of wells in the field
278
11:27.822 --> 11:30.724
and considers the field to be in the experimental phase
279
11:30.724 --> 11:33.025
and young, in terms of development,
280
11:33.025 --> 11:35.767
with only 20 wells in the field.
281
11:35.767 --> 11:37.422
There are natural fractures in the field,
282
11:37.422 --> 11:39.635
with a large degree of variability
283
11:39.635 --> 11:43.894
in the number, intensity, and extent, on a given lateral.
284
11:43.894 --> 11:46.521
Apache asserts the current temporary field rules
285
11:46.521 --> 11:48.829
are sufficient and request the rules
286
11:48.829 --> 11:52.928
be continued without modification in a temporary status,
287
11:52.928 --> 11:56.085
for an additional two years.
288
11:56.085 --> 11:59.698
The request to extend the current temporary field rules
289
11:59.698 --> 12:02.478
is protested by Bivens Family Royalty,
290
12:02.478 --> 12:03.965
which consists of mineral owners
291
12:03.965 --> 12:06.730
of both on-lease minerals and minerals
292
12:06.730 --> 12:10.938
that are subject to the Apache lease and to other leases.
293
12:10.938 --> 12:13.144
Bivens's position is that the formula
294
12:13.144 --> 12:15.742
in the current temporary field rules provides
295
12:15.742 --> 12:18.144
for proration units that are large compared
296
12:18.144 --> 12:20.959
to what wells can effectively drain.
297
12:20.959 --> 12:24.391
Bivens proposes to reduce the standard proration unit size
298
12:24.391 --> 12:26.974
from 160 acres to 80 acres and,
299
12:28.150 --> 12:30.937
either modify the current formula used
300
12:30.937 --> 12:33.658
to assign additional acreage to horizontal wells,
301
12:33.658 --> 12:35.900
or default to Statewide Rules
302
12:35.900 --> 12:38.476
to assign additional acreage to horizontal wells.
303
12:38.476 --> 12:42.416
In addition, Bivens proposes to modify the method used
304
12:42.416 --> 12:46.342
to determine the oil allowable for wells in the field.
305
12:46.342 --> 12:49.745
Based on the evidence in the record, the examiners recommend
306
12:49.745 --> 12:52.691
the Commission extend the temporary field rules currently
307
12:52.691 --> 12:55.913
in effect for the Bivens Lit Canyon Line Field
308
12:55.913 --> 12:58.031
for an additional two year period.
309
12:58.031 --> 12:59.962
Exceptions and replies were filed
310
12:59.962 --> 13:02.066
and I am available to answer any questions.
311
13:02.066 --> 13:02.899
Thank you, Karl.
312
13:02.899 --> 13:04.649
Are there any questions?
313
13:04.649 --> 13:06.782
I move we approve the examiner's recommendation.
314
13:06.782 --> 13:07.615
Is there a second?
315
13:07.615 --> 13:08.448
Second.
316
13:08.448 --> 13:09.281
Second.
317
13:09.281 --> 13:10.114
Commissioner Christian.
318
13:10.114 --> 13:11.325
All those in favor, say aye.
319
13:11.325 --> 13:12.158
(Majority says aye)
320
13:12.158 --> 13:12.991
Motion passes.
321
13:12.991 --> 13:13.824
Items approved.
322
13:13.824 --> 13:14.657
Thank you.
323
13:16.078 --> 13:17.578
Item number seven.
324
13:20.562 --> 13:23.051
Good morning, chairman and commissioners.
325
13:23.051 --> 13:25.191
For the record, my name is Robert Musick,
326
13:25.191 --> 13:27.963
Technical Examiner for the Hearings Division.
327
13:27.963 --> 13:30.314
Item number seven is the Oil and Gas application
328
13:30.314 --> 13:33.754
of Valence Operating Company to amend field rules
329
13:33.754 --> 13:37.643
for the Girlie Caldwell Goodland LM Field
330
13:37.643 --> 13:42.447
in Smith, Henderson, and Van Zandt Counties, Texas.
331
13:42.447 --> 13:45.059
This application is not protested.
332
13:45.059 --> 13:49.333
The field is located on the outskirts of Tyler, Texas
333
13:49.333 --> 13:52.666
and has produced Oil and Gas since 1972.
334
13:53.737 --> 13:57.641
The field is located in an area of urban, rural, mixed,
335
13:57.641 --> 14:01.378
land use with relatively dense populations
336
14:01.378 --> 14:04.201
with horizontal well drilling units consisting
337
14:04.201 --> 14:08.410
up to five thousand mineral interest owners.
338
14:08.410 --> 14:10.753
In the hearing, Valence proposed to reduce
339
14:10.753 --> 14:13.315
the lease line spacing requirement for the field
340
14:13.315 --> 14:17.066
from 330 feet to 200 feet, and also change
341
14:17.066 --> 14:19.766
the reporting format from Form P-15
342
14:19.766 --> 14:22.599
to Form P-16, Acreage Designation.
343
14:25.396 --> 14:27.798
Valence asserts that the large number
344
14:27.798 --> 14:31.709
of mineral interest owners in the field
345
14:31.709 --> 14:34.430
is a field-wise issue and is seeking relief
346
14:34.430 --> 14:37.093
through an amended field rule.
347
14:37.093 --> 14:40.809
In the hearing, Valence used one well as an example.
348
14:40.809 --> 14:43.333
The proposed NED 1H well to demonstrate
349
14:43.333 --> 14:46.772
the relief they are seeking from the Commission.
350
14:46.772 --> 14:49.675
Narrowing of the lease line spacing in conjunction
351
14:49.675 --> 14:52.954
with a slight deviation of the proposed well track,
352
14:52.954 --> 14:54.884
will increase the number of participating
353
14:54.884 --> 14:59.551
mineral interest owners under Valence's lease agreement.
354
15:01.618 --> 15:05.522
The hearing record does not indicate a systemic problem
355
15:05.522 --> 15:10.439
in the field that should be addressed through a field rule.
356
15:11.632 --> 15:16.269
The existing field rule was modified in December 2016
357
15:16.269 --> 15:20.956
to change the lease line spacing from 467 to 330
358
15:20.956 --> 15:25.150
to promote horizontal drilling and prevent waste.
359
15:25.150 --> 15:27.313
Typically, the lease line spacing addresses
360
15:27.313 --> 15:31.819
the fields reservoir conditions for regulatory efficiency.
361
15:31.819 --> 15:35.382
The fields proration unit size is 40 acres.
362
15:35.382 --> 15:38.093
No evidence was entered into the record that indicate
363
15:38.093 --> 15:43.093
the wells are not effectively draining the assigned acreage,
364
15:43.093 --> 15:45.233
therefore a reduction in lease line spacing
365
15:45.233 --> 15:48.049
does not appear to be warranted.
366
15:48.049 --> 15:50.008
The examiners find that Valence failed
367
15:50.008 --> 15:52.286
to provide sufficient evidence
368
15:52.286 --> 15:55.718
for the necessity to amend the lease line spacing
369
15:55.718 --> 15:57.707
in the field rule.
370
15:57.707 --> 15:59.528
Relief is already available to Valence
371
15:59.528 --> 16:03.461
through rule number two in the existing field rule.
372
16:03.461 --> 16:05.405
Rule number two states, when an exception
373
16:05.405 --> 16:08.264
to these rules is desired, the request shall
374
16:08.264 --> 16:10.355
be acted upon in accordance with
375
16:10.355 --> 16:13.938
the provisions of Statewide Rule 37 and 38.
376
16:14.912 --> 16:17.140
The examiners recommend the Commission approve
377
16:17.140 --> 16:20.383
the Form P-16 reporting format
378
16:20.383 --> 16:22.321
to accommodate horizontal wells,
379
16:22.321 --> 16:24.897
but recommend denial to amend the lease line spacing
380
16:24.897 --> 16:27.908
to 200 feet through amended field rules.
381
16:27.908 --> 16:29.940
Exceptions were filed.
382
16:29.940 --> 16:31.500
I am available for questions.
383
16:31.500 --> 16:32.625
Thank you.
384
16:32.625 --> 16:33.645
Are there any questions?
385
16:33.645 --> 16:34.478
Nope.
386
16:34.478 --> 16:36.425
I move we approve the examiner's recommendations.
387
16:36.425 --> 16:37.258
Is there a second?
388
16:37.258 --> 16:38.091
Second.
389
16:38.091 --> 16:39.349
Second by Commissioner Sitton.
390
16:39.349 --> 16:40.576
All those in favor, say aye.
391
16:40.576 --> 16:41.933
(majority says aye)
392
16:41.933 --> 16:42.766
Motion passes.
393
16:42.766 --> 16:43.599
Items approved.
394
16:43.599 --> 16:44.509
Welcome Robert, by the way.
395
16:44.509 --> 16:46.485
Thank you.
Thank you.
396
16:46.485 --> 16:48.488
Item number 8, we're gonna pass, correct?
397
16:48.488 --> 16:49.321
We are passing.
398
16:49.321 --> 16:50.825
Okay.
399
16:50.825 --> 16:52.392
Alright, we're doing nine, 10, 11.
400
16:52.392 --> 16:53.335
We're gonna do them together.
401
16:53.335 --> 16:54.168
Yes.
402
16:54.168 --> 16:55.099
One vote or three?
403
16:55.099 --> 16:55.932
One vote.
One vote?
404
16:55.932 --> 16:56.765
Great.
405
16:56.765 --> 16:57.598
Thank you.
406
16:57.598 --> 16:58.431
Good morning, Jennifer.
407
16:58.431 --> 17:00.454
Good morning, chairman, commissioners.
408
17:00.454 --> 17:02.768
Jennifer Cook with the Hearings Division.
409
17:02.768 --> 17:04.329
In items nine through 11,
410
17:04.329 --> 17:06.716
George Christian filed three complaints
411
17:06.716 --> 17:08.472
claiming Chan West Oil Corporation
412
17:08.472 --> 17:10.264
does not have a Good Faith claim
413
17:10.264 --> 17:13.413
to operate three leases in Haskell County.
414
17:13.413 --> 17:16.192
Complainant owns the mineral interest and surface estate
415
17:16.192 --> 17:18.935
where the wells on the leases are located.
416
17:18.935 --> 17:20.742
Complainant requests that the Commission order
417
17:20.742 --> 17:22.371
the wells on the leases to be plugged,
418
17:22.371 --> 17:27.371
the site to be remediated and all surface equipment removed.
419
17:27.545 --> 17:30.295
Complainant asserts the contractual lease relied on
420
17:30.295 --> 17:33.575
by respondent has terminated for lack of production.
421
17:33.575 --> 17:36.383
The contractual lease is past the primary term
422
17:36.383 --> 17:39.851
and requires production thereafter to prevent termination.
423
17:39.851 --> 17:41.303
There has been no reported production
424
17:41.303 --> 17:44.539
on the leases since January 2017.
425
17:44.539 --> 17:48.276
Respondent does not dispute there has been no production.
426
17:48.276 --> 17:51.077
Chan West contests the surface is clean
427
17:51.077 --> 17:53.065
and in compliance with Commission rules.
428
17:53.065 --> 17:55.242
The examiners recommend that the Commission grant
429
17:55.242 --> 17:59.269
complainant's request and order Chan West to plug the wells.
430
17:59.269 --> 18:01.432
Exceptions were filed by complainant requesting
431
18:01.432 --> 18:03.304
the time frame be provided in the order
432
18:03.304 --> 18:04.908
for plugging the wells.
433
18:04.908 --> 18:06.990
The examiners agree that a time frame
434
18:06.990 --> 18:08.717
was inadvertently not included
435
18:08.717 --> 18:12.244
and recommend the 30 day time frame proposed by complainant.
436
18:12.244 --> 18:14.152
I have an order with that time frame.
437
18:14.152 --> 18:15.988
Chan West did not file exceptions
438
18:15.988 --> 18:18.652
or reply to complainants exception.
439
18:18.652 --> 18:20.379
I'm available for questions.
440
18:20.379 --> 18:21.212
Thank you.
441
18:21.212 --> 18:22.396
Are there any questions?
442
18:22.396 --> 18:24.928
I move we approve the examiner's recommendation
443
18:24.928 --> 18:26.757
for items nine, 10 and 11.
444
18:26.757 --> 18:27.590
Is there a second?
445
18:27.590 --> 18:28.423
Second.
446
18:28.423 --> 18:29.456
Second by Commissioner Christian.
447
18:29.456 --> 18:30.537
All those in favor, say aye.
448
18:30.537 --> 18:31.370
(majority says aye)
449
18:31.370 --> 18:32.203
Motion passes.
450
18:32.203 --> 18:33.036
Items approved.
451
18:33.036 --> 18:34.209
Thank you, Jennifer.
452
18:34.209 --> 18:37.489
Alright, we're going to the Oil and Gas Consent Agenda.
453
18:37.489 --> 18:39.267
There are 18 items on this.
454
18:39.267 --> 18:42.220
I move we approve items 12 through 29.
455
18:42.220 --> 18:43.053
Is there a second?
456
18:43.053 --> 18:43.886
Second.
457
18:43.886 --> 18:45.144
Second by Commission Sitton.
458
18:45.144 --> 18:46.414
All those in favor, say aye.
459
18:46.414 --> 18:47.247
(majority says aye)
460
18:47.247 --> 18:48.080
Motion passes.
461
18:48.080 --> 18:49.933
Those items are approved.
462
18:49.933 --> 18:51.863
Rule 15, Inactive Well Items.
463
18:51.863 --> 18:54.468
There are 21 items, but we've got one more
464
18:54.468 --> 18:56.398
has been resolved, correct?
465
18:56.398 --> 19:00.048
So, item number 39 is now in compliance.
466
19:00.048 --> 19:03.292
I move we approve items 30 through 50,
467
19:03.292 --> 19:05.549
with the exception of item 39.
468
19:05.549 --> 19:06.528
Is there a second?
469
19:06.528 --> 19:07.361
Second.
470
19:07.361 --> 19:08.807
Second by Commissioner Christian.
471
19:08.807 --> 19:10.135
All those in favor, say aye.
472
19:10.135 --> 19:10.998
(majority says aye)
473
19:10.998 --> 19:11.934
Motion passes.
474
19:11.934 --> 19:13.559
Those items are approved.
475
19:13.559 --> 19:14.764
Master Default Order.
476
19:14.764 --> 19:15.962
There's one item on this.
477
19:15.962 --> 19:18.129
I move we approve item 51.
478
19:18.980 --> 19:19.813
Is there a second?
479
19:19.813 --> 19:20.646
Second.
480
19:20.646 --> 19:21.716
Second by Commissioner Sitton.
481
19:21.716 --> 19:22.797
All those in favor, say aye.
482
19:22.797 --> 19:23.630
(majority says aye)
483
19:23.630 --> 19:24.463
Motion passes.
484
19:24.463 --> 19:25.917
That item's approved.
485
19:25.917 --> 19:27.332
And in Agreed Enforcement orders,
486
19:27.332 --> 19:30.090
there are 214 Agreed Enforcement orders.
487
19:30.090 --> 19:34.298
I move that we approve items 52 through 265.
488
19:34.298 --> 19:35.131
Is there a second?
489
19:35.131 --> 19:35.964
Second.
490
19:35.964 --> 19:37.157
Second by Commissioner Christian.
491
19:37.157 --> 19:38.616
All those in favor, say aye.
492
19:38.616 --> 19:39.449
(majority says aye)
493
19:39.449 --> 19:40.282
Motion passes.
494
19:40.282 --> 19:41.540
Those items are approved.
495
19:41.540 --> 19:43.013
That concludes the hearing section.
496
19:43.013 --> 19:43.846
Thank you.
497
19:43.846 --> 19:46.929
Now, I'll take up the administrative.
498
19:47.933 --> 19:49.016
Morning, Wei.
499
19:49.994 --> 19:52.047
Good morning chairman, commissioners.
500
19:52.047 --> 19:57.047
For the record, I'm Wei Wang, the Executive Director.
501
19:57.279 --> 20:00.072
Today's report, I always include some updates
502
20:00.072 --> 20:02.322
on the first quarter stats.
503
20:03.374 --> 20:06.197
We just completed the first quarter at the end of November
504
20:06.197 --> 20:08.860
and during the first quarter,
505
20:08.860 --> 20:12.193
we completed 1,108 pipeline inspections,
506
20:14.062 --> 20:17.979
33,611 Oil and Gas inspections and as of today,
507
20:20.085 --> 20:22.835
our head count is 758 people.
508
20:22.835 --> 20:25.897
And yesterday, I did a quick calculation of our turnover rate
509
20:25.897 --> 20:29.417
for the first quarter is close to four percent,
510
20:29.417 --> 20:31.695
which is a huge improvement from the year before.
511
20:31.695 --> 20:32.528
That's right.
512
20:32.528 --> 20:34.968
And that also includes people that retire
513
20:34.968 --> 20:37.515
from our agency and for other reasons.
514
20:37.515 --> 20:39.859
If I exclude that, our turnover rate
515
20:39.859 --> 20:42.732
for the first quarter is 2.68 percent,
516
20:42.732 --> 20:45.680
which is really good.
Hooray.
517
20:45.680 --> 20:46.928
Hooray, good.
518
20:46.928 --> 20:49.068
So, we're making a lot of progress on that,
519
20:49.068 --> 20:52.951
in terms of retaining our employees and training them.
520
20:52.951 --> 20:55.541
And for well plugging, as of last Friday,
521
20:55.541 --> 21:00.541
we physically plugged 438 wells and staff reported
522
21:00.541 --> 21:05.458
to me that we're well on track meeting the 1,560 wells goal
523
21:06.679 --> 21:10.512
for the year given the number for last Friday.
524
21:12.659 --> 21:15.119
Another thing I'd like to just bring to your attention,
525
21:15.119 --> 21:17.303
during the first quarter, there are
526
21:17.303 --> 21:19.610
a couple IT projects we rolled out.
527
21:19.610 --> 21:23.877
One of them is the Pipeline Online Permitting System,
528
21:23.877 --> 21:27.694
the improvement for that system went live on October 1st
529
21:27.694 --> 21:32.251
so now operators can submit their pipeline files online,
530
21:32.251 --> 21:35.785
electronically, instead of manually entering information
531
21:35.785 --> 21:38.535
for each system and each segment.
532
21:39.841 --> 21:42.656
Because of that improvement, it greatly reduced
533
21:42.656 --> 21:45.029
the time needed for operators, and also
534
21:45.029 --> 21:49.492
our staff review time, and also ensure data accuracy
535
21:49.492 --> 21:52.706
because there are added checks embedded in the new system.
536
21:52.706 --> 21:55.258
So, our estimate is it saves cell operator
537
21:55.258 --> 22:00.175
and our agency approximately 165 thousand dollars per year.
538
22:01.273 --> 22:03.291
That's just from time saved from
539
22:03.291 --> 22:06.396
not having to manually update the data.
540
22:06.396 --> 22:08.602
Another thing that IT is working on is
541
22:08.602 --> 22:11.258
to digitize our historical files
542
22:11.258 --> 22:12.891
and during the first quarter,
543
22:12.891 --> 22:15.597
we completed the historical hearings files
544
22:15.597 --> 22:18.527
for districts one, two, and three.
545
22:18.527 --> 22:21.850
So, our goal is to complete all districts,
546
22:21.850 --> 22:23.882
the historical hearings files,
547
22:23.882 --> 22:26.051
by the end of this fiscal year
548
22:26.051 --> 22:28.642
and the next year we'll start digitizing
549
22:28.642 --> 22:33.068
the district office files that are currently located
550
22:33.068 --> 22:34.715
in the district offices.
551
22:34.715 --> 22:37.349
So, we're making great efforts in that regard as well.
552
22:37.349 --> 22:38.764
Great.
553
22:38.764 --> 22:40.847
That concludes my report this morning.
554
22:40.847 --> 22:41.805
Available for questions.
555
22:41.805 --> 22:42.904
Thank you.
Thank you.
556
22:42.904 --> 22:44.150
Any questions?
557
22:44.150 --> 22:44.983
Nope.
558
22:44.983 --> 22:47.161
Thank you all for the continued great work.
559
22:47.161 --> 22:48.859
Alright, morning, Alex.
560
22:48.859 --> 22:50.143
Good morning chairman, commissioners.
561
22:50.143 --> 22:51.518
For the record, my name is Alex Schoch,
562
22:51.518 --> 22:54.528
General Counsel of the Railroad Commission of Texas.
563
22:54.528 --> 22:56.059
This morning, for item 267,
564
22:56.059 --> 22:57.916
we don't have anything to report.
565
22:57.916 --> 23:00.732
268 is a report on a proposed rulemaking
566
23:00.732 --> 23:02.771
that Mr. Cooney will present.
567
23:02.771 --> 23:04.309
Alright, thank you.
568
23:04.309 --> 23:05.760
Good morning, chairman, commissioners.
569
23:05.760 --> 23:07.843
David Cooney, from the Office of General Counsel.
570
23:07.843 --> 23:09.809
This is another request that we authorize
571
23:09.809 --> 23:11.790
or a request for the commissioners to authorize
572
23:11.790 --> 23:15.476
the executive director to join the TCEQ and comments
573
23:15.476 --> 23:19.475
on an EPA proposed rulemaking regarding
574
23:19.475 --> 23:23.255
air quality regulations in oil and natural gas sector,
575
23:23.255 --> 23:25.860
emission standards for new, reconstructive,
576
23:25.860 --> 23:27.587
and modified sources.
577
23:27.587 --> 23:29.822
A reconsideration of parts of that rule
578
23:29.822 --> 23:32.246
that was adopted in 2016.
579
23:32.246 --> 23:36.079
The main points in our comments are asking EPA
580
23:37.159 --> 23:39.819
to revise proposed alternative standards for Texas,
581
23:39.819 --> 23:43.331
to include monitoring of components at compressor stations,
582
23:43.331 --> 23:47.018
using TCEQ standards that are functionally equivalent
583
23:47.018 --> 23:48.462
to EPA standards.
584
23:48.462 --> 23:51.574
The rule as it is now only allows Texas to do that with
585
23:51.574 --> 23:55.565
well sites, so we're asking them, in the proposal.
586
23:55.565 --> 23:59.796
And the other point is asking EPA to delay
587
23:59.796 --> 24:03.308
or eliminate adoption of a guidance document
588
24:03.308 --> 24:07.770
that would end up imposing a process inconsistent
589
24:07.770 --> 24:11.195
with general approach of not requiring standards
590
24:11.195 --> 24:13.887
for existing sources to be as stringent
591
24:13.887 --> 24:15.868
as standards required for new,
592
24:15.868 --> 24:19.554
modified, or reconstructed sources.
593
24:19.554 --> 24:20.541
Those are the two main points
594
24:20.541 --> 24:24.003
and we're asking that the Commission allow Mr. Wei
595
24:24.003 --> 24:28.336
to sign a cover letter joining TCEQ in the comments.
596
24:30.577 --> 24:32.166
Thank you and thank you all for continuing
597
24:32.166 --> 24:33.857
to work with our sister agencies.
598
24:33.857 --> 24:35.794
Are there any questions?
599
24:35.794 --> 24:36.627
Okay.
600
24:36.627 --> 24:38.479
I move we approve the staff's recommendation.
601
24:38.479 --> 24:39.312
Is there a second?
602
24:39.312 --> 24:40.301
Second.
603
24:40.301 --> 24:41.483
Second, Commissioner Sitton.
604
24:41.483 --> 24:42.753
All those in favor, say aye.
605
24:42.753 --> 24:43.586
(majority says aye)
606
24:43.586 --> 24:44.419
Motion passes.
607
24:44.419 --> 24:45.252
Items approved.
608
24:45.252 --> 24:46.708
Thank you all for the work on that.
609
24:46.708 --> 24:47.541
Item 269.
610
24:52.069 --> 24:52.902
Morning.
611
24:53.899 --> 24:55.292
Good morning chairman, commissioners.
612
24:55.292 --> 24:57.302
For the record, my name is Natalie Dubiel
613
24:57.302 --> 24:59.327
with the Office of General Counsel.
614
24:59.327 --> 25:02.469
Item number 269 pertains to commissioner approval
615
25:02.469 --> 25:04.174
of certain contracts pursuant to
616
25:04.174 --> 25:06.656
the Commission's delegation of authority.
617
25:06.656 --> 25:09.108
The Commission's internal delegation of authority
618
25:09.108 --> 25:12.468
requires commissioner approval of contracts
619
25:12.468 --> 25:14.413
and associated amendments greater than
620
25:14.413 --> 25:16.800
or equal to 500 thousand dollars,
621
25:16.800 --> 25:20.798
and Section 2261.254 of the Government Code
622
25:20.798 --> 25:24.064
requires approval of contracts and associated amendments
623
25:24.064 --> 25:26.575
greater than one million dollars.
624
25:26.575 --> 25:29.005
At issue today, our approval for solicitations
625
25:29.005 --> 25:32.009
for statewide well plugging and related services
626
25:32.009 --> 25:34.260
for all 10 districts, deep well plugging
627
25:34.260 --> 25:37.532
and related services for the Midland District Office
628
25:37.532 --> 25:40.986
and offshore and bay well plugging in services.
629
25:40.986 --> 25:42.728
Additionally, at issue, is an amendment
630
25:42.728 --> 25:46.175
for an existing contract for site remediation services
631
25:46.175 --> 25:49.411
for the San Antonio District Office.
632
25:49.411 --> 25:52.292
And finally, staff is seeking approval for two contracts
633
25:52.292 --> 25:55.165
for which approval to award was received
634
25:55.165 --> 25:57.240
at the October 30 open meeting,
635
25:57.240 --> 25:59.134
but best value justifies award
636
25:59.134 --> 26:02.117
to a different vendor than was originally identified
637
26:02.117 --> 26:04.439
with no other substantive changes.
638
26:04.439 --> 26:08.219
Approval of these items will ensure agency operations
639
26:08.219 --> 26:10.505
remain on schedule and will ensure compliance
640
26:10.505 --> 26:12.711
with the Commission's delegation of authority
641
26:12.711 --> 26:14.670
in the Texas Government Code.
642
26:14.670 --> 26:17.101
I'm available for questions.
643
26:17.101 --> 26:17.934
Thank you.
644
26:17.934 --> 26:19.442
Any questions?
645
26:19.442 --> 26:20.516
Just to clarify on these,
646
26:20.516 --> 26:24.333
this is basically all the wells that we have on our books,
647
26:24.333 --> 26:26.582
year to date, that would need to be plugged.
648
26:26.582 --> 26:28.912
This would cover most of them, is that correct?
649
26:28.912 --> 26:30.022
That's my understanding, yes.
650
26:30.022 --> 26:31.599
Assuming we have dollars, right?
651
26:31.599 --> 26:32.432
Yes ma'am.
652
26:32.432 --> 26:33.701
Okay, alright.
653
26:33.701 --> 26:35.065
Are there any other questions?
654
26:35.065 --> 26:36.916
I move we approve the staff's recommendation.
655
26:36.916 --> 26:37.749
Is there a second?
656
26:37.749 --> 26:38.582
Second.
657
26:38.582 --> 26:39.818
Second, Commissioner Christian.
658
26:39.818 --> 26:40.711
All in favor, say aye.
659
26:40.711 --> 26:41.544
(majority says aye)
660
26:41.544 --> 26:42.377
Motion passes.
661
26:42.377 --> 26:43.210
Items are approved.
662
26:43.210 --> 26:45.130
Thank you, Natalie.
663
26:45.130 --> 26:46.650
Item 270.
664
26:46.650 --> 26:48.751
Good morning, Haley.
665
26:48.751 --> 26:49.956
Good morning, chairman, commissioners.
666
26:49.956 --> 26:51.828
Haley Cochran with the Office of General Counsel.
667
26:51.828 --> 26:54.012
Item 270 is staff's recommendation
668
26:54.012 --> 26:55.456
to publish proposed amendments
669
26:55.456 --> 27:00.310
to 16 Texas Administrative Code, Sections 3.37 and 3.38.
670
27:00.310 --> 27:02.923
To specify, the notice by publication procedure required
671
27:02.923 --> 27:05.731
when an operator seeks an exception to either rule.
672
27:05.731 --> 27:08.270
The proposed amendments add a specific notice
673
27:08.270 --> 27:10.244
by publication provision in each rule such
674
27:10.244 --> 27:11.848
that the general publication rule
675
27:11.848 --> 27:15.447
in Section 1.43 would no longer apply.
676
27:15.447 --> 27:17.094
The general publication rule requires notice
677
27:17.094 --> 27:20.229
to be published once each week for four consecutive weeks.
678
27:20.229 --> 27:23.073
The proposed provisions in Statewide Rules 37 and 38
679
27:23.073 --> 27:24.307
would require notice to be published
680
27:24.307 --> 27:26.919
once each week for two consecutive weeks.
681
27:26.919 --> 27:28.414
The notice must be published in a newspaper
682
27:28.414 --> 27:30.547
or general circulation in the county
683
27:30.547 --> 27:32.862
where the well will be located, with the first publication
684
27:32.862 --> 27:37.085
taking place at least 14 days before the protest deadline.
685
27:37.085 --> 27:38.572
Staff requests that Commission's approval
686
27:38.572 --> 27:40.125
to publish the propose amendments
687
27:40.125 --> 27:42.084
in the Texas Register for public comment.
688
27:42.084 --> 27:43.565
If approved today, the proposal should appear
689
27:43.565 --> 27:46.242
in the December 28 issue of the Register.
690
27:46.242 --> 27:47.955
The proposal, in an online comment form,
691
27:47.955 --> 27:49.962
would also be made available on the Commission's website,
692
27:49.962 --> 27:51.518
giving interested persons more than
693
27:51.518 --> 27:53.470
two additional weeks to submit comments.
694
27:53.470 --> 27:55.215
May I answer any questions?
695
27:55.215 --> 27:56.048
Thank you.
696
27:56.048 --> 27:57.020
Are there any questions?
697
27:57.020 --> 27:58.921
I move we approve the staff's recommendation.
698
27:58.921 --> 27:59.813
Is there a second?
699
27:59.813 --> 28:00.646
Second.
700
28:00.646 --> 28:01.526
Second, Commissioner Sitton.
701
28:01.526 --> 28:02.883
All those in favor, say aye.
702
28:02.883 --> 28:03.716
(majority says aye)
703
28:03.716 --> 28:04.549
Motion passes.
704
28:04.549 --> 28:05.382
Thank you.
705
28:11.431 --> 28:12.512
Morning.
706
28:12.512 --> 28:13.345
Good morning, how are you?
707
28:13.345 --> 28:14.178
Good.
708
28:14.178 --> 28:15.185
We're on 271, correct?
709
28:15.185 --> 28:16.018
Yes.
710
28:16.018 --> 28:16.851
(coughs)
711
28:16.851 --> 28:17.684
Excuse me.
712
28:17.684 --> 28:18.517
Good morning, chairman, commissioners.
713
28:18.517 --> 28:19.989
For the record, my name is Jason Clark,
714
28:19.989 --> 28:21.890
Assistant Director, Administrative Compliance
715
28:21.890 --> 28:23.965
in the Oil and Gas division.
716
28:23.965 --> 28:26.839
Today, we are bringing one item, item 271.
717
28:26.839 --> 28:28.363
We are requesting the approval to publish
718
28:28.363 --> 28:32.346
proposed revisions to the Form P-16 Acreage Designation
719
28:32.346 --> 28:34.037
along with associated instructions
720
28:34.037 --> 28:36.548
and data sheets on the Commission website
721
28:36.548 --> 28:39.610
for a 30-day comment, review period.
722
28:39.610 --> 28:41.228
The changes to the form and instructions
723
28:41.228 --> 28:43.202
provide greater detail to the form
724
28:43.202 --> 28:44.675
and incorporate calculated totals
725
28:44.675 --> 28:47.192
on the updated data sheet.
726
28:47.192 --> 28:50.001
Specifically, the proposed modifications to the form
727
28:50.001 --> 28:52.323
will include additional columns, allowing industry
728
28:52.323 --> 28:54.354
the ability to provide an accurate estimate
729
28:54.354 --> 28:57.460
of the acreage assigned for wells on a lease.
730
28:57.460 --> 28:59.731
The updated instructions provide clarity
731
28:59.731 --> 29:03.302
for the multiple instances when a Form P-16 is required,
732
29:03.302 --> 29:05.479
including during the drilling application,
733
29:05.479 --> 29:07.460
and while completion processes.
734
29:07.460 --> 29:10.028
The revised date sheets will allow industry access
735
29:10.028 --> 29:12.561
to a file that is easier to modify and submit
736
29:12.561 --> 29:14.803
as a hard copy PDF.
737
29:14.803 --> 29:16.682
I'm available for questions at this time.
738
29:16.682 --> 29:18.540
Thank you and I know you all have been working on this.
739
29:18.540 --> 29:20.470
Part of our oil field relief initiative
740
29:20.470 --> 29:22.400
and trying to make it streamlined.
741
29:22.400 --> 29:23.233
Yes ma'am.
742
29:23.233 --> 29:24.066
Which is helpful.
743
29:24.066 --> 29:24.899
I appreciate the work on that.
744
29:24.899 --> 29:26.529
Are there any questions?
745
29:26.529 --> 29:28.104
I move we approve the staff's recommendation.
746
29:28.104 --> 29:29.054
Is there a second?
747
29:29.054 --> 29:29.887
Second.
748
29:29.887 --> 29:31.231
Second by Commissioner Christian.
749
29:31.231 --> 29:32.486
All those in favor, say aye.
750
29:32.486 --> 29:33.319
(majority says aye)
751
29:33.319 --> 29:34.816
Motion is approved.
752
29:34.816 --> 29:36.754
Thank you.
Thank you for the work.
753
29:36.754 --> 29:37.997
Item... is there anything else Alex?
754
29:37.997 --> 29:39.076
That's it for now.
755
29:39.076 --> 29:42.944
Okay, Item 272 is our public participation item
756
29:42.944 --> 29:44.686
and no one else has turned in any cards
757
29:44.686 --> 29:48.188
that they wish to speak on any non-posted items.
758
29:48.188 --> 29:50.517
273 is Executive Session.
759
29:50.517 --> 29:52.215
Is there anything else?
760
29:52.215 --> 29:53.048
Happy-
Madam Chairman.
761
29:53.048 --> 29:55.997
Yeah, I was gonna say happy holidays.
762
29:55.997 --> 29:58.871
I think it's good we mentioned that,
763
29:58.871 --> 30:00.431
the US Energy Department always announces this stuff
764
30:00.431 --> 30:02.164
and dangit, this is Texas,
765
30:02.164 --> 30:04.456
and last week we had the largest find of Oil and Gas
766
30:04.456 --> 30:08.289
in the history of planet Earth in West Texas and New Mexico.
767
30:08.289 --> 30:10.802
I thought, we ought to brag about that
768
30:10.802 --> 30:12.572
a little bit up here at the Railroad Commission.
769
30:12.572 --> 30:14.769
I think that that's a good point.
770
30:14.769 --> 30:17.120
I think the world doesn't understand how big this is.
771
30:17.120 --> 30:19.174
No and it's just beginning, right?
772
30:19.174 --> 30:21.206
Good Lord just gave us a great Merry Christmas.
773
30:21.206 --> 30:22.039
That's right.
774
30:22.039 --> 30:23.143
Merry Christmas.
775
30:23.143 --> 30:24.014
Thank you all.
776
30:24.014 --> 30:24.847
Happy New Year.
777
30:24.847 --> 30:27.430
We'll see you in the new year.