WEBVTT
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.com will begin momentarily.
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This meeting of the Railroad Commission of Texas
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will come to order to consider matters
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which have been duly posted
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with the Secretary of State for March 4th 2020.
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The Commission will consider the items on the agenda
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as posted on the agenda
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on our public participation policy.
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Anyone designed to offer public testimony on any items
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that are not noticed on the today's agenda
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will need to fill out a testimony form found
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in the back of the room
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and submit it to the Commission Secretary Kelly Farrar.
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Please silence all cell phones before we begin.
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Let's start with item number one.
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Good morning chairman and commissioners.
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I'm the Marlo Chico Administrative Law Judge
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with the Hearings Division.
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Item number one is the rate case expenses severed
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from the completed Atmos Energy Corporation,
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Mid-Tex Division rail case docket
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in GUD number 10779.
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These expenses were incurred by the utility Atmos
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and the intervener upper Texas municipalities.
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The parties ultimately settled this case
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and wait the issuance of a proposal for decision.
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The examiners recommend approval of the terms
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of the settlement agreement
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as reflected in the proposed final order.
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I'm available for questions.
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Are there any questions?
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I move we approve the examiners recommendation.
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Is there a second?
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Second.
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Second by Commissioner Sitton, all in favor say, "Aye.".
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Aye.
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Any opposed?
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Motion passes.
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That item is approved.
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Item number two.
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Morning chairman and commissioners.
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Morning.
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I'm John Dodson Administrative Law Judge
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with the Hearings Division,
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agenda item two GUD 10897
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is an unprotestive request filed by Ocelot Energy Management
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for a waiver of certain commission rules and requirements
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to rehabilitate a pipeline segment utilizing FlexSteel pipe
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and fitting materials.
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Pipeline safety administratively review the application
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and recommends approval subject to certain conditions,
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Ocelot was given an opportunity
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to review those conditions and does not oppose them.
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Staff forwarded the application to hearings
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to prepare a written order,
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the proposed order provided
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to the commissioners approves Ocelot's waiver request
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and incorporates all of staffs recommended conditions.
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I'm available for questions
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Are there any questions?
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Nope.
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I move we approve the examiners recommendation.
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Is there a second?
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Second.
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Second by Commissioner Craddick.
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All in favor say, "Aye.".
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Aye.
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Any opposed?
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Motion passes, that item is approved.
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Item number three.
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Agenda item three is a continued item
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from the previous conference GUD 10606.
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The discrimination complaints of CNOOC Energy
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and EXCO against respondents Williams MLP Operating
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and Mockingbird Midstream and Gas Services.
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At previous conference, there was conversation,
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there's some questions,
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I gave some answers.
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If I may, I'd like to circle back
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and just kind of provide some clarity
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with some of the things that I said
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just to make sure I'm giving all of you all the information
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Sure
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That you need.
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Number one, the issue of the effects
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of prior contracts was raised.
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I'm gonna be clear on my answer to that.
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Whether or not a pipeline
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or utility is bound by its own steel.
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Not with this PFD ,that's not what this PFD says.
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So the discrimination that we find in the PFD,
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it relates to capital expenditures,
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not the underlying fee itself.
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But the PFD acknowledges and says what this record supports
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is that Williams has a lot of customers
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and they all have unique customer needs,
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different contracts, arm lengths,
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different priority of service, priority 123.
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Everyone gets a unique deal,
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and everyone's paying a different rate in this case,
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that's fine also.
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The fees for the service is different
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than the capital expenditures that a utility may incur,
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and if it does can like add to those fees.
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So that's not what the PFD is saying there.
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As far as affects of a prior contract, a private contract
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that the parties enter into.
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The PFD does talk about that a bit in recommendation,
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the regulator should not not get anywhere near that.
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Private contracts are what they are.
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In this case to be private contract,
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It's that we're talking about this 2012 Anchor Agreements
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between the pipeline Williams
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and its Anchor Shipper customer Chesapeake.
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And this was an anchorship or contract,
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It's called the Mockingbird Agreements,
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it's also a financing agreement.
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So this is a private contract back in 2012,
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and the PFD says that the regulator should not go meddle
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in that.
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The parties agree to what they agreed to.
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It's private contract.
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That's just contract law, that's not even going
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to be saying anything.
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The parties you make a bargain you live with it.
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And my recommendation to you
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is that the regulator should not go anywhere near that stuff
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to help the party out or anything.
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Excuse me.
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And that cuts both ways in this case against the parties,
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so on the one hand,
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there's some different theories of discrimination
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that were offered by CNOOC and EXCO.
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One of those theories which we rejected was
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that this private contract itself on its face
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was discriminatory.
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Because it has this apparently unique approval term,
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if parties worked out between themselves.
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I say no, PFD says no.
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What the regulator cares about his actions,
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is conduct of utility, not private contract terms.
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And so they can agree to what they wanna agree to,
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but my recommendation to you is
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to not meddle with that contract at all.
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The parties agree to it.
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So as far as living with that,
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those parties should live with their own contract.
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And that is gonna bind them just under contract law.
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Cuts against Williams also, though,
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because what the PFD talks about
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as far as these capital expenditures
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that utilities can recover from certain customers.
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That contract that Williams agreed to
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the 2012 Mockingbird Agreement,
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it assured them about two thirds of the volumes
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on all Chesapeake's wells,
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at a price that Williams liked for about 20 years.
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Two thirds is what they agree to,
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they didn't get it all not 100%.
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And so they might have been a good deal, who knows?
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We don't really care.
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It's not really for us to pry on.
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It's private contract, they agreed to it,
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they're gonna go ahead and presumably,
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they got what they wanted out of the contract.
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But they got two thirds of the volumes, not 100%.
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A few years later,
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that remaining outstanding one third
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of the volumes comes along,
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CNOOC does actually try and take its gas in kind.
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Williams didn't get that with his contract,
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and so how I view the case
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is that Williams is holding CNOOC
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to the same contract terms
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that the Chesapeake agreed to back in 2012.
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And Williams didn't get CNOOC's one third by contract.
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So this case as I see it is, Williams is trying to get
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the regulator to try and give them that one third.
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Under the same terms Chesapeake agreed to
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under their private deal.
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I say no to that, too.
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I say Williams walked away from that deal,
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probably getting everything they wanted,
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might have been a good deal for them,
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but what they didn't get at all.
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They didn't get CNOOC's guaranteed volumes
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for a guaranteed price like they did for Chesapeake.
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So as far as that goes also, Williams made a deal,
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and the regulator now ,I'm not recommending any regulator
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to go back and strengthen a contract
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for a party or make it weaker or help out at all.
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It is what it is, it's a party's deal.
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So my recommendation there as far as going back
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and maybe helping Williams out a little bit.
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If I kind of read Williams right
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on what they're asking you to do I say no.
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I mean, they got what they bargained for,
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they got two thirds, they didn't get CNOOC's.
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So the one third, they didn't get by contract.
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In this case I see it,
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as they're trying to get that in the regulatory process
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through some kind of a Commission imposed order
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to impose contract duties through an order,
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if that makes sense.
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I say no.
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I say that's not really a regulator's job
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go ahead and do that.
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As far as effects of prior contracts,
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I wanna touch on that.
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The other thing if I may, is issue of benchmarking.
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Benchmarking is a featured argument in this case
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by Williams.
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Williams' central argument to get out of discrimination
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is they're treating CNOOC and EXCO.
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CNOOC is not operating working interest owners
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offering him same rate
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as their operators paying Chesapeake.
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And Williams' argument their theory there as well,
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we're benchmarking a non operating interest working owners
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on volumes who's taking their gas and kind
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against the same price paid by the operators.
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How can that be wrong?
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Who else are we gonna benchmark it against?
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That's not exactly what they're doing as I see it.
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There are a lot of operators, I mean, there's a lot
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but there's not that many Anchor Shippers,
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only one Anchor Shipper that we're talking about here.
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So not every operator is an Anchor Shipper.
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So when Williams benchmarks are rate
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against this operator, that may be fine.
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But when then operators also the only Anchor Shipper
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who also used to own the pipeline.
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So what the affiliate did the parent company,
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sold the pipeline got $2 billion
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as part of this links transaction
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and immediately flipped to being the Anchor Shipper.
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That's a lot of that money to be repaid
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over the course of 20 years plus interest rate of return.
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That is a very specific
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and individualized financial financing agreement.
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The Chesapeake agreed to it no one else did.
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So and William says,
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"Oh, we just benchmarked CNOOC and EXCO's rates
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"against the rates of this company
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"that looks a lot like them physically."
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That's not all they did.
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I mean, they benchmarked all these private individualize
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Chesapeake only contract terms also.
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But they didn't do that for any other customers also,
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I mean, the PFD talks about for extra customers
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for similar customers 14, 15, 27, 33.
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Those are for the complainants came in here with
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I mean really it was probably about 30 more.
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No one had to pay.
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Williams didn't make any other customers have to pay
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all that separate financing stuff.
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So a lot of companies or maybe a few but some companies
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Williams is saying,
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"Well look how similar CNOOC looks to Chesapeake."
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I mean, physically they do look similar,
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I think it makes sense
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to benchmark it against that
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they look a lot alike physically.
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Contractually, nobody is like Chesapeake.
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I mean nobody agreed what they agreed to.
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There's really unique
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and individualized anchor financing terms
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to pay back for a lot of this loan,
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a lot of the $2 billion they got back in 2012.
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No one agreed to do that for Chesapeake.
271
00:09:57.640 --> 00:09:59.810
So that's Chesapeake's own hat to wear.
272
00:09:59.810 --> 00:10:01.400
Chesapeake does wear two hats in this case.
273
00:10:01.400 --> 00:10:03.150
So if you're gonna benchmark against a company
274
00:10:03.150 --> 00:10:05.490
that looks like you like on a map,
275
00:10:05.490 --> 00:10:07.180
no problem there,
276
00:10:07.180 --> 00:10:08.500
but what Williams ought to have done
277
00:10:08.500 --> 00:10:10.670
is to adjust it out all that extra financing stuff.
278
00:10:10.670 --> 00:10:14.540
It didn't really pertain to or even involve CNOOC and EXCO.
279
00:10:14.540 --> 00:10:15.610
They didn't put that stuff in the rates
280
00:10:15.610 --> 00:10:16.820
of their other customers.
281
00:10:16.820 --> 00:10:18.840
And that's the discrimination finding there.
282
00:10:18.840 --> 00:10:20.820
You can't really tell that stuff from looking at a map
283
00:10:20.820 --> 00:10:25.820
or physical factors, but as the case is presented to me,
284
00:10:25.984 --> 00:10:26.817
that's how I see it.
285
00:10:26.817 --> 00:10:29.360
I see that Williams,
286
00:10:29.360 --> 00:10:31.180
they didn't make any adjustments to Chesapeake's, rate.
287
00:10:31.180 --> 00:10:32.013
They just said okay,
288
00:10:32.013 --> 00:10:33.167
"Chesapeake is paying this with their contract
289
00:10:33.167 --> 00:10:34.697
"and we're gonna go ahead and give that number to you
290
00:10:34.697 --> 00:10:35.530
"and you pay it too."
291
00:10:35.530 --> 00:10:38.050
Well when you do that, you're telling CNOOC and EXCO
292
00:10:38.050 --> 00:10:40.707
to pay for everything Chesapeake is paying.
293
00:10:40.707 --> 00:10:43.760
And we know from Chesapeake, I'm sorry,
294
00:10:43.760 --> 00:10:45.350
we know from Williams.
295
00:10:45.350 --> 00:10:48.980
Williams' own two witnesses told us that Chesapeake's rate
296
00:10:48.980 --> 00:10:51.190
it's for two different products.
297
00:10:51.190 --> 00:10:52.450
It's for gathering service
298
00:10:52.450 --> 00:10:55.730
which is about 20%, according to Williams' experts
299
00:10:55.730 --> 00:10:56.870
which is what everyone else gets also.
300
00:10:56.870 --> 00:10:58.750
Everyone else is paying for gathering service,
301
00:10:58.750 --> 00:11:00.860
so that 20% would be the right benchmark
302
00:11:00.860 --> 00:11:05.040
but the other 80%, that's custom financing
303
00:11:05.040 --> 00:11:06.580
that only Chesapeake is doing.
304
00:11:06.580 --> 00:11:09.640
So when the whole thing got benchmarked over to Chesapeake,
305
00:11:09.640 --> 00:11:11.573
I'm sorry, over to CNOOC and EXCO,
306
00:11:12.530 --> 00:11:14.070
there should have been an adjustment there.
307
00:11:14.070 --> 00:11:15.820
That wasn't apples to apples benchmark,
308
00:11:15.820 --> 00:11:19.393
It was benchmarking the anchor rate.
309
00:11:20.350 --> 00:11:21.890
I mean, benchmarking the gathering rate,
310
00:11:21.890 --> 00:11:23.010
which by itself would be okay,
311
00:11:23.010 --> 00:11:25.360
based on fiscal factors looking at math and stuff like that.
312
00:11:25.360 --> 00:11:27.730
But all that other stuff, that financing stuff,
313
00:11:27.730 --> 00:11:29.560
that's only for Chesapeake to pay back.
314
00:11:29.560 --> 00:11:31.810
So the discrimination that we find the PFD
315
00:11:31.810 --> 00:11:33.580
isn't for the map, it's not for the physical stuff,
316
00:11:33.580 --> 00:11:37.270
it's for taking private financing agreement terms
317
00:11:37.270 --> 00:11:38.930
and really forcing them on two companies
318
00:11:38.930 --> 00:11:41.463
that were not involved in any of that stuff.
319
00:11:41.463 --> 00:11:45.413
And so for that, the relevant factor there,
320
00:11:47.725 --> 00:11:50.970
for us the relevant decider,
321
00:11:50.970 --> 00:11:52.020
who's in who's out?
322
00:11:52.020 --> 00:11:53.710
Who is similar who's not?
323
00:11:53.710 --> 00:11:54.590
You go to the contract,
324
00:11:54.590 --> 00:11:57.390
and you see who actually signed on for those duties.
325
00:11:57.390 --> 00:12:00.420
The Anchor Shipper Agreement signatory page.
326
00:12:00.420 --> 00:12:01.930
I mean, it tells you all right there,
327
00:12:01.930 --> 00:12:04.150
who's in who's out.
328
00:12:04.150 --> 00:12:09.150
And only one corporate entity, signed that signature page.
329
00:12:09.680 --> 00:12:10.590
I didn't misspeak on that,
330
00:12:10.590 --> 00:12:12.900
I mean Chesapeake signed in both blocks.
331
00:12:12.900 --> 00:12:14.880
I don't know how that works but they did.
332
00:12:14.880 --> 00:12:16.799
We're not here to talk about arm's length contracts,
333
00:12:16.799 --> 00:12:19.710
but the point is that CNOOC and EXCO didn't sign
334
00:12:19.710 --> 00:12:21.540
or agreed to those duties.
335
00:12:21.540 --> 00:12:23.910
And no looking at a map
336
00:12:23.910 --> 00:12:28.020
or no physical geographical footprint type characteristics
337
00:12:28.020 --> 00:12:31.900
are ever gonna put EXCO and CNOOC's name on that contract.
338
00:12:31.900 --> 00:12:35.290
That's the discrimination finding there.
339
00:12:35.290 --> 00:12:37.690
If I was clear on that, I hope I was.
340
00:12:37.690 --> 00:12:39.150
Lastly, I won't even go into this,
341
00:12:39.150 --> 00:12:42.440
but lastly, there was, I think, a concern voiced
342
00:12:42.440 --> 00:12:43.840
about precedent.
343
00:12:43.840 --> 00:12:44.673
There were no questions for me on that
344
00:12:44.673 --> 00:12:46.390
so I won't go there, unless you have some for me.
345
00:12:46.390 --> 00:12:47.420
I'm happy to answer that if you do,
346
00:12:47.420 --> 00:12:49.520
but that was also raised at the last conference.
347
00:12:49.520 --> 00:12:51.350
So appreciate the time,
348
00:12:51.350 --> 00:12:52.740
I'm available for questions right now,
349
00:12:52.740 --> 00:12:54.100
if there are any more.
350
00:12:54.100 --> 00:12:55.090
Thank you for those comments John,
351
00:12:55.090 --> 00:12:56.820
I Appreciate you explaining that to us.
352
00:12:56.820 --> 00:12:57.810
Are there any questions?
353
00:12:57.810 --> 00:12:59.158
I have a motion.
354
00:12:59.158 --> 00:12:59.991
Motion.
355
00:13:02.140 --> 00:13:03.110
Do you have any questions?
356
00:13:03.110 --> 00:13:05.220
I do, actually, as far as so John
357
00:13:05.220 --> 00:13:06.280
make sure clarification.
358
00:13:06.280 --> 00:13:07.930
That was a really good breakdown,
359
00:13:09.142 --> 00:13:09.975
and I'll repeat back to you
360
00:13:09.975 --> 00:13:13.103
kind of in the simple terms for understanding.
361
00:13:13.970 --> 00:13:16.420
From a natural resource,
362
00:13:16.420 --> 00:13:18.010
sorry Texas Utility Code perspective,
363
00:13:18.010 --> 00:13:19.600
the question is, is there discrimination?
364
00:13:19.600 --> 00:13:21.740
And it seems like where you didn't mention this morning,
365
00:13:21.740 --> 00:13:26.360
but yes that CNOOC is being asked to pay rates
366
00:13:26.360 --> 00:13:28.480
different than most other people.
367
00:13:28.480 --> 00:13:30.040
And you said there's two reasons
368
00:13:30.040 --> 00:13:33.010
that Williams is explaining that difference.
369
00:13:33.010 --> 00:13:34.920
One is the benchmark, hey,
370
00:13:34.920 --> 00:13:37.170
we benchmark them against this one shipper.
371
00:13:37.170 --> 00:13:42.170
And two is that we have a contract that stipulates
372
00:13:44.010 --> 00:13:44.960
that they would be different.
373
00:13:44.960 --> 00:13:47.050
And what I understand you to say is,
374
00:13:47.050 --> 00:13:52.050
neither of those really absolve or provide a validation
375
00:13:52.630 --> 00:13:54.780
for why they could be appropriately discriminated against.
376
00:13:54.780 --> 00:13:57.590
You can't benchmark against one,
377
00:13:57.590 --> 00:13:59.140
only one of the shippers,
378
00:13:59.140 --> 00:14:00.860
if that one is the only Anchor Shipper
379
00:14:00.860 --> 00:14:02.400
and your contract doesn't say you are.
380
00:14:02.400 --> 00:14:05.430
So therefore that means that
381
00:14:05.430 --> 00:14:07.290
the benchmarking argument is no good.
382
00:14:07.290 --> 00:14:08.800
And from the contract perspective hey,
383
00:14:08.800 --> 00:14:11.240
that's a private contract issue,
384
00:14:11.240 --> 00:14:12.640
that's a civil court issue that's not us.
385
00:14:12.640 --> 00:14:14.410
So therefore, the simple question is,
386
00:14:14.410 --> 00:14:16.603
are they being asked to pay,
387
00:14:18.030 --> 00:14:20.500
are they being treated differently than everybody else
388
00:14:20.500 --> 00:14:21.520
who's in the same point,
389
00:14:21.520 --> 00:14:23.480
who has a regular just service contract,
390
00:14:23.480 --> 00:14:26.720
not an anchor/capital cost contract?
391
00:14:26.720 --> 00:14:28.950
And you said yes, that's where the PFD landed
392
00:14:28.950 --> 00:14:29.810
Did I summarized correctly?
393
00:14:29.810 --> 00:14:30.870
Absolutely.
394
00:14:30.870 --> 00:14:32.060
That's a very good explanation,
395
00:14:32.060 --> 00:14:33.800
thank you for that John
396
00:14:33.800 --> 00:14:34.830
Commissioner Craddick.
397
00:14:34.830 --> 00:14:36.250
John thank you for your work on this.
398
00:14:36.250 --> 00:14:38.810
So I appreciate your explanations this morning too,
399
00:14:38.810 --> 00:14:41.580
but I have a motion that I wanna send this back down
400
00:14:41.580 --> 00:14:43.030
for a very limited purpose
401
00:14:43.030 --> 00:14:45.660
'cause I still want to develop the record a little bit more.
402
00:14:45.660 --> 00:14:47.100
So, if you all will allow me,
403
00:14:47.100 --> 00:14:49.470
it's kind of a long motion for a second.
404
00:14:49.470 --> 00:14:52.650
I move that we remand the case back to the examiners
405
00:14:52.650 --> 00:14:53.980
for the limited purpose
406
00:14:53.980 --> 00:14:57.070
to reconsider the discrimination issue
407
00:14:57.070 --> 00:15:00.040
by reopening the hearing to further develop the record
408
00:15:00.040 --> 00:15:03.290
by giving the parties an opportunity to present evidence
409
00:15:03.290 --> 00:15:05.290
and argument on which parties if any,
410
00:15:05.290 --> 00:15:09.130
are similarly situated with particular consideration
411
00:15:09.130 --> 00:15:13.780
to A, whether CEU and Chesapeake are similarly situated,
412
00:15:13.780 --> 00:15:17.290
B, whether EXCO and Chesapeake are similarly situated,
413
00:15:17.290 --> 00:15:21.580
C, whether CEU and EXCO are similarly situated,
414
00:15:21.580 --> 00:15:24.940
and D, whether CEU and EXCO respectively,
415
00:15:24.940 --> 00:15:29.660
are similarly situated to shippers 14152723.
416
00:15:29.660 --> 00:15:32.310
And thereafter for the examiners to provide
417
00:15:32.310 --> 00:15:34.530
an in depth analysis of the evidence
418
00:15:34.530 --> 00:15:36.800
on the similarly situated requirement
419
00:15:36.800 --> 00:15:38.210
in their PFD.
420
00:15:38.210 --> 00:15:39.734
Understood.
421
00:15:39.734 --> 00:15:40.870
Do you have any questions?
422
00:15:40.870 --> 00:15:42.240
I'm sorry, it's was long motion.
423
00:15:42.240 --> 00:15:43.730
I got my folks writing it all,
424
00:15:43.730 --> 00:15:44.563
so we'll go ahead and review it
425
00:15:44.563 --> 00:15:46.528
and we'll get you a conforming order for that today.
426
00:15:46.528 --> 00:15:47.680
I appreciate.
427
00:15:47.680 --> 00:15:48.513
So that's my motion.
428
00:15:48.513 --> 00:15:49.930
Can you now second that?
429
00:15:49.930 --> 00:15:51.330
All in favor say, "Aye.".
430
00:15:51.330 --> 00:15:52.320
Aye.
431
00:15:52.320 --> 00:15:53.404
Oppose
Sorry, aye.
432
00:15:53.404 --> 00:15:54.671
(laughs)
433
00:15:54.671 --> 00:15:55.504
Sorry, got a question.
434
00:15:55.504 --> 00:15:56.660
Motion passes.
435
00:15:56.660 --> 00:15:57.590
This item is remanded back
436
00:15:57.590 --> 00:15:59.730
to the Hearings Division for further processing.
437
00:15:59.730 --> 00:16:00.750
Thank you John from your work.
438
00:16:00.750 --> 00:16:02.530
It's our pleasure, thank you.
439
00:16:02.530 --> 00:16:03.573
Item number four.
440
00:16:07.130 --> 00:16:08.450
Good morning chairman and commissioners
441
00:16:08.450 --> 00:16:10.470
for the record my name is Ezra Johnson
442
00:16:10.470 --> 00:16:13.480
Administrative Law Judge with the Hearings Division.
443
00:16:13.480 --> 00:16:16.660
I will be presenting items four and five today.
444
00:16:16.660 --> 00:16:17.670
In item four,
445
00:16:17.670 --> 00:16:20.180
Terry and Barbara Alexander filed a complaint,
446
00:16:20.180 --> 00:16:21.941
claiming that Royal Texan Resources
447
00:16:21.941 --> 00:16:25.060
Endrologics Exploration LLC
448
00:16:25.060 --> 00:16:26.450
do not have a good faith claim
449
00:16:26.450 --> 00:16:28.770
to operate the subject wells.
450
00:16:28.770 --> 00:16:31.050
The Alexander's are the owners of the surface track
451
00:16:31.050 --> 00:16:32.950
where the subject wells are located.
452
00:16:32.950 --> 00:16:35.050
They claim that Royal Texan Endrologics
453
00:16:35.050 --> 00:16:36.410
have no good faith claim
454
00:16:36.410 --> 00:16:39.350
to operate the wells due to insufficient production,
455
00:16:39.350 --> 00:16:41.850
and that wells should be ordered plugged.
456
00:16:41.850 --> 00:16:43.630
Royal Texan Endrologic claim
457
00:16:43.630 --> 00:16:45.140
that they hold a good faith claim right
458
00:16:45.140 --> 00:16:46.420
to operate the wells.
459
00:16:46.420 --> 00:16:48.610
These parties provided two contractual oil
460
00:16:48.610 --> 00:16:52.160
and gas leases whose primary terms have not yet expired.
461
00:16:52.160 --> 00:16:54.060
These leases grant a continuing right
462
00:16:54.060 --> 00:16:57.680
to maintain the subject wells until September of 2020
463
00:16:57.680 --> 00:17:00.370
before production must be restored.
464
00:17:00.370 --> 00:17:02.130
The examiners recommend the commission find
465
00:17:02.130 --> 00:17:03.560
that Royal Texan Endrologics
466
00:17:03.560 --> 00:17:05.940
provided a reasonably satisfactory showing
467
00:17:05.940 --> 00:17:08.510
of a good faith claim to operate the subject wells
468
00:17:08.510 --> 00:17:09.900
and deny the complainants request
469
00:17:09.900 --> 00:17:11.450
to have the wells plugged.
470
00:17:11.450 --> 00:17:13.100
Exceptions and replies were filed
471
00:17:13.100 --> 00:17:14.630
and I'm available for questions
472
00:17:14.630 --> 00:17:16.650
Are there any questions?
473
00:17:16.650 --> 00:17:18.700
I move we approve the examiners recommendation.
474
00:17:18.700 --> 00:17:19.533
Is there a second?
475
00:17:19.533 --> 00:17:20.366
Second.
476
00:17:20.366 --> 00:17:21.200
Second by Commissioner Sitton
477
00:17:21.200 --> 00:17:22.493
All in favor say, "Aye.".
478
00:17:22.493 --> 00:17:23.500
Aye.
479
00:17:23.500 --> 00:17:24.510
Any opposed?
480
00:17:24.510 --> 00:17:26.540
Motion passes that item is approved.
481
00:17:26.540 --> 00:17:27.630
Number five.
482
00:17:27.630 --> 00:17:28.463
Thank you.
483
00:17:28.463 --> 00:17:30.400
Item five concerns a motion for rehearing
484
00:17:30.400 --> 00:17:33.830
of a final order finding that NHRG Inc
485
00:17:33.830 --> 00:17:35.600
did not have a good faith claim right
486
00:17:35.600 --> 00:17:38.070
to operate the subject wells and lease,
487
00:17:38.070 --> 00:17:40.400
and ordering that the wells be plugged.
488
00:17:40.400 --> 00:17:42.730
The final order followed in NHRG's failure
489
00:17:42.730 --> 00:17:44.760
to respond to the notice of opportunity
490
00:17:44.760 --> 00:17:49.030
for hearing sent in NHRG on October 22 2019.
491
00:17:49.030 --> 00:17:51.390
A timely motion for rehearing was filed
492
00:17:51.390 --> 00:17:55.920
on January 10 2020 and no response to that motion was filed.
493
00:17:55.920 --> 00:17:58.480
Under applicable legal precedent and rules
494
00:17:58.480 --> 00:18:00.890
NHRG's motion fails to allege facts
495
00:18:00.890 --> 00:18:03.650
and circumstances sufficient to show a valid basis
496
00:18:03.650 --> 00:18:07.340
for rehearing the Commission's final order in this docket.
497
00:18:07.340 --> 00:18:10.470
It is recommended that the Commission deny the motion.
498
00:18:10.470 --> 00:18:12.380
The motion for rehearing will be overruled
499
00:18:12.380 --> 00:18:15.560
by operation of law on March 26th 2020
500
00:18:15.560 --> 00:18:17.146
and I'm available for questions.
501
00:18:17.146 --> 00:18:18.850
Are there any questions?
502
00:18:18.850 --> 00:18:20.850
I move we approve the examiners recommendation.
503
00:18:20.850 --> 00:18:21.683
Is there a second?
504
00:18:21.683 --> 00:18:22.516
Second.
505
00:18:22.516 --> 00:18:23.360
Second by Commissioner Craddick.
506
00:18:23.360 --> 00:18:24.714
All in favor say, "Aye.".
507
00:18:24.714 --> 00:18:25.547
Aye.
508
00:18:25.547 --> 00:18:26.380
Any opposed?
509
00:18:26.380 --> 00:18:27.330
Motion passes.
510
00:18:27.330 --> 00:18:28.690
That item is approved.
511
00:18:28.690 --> 00:18:29.523
Thank you.
512
00:18:31.010 --> 00:18:32.423
Move on to item six.
513
00:18:33.530 --> 00:18:35.370
Good morning Chairman, commissioners, Kristi Reeve
514
00:18:35.370 --> 00:18:37.890
Administrative Law Judge with the Hearings Division.
515
00:18:37.890 --> 00:18:41.400
I'll be presenting items number six through eight.
516
00:18:41.400 --> 00:18:43.060
Item number six is the application
517
00:18:43.060 --> 00:18:44.610
of Double Play Oil and Gas
518
00:18:44.610 --> 00:18:47.820
for two year lease line spacing exception permit
519
00:18:47.820 --> 00:18:51.170
under the provisions of Statewide Rule 37.
520
00:18:51.170 --> 00:18:54.060
The exception is protested by the MacGuffin family,
521
00:18:54.060 --> 00:18:57.650
owners of unreleased acreage adjacent to the proposed well.
522
00:18:57.650 --> 00:19:00.170
The proposed location of the well is approximately
523
00:19:00.170 --> 00:19:03.833
102 feet south of the MacGuffin family's property line.
524
00:19:04.890 --> 00:19:08.560
Statewide Rule 37 requires a 467 foot
525
00:19:08.560 --> 00:19:10.040
minimum lease line distance
526
00:19:10.040 --> 00:19:13.140
to tracks externally adjacent to the lease.
527
00:19:13.140 --> 00:19:15.870
Double Play has met the requirements for an exception
528
00:19:15.870 --> 00:19:20.100
to Statewide Rule 37 by providing evidence to show
529
00:19:20.100 --> 00:19:22.630
that unusual local conditions exist,
530
00:19:22.630 --> 00:19:25.260
namely two water dry fault trap reservoirs
531
00:19:25.260 --> 00:19:28.660
at the lease line, which are located
532
00:19:28.660 --> 00:19:30.890
within the two primary target reservoirs
533
00:19:30.890 --> 00:19:33.140
the main Hawksley and the Yehuwa
534
00:19:33.140 --> 00:19:36.300
such as the proposed well location is necessary
535
00:19:36.300 --> 00:19:37.970
to prevent waste.
536
00:19:37.970 --> 00:19:40.580
It is recommended the application be approved.
537
00:19:40.580 --> 00:19:42.570
No exceptions or replies were filed.
538
00:19:42.570 --> 00:19:44.160
I'm available for questions.
539
00:19:44.160 --> 00:19:45.670
Are there any questions?
540
00:19:45.670 --> 00:19:46.503
No.
541
00:19:46.503 --> 00:19:48.100
I move we approve the examiners recommendation.
542
00:19:48.100 --> 00:19:49.293
Is there a second?
543
00:19:49.293 --> 00:19:50.126
Second.
544
00:19:50.126 --> 00:19:50.959
Second by Commissioner Sitton.
545
00:19:50.959 --> 00:19:52.379
All in favor say, "Aye.".
546
00:19:52.379 --> 00:19:53.212
Aye.
547
00:19:53.212 --> 00:19:54.045
Any opposed?
548
00:19:54.045 --> 00:19:54.878
Motion passes.
549
00:19:54.878 --> 00:19:55.720
That item is approved.
550
00:19:55.720 --> 00:19:56.820
Thank you very much.
551
00:19:57.730 --> 00:19:58.640
Item number seven
552
00:19:58.640 --> 00:20:00.050
Item number seven.
553
00:20:00.050 --> 00:20:03.330
Venable LL filed a complaint against MD America
554
00:20:03.330 --> 00:20:04.967
regarding the subject well.
555
00:20:04.967 --> 00:20:06.860
The subject well is a horizontal well,
556
00:20:06.860 --> 00:20:10.290
that is drilled across multiple leases and, or pulled units
557
00:20:10.290 --> 00:20:12.300
without pulling of all leases traversed
558
00:20:12.300 --> 00:20:15.730
by the well commonly known as an allocation well.
559
00:20:15.730 --> 00:20:17.940
Venable assert the Commission does not have authority
560
00:20:17.940 --> 00:20:20.200
to issue drilling permits for allocation wells
561
00:20:20.200 --> 00:20:23.090
and MD America does not have a good faith claim.
562
00:20:23.090 --> 00:20:25.480
The Commission has already rejected Venable's argument
563
00:20:25.480 --> 00:20:27.780
and prior similar cases.
564
00:20:27.780 --> 00:20:30.673
Filing a motion for dismissal filed by MD America,
565
00:20:30.673 --> 00:20:32.550
a response for Venable
566
00:20:32.550 --> 00:20:33.790
and a pre hearing conference
567
00:20:33.790 --> 00:20:35.910
where the parties argued their motions.
568
00:20:35.910 --> 00:20:37.920
On January 2 2020,
569
00:20:37.920 --> 00:20:39.890
the Hearings Division director signed an order
570
00:20:39.890 --> 00:20:43.200
dismissing Venable's complaint with prejudice.
571
00:20:43.200 --> 00:20:45.990
Venable filed a timely motion for rehearing.
572
00:20:45.990 --> 00:20:48.030
It is recommended that the motion be denied,
573
00:20:48.030 --> 00:20:49.800
the motion be overruled
574
00:20:49.800 --> 00:20:52.720
by operation of law on April 30th 2020.
575
00:20:52.720 --> 00:20:54.750
I'm available for questions.
576
00:20:54.750 --> 00:20:56.160
Are there any questions?
577
00:20:56.160 --> 00:20:58.580
I mean, we approve the examiners recommendation
578
00:20:58.580 --> 00:20:59.413
is there a second?
579
00:20:59.413 --> 00:21:00.246
Second.
580
00:21:00.246 --> 00:21:01.079
Second by Commissioner Craddick.
581
00:21:01.079 --> 00:21:02.516
All in favor say, "Aye".
582
00:21:02.516 --> 00:21:03.720
Aye.
583
00:21:03.720 --> 00:21:04.553
Motion passes.
584
00:21:04.553 --> 00:21:05.600
That item is approved.
585
00:21:06.680 --> 00:21:08.080
Number eight.
586
00:21:08.080 --> 00:21:08.913
Item number eight.
587
00:21:08.913 --> 00:21:10.230
Apache filed a protest
588
00:21:10.230 --> 00:21:13.090
to Jetta's Statewide Rule nine application.
589
00:21:13.090 --> 00:21:14.050
Jetta filed a motion
590
00:21:14.050 --> 00:21:16.280
to dismiss Apache's protest.
591
00:21:16.280 --> 00:21:17.610
At the pre-hearing conference.
592
00:21:17.610 --> 00:21:20.290
Jetta argued Apache is not an affected party,
593
00:21:20.290 --> 00:21:22.690
per the definition and statewide rule nine
594
00:21:22.690 --> 00:21:25.190
and should be dismissed as a protestant.
595
00:21:25.190 --> 00:21:28.610
Apache argument is an affected person entitled to standing
596
00:21:28.610 --> 00:21:31.860
because it will suffer economic harm or actual injury.
597
00:21:31.860 --> 00:21:33.750
And economic damages as a result
598
00:21:33.750 --> 00:21:37.030
of the proposed disposal operation.
599
00:21:37.030 --> 00:21:40.100
Apache stated it has a concern for its social license.
600
00:21:40.100 --> 00:21:42.810
Additionally, Apache stated it has data unavailable
601
00:21:42.810 --> 00:21:45.820
to the commission regarding the proposed well location
602
00:21:45.820 --> 00:21:47.860
and faulting in the area.
603
00:21:47.860 --> 00:21:50.350
After review the filings and argument presented
604
00:21:50.350 --> 00:21:52.010
it was found that Apaches argument
605
00:21:52.010 --> 00:21:55.210
of entry to its social license did not elevate Apache
606
00:21:55.210 --> 00:21:57.020
from a member of the general public
607
00:21:57.020 --> 00:21:58.890
to one of an affected person.
608
00:21:58.890 --> 00:22:02.130
Subsequently, on this December 19 2019,
609
00:22:02.130 --> 00:22:04.630
the Hearings Division director signed an order dismissing
610
00:22:04.630 --> 00:22:07.770
the docket along with the protest of Apache.
611
00:22:07.770 --> 00:22:10.480
The timely motion for rehearing was received
612
00:22:10.480 --> 00:22:13.620
from Apache, Jetta filed a timely reply.
613
00:22:13.620 --> 00:22:15.750
It is recommended that the motion be denied,
614
00:22:15.750 --> 00:22:16.840
the motion will be overruled
615
00:22:16.840 --> 00:22:19.660
by operation of law on March 30 2020.
616
00:22:19.660 --> 00:22:21.400
I'm available for questions.
617
00:22:21.400 --> 00:22:23.286
Are there any questions?
618
00:22:23.286 --> 00:22:25.330
We approve the examiners recommendation
619
00:22:25.330 --> 00:22:26.170
is there a second?
620
00:22:26.170 --> 00:22:27.003
Second
621
00:22:27.003 --> 00:22:27.836
Second by Commissioner Sitton.
622
00:22:27.836 --> 00:22:29.380
All in favor say, "Aye.".
623
00:22:29.380 --> 00:22:30.213
Aye.
624
00:22:30.213 --> 00:22:31.046
Any opposed?
625
00:22:31.046 --> 00:22:31.879
Motion passes.
626
00:22:31.879 --> 00:22:32.860
That item is approved.
627
00:22:32.860 --> 00:22:34.830
Thank you very much.
628
00:22:34.830 --> 00:22:38.220
Let's move to the oil and gas consent agenda.
629
00:22:38.220 --> 00:22:41.740
There are now only 49 items on that consent agenda.
630
00:22:41.740 --> 00:22:44.600
I move we approve items nine through 60
631
00:22:44.600 --> 00:22:47.550
except items 42 through 44,
632
00:22:47.550 --> 00:22:50.250
which will be passed to the next conference.
633
00:22:50.250 --> 00:22:52.087
Is there a second?
634
00:22:52.087 --> 00:22:52.920
Second
635
00:22:52.920 --> 00:22:54.770
Second by Commissioner Sitton
636
00:22:54.770 --> 00:22:56.620
All in favor say, "Aye.".
637
00:22:56.620 --> 00:22:57.540
Aye.
638
00:22:57.540 --> 00:22:58.410
Any opposed ?
639
00:22:58.410 --> 00:23:00.803
Motion passes those items are approved.
640
00:23:03.120 --> 00:23:06.170
Rule 15 inactive wells items.
641
00:23:06.170 --> 00:23:07.950
There are now only 15 items
642
00:23:07.950 --> 00:23:10.070
on the rule 15 inactive wells list,
643
00:23:10.070 --> 00:23:14.983
I move we approve item 61 through 76 except for item 75.
644
00:23:15.890 --> 00:23:17.101
Is there a second?
645
00:23:17.101 --> 00:23:17.934
Second
646
00:23:17.934 --> 00:23:18.802
Second by Commissioner Craddick
647
00:23:18.802 --> 00:23:20.081
All in favor say, "Aye.".
648
00:23:20.081 --> 00:23:20.914
Aye.
649
00:23:20.914 --> 00:23:21.747
Any opposed?
650
00:23:21.747 --> 00:23:22.625
Motion passes.
651
00:23:22.625 --> 00:23:24.989
Those items are approved.
652
00:23:24.989 --> 00:23:26.847
Move on to Master Default Orders.
653
00:23:26.847 --> 00:23:29.785
There are 36 Master Default Orders.
654
00:23:29.785 --> 00:23:33.456
I move we approve item 77 through 112.
655
00:23:33.456 --> 00:23:34.445
Is there a second?
656
00:23:34.445 --> 00:23:35.278
Second.
657
00:23:35.278 --> 00:23:36.218
Second by Commissioner Sitton.
658
00:23:36.218 --> 00:23:37.342
All in favor say, "Aye."
659
00:23:37.342 --> 00:23:38.255
Aye.
660
00:23:38.255 --> 00:23:39.088
Any opposed?
661
00:23:39.088 --> 00:23:39.921
Motion passes.
662
00:23:39.921 --> 00:23:41.380
Those items are approved.
663
00:23:41.380 --> 00:23:43.980
Move to the Agreed Enforcement Orders.
664
00:23:43.980 --> 00:23:46.300
There are 201 Agreed Enforcement Orders.
665
00:23:46.300 --> 00:23:50.350
I move we approve items 113 through 313.
666
00:23:50.350 --> 00:23:51.183
Is there a second?
667
00:23:51.183 --> 00:23:52.016
Second.
668
00:23:52.016 --> 00:23:53.210
Second by Commissioner Craddick.
669
00:23:53.210 --> 00:23:54.614
All in favor say, "Aye.".
670
00:23:54.614 --> 00:23:55.447
Aye.
671
00:23:55.447 --> 00:23:56.280
Any opposed?
672
00:23:56.280 --> 00:23:57.210
Motion passes.
673
00:23:57.210 --> 00:23:58.300
Those items are approved.
674
00:23:58.300 --> 00:24:00.140
That concludes the hearing sections
675
00:24:00.140 --> 00:24:03.440
We will now take up our administrative agenda.
676
00:24:03.440 --> 00:24:05.170
Morning Chairman and commissioners.
677
00:24:05.170 --> 00:24:06.360
For the record, Wei Wang,
678
00:24:06.360 --> 00:24:07.720
the executive director.
679
00:24:07.720 --> 00:24:09.460
I'm glad to report that as of today,
680
00:24:09.460 --> 00:24:11.840
our headcount is 829.
681
00:24:11.840 --> 00:24:15.020
That put our vacancy rate as less than 5%.
682
00:24:15.020 --> 00:24:18.060
So it's a win for us.
683
00:24:18.060 --> 00:24:20.720
And also just an update on the dream
684
00:24:20.720 --> 00:24:24.410
from the processing we're holding steady below three days
685
00:24:24.410 --> 00:24:26.300
and for the GA EU letter,
686
00:24:26.300 --> 00:24:31.300
where expedited processing is two days.
687
00:24:31.570 --> 00:24:34.960
And for well plugging, as we conclude,
688
00:24:34.960 --> 00:24:36.080
the first half of the year,
689
00:24:36.080 --> 00:24:39.700
we have plugged so far 730 wells,
690
00:24:39.700 --> 00:24:41.270
and for site remediation,
691
00:24:41.270 --> 00:24:45.040
we have completed 165 sites.
692
00:24:45.040 --> 00:24:47.910
And that's against the goal of 230.
693
00:24:47.910 --> 00:24:52.390
So we're well above the half year mark, as well.
694
00:24:52.390 --> 00:24:53.810
That concludes my report today.
695
00:24:53.810 --> 00:24:55.710
Are there any questions?
696
00:24:55.710 --> 00:24:57.810
Above 820 for the first time.
697
00:24:58.870 --> 00:25:00.910
Thank you Wei for the good work that you
698
00:25:00.910 --> 00:25:02.500
and all your people across here
699
00:25:02.500 --> 00:25:03.590
and across the state are doing.
700
00:25:03.590 --> 00:25:04.590
We appreciate it.
701
00:25:04.590 --> 00:25:05.990
Thank you very much.
702
00:25:07.260 --> 00:25:09.910
Item 315 is the adoption of revisions
703
00:25:09.910 --> 00:25:10.743
of the delegation of authority.
704
00:25:10.743 --> 00:25:15.570
It's not easy for me.
705
00:25:15.570 --> 00:25:18.280
It's not, it's a mouthful.
706
00:25:18.280 --> 00:25:19.830
I couldn't pass for reading it,
707
00:25:20.810 --> 00:25:21.670
Good morning, commissioners.
708
00:25:21.670 --> 00:25:23.080
For the record, I'm Randall Collins,
709
00:25:23.080 --> 00:25:24.910
chief operating officer.
710
00:25:24.910 --> 00:25:26.980
Item 315 on the agenda pertains
711
00:25:26.980 --> 00:25:28.800
to the commissioner adoption of delegation
712
00:25:28.800 --> 00:25:30.050
of authority as set out
713
00:25:30.050 --> 00:25:34.503
in 22 61.254 and 21 55.088.
714
00:25:35.610 --> 00:25:37.660
The Texas government code.
715
00:25:37.660 --> 00:25:40.410
The commissioners' current internal delegation authority
716
00:25:40.410 --> 00:25:43.380
requires Commissioner approval of contracts,
717
00:25:43.380 --> 00:25:45.200
and associated amendments greater than
718
00:25:45.200 --> 00:25:47.930
or equal to $500,000.
719
00:25:47.930 --> 00:25:52.740
Section 22 61.254, the Texas Government code
720
00:25:52.740 --> 00:25:55.274
allows the commission the delegation
721
00:25:55.274 --> 00:25:57.770
of contract approval and execution
722
00:25:57.770 --> 00:26:00.436
of contracts less than $1 million
723
00:26:00.436 --> 00:26:02.410
to the executive director.
724
00:26:02.410 --> 00:26:04.360
contracts or amendments equal to
725
00:26:04.360 --> 00:26:06.700
or greater than $1 million would still be subject
726
00:26:06.700 --> 00:26:08.420
to the commissioner approval.
727
00:26:08.420 --> 00:26:13.080
Section 21 55.088 will require Commissioner consideration
728
00:26:13.080 --> 00:26:14.730
for material changes to contracts,
729
00:26:14.730 --> 00:26:18.620
including an increase of greater than 10%.
730
00:26:18.620 --> 00:26:19.710
Approval of the items today
731
00:26:19.710 --> 00:26:21.613
will ensure agency operations remain on schedule
732
00:26:21.613 --> 00:26:24.070
and necessary approvals will be in place pursuant
733
00:26:24.070 --> 00:26:26.800
to the Commission's delegation of authority and state law.
734
00:26:26.800 --> 00:26:27.633
In full summary,
735
00:26:27.633 --> 00:26:29.080
the delegation of authority is included
736
00:26:29.080 --> 00:26:30.300
in your notebooks.
737
00:26:30.300 --> 00:26:31.510
Staff asked the commission
738
00:26:31.510 --> 00:26:34.520
to approve the change percentage commission's delegation
739
00:26:34.520 --> 00:26:35.587
of authority and state law
740
00:26:35.587 --> 00:26:37.630
and I'm available if you have any questions,
741
00:26:37.630 --> 00:26:39.320
So you stumbled on delegate
742
00:26:39.320 --> 00:26:40.403
the first time too?
743
00:26:41.410 --> 00:26:44.040
Those of us that weren't bi phonics,
744
00:26:44.040 --> 00:26:46.040
we look at D and that's what we say first,
745
00:26:46.040 --> 00:26:48.240
and that screws it all up.
746
00:26:48.240 --> 00:26:50.210
Are there any questions?
747
00:26:50.210 --> 00:26:51.650
I move we adopt these changes
748
00:26:51.650 --> 00:26:54.070
to the delegation of authority,
749
00:26:54.070 --> 00:26:56.481
excuse, I'm kidding.
Pressure is on now.
750
00:26:56.481 --> 00:26:57.590
Oh I know.
751
00:26:57.590 --> 00:26:58.555
Is there a second?
752
00:26:58.555 --> 00:26:59.388
Second.
753
00:26:59.388 --> 00:27:00.221
Second by Commissioner Sitton.
754
00:27:00.221 --> 00:27:01.560
All in favor say, "Aye."
755
00:27:01.560 --> 00:27:02.393
Aye.
756
00:27:02.393 --> 00:27:03.226
Any oppose?
757
00:27:03.226 --> 00:27:04.059
Motion passes.
758
00:27:04.059 --> 00:27:04.892
That item is approved.
759
00:27:04.892 --> 00:27:05.725
Thank you.
760
00:27:05.725 --> 00:27:07.010
Thank you much.
761
00:27:07.010 --> 00:27:10.750
Item 316 is our Office of General Counsel item.
762
00:27:10.750 --> 00:27:11.880
Morning Chairman and commissioners.
763
00:27:11.880 --> 00:27:13.310
For the record, my name is Alex Schoch,
764
00:27:13.310 --> 00:27:15.690
the General Counsel of the Railroad Commission of Texas.
765
00:27:15.690 --> 00:27:16.880
We've got no matters
766
00:27:16.880 --> 00:27:19.300
to report on this morning under Item 316.
767
00:27:19.300 --> 00:27:20.910
I can handle those.
768
00:27:20.910 --> 00:27:21.903
Any questions?
769
00:27:22.890 --> 00:27:23.723
Thank you, Alex.
770
00:27:23.723 --> 00:27:24.556
Appreciate that.
771
00:27:25.920 --> 00:27:27.530
Finding my page turn.
772
00:27:27.530 --> 00:27:31.323
Item 317 is the adoption of amendments to form PS-48.
773
00:27:32.200 --> 00:27:34.150
Good morning, Mr. Chairman, commissioners.
774
00:27:34.150 --> 00:27:36.050
For the record, my name is April Richardson,
775
00:27:36.050 --> 00:27:37.277
director of Alternative Fuel Safety
776
00:27:37.277 --> 00:27:39.990
within the oversight and safety division.
777
00:27:39.990 --> 00:27:41.700
And oversight and safety would like to pass
778
00:27:41.700 --> 00:27:43.243
on item 317 today.
779
00:27:44.620 --> 00:27:45.690
At the request of staff,
780
00:27:45.690 --> 00:27:46.760
this item will be passed
781
00:27:46.760 --> 00:27:48.640
to the next conference.
782
00:27:48.640 --> 00:27:50.370
Item 318, is a proposal
783
00:27:50.370 --> 00:27:53.970
to make changes to LPG Form 16.
784
00:27:53.970 --> 00:27:55.950
Correct, item 318
785
00:27:55.950 --> 00:27:58.300
as alternative fuel safety departments requests
786
00:27:59.250 --> 00:28:01.570
for approval to publish proposed revisions
787
00:28:01.570 --> 00:28:03.440
to LPG Form 16
788
00:28:03.440 --> 00:28:06.660
on the Commission's website for a two-week review period.
789
00:28:06.660 --> 00:28:10.383
The request also includes minor changes to 27 LP gas forms.
790
00:28:11.260 --> 00:28:13.080
The changes to LPG Form 16
791
00:28:13.080 --> 00:28:15.010
are related to the chapter nine rule changes
792
00:28:15.010 --> 00:28:18.020
that were made effective on January 6th of 2020.
793
00:28:18.020 --> 00:28:20.450
And combine the class attendance form used
794
00:28:20.450 --> 00:28:22.150
to collect information for individuals
795
00:28:22.150 --> 00:28:25.090
who attend an LP gas training class,
796
00:28:25.090 --> 00:28:28.870
and one or more LP gas certification exams.
797
00:28:28.870 --> 00:28:30.260
The changes update the division
798
00:28:30.260 --> 00:28:31.910
and department names,
799
00:28:31.910 --> 00:28:33.770
as well as add information regarding,
800
00:28:33.770 --> 00:28:36.420
training class attendance and payment information
801
00:28:36.420 --> 00:28:39.583
for attending a training class, exams taken
802
00:28:39.583 --> 00:28:41.653
and any renewal fees paid.
803
00:28:42.690 --> 00:28:44.760
The changes made to the other 27 forms
804
00:28:44.760 --> 00:28:47.110
are corrections to remove previous designations
805
00:28:47.110 --> 00:28:49.270
for the Alternative Fuel Safety department,
806
00:28:49.270 --> 00:28:50.550
and update those references
807
00:28:50.550 --> 00:28:52.440
to the current department name.
808
00:28:52.440 --> 00:28:54.160
All headers and contact information
809
00:28:54.160 --> 00:28:55.700
were updated on these forms
810
00:28:55.700 --> 00:28:58.010
to the current division and department names
811
00:28:58.010 --> 00:29:02.320
and any outdated contact information was also corrected.
812
00:29:02.320 --> 00:29:03.870
May I answer any questions?
813
00:29:03.870 --> 00:29:05.700
Are there any questions?
814
00:29:05.700 --> 00:29:09.540
I move we approve the proposal to amend LPG Form 16
815
00:29:09.540 --> 00:29:12.130
and make minor changes to other LP gas forms.
816
00:29:12.130 --> 00:29:12.963
Is there a second?
817
00:29:12.963 --> 00:29:13.796
Second.
818
00:29:13.796 --> 00:29:14.629
Second by Commissioner Craddick.
819
00:29:14.629 --> 00:29:16.060
All in favor say, "Aye.".
820
00:29:16.060 --> 00:29:16.893
Aye.
821
00:29:16.893 --> 00:29:17.726
Any oppose?
822
00:29:17.726 --> 00:29:19.630
Motion passes, that item is approved.
823
00:29:19.630 --> 00:29:22.810
Item 319, is our public participation item.
824
00:29:22.810 --> 00:29:24.560
No one has turned in cards indicating
825
00:29:24.560 --> 00:29:27.420
that they wish to speak on any non-posted items.
826
00:29:27.420 --> 00:29:29.950
Item 320 is our executive session items
827
00:29:29.950 --> 00:29:32.110
which we will not be going into today.
828
00:29:32.110 --> 00:29:34.080
Are there any other duly posted matters
829
00:29:34.080 --> 00:29:36.630
to be brought before the commission at this time?
830
00:29:36.630 --> 00:29:37.910
Mr. Chairman, I just like to note
831
00:29:37.910 --> 00:29:39.600
that for item 318,
832
00:29:39.600 --> 00:29:40.970
the document that was in the book
833
00:29:40.970 --> 00:29:43.640
did not have a T-bar on it for signature.
834
00:29:43.640 --> 00:29:45.910
So we have two options.
835
00:29:45.910 --> 00:29:47.375
We could either have April prepare a T-bar,
836
00:29:47.375 --> 00:29:49.580
and bring it by for signature,
837
00:29:49.580 --> 00:29:50.800
if that's your preference,
838
00:29:50.800 --> 00:29:54.050
we could rely on the motion in the record as well
839
00:29:54.050 --> 00:29:55.290
and vote in the record.
840
00:29:55.290 --> 00:29:57.500
If we're going to order since everything else has two bars.
841
00:29:57.500 --> 00:29:59.100
If we prefer we could have that prepared
842
00:29:59.100 --> 00:30:01.490
and then brought up to in due course.
843
00:30:01.490 --> 00:30:02.840
If you can do it just by record,
844
00:30:02.840 --> 00:30:04.050
I would think that saves ink,
845
00:30:04.050 --> 00:30:05.136
with the taxpayer dollars
846
00:30:05.136 --> 00:30:06.964
and whatever, sound good.
847
00:30:06.964 --> 00:30:08.500
Doesn't matter.
848
00:30:08.500 --> 00:30:12.610
Yeah just roll without wasting resources.
849
00:30:12.610 --> 00:30:13.750
Okay, sounds good.
850
00:30:13.750 --> 00:30:14.583
Thank you.
851
00:30:16.520 --> 00:30:17.920
Any other posted items
852
00:30:17.920 --> 00:30:20.330
do need to be brought before this commission at this time.
853
00:30:20.330 --> 00:30:21.780
Hearing none, the meeting
854
00:30:21.780 --> 00:30:24.230
of The Railroad Commission of Texas is adjourned.
855
00:30:25.760 --> 00:30:26.687
Papers are signed.