Callie Fararr: Good morning. This is Callie Farrar, Commission
Secretary. I'll be serving as the meeting moderator
for today's meeting. Just a few reminders. When it's your
time to speak, you'll be transferred over to video
and unmuted. When transferring, during this transition,
the speaker and audience may experience a moment
of delay. Speakers will also need to begin their video
and remove themselves from mute for the video and audio
to work. The Commission does reserve the right to
remove any audio or video sharing capabilities from
any person at any time as needed. Chairman Christian,
we're ready to begin when you are.
Chair Christian: This is Commissioner
Christian, and this meeting of the Railroad Commission
of Texas will come to order to consider matters which
have been duly posted with the Secretary of State for
September 22nd, 2020. Under our public participation
policy, anyone desiring to offer public testimony on
any item that are not noticed on today's agenda was
required to register in advance.
We did not have anyone register in advance. The Commission
will consider the items on the agenda as posted on
the agenda. Callie, please call up the presenter for
agenda Item one.
Callie Fararr: Yes. Thank you, Veronica Roberto
will be presenting Agenda Item number one. Veronica,
we're ready when you are.
Veronica Roberto: Good morning, Chairman, Commissioners.
For the record, Veronica Roberto. Administrative Law Judge
for the Hearings division. Item number one is the application
by Luminant Mining Company LLC requesting release of
phase two and three Reclamation obligations on 418
acres within the Monticello Winfield mine, permit
number 48 C, located in Titus and Franklin counties.
The approved post mine land use within the subject area
are pastureland, fish and wildlife habitat, develop
water resources and forestry. Evidence in the record
supports that Luminant has satisfied all requirements
for phase two and three Release of the subject area.
After notice, no comments or requests for hearing were
received. Luminant and staff are the only parties to
the proceeding. No exceptions were filed. No changes
to the current bond are requested in the stock. It is
recommended that the request for phase two and three
for the subject area be approved and that Luminant
be eligible to reduce the amount of bond for the permit.
I'm available for questions.
Chair Christian: Are there any questions,
members? Okay, I move we approve the examiners recommendation.
Chair Christian: Is there a second?
Commissioner Sitton: Second.
Chair Christian: Second by Commissioners Sitton.
All in favor, say Aye. Any opposed? Motion passes.
That item is approved. Callie, please call up the presenter
for agenda item number two.
Callie Fararr: Yes, Thank you. Kyle Lubbey
will be presenting agenda item 2. Kyle. We're ready
when you are.
Kyle Lubbey: Good morning, Chairman and Commissioners. Kyle Lubbey,
Administrative Law Judge. Item 2 is an application
by Luminant Mining Company LLC requesting various phases
of release of reclamation obligations for an aggregate
274.5 acres in its Oakhill Mine, permit number 46C,
located in Russell County. Specifically, Luminant
seeks release of phase one release obligations on 71
acres. Phase two and three release on 165.9 acres.
And phase one through three release on 37.6 acres.
The subject acreage is comprised of six parcels of land
located in the D1 and D3 mine areas. The approved
postmine land uses for the acreage proposed for Phase two
and three release are as follows: forestry, fish and
wildlife habitat, industrial commercial and developed
water resources. Record supports Luminant has reclaimed
the area in accordance with our requirements for the
phases of release cited by the application. After notice,
no comments or request for hearing were received. Luminant
and staff of the only parties to the proceeding. Neither
filed exceptions.
No changes to the current bond instrument are requested
in this docket. As a result, the proposed order prescribes
Luminant is eligible to reduce the amount of bond by
amount that is attributable to the subject acreage
based on the various phases of release that are granted
by the Commission. Approval of the release is requested
on the 274.5 acres as recommended. I'm available for
questions.
Chair Christian: Are there any questions, Members?
<v Commissioner Sitton>Yes. I have a question.
Chair Christian: Commissioner Sitton
Commissioner Sitton: Kyle, can you
do all that again? Because all I could think of while
you were talking is Look at that beard. Oh, my God
I'm sorry.
Kyle Lubbey: I could start with the beginning. Would
you like the introduction?
Chair Christian: No no no no.
Commissioner Sitton: I'm kidding.
Chair Christian: At least you still
got hair? Some of us, look what it's done to me to
be on the Commission. It's a different color,
and it's it's less of it. So bless you for having more.
Kyle Lubbey: I don't have the high definition in, but there's
plenty of grey in the beard, Chairman. I'll get there eventually,
I think.
Chair Christian: Okay. Yeah. Okay. All right. Are there any
other legitimate questions? I move we approve the
examiners recommendation. Is there a second?
Commissioner Craddick: Second
Chair Christian: Second by Commissioner Craddick. All in favor. Say
aye. Any opposed? Motion passes. That item is approved.
Callie, please call up the presenter for agenda item
number three.
Callie Fararr: Yes, thank you. Austin Gascamp can will be
presenting agenda Item three. Austin, we're ready when
you are.
Austin Gascamp: Good morning. Chairman and Commissioners.
My name is Austin Gascamp, Technical Examiner for the
Hearings division. Item number three is the application
of Wasser Operating LLC pursuant to Statewide rule nine
for a permit to dispose of oil or gas waste by injection
into a porous formation not productive of oil or gas
for the Maybe 4 SWD lease, well number one, in
the Sprayberry Trend area field, Martin County, Texas.
Wasser seeks to dispose of 30,000 barrels per day of
salt water and nonhazardous oil and gas waste into
the Ellenberger formation. The application is protested
by Pioneer Natural Resources USA incorporated. Pioneer's
the operator of producing wells on the track, which
the proposed well is to be located. Pioneer contends
first proposed well will prevent Pioneer from drilling
future stacked horizontal wells due to wellbore anti
collision concerns, thereby reducing the ultimate recovery
and causing waste of oil and gas. Secondly, there is
no market or need for the well, and consequently the
well is not in the public interest. Wasser demonstrated
that the proposed well will not endanger any oil, gas
and mineral formations. Examiners conclude Pioneer
is capable of directionally drilling its planned
wells with the precision required to avoid the proposed
well, thus not interfering with ultimate recovery.
Wasser further established that with proper
safeguards, both ground and surface freshwater would
be adequately protected from pollution. Examiners find
the use of the deep, non productive Ellenberger formation
is a strong argument the well is in the public interest.
Wasser also made a satisfactory showing of financial
responsibility. Examiners recommend approval of the
application. Exceptions and emotion to reopen the
record were filed by Pioneer. Replies were filed by
Wasser. I'm available for questions.
Chair Christian: Let's see, Callie?
Callie Fararr: Yes, sir. We do have Olga Cassar and John Soul with
Wasser Operating here available to answer any questions
as well.
Chair Christian: Are there any questions members? Hearing none, I move
we approved the examiners recommendation. Is there
a second.
Commissioner Sitton: Second.
Chair Christian: Second by Commissioner Sitton. All
in favor, say aye. Any opposed? Motion passes.
That item is approved. Callie, please call up the presenter
for agenda item number four.
Yes. Thank you. Joe Menafee
will be presenting agenda item 4. Joe, we're
ready when you are.
We just need to bring you off mute, then you'll be ready,
Joe Menafee: Good morning, Chairman, Commissioners. For the record, Joe
Manefee, paralegal in the Hearings division. I'll be
presenting items four through six, all of which are
P5 motions for rehearing filed as a result
of a final order denying renewal of the operators' P5
because of wells noncompliant with Statewide rule 15.
Item number four. Subsequent of filing its motion for
rehearing, Cinco Natural Resources Corp has come
into compliance with Statewide Rule 15. Therefore
it's recommended the motion be granted and the underlying
docket dismissed as moot. I'm available for questions.
Chair Christian: Any questions? Members? Okay, I move we approve the
examiners recommendation. Is there a second?
Commissioner Craddick: Second.
Chair Christian: Second.
by Commissioner Craddick. All in favor say aye.
Any opposed? Motion passes. That item is approved.
Callie, please got call up the agenda Item five. Thank
you, Joe will be continuing with agenda Item
five. Joe, we're ready when you are.
Joe Menafee: Item number five. In its motion for rehearing, DEC
Operating Inc states among the reasons for its failure
to request a hearing, one, its inability to pay the
hearing fee due to COVID 19, two, the Commission's noticed
the operators granting some extensions, effective March
1st through September 30th, and three, it's filing
of some compliance documentation and being in the process
of resolving six H 15 violations. Finally, DEC states
that granting the motion would not harm the Commission.
Staff opposes the motion. Staff states that DEC misapplied
the Commission's notice to the operators, and that the
relief granted in the notice was for operators with
p5s due March 1st or later. Staff further states
that 82 wells remained non-compliant with Statewide
Rule 15 and that the operator was non-compliant at
the time the final order was issued. It is recommended
the motion be denied. The motion will be overruled
by Operation of Law on November 12. I'm available for
questions.
Chair Christian: Any questions? Members? I move we approve the
examiners recommendation. Is there a second?
Commissioner Sitton: Second
Chair Christian: Second by Commissioner Sitton. All in favor, say,
Aye. Any opposed? Motion passes. That item is
approved. Callie, please call up the presenter for
items. Six.
Callie Fararr: Yes, Thank you. Joe will be continuing
with agenda item six. Joe, please continue.
Joe Menafee: Item number six. In its motion for rehearing, ENW
Oil Inc states its failure to request a hearing was
due to COVID 19, that compliance documentation has been
filed, is awaiting processing or will be filed imminently
and that granting the rehearing will not injure the
Commission staff opposes the motion. 36 wells remain
non-compliant with Statewide Rule 15. It is recommended
the motion be denied. The motion will be overruled
by Operation of Law on November 12. I'm available for
questions.
Chair Christian: Any questions? Members? I move we approve
the examiners recommendation. Is there a second?
Commissioner Craddick: Second.
Chair Christian: Second
by Commissioner Craddick. All in favor say aye.
Any opposed? Motion passes. That item is approved
Let's move to agenda, to the Oil and Gas Consent Agenda.
Callie?
Callie Fararr: Thank you. Yes. Commissioners, we have Vance
Long, representing himself, available on agenda item
number 20.
Chair Christian: Does anyone need--
Callie Fararr: Please continue.
Chair Christian: Yes. Okay
Anyone need to hear from Mr Long?
Mr. Chairman?
Chair Christian: Mr Sitton?
Commissioner Sitton: I'll be abstaining from items 7, 13 and 14
on this list.
Chair Christian: 7, 13 and 14 will be duly recorded. Okay
There are 18 items in the oil and gas Consent Agenda
I move we approve item seven through 31. Except items
8, 9, 10, 11, 12, 23, and 24. Is there a second?
Commissioner Craddick: Second
Chair Christian: Second by Commissioner Craddick. All in favor, say
aye. Any opposed? That motion passes. Those items
are approved. Commissioners, Callie, please,
next item.
Callie Fararr: All good. Commissioners. We also have
Vance Long again representing himself. Available for agenda
item 51.
Chair Christian: Commissioners, Anyone have any questions of
Mr Long? Okay, let's move to Rule 15, Inactive
Wells items. There are 23 Rule 15
Inactive Well items. I move we approved items 32 through
58, except items 32, 33, 41, 43, and 49. Is there a second?
Commissioner Sitton: Second
Chair Christian: Second by Commissioner Sitton. All in favor
say aye. Any opposed? Motion passes. Those items
are approved. Let's move to the Master Default Orders
There are 28 Master Default Orders. I move we approve
items 59 through 86. Is there a second?
Commissioner Craddick: Second
Chair Christian: Second by Commissioner
Craddick. All in favor say aye.
Any opposed? Motion passes. Those items approved. Let's
move to Agreed Enforcement Orders. There are 131 Agreed
Enforcement Orders. I move we approved items 87 through
217. Is there a second?
Commissioner Sitton: Second
Chair Christian: Second by Commissioner Sitton
All in favor say aye. Any opposed? Motion passes.
Those items approved. That concludes the hearing. Concludes
the hearing sections. We will now take up our administrative
agendas. Callie, please call it the presenter for agenda
item 218
Callie Fararr: Yes, thank you. Corey Crawford will be presenting
agenda Agenda Item 218. Corey, we are ready when
you are.
Corey Crawford: Hey, good morning. Chairman and Commissioners.
Corey Crawford, Chief Financial Officer. Item 218 is
the legislative appropriations request for fiscal years
2022 and 2023. You've got a pdf copy of the request. The
baseline request totals $269 million with 870 FTEs for
the next biennium. In addition to the baseline request,
we're requesting to exceptional items totaling $8 million
to restore part of the 5% budget reductions. Staff
recommends approval to submit the request to the Legislative
Budget Board in the Governor's office, along with any
necessary conforming changes. I'm available to answer any
questions.
Callie Fararr: Commissioners. We also have Cyrus Reed with
the Sierra Club available for comments on this agenda
item.
Chair Christian: Anyone have any questions of Mr Reed?
I move we approve the legislative appropriations request
for fiscal years 2022 and 2023. Is there a second?
Commissioner Craddick: Second.
Chair Christian: Second by Commissioner
Craddick. All in favor say aye.
Any opposed? Motion passes. That item is approved
Callie, please call up the presenter for agenda item
219.
Callie Fararr: Yes, thank you. Keith May well be presenting
agenda item 219. Keith, we are ready when you are.
Keith May: Morning, Chairman and Commissioners. For the record, my
name is Keith May with Oil and Gas Division. Item 219,
the oil and gas division is seeking your approval for
the state managed plugging and stagnation work plans
for fiscal year 2021. During fiscal year 2020, the state
managed plugging and state managed cleanup programs, exceeded
their performance managers by plugging 1477 wells and
completing 258 cleanup activities. This marks the fourth
year in a row that these two programs have collectively
exceeded their performance measure goals. We hope to
make it five years in a row by meeting or exceeding
the performance measure for fiscal year 2021. This
includes plugging 1400 wells with a budget of 34, 550,000
and conducting 230 cleanup activities
with a budget of 13,867,80. May I answer any
questions?
Chair Christian: Are there any questions, Members? Okay, I move
we approve the well plugging and site remediation work
plans for fiscal years. 2021. Is there a second?
Commissioner Sitton: Second
Chair Christian: Second by Commissioner
Sitton. All in favor say aye.
Any opposed? Motion passes. That items is approved
Let's move on to the next agenda Item. Agenda 220 Item
is the election of chairman of the Railroad Commission
of Texas. Before I make a nomination, let me just make
a quick statement. It's been an honor to serve during this
historically challenging, unprecedented time. We've
had a lot of challenges I've seen. We've seen Russia,
the Saudis, and Communist China literally attack our
nation in various means and cause unprecedented dumping
and problems. We've seen proation as a challenge
to us that we considered and we're honored to call
on the Blue Ribbon task force to come in and help us
as the industry came with ideas of how to resolve the
serious issues before us and we again need to are
moving to flaring as an issue that is before us and
is representing itself with financial hardships upon
our industries as we try to get a recovery, and so it's
a challenge I'm working, and I know the other Commissioners
are concerned of also. We've had the, I've been
involved with IOGCC, as the other Commissioners have, the
other organizations across the country, and I'm looking
forward to serving in the position there of leadership
in this next year where I hope we can bring together
the Railroad Commission of Texas and the Texas agenda
alongside the 31 states and Canada in trying to pursue
a common, some common goals to recover the industry, and
of course, more importantly, jobs. It's a time that
we are all concerned that there's families out there
that need to restore jobs. How we do that. I've had
my jobs task force that I'm honored to serve with,
that we've secured with the Department of Energy's
help and with the industry's help, a campus for a pilot
program in rural Texas that we are working with a couple
of our public institutions to make sure that we get
up and running to be an example for rural areas across
the state and the United States to get jobs and
training that the new artificial intelligence is bringing
new techniques and a lot of ways. And we've got to
come up with the agenda as all of our schools across
the state are legitimately fighting. And so with that
I really believe that with session coming up, the unprecedented
kick to the budget that we're gonna find in the next
session, I believe we need consistency in this next
session. I believe that Commissioner Craddick has proven
herself successful in working with the legislative
body on our budget, which is important to all the citizens
of Texas and all the employees of the Railroad Commission.
And with her expertise, and I think consistency is
a good thing to have, and she's already been there.
The people know her and and she's been successful.
So I nominate Christi Craddick for this next session
to be our chairman of our Texas Railroad Commission.
Do I hear a second?
Commissioner Craddick: Second.
Chair Christian: Second. All in favor say aye. Any opposed?
None opposed. Miss Craddick. Chairman Craddick, would
you please? Congratulations. And we virtually now assume
the direction of this meeting.
<v Commissioner Craddick>Well, thank you, Wayne
And thank you. First and foremost for the nomination
and--(video freezes)