-: Thank you Carly, good morning?
This is Christi Craddick.
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 November 4th, 2020.
Under our public participation policy,
anyone desiring to offer public testimony
on any items that are not noticed
on today's agenda was required to register in advance.
We didn't have anybody register in advance.
The Commission will consider the items
on the agenda as posted on the agenda.
But before we get started with our agenda,
I wanna recognize our Human Resources Director,
Robbie Craig, for some outstanding service awards,
we've got a whole slew of really great people
who work for us, and so thank you, Robbie,
if you'll tell us what all good things we're doing.
Robbie: Good morning, Chairman and Commissioners.
My name is Robbie Craig, Director of Human Resources,
and today I'm here to recognize our Fiscal Year 2020
Outstanding Service Awards.
Employees and teams were nominated by their managers
and all nominations were reviewed
by the Executive Director and Human Resources.
This year, we were recognizing 44 individuals
and 41 teams for their contributions.
2020 has been unlike any other year
in our Commission's history.
Thanks to the dedication
and commitment of the employees being recognized today,
the railroad Commission was able
to successfully carry out our mission
despite the challenges caused by the COVID-19 pandemic.
These individuals and teams are recognized
for their innovation, diligent work,
and outstanding customer service to the public
and internally to our agency staff
during a very challenging year.
Teams and individuals are recognized today
for their accomplishments,
which included transitioning the entire agency
to remote work environment in a very short amount of time,
implementing new procedures
and recovery systems within our agency
and state data center services to minimize
and address issues to avoid a network outage.
completing the Oracle Business Intelligence
software upgrade,
creating improvements to the public GIS viewer,
eliminating backlogs in the oil and gas
environmental permits and support unit,
transitioning to an electronic conference format,
meeting a high volume of open records requests
within required response deadlines,
transitioning to the cases online portal,
purchasing, distributing personal protective equipment
necessary for employees
to continue their essential functions,
implementing the railroad Commission drone program,
filling over 220 job requisitions,
transitioning from in-person to zoom hearings,
hosting continuing education webinars
to meet certificate holders continuing education needs,
exceeding legislative performance measures
for inspections and well plugging.
347,617 inspections were done by oil and gas inspectors
and 1,477 state managed wells were plugged,
performing 3,561 standard
and follow up comprehensive pipeline safety inspections,
performing 417 surface coal mine inspections,
imaging 3.28 million Commission records
from non-digital formats,
permitting or renewing 13,346 oil and gas organizations.
Thank you all for modeling the one agency, one team vision
through your work for the Commission this year.
You'll be contacted individually
about how to receive your awards.
Thank you.
This concludes this year's outstanding service awards.
-: Thank you Robbie Craig and everybody who is on the list
and who has done the work this year.
I'm sorry we're not there
in person cause we can't shake hands anymore,
but not there in person to recognize you
and thank you for keeping this agency really going
and keeping us one of the top agencies,
I believe, not just in the Statewide,
but now in the country, right,
so, thank you all for everything that this agency,
this Commission is doing and the staff is doing,
we appreciate it.
All right, we are ready to move to the agenda.
So if you will Carly call up presenter for item number one
and on that she's going to present
for one, two, and maybe three as well.
Carly: Yes, that is correct, thank you.
Dee Marlo Chico will be presenting agenda items one
through three.
Dee Marlo, we are ready when you are.
-: Good morning, Chairman and Commissioners.
I am Dee Marlo Chico, an administrative law judge
with the Hearings division.
I will be presenting items number one through three.
Item number one is a 150 day suspension order
core rate case followed four applicants
who are affiliated companies that each provide
regulated natural gas distribution services
in unincorporated areas of Texas
that include Komala, Grimes, Harris
Liberty, Montgomery, and Walker counties Texas.
Applicants seek to increase
and consolidate their gas utility rates.
These four applicants are universal natural gas LLC DBA,
Universal natural gas incorporated,
Consumer gas company LLC DBA, consumer gas company
incorporated, Enertex NB LLC and Gas Energy LLC.
Examiners recommend issuance of the suspension order
to allow for proper evaluation of the applicants filling.
I'm available for questions.
-: Thank you are there any questions?
I move we approve the examiner recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Sitton all in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes items approved.
All right number two, keep going.
-: Yes ma'am, item number two is also
a 150 day suspension order
core rate case followed by three applicants
who are affiliated companies that each provide
regulated natural gas transportation services
in unincorporated areas of Texas
and who seek to increase in consolidate
their natural gas transportation rates.
These three applicants are Hooks gas pipeline LLC,
Texas gas pipeline company LLC, and 1486 gas pipeline LLC.
The examiners recommend issuance of the suspension order
to allow for proper evaluation of the applicant's filing.
I'm available for questions.
-: Thank you, are there any questions?
-: Nope.
-: I move, we approve the examiners recommendation,
is there a second?
-: A second.
-: Second by Commissioner Christian, all in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes items are approved
and numbers three.
-: Item number three has two motions for rehearing
in gas utility docket number 10918,
which is a complaint of DCP Guadalupe pipeline LLC
against Atmos energy corporation.
The motions for rehearing or to the interim ruling
and the dismissal order.
On August 21st, 2020 an interim ruling
was issued granting DCP's motion to dismiss.
Also in August 21st, the hearings director issued an order
of dismissal consistent with the interim ruling.
On August 28th, Atmos filed an interim appeal
to the interim ruling and the dismissal order
as well as the motion for a hearing to the dismissal order.
DCP timely filed a response to Atmos' interim appeal
on September 8th, Atmos' interim appeal was denied
by operation of law on September 10th
thereafter on October 5th,
Atmos filed a motion for rehearing to the interim ruling
DCP filed replies to both
of that Atmos' motions for rehearing.
The motions do not assert any new issues
of fact or law not previously considered by the Commission.
It is recommended the Commission deny Atmos' motions
for rehearing, which will be overruled
by operation of law on November 30th.
I'm available for questions.
Carly: commisioners we also have Ann coffin
representing Atmos energy
and Jay Stewart representing DCP Guadalupe pipeline LLC.
Both parties have registered and are available
for questions if needed.
Thank you, does anybody have any questions
of either the examiner or the two attorneys?
All right, I move, we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Sitton all in favor, say aye?
-: Aye . -: Aye.
-: Aye, motion passes that items is approved.
Thank you very much, item number four.
Carly: Yes, thank you Veronica Roberto
will be presenting agenda item four,
Veronica we are ready when you are.
-: Good morning, chairman Commissioners
for the record Veronica Roberto administrative law judge
to the Hearings division.
Item number four is the application
by Luminant mining company LLC
requesting a multi-phased release
on an aggregate 954.8 acres within permit number four L
within Morton Lake mine located in Panola and Rusk counties.
There are five approved post mine land uses,
fish and wildlife, forestry developed water resources,
pasture land and industrial commercial.
Evidence in the record supports
that Luminant has completed all
reclamation activities required
for the various spaces of release sought
with the exception of 0.1 acre,
which Luminant does not have right of entry.
It is not bonded nor was it disturbed by mining activities.
After notice of the application
no comments or requests for a hearing were received.
Staff and Luminant are the only parties to the proceeding.
No, except for filed no changes to the current border
request and stock it.
It is recommended that the requests for the various phases
of release be approved get 954.7 acres
and that 0.1 acre be denied without prejudice.
And that Luminant be eligible to reduce bond monies
attributable to the acres
and grant release in the stock.
I'm available for questions.
-: Thank you Veronica, is there any questions?
Right, I move that we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all those in favor Say aye?
-: Aye. -: Aye.
-: Aye,motion passes, items approved.
Thank you, Carly if you'll call up number five please.
Carly: Yes, thank you.
John Moore will be presenting agenda item five.
John, we are ready when you are.
-: Good morning, chairman and Commissioners
for the record, my name is John Moore
and I'm a Technical Examiner in the Hearings division.
Item five is the application of marathon oil EF LLC.
Pursuant to Statewide rule nine
for a non-commercial permit
to dispose of oil and gas waste
by injection into a porous formation
not productive of oil or gas or the SSL SWD lease.
Well Number two, in the sugar cane, Eagleford field,
Karnes County, Texas Marathon's application is protested
by evergreen underground water conservation district.
Marathon filed a motion to dismiss
Evergreen's protests for lack of standing.
The examiners find that Evergreen is an affected person
within the context of state one rule nine.
Marathon proposals to drill complete a new disposal well
and inject up to 20,000 barrels per day of salt water
produced from its own nearby Wells.
The produced water will be piped
to the new disposal well
and injected into the Wilcox formation
at depth from 6630 to 8500 feet.
The examiners find the proposal,
the proposed disposal well is compliant
with all Commission and Texas water code requirements.
The recommendation is to approve the application.
Exemptions and replies were filed.
May I answer any questions.
-: Thank you, John.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner sitton,
all those in favor say aye?
-: Aye -: Aye..
Aye, items approved.
Thank you, John.
Carly, number six and nine,
coordinate six through 11 together, correct?
Carly: That is correct.
Thank you,Jennifer Cook will be presenting
agenda item six through 11.
Jennifer, we are ready when you are.
-: Chairman and Commissioners,
I am Jennifer Cook administrative law judge
with the Hearings division.
I'm presenting as items six through 11 together
for one Board and have provided one proposed order.
In item six through 11,
John Dale McClay filed a complaint,
asserting Sienna oil and gas
does not have a good faith claim
to operate six Wells in Tom green County, Texas.
Mr. McClay maintained Sienna has no
good faith claim to operate the Wells
so the Wells should be ordered plugged.
Sienna states it does have a good big claim
to operate the Wells.
Mr. McClay is the middle interest owner
where the Wells are located.
He asserts the underlying contractual lease
relied on by Sienna has terminated
for lack of production.
He requests that the Wells be plugged
and there has been no production from the Wells
since 2018, Sienna argues it has a good faith claim
because Sienna believes a reasonably prudent operator
could produce the Wells and paying quantities
if the Wells were produced.
Sienna asserts that is sufficient to maintain
the underlying contractual lease.
It is recommended the Commission finds
Sienna does not have a good faith claim
and order the wells plugged.
Exceptions and replies were filed
and I'm available for questions.
-: Thank you, Jennifer.
Are there any questions?
I move we approve the examiners recommendation,
for item six through 11.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all those in favor say aye?
-: Aye. -: Aye.
-: Aye,motion passes.
Those items are approved.
Carly, please call up a presenter for general items.
We're gonna get Joe for 12, 13, and 14.
-: Good morning, Chairman, Commissioners?
for the record, Joe Murphy paralegal
with the Hearings division
I'll be presenting items 12 through 14
all of which are P5 motions for rehearing
filed as a result of Bonell orders,
denying renewal of the operator's P5
because of Wells noncompliant with Statewide rule 15.
Item number 12 in its motion
hydro geo energy LLC States its failure
to request a hearing was due to COVID-19.
That all required documentation has been filed
or will be filed eminently
and that granting the re-hearing will
not delay or injured the Commission.
Staff proposes the motion,
12 Wells remain noncompliant
with Statewide rule 15.
It is recommended the motion be denied.
The motion will be overruled
by operation of law on December 10th.
I'm available for questions.
-: Thank you, are there any questions?
Alright,I move,we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner sitton,
all those in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes items approved, number 13.
-: Item number 13 and it's motion,
Pena brothers oil and gas
states its failure to request a hearing
was due to COVID-19.
That filling up compliance documentation has been
or will be filed eminently
and that the Commission would not be delayed or injured.
Staff opposes the motion
for oil's remain noncompliant with Statewide rule 15.
It is recommend that the motion be denied.
The motion will be overruled
by operation of law on December 10th.
I'm available for questions.
-: Thank you, are there any questions?
I move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all in favor say aye?
-: Aye. -: Aye.
-: Aye, motion passes,that item is approved.
Right, number 14.
-: Item number 14, in its motion for rehearing
Restoration Energy LLC States its failure
to request a hearing was due to COVID-19
that a W3X option A has been filed
with the P5 department, resolving all outstanding issues
and that granting the rehearing will not
delay or injure the Commission.
Staff opposes the motion.
74 Wells remain noncompliant with Statewide rule 15.
It is recommended the motion be denied.
The motion will be overruled
by operation of law on December 10.
I'm available for questions.
-: Thank you, Joe.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Sitton,
all in favor say aye?
-: Aye. -: Aye.
-: Aye, motion passes.
That item is approved.
Thanks Joe, all right.
We're moving on to the oil and gas Consent Agenda.
There are 73 items on the oil and gas Consent Agenda.
Items 15 through 87.
There was an item 88, the operator has achieved compliance.
So we're gonna do items 15 through 87.
I move that we approve items 15 through 87.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved.
Sorry I did 88, a little early,
but we've already inactive Wells.
88 number 88 is already a complaint.
So we're skipping that one since we've got it.
They've done what they need to.
So now we're going to item master default
orders items 89 through 93.
There are five of those.
I move we approve items 89 through 93.
Is there a second, -: Second.
-: Second by Commissioner sitton,
all in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved.
And we're now going to agree to enforcement orders.
Items 94 through 193 there are 100
agreed enforcement orders.
I'm move we approve items 94 through 193.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved.
That concludes the hearing section matters.
And we'll now go to administrative agenda.
Carly if you'll call up presenter for agenda item 194
and I think 195 at same time.
Carly: Yes, thank you, Paul Dubois
will be presenting agenda items 194 and 195.
Paul, we are ready when you are.
We're in Paul.
-: Good morning, chairman Commissioners,
for the record My name is Paul Dubois.
I'm the assistant director
for technical permitting and the oil and gas division.
These items will be taken up separately.
Item number 194 is staff's request
that the Commission adopt changes per form H5
disposal well injection pressure test report.
The proposed changes require operators to indicate
the top of cement behind casing on the form,
a critical data element for Commission staff to ensure
the protection of fresh water and hydrochloric resources.
The proposed revisions to the form represented conference
on February 11th, 2020, and the revisions were posted
on the Commission's website for public comment.
The Commission received comments
from six individuals, operating companies
and trade associations.
Staff considered all of the comments
that were determined to be germane to the proposal.
No modifications to the form were made
in response to the comments.
Staff requests the Commission adopt the revisions form H5.
Staff recommends that if approved
the revised form goes into effect immediately.
I'm available to answer your questions.
-: Thank you Paul.
Are there any questions?
Alright, I move we approve the staff recommendation.
Is there a second?
-: Second.
-: Second by Commissioner sitton,
all in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes.
That item is approved.
Thank you, item 195.
-: Item number 195 is staff's request
that the Commission adopt changes
to the Statewide rule 32 exception data sheet
and to rename it form R32.
Proposed revisions to the former presented
at Commission conference on August 4th, 2020,
and the revisions were posted on the Commission's website
for public comment.
The Commission received comments
from 26 individuals, operating companies,
trade associations and non-governmental organizations.
Some of the comments were not relevant
or were beyond the scope of the proposed
changes to the form.
Staff considered all of the comments
that were determined to be germane to the proposal
and modified the form accordingly.
The new form greatly enhances collection
of critical data points and in some cases
significantly reduces fire duration.
Staff requests the Commission adopt form R32.
In addition staff is currently developing
an online filing system to support the rule 32 program.
The first phase of the implementation
is currently planned to go live by the end of March, 2021.
Staff recommends that if approved
form R32 will become effective immediately
but operators may file either the new form
or the current data sheet until April 1st, 2021
when the online exception filing system is implemented.
Once the online system is implemented
the current rule 32 data sheet will be phased
out and discontinued.
I'm available to answer your question.
-: Commissioners we also have Cyrus Reed
with Sierra club who is registered
and available for comments or questions if needed.
-: Thank you, does anybody have any questions
of Paul or Mr. Reed this morning?
Okay, Paul, thank you.
And to your staff
I think this is a good step forward
as we're looking at continuing to look at flaring
and what we ought to be doing better
and thank you Wayne, for getting us moving in direction too.
So appreciate staff and everybody moving this forward.
I think this will be a good addition
to the tools we have at the agency.
I move, we approve the staff's recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian,
all those in favor, say aye?
-: Aye. -: Aye.
-: Aye, motion passes that item is approved.
Thank you Paul.
Alright next agenda item is
is item one 96 is our public participation item.
No one else has registered indicating
they wanna speak on any nonposted items
and item one 97 is our executive session item
which we'll won't be going into today.
Are there any other duly posted matters to be brought
before the Commission at this time?
Hearing none this meeting
of the Railroad Commission is adjourned.
I think we're all going to go get some sleep today.
So thank you all.