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-: To consider matters, which have been duly posted
with the secretary of state for December 8, 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 do not have anyone that registered in advance.
And so the Commission will consider the items on the agenda
as posted on the agenda.
Let's go to number one.
Callie: All right, thank you.
Tariq Usman will be presenting agenda item one.
Tariq we are ready when you are.
-: Thank you Callie.
Good morning, chairman and Commissioners.
For the record, my name is Tariq Usman.
I am representing the market oversight section
of the Oversight and Safety Division.
The docket before you today, is case number 4435.
The application of taxes gas service for the tax year 2018.
Annual interim rate adjustment for the
unincorporated portion of the (indistinct)
town service area.
This docket is a first interim rate adjustment.
The company has filed for the (indistinct)
town service area.
Since the final order was issued
in the most recent statement of intent gas utilities
token number 10766.
This adjustment represented incremental increase
of $47,599 of which $3,722 is recoverable
from customers subject to the order of this docket.
I recommend approval of the time rate adjustment.
I'm available to answer any questions you may have.
Christi: Thank you Tariq.
Does anybody have any questions?
I move we approve the examiners recommendation.
Is there a second?
Sitton: Second.
Christi: Second by Commissioner Sitton.
All in favor, say aye.
Christian: Aye.
-: Aye.
-: Aye
-: Motion passes, item is approved.
Thank you.
Callie, number two and three.
I think it's the same presenter, right?
Callie: Yes, that is correct.
-: Right.
Callie: Dee Marlo will be presenting items two and three.
Dee Marlo, we are ready when you are.
-: (indistinct) chairman and Commissioners.
I'm Dee Marlo Chico, Administrative Law Judge
with the Hearings division.
I will be presenting items number two and three.
Item number two is a 150 days suspension order
for a rate case filed by Kosar Gas LTD to increase rates
in the unincorporated areas of Collin Denton
and Kaufman counties, Texas.
The proposed rate increase will become effective
on January 23rd, 2021.
The examiners recommend issuance of the suspension order
to allow for a proper evaluation of the applicant's filing.
I'm available for questions.
Christi: Thank you.
Are there any questions
I move we approve the examiners recommendation.
Is there a second?
Christian: Second
Second by Commissioner Christian.
All in favor say aye.
Christian: Aye.
Sitton: Aye
Christi: Aye.
Motion passes, that item is approved.
Number three please.
-: Yes, ma'am.
Item number three is a gas utility rate case
that resulted in a settlement between EPCOR Gas
Texas incorporated, two interveners, staff,
and the city of Magnolia,
and protested High Meadow Ranch Community Association.
The remaining prior to since Mr. (indistinct)
and Mr.Frank Hicks do not oppose the settlement.
EPCOR gas filed a statement of intent on June 29th, 2020
to increase rates within the unincorporated areas
of Austin, Colorado, Grimes, Harris, Montgomery
and Waller County, Texas.
The settlement includes a reduction of about $200,000
from EPCOR gas's original request.
The examiners recommend approval of the settlement
as set forth in the proposed final order.
The settlement represents diverse interests
and the parties have engaged in significant discovery
regarding the issues in dispute.
Exceptions in a reply were filed,
the amended final order which contains a corrected date
will be provided to you today.
The deadline for Commission actions is, January 15th, 2021.
I'm available for questions.
Callie: Commissioners we also have Ian Koffin representing
EPCOR gas Texas, registered is available for questions.
-: Thank you.
Are there any questions of Ms.Chico or Ms.(indistinct)?
-: No.
-: Okay.
I move, we approve the examiners recommendation.
Is there a second?
-: Second.
Second by Commissioner Sitton.
All those in favor, say aye.
-: Aye.
Motion passes that I'm approved.
Thank you.
All right, Callie.
Number four.
Callie: Yes, thank you.
Kyle Lebby will be presenting agenda item four.
Kyle, we are ready when you are.
-: Good morning, chairman Commissioners.
Kyle Lebby, Administrative Law Judge.
Item four's request by San Miguel Electric Cooperative Inc,
for acceptance of two replacement of blanket bond
for reclamation operations arise in all three
of its permitted mines, designated permits number 11G,
52A, and 60 located collectively in Atascosa,
McMoRan counties.
The profit bonds are in a mass of 131 million
and $9 million.
And both were in the form of a self bond with third-party
guaranteeing an indemnity agreement.
Third-party guarantees an indemnity agreements of our
national rural utilities Cooperative Finance Corporation,
or CFC.
Currently each of San Miguel is permitted mines
are bonded independently from the others
by a single self bond with third-party guarantee,
with CFC committed as the guarantor.
The total amount of the three existing bonds is 130 million.
The profit bonds will be applicable to all three permits
upon acceptance.
And replacement of the existing bond,
resulting in a $10 million increase in the total bond amount
for San Miguel Statewide mining operations.
Record support CFC in San Miguel meet requirements
for self bonding with third-party guarantor,
based on a criteria set out in the regulations.
Authorization documents have been submitted as well as
required financial statements,
of staff council and staff financial reviews
indicate the CFC and San Miguel demonstrated they meet
the financial criteria for acceptance.
Additionally, the profit bond will be sufficient amount,
upon acceptance based on reclamation cost estimates for each
of the permits that have been approved administratively
by the Surface Mine Reclamation Division.
San Miguel and staff are the only parties to the proceeding.
No exceptions were filed.
It's recommended the Commission accept the profit bonds
to replace the existing bonds for San Miguel
Statewide money and operations.
I'm available for questions.
Christi: Thank you.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Christian: Second.
Christi: Second by Commissioner Christian.
All in favor, say aye.
Christian: Aye.
Sitton: Aye
Christi: Aye.
Motion passes, that item is approved.
Thank you, Kyle.
Number five.
Callie: Thank you.
Ashley Corel will be presenting agenda item five.
Ashley, we are ready when you are.
And it looks like we are getting your transferred over.
There she is.
Good morning, Ashley.
-: Good morning, chairman and Commissioners.
I am Ashley Corel,
Technical Examiner for the Hearings division.
Item number five is the application of HR Martin County
Landfill, LLC for permit to operate a commercial
oil and gas waste stationery treatment facility,
under state wide rule eight, in Martin County, Texas.
This item was presented in past,
at the October 20th conference.
I'm available to answer any questions.
Callie: Commissioners, we have quite a few for this one.
So make yourself comfortable.
Representing HR Martin Landfill,
we have Dustin Bailey CEO, Luke Garrett COO,
George Page general council, George Neal local attorney,
Tim George local attorney,
Pat (indistinct) engineer witness, or engineering witness.
Excuse me.
We also have Olga (indistinct), John Saul,
representing protestant for (indistinct) ranch.
We also have Peter T Gregg representing Protestants.
Robert Kelton, Jeffrey Johnson, and Sandra Johnson.
And Amy Bush hydrologist with the premium base
in the water conservation district.
All are registered and available for questions,
or comments if needed.
-: Thank you.
Are there any questions?
For witnesses or for Ashley?
-: No questions.
-: Okay.
-: Christian I have a motion.
-: Okay.
And, I ask for patience,
there's five points I have in this.
And, I'd like to read them so they're definite.
Okay.
I'd like to move to grant the applicants permit application
and order the following;
One, Oil and Gas Division staff is ordered to issue the
permit when the order is final.
Two, Oil and Gas Division staff is ordered to use
the applicant substitute findings of fact,
and conclusions of law found in attachment C of applicants,
exceptions to the proposal for decision.
As necessary, to support the final order granting
the permit.
Three, Oil and Gas division staff is ordered to include
the permit as a permit condition.
The requirement that Oil and Gas Division staff approve
the geosynthetic clay liner specifications,
and top prior to installation.
Four, Oil and Gas Division staff is ordered to include
in the permit as a permit condition.
The requirement that the liner be extended
along the interior side of the temporary berms,
so as the liner system for the temporary berms matches
the liner system for the entire disposal sale.
Staff is authorized to require a reasonable number
of additional diagrams to accomplish this goal.
Five, Oil and Gas Division staff is ordered to include
in the permit as a permit condition,
a requirement that the underneath each drying pad,
there'll be constructed a substantially singular
liner system to what underlies the collective
receiving pits.
-: Thank you.
I move the motion?
-: Yeah, I second that.
I would like to have a little bit of discussion.
-: Okay.
-: So the basis of my second is,
just a line at my logic here.
During the last conference we discussed this topic.
We spent some time on the cracks of the case
which appeared to be that the collegia layer
is not a confining layer.
And we asked both people from both sides about this issue
whether or not the collegia was a confining layer,
which clearly it wasn't.
And whether or not that was grounds kind of independently
to not grant this permit.
We heard from particularly the representatives
from the protestants.
It was their positions seem to be, yes, that's right.
Because of the position of the water table relative
to the depth of the cell.
And when I asked about, "Well, what would create conditions
in which you feel like this permit would be acceptable?"
And at one point it was, "Well we need a GCL layer
on the entire permanent area, the entire facility."
So looking back into the record,
and looking at some of the other facilities that we have
permitted in the area, there are three within a hundred mile
radius permit number STF-O126, is only 15 miles away.
Permit number 113 is 85 roughly miles away,
permit 110 is 85 miles away.
All of which, do not have clay confining layers.
All of which, the water tables fairly close.
And all those cases, we have allowed for the GCL,
the geosynthetic clay liner to serve as the
predominant barrier.
So, in order to be consistent, what we've done in the past,
I find that we ought to ...
That we should approve this application.
And that, the position that collegia not being ...
There not being a natural confining layer,
is not in the past been consistent practice for us
to have done these applications.
So, hence my position to support Wayne's motion.
-: Okay.
Wayne do you have any other thing?
Anything else?
We have a motion and a second.
All those in favor, say aye.
-: Aye.
-: Opposed.
Nay.
Motion passes, two to one.
Thank you, Ashley.
All right, item number six.
Callie: Thank you.
Jennifer Cook will be presenting agenda item six.
Jennifer, we are ready when you are.
-: Good morning chairman and Commissioners.
I'm Jennifer Cook, an Administrative Law Judge
in the Hearings division.
And item six, MT-Energie, LLC seeks a determination
that it be allowed to renew its Commission form P-5.
Staff maintains MT-Energie is not in compliance
with the Commission's inactive well rule,
and does not be allowed to renew its Commission form P-5.
Staff provided evidence and MT-Energie acknowledges,
that MT-Energie noncompliant with the Commission's
inactive well rule, regarding the subject wells.
MT-Energie maintains it became the operator of these
abandoned wells, because it wants to bring these wells back
into production, but the regulatory framework
has made it difficult for MT-Energie to achieve compliance.
It is recommended that the Commission issue an order denying
the renewal of MT-Energie form P-5.
No exceptions or replies have been filed.
And I'm available for questions.
Christi: Thank you, Jennifer.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Christian: Second.
Christi: Second by Commissioner Christian.
All in favor, say aye.
Christian: Aye.
Sitton: Aye.
Christi: Aye.
Motion passes, item is approved.
Thank you.
Item number seven.
Callie: Yes, thank you.
Ezra Johnson will be presenting agenda item seven.
Ezra we are ready when you are.
-: Good morning, chairman and Commissioners.
For the record, my name is Ezra Johnson,
Administrative Law Judge with the Hearings division.
Item seven concerns a motion for rehearing of a final order
denying the application of Front Street operating LLC,
to supersede the final order issued by the Commission
on October 1st, 2019 to plug 20 wells located
on six Commission leases in Hearne County, Texas.
Front Street filed a timely motion for rehearing
arguing that the Commission misapplied the burden of proof
and otherwise acted outside of its jurisdiction,
and denying Front Streets application to supersede
the final order.
Responses to the motion were filed.
None of the issues raised in the motion
for rehearing are new.
All issues raised in the motion were already raised
by Front Street and considered by the Commission prior
to the Commission issuing the order in this case.
The examiners recommend that the Commission deny the motion
for rehearing.
The motion be overruled by operation of law
on December 10th, 2020.
And I'm available for questions.
Callie: (indistinct) we also have Rob Hargrove,
representing the (indistinct) Farmer Family.
Registered and available for questions if needed.
-: Thank you.
Are there any questions of his for Ezra or Rob?
Okay, I move we approve the examiners recommendation.
Is there a second?
-: Second.
Second by Commissioner Sitton.
All those in favor, say aye.
-: Aye.
Motion passes, item is approved.
Thank you Ezra.
Item number eight.
Callie: Well, thank you.
Kristi Reeve will be presenting agenda item eight.
Kristi, we are ready when you are.
-: Good morning, chairman Commissioners.
For the record, Kristi Reeve, the Administrative Law Judge
with the Hearings division.
On September 22nd, 2020 the Commission aided an order
approving Wasser Operating, LLCs application for a permit
to dispose of oil and gas waste in accordance with Statewide
rule nine.
And denying protestant Pioneer Natural Resources USA's
motion to reopen the record to take new evidence
regarding the decline and disposal demand since the hearing.
On October 16th, 2020 Protestant Pioneer timely filed
a motion for rehearing.
On November 2nd, 2020 applicant Wasser filed
a timely response and opposition of the motion.
None of the issues raised in the motion for rehearing
are new.
All issues raised in the motion were already raised
by Pioneer.
And considered by the Commission prior to the Commission
issuing the order in this case.
It is recommended the motion be denied.
The motion will be overruled by operation of law
on December 31st, 2020
I'm available for questions.
Callie: Commissioners, we have Olga (indistinct),
and John Saul representing Wasser Operating.
And Brian Sullivan representing Pioneer Resources.
Registered and available for questions if needed.
-: Thank you.
Does anybody have any questions?
All right, I move we approve the examiners recommendation.
Is there a second?
-: Second
-: Second by Commissioner Sitton.
All those in favor say aye.
-: Aye.
Motion passes, items is approved.
Thank you, Kristi.
-: Thank you very much.
-: Right.
Now Callie we've got nine through 13.
Callie: Yes, thank you.
Charles Zhang we'll be presenting agenda items
nine through 13.
And he will also continue on through 18.
-: Great.
Good morning, Charles.
-: Good morning.
Thank you, Callie.
Good morning, chairman and Commissioners.
I am Charles Zhang, Administrative Law Judge
with the Hearings division.
And I will be presenting items nine through (indistinct).
Item 13 will be presented together,
as they have common facts, parties, and legal issues.
These are applications of TEP Barnett USA, LLC
under the mineral interest pooling act to form five units
in the New York East Barnett Shell field in Tarrant
and Dallas counties.
The applications are protested by the son of a lessee
to the units.
The protestant did not ask that the applications be denied,
but rather requested that additional hearings be held.
TEP Barnett provided sufficient evidence to show
a pooling order under MEBA is necessary to prevent waste,
to protect relative rights, and to avoid the unnecessary
drilling of wells.
The examiners recommend the Commission dismiss the protest
and for lack of standing, and approve the applications.
No exceptions were filed.
I'm available for questions.
Christi: Thank you.
Are there any questions
I move we approve the examiners recommendation
for items nine through 13.
Is there a second?
Sitton: Second.
Christi: Second by Commissioner Sitton.
All those in favor, say aye.
Sitton: Aye.
Christian: Aye.
Christi: Aye.
Motion passes, those items are approved.
Charles number 14, please.
-: Number 14 concerns a motion for rehearing filed
by Siana Oil & Gas as a result of a final order
ordering Siana to plug their disposal well.
The troll, VW lease well number 1-R,
in compliance with Statewide rule 14-B2,
and to pay an administrative penalty of $6,500.
The default order followed Siana's failure
to file an answer, to request a hearing,
or to enter into an agreed upon settlement.
Siana filed a timely motion for rehearing stating that
had they participated in a hearing,
they would have shown there's a critical need
in the vicinity for disposal capacity.
It is recommended that the Commission denied the motion
for rehearing.
The motion will be overruled by operation of law
on December 31st, 2020.
And I am 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 those in favor, say aye.
-: Aye.
Motion passes, item is approved.
Number 15.
-: Items 15 through 18 are all P-5 motions
for rehearing filed as a result of final orders
denying renewal of the operators P-5 because of wells
that were noncompliant with Statewide rule 15.
In item 15, and its motion for rehearing Front Street
Operating LLC, states their inability to comply with
Commission rules is due to wrongful denial of their
good faith claim which prevents them for restoring
the wells, or from obtaining plugging extensions.
Staff opposes the motion.
41 wells remain noncompliant with Statewide rule 15.
It is recommended that the motion be denied.
The motion for rehearing will be overruled
by operation of law on December 31st, 2020.
And I am available for questions.
Christi: Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Sitton: Second.
Christi: Second by Commissioner Sitton.
All those in favor, say aye.
Sitton: Aye.
-: Aye.
Mission passes, items approved.
Number 16, Charles.
-: Item 16, and its motion for rehearing
Novo Energy Resources states that their failure to request
a hearing was due to COVID-19,
that all documentation has been filed,
and it's awaiting processing, or will be filed imminently.
Staff opposes the motion.
Four wells remain noncompliant with Statewide rule 15.
It is recommended that the motion be denied.
The motion for rehearing will be overruled
by operation of law on December 31st, 2020.
I am available for questions
Christi: Okay, are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Christian: Second.
Christi: Second by Commissioner Christian.
All those in favor, say aye.
Sitton: Aye.
Christian: Aye.
Christi: Aye.
Motion passes, items approved.
Number 17.
-: Number 17, and its motion for rehearing PFOG
Operations LLC, states that their failure to request
a hearing was due to COVID-19,
that all documentation has been filed,
and is awaiting processing, or will be filed imminently.
Staff opposes the motion.
One well remains noncompliant with Statewide rule 15.
It is recommended that the motion be denied.
The motion for rehearing will be overruled
by operation of law on December 31st, 2020.
I am available for questions.
-: Great.
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.
Motion passes item is approved.
Number 18.
-: Item 18, subsequent to filing its motion for rehearing,
Atm Energy Group, LLC has come into compliance with
Statewide rule 15.
Therefore it is recommended that the motion be granted,
and the underlying docket be dismissed as moot.
I am available for questions..
-: Thank you.
Are there any questions?
Always like good news.
All right, I move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian.
All those in favor say aye.
-: Aye.
Motion passes, that item is approved.
Thank you, Charles.
-: Thank you.
All right, Callie.
Callie: Yes, thank you.
Joseph Menefe will be presenting items 19 through 24.
Joseph, we are ready when you are.
-: Good morning chairman, Commissioners.
For the record, I am Joseph Menefe,
a paralegal in the Hearings division.
I will be presenting items 19 through 24.
All of which are (indistinct) motions for rehearing.
Filed as a result of final orders
denying renewal of the operators P-5,
because of wells that were noncompliant
with Statewide rule 15.
Item number 19, subsequent to filing its motion
for rehearing Sendero Energy, Inc has come into compliance
with Statewide rule 15.
Therefore it's recommended the motion be granted,
and the underlying docket dismissed this moot.
I'm available for questions.
Christi: Great.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Sitton: Second.
Christi: Second by Commissioner Sitton.
All those in favor say aye.
Sitton: Aye.
Christi: Aye.
Motion passes, that item is approved.
Number 20.
-: Item number 20, subsequent to filing its motion
for rehearing, the next Prod, LLC 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.
Christi: Thank you.
Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
Christian: Second.
Christi: Second by Commissioner of Christian.
All those in favor say aye.
Sitton: Aye.
Christian: Aye.
Christi: Aye.
Motion passes, that item is approved.
Number 21.
-: Item number 21, subsequent to filing its motion
for rehearing, Sedona Oil & Gas 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.
Christi: Thank you.
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.
Motion passes, that item is approved.
22.
-: Item number 22, and it's motion for rehearing.
Ken-Cro States its failure to request a hearing,
was due to COVID-19.
That all compliance documentation has been filed,
is awaiting processing or will be filed imminently.
And that granting the rehearing will not delay
or enter the Commission.
Staff opposes the motion.
41 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 31st.
I'm available for questions.
-: Thank you.
-: Are there any questions?
I move we approve the examiner for recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian.
All those in favor say aye.
-: Aye.
Aye.
Motion passes, that item is approved.
Number 23.
-: Item number 23.
In this motion, Dominion Production Company, LLC
states its failure to request a hearing was due
to COVID-19.
That all compliance documentation has been filed,
is awaiting processing, or will be filed eminently.
And that granting the rehearing will not delay or injure
the Commission.
Staff proposes the motion.
Two 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 31st.
I'm available for questions.
-: Are there any questions?
I move we approve the examiners recommendation.
Is there a second?
-: Second.
Second by Commissioner Sitton.
So all those in favor, say aye.
-: Aye.
Motion passes, that item is approved.
And 24.
Joe, you've done pretty well.
Let's get one more good news please.
-: One more good news, item number 24.
Subsequent to filing its motion for rehearing,
(indistinct) West Texas, LLC 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.
-: Are there any questions?
Right, I move we approve the examiners recommendation.
Is there a second?
-: Second.
Second by Commissioner Christian.
All those in favor say aye.
-: Aye.
Motion passes, that item is approved.
Thank you Joe for your work.
All right.
Oil and gas (indistinct).
Callie.
Let's see, we have ...
Those are items number 25 to 229.
There are 205 items on that agenda.
But we are gonna ...
We've had a request to pass items 53 through 174.
Item 182 and item 183.
So I'm gonna move that we approve items 25 through 229.
Except for items 53 through 174.
Item 182 and item 183.
Is there a second?
-: Second.
-: Second by Commissioner Sitton.
All those in favor say aye.
-: Aye.
Motion passes, those items are approved.
Master default orders.
These are items 230 through 254.
There are 25 master default order items.
I move we approve items 230 through 254.
Is there a second?
-: Second.
-: Second by Commissioner Christian.
All those in favor say aye.
-: Aye
-: Aye.
Motion passes, those items are approved.
Agreed enforcement orders.
Items 255, 344, there are 90 agreed enforcement orders.
I move that we approve items 225 through 344.
Is there a second?
-: Second.
-: Second by Commissioner Sitton.
All those in favor, say aye.
-: Aye.
Motion passes, those items are approved.
That concludes the hearing section matter.
And we'll now take up the administrative agenda.
And Callie, please call up agenda presenter for 345.
And I think 346 as well.
Callie: That is correct.
Haley Cochran will be presenting both agenda
item 345 and 346.
Haley, we are ready when you are.
-: Morning Haley.
-: Good morning, chairman Commissioners.
Haley Cochran with the opposite of general counsel.
item number 345 pertains to propose revisions to the
Commission's employee handbook.
The proposed revisions include edits to the tuition
reimbursement program, breaks and leave provisions,
and personal appearance standards.
Included in your notebook materials is a table
of the proposed revisions, and the relevant handbook pages
with draft policy language for your approval.
If approved, these revised policies will supersede
the prior versions included in the current handbook,
and the updated handbook will serve as the guiding resources
policy document for Railroad Commission staff.
May I answer any questions?
Christi: Are there any questions?
Right I move we approve the staff's recommendation.
Is there a second?
Christian: Second.
Christi: Second by Commissioner Christian.
All in favor, say aye.
Christian: Aye.
Sitton: Aye.
Christi: Aye.
Motion passes, that item is approved.
And, 346.
-: Yes, item 346 is staff's recommendation to
adopt amendments to 16 Texas Administrative Code Chapter 12.
The amendments is better organized,
and clarify certain procedures, informed Commission rules
to federal regulations and guidance,
and update references to statutes or additions
of external documents.
On October 20th, the Commission approved publication
of the proposed amendments and the Texas register
for public comment.
The comment period ended on November 23rd.
And no comments were received on the proposal.
The federal office of Surface Mining Reclamation
and Enforcement approved the amendments on December 1st.
Staff recommends that the Commission adopt the amendments
without changes to the proposed tax.
May I answer any questions?
-: Thank you.
Are there any questions?
I move we approve staff's recommendation.
Is there a second?
-: Second
-: Second by Commissioner Sitton.
All those in favor, say aye.
-: Aye.
Motion passes, that item is approved.
Thank you, Haley.
-: Thank you.
-: Item 347.
Callie.
Callie: Yes, thank you.
Keith Mann we'll be presenting agenda item 347.
Keith, we are ready when you are.
-: Morning Keith.
-: Morning.
Good morning, chairman and Commissioners.
For the record, my name is Keith Mann,
with the Oil and Gas Division.
Item 347 is the oil field clean-up programs.
Fourth quarter status report for fiscal year 2020.
We're in the fourth quarter of the fiscal year, 2020
plenty operations were completed and files were closed,
on 445 wells at a cost of $9,6382.
This includes only those wells that were plugged,
in the (indistinct) contractor,
and approved for payment by field operations.
During the same period, 566 new wells were approved
for plugging with state funds.
A total of 1,498 wells are physically plugged,
in fiscal year 2020.
Of which 1,477 were closed, at a cost of $30,700,941.
Certain mediations performance during the fourth quarter
included, 70 cleanup activities completed and closed
at a cost of $6,474,522.
67 of these activities utilize Oil & Gas regulation
and cleanup funds.
All three use grant funds.
An additional 35 new activities were approved
during the same period.
The fiscal year 2020 performance (indistinct) included
a total of, 58 cleanup activities at a cost of $8,535,828.
May I answer any questions?
-: Thank you.
A lot of good things that we're doing that people forget.
-: Yes.
-: So I appreciate it.
Anybody have any questions?
Great, thank you for your work.
Appreciate it Keith.
-: Thank you.
-: All right, item 348.
Callie: Thank you.
Paul Dubois will be presenting agenda item 348 and 349.
Paul, we are ready when you are.
-: Morning chairman Commissioners.
For the record my name is Paul Dubois.
I'm the assistant director for technical permitting
in the Oil & Gas Division.
For item 348, Oil & Gas Division is preparing to
make non-substantive changes to the following
Oil & Gas forms.
Form W-1H the application for permit to drill,
recomplete, or reenter.
I'm sorry form W-1.
Form W-1H application for permit to drill, recomplete,
or reenter supplemental horizontal wells information.
Form W-1D the application for permit to drill,
recomplete, or reenter supplemental directional
well information.
Form P-1B the producers monthly supplement report.
Form G-3 gas storage data sheet.
Form P-7 new field designation and or discovery allowable
application.
Form R-1 monthly report for operations,
statement for refineries.
Form R-3 monthly report for gas processing plants.
Form W-5 packer setting report.
And form W-7 bottom hole pressure report.
These forms were identified as careless during a review
of all forms in the Oil & Gas Division.
The following non-substantive changes will be
made to correct typos, make formal address changes,
remove old form references,
align with existing online systems,
and update the new revision date.
With your approval, we will revise these forms immediately
and upload the revised forms to the Commission website.
I'm available to answer your questions.
Christi: Are there any questions?
I move we approve staff recommendations.
Is there a second?
Christian: Second.
Christi: Second by Commissioner Christian.
All those in favor say aye.
Christian: Aye.
Sitton: Aye.
Christi: Aye.
Motion passes that item is approved.
Paul 349
-: Item 349, the staff's request to propose changes to form
PR, the monthly production report,
for public comment on the Railroad Commission's website.
The proposed revisions will support the RSCs regulation
of flaring and venting of produced natural gas.
The proposed revisions are to the form PR instructions,
and how operators complete the form.
Not to the structure of the form itself,
other than the form of revision date.
The proposed revisions include three changes
to the form PR instructions.
Disposition code four, which is currently used to report
the volume of gas that was vented or flared
will be discontinued.
Two new disposition codes will be implemented to
allow operators to allocate gas between venting and flaring.
Or gas that was flared, disposition code 10 will be used.
Or gas that was vented disposition code 11 will be used.
This change will allow the Commission to distinguish
the legal disposition of gas that was flared and vented.
And finally, an operator will be required to enter one
or more two letter codes to the existing remarks field
on the form when gas is allocated to disposition codes
and/or 11.
The two letter codes correspond to the authority
under which the gas was flared or vented,
and include the following:
AR authorized by rule.
AE authorized by exception.
EP exception pending.
And EX exempt.
The current four PR instructions require an operator
to indicate why the gas was vented or flared
in the remarks field on foreign PR.
The proposed revision makes these remarks uniform,
by requiring categorization of the authorization
for the release.
Following a 30 day posting on the Commission's website,
Oil & Gas staff will review the comments if any,
and make necessary changes to the proposal.
Then Oil & Gas staff will consider requesting
adoption the revised form PR monthly production report
at the next available conference.
I'm available to answer your questions.
-: Are there any questions?
Thank you for the work on both of these.
I move we approve the staff's recommendation.
Is there a second.
-: Second.
-: Second by Commissioner Sitton.
All those in favor say aye.
-: Aye.
Motion passes, that item is approved.
Thank you, Paul.
All right.
Item 350 Callie: Yes, thank you.
Kari French will be presenting agenda item 350.
Kari, we are ready when you are.
-: Good morning, chairman Commissioners.
For for the record, my name is Kari French.
I'm the director of the Oversight and Safety Division.
And I will be presenting agenda item 350 today.
This morning, I bring to you for your signature,
a letter approving the role of the Texas Energy
Reliability Council, also known as TERC.
The role they play in the allocation of natural gas
during emergencies and recognizing the TERC membership.
This letter also recognizes the leadership
and dedication of outgoing Chairman, Dick Erskine,
and approves the Chairmanship of Jim Cisarik.
Chairmanship of the reliability council,
is a voluntary position.
And I would like to thank Dick Erskine for his contributions
to the mission of the reliability council
over the last two years.
I also would like to thank Jim Cisarik for his willingness
to step into the chairmanship,
and know that under his guidance,
the members of the reliability council will continue
to ensure that high priority,
human needs are met in the event of a necessary curtailment
of gas distribution, or supply.
If there are no questions,
I would appreciate your consideration of this matter.
Christi: Thank you Kari.
Are there any questions?
This is an important group,
and I appreciate all of the people who work on it.
So, and thank you to Dick for his service.
I guess he really thinks he's gonna retire now.
I don't know that happened.
And for Jim for stepping in.
So both good folks who have have a lot of good history
in this industry.
So, I move we approve staff's recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Christian.
All those in favor, say aye.
-: Aye.
Thank you Kari.
That item is approved.
-: Thank you so much.
-: All right, item 351 is our public participation item.
And no one's registered indicating they wish to speak.
Item 352 is the executive session,
which we won't be going into today.
And, is there anything else that we have today?
-: There is.
Christi, mind if you all would indulge me for a few minutes.
-: Sure.
-: Well, I may have noticed that this will be my last
conference today.
And I thought about what comments to make here.
And it is, as I've watched elected officials come and go
over the years.
It strikes me that one thing very unique about
the Railroad Commission is that,
when serving as a Commissioner,
unlike other elected official jobs,
there is a group of people that really have a good sense
of whether or not we do a good job.
I mean, our agency is ...
This agency I should say, is very narrow in its scope.
And our staff here, our team here,
they're very effected by what we do,
and they are very in tune with what we do.
And so, I think the more thing to do,
is to recognize the true excellence of the people
that work here.
When I first got to the Railroad Commission,
and people would ask me all the time,
"Hey Ryan, what things surprise you?"
And even though I've worked around the Oil & Gas industry
for 20 years prior to coming here,
I have constantly been struck by the level of knowledge
and commitment to doing excellent work that defines
our staff at the Texas Railroad Commission.
I think it was Thomas Jefferson who said something to the
effect of our political system works its best,
when those in office approach these jobs,
not as who you are, but just what you do temporarily.
And yes, so many the people who are here part of the
Railroad Commission team, they're here for 10, 20, 30 years.
And in particular, recognizing a few that I got to work
with personally.
First of all, Callie (indistinct),
you've only been our secretary,
our Commissioner secretary for,
gosh, I don't wanna say maybe a year or a little longer now.
But, you always bring a smile.
You are always pleasant.
It's just great to interact with you every time.
In technical permitting, Tiffany Amberson,
your knowledge, and your directness about expectations,
I find that every time I get to talk to you,
you have so much confidence in what you do,
and how you do it.
Lorenzo Gaza, Joseph Dooley,
our assistant Oil & Gas directors.
In all of the time I've gotten to work with the two of you,
once again, a great handle on the operations that
you've been responsible for.
If I've ever had questions, you are very quick to respond,
always with a smile, always with patience.
(indistinct), when it comes to talking about
frequent flyers, your ability to kind of navigate.
You're those operators who may be struggling to ...
Because of some instance,
but really are doing the right things.
And those who we seem to have to deal with a lot.
Your insight into that has been more than educational.
It's been so valuable to us.
Clay Woodul is we worked on ramping up our well
plugging program, you were always willing to have those
discussions and be challenged.
And I love the energy with what you present on those topics
about how we're doing and the numbers of wells
were getting plugged.
From a technical perspective expertise,
Leslie Savage your dedication for, I don't know, 35 years.
Your knowledge of the geology,
it's humbling to be around you.
Paul Dubois, one of my most proud moments as a
Railroad Commissioner was when I as a professional engineer,
got to turn in my letter of recommendation for you to get
your PE license.
Once again, working alongside you has been
a constant education.
All of our district directors.
And when I've gotten a chance to get out into the
district offices, and interact with you,
man, it's just been ...
I wish I could let you all by name.
One in particular and not to separate USI,
but Travis Baer in San Antonio.
A couple of times we got to work together with Travis,
it's just so neat.
I feel like I should just carry your bags, when I'm out.
Because you seem to always have a good handle
on what's going on in the area and serve the public so well.
On Hearings division, Kristi Reed, Dana Lewis,
and all of the hearings examiners,
I know that every day most of you must have opportunities
to go somewhere else for more money because of
your knowledge, and the work that you do,
to document these cases and deal with both the politics,
and the technical issues, and follow the rules.
Once again, it's a pleasure to watch.
Ryan and Harris, as we have ramped up our IT program,
and things have changed, not ...
You have to strike the balance of what do we do today
in short-term to react to some of the budget items
that we get.
And yet you do that with such consistency,
as we strategize short-term and long-term needs.
Kari, French, your thoughtfulness, your class constantly,
as I interact with you, and your advice over the years
has been really ...
Once again, your grace under the dealings of politics
has been really, really special.
Danny Sorrells, your combination of knowledge of industry
which is pretty rare because you're out there so long
and you're just no nonsense approach,
is not only refreshing, it kind of keeps us on our toes,
and I love it.
Randall Collins, you run an operation here,
which is just ... You almost never hear from you,
because you're just making things ...
Keeping the trains running on time,
if you'll pardon the pun.
And I love to work with you.
And finally, Wei Wang,
from one of my first day here at the Commission
when you were our CFO, your analytical approach
to doing a job like this, I think is somewhat unique.
And, I so enjoyed the exchanges over the years,
talking about how you use WTI prices to sort of forecast
what's going on with the Railroad Commission.
That's just a few names.
So many names I really should mention if ...
And forgive me for not going through all of them.
But I will tell you, it's probably hard for someone to come
into office like this and be around such a class group
of people, and not be deeply personally affected by it.
I will let you all be the judge of my time here
at the Commission.
But let me say this, "I'm a better man,
for I have gotten to work with all of you.
And I am deeply thankful,
for the time that you invested in me,
and that you gave me, and that you honored me
with your patience, and with your support.
I am indebted to you all.
And I wish you nothing but the best.
As the Railroad Commission goes forward,
you're a vital agency to such an important industry
to not just our state, but our entire nation.
And, you bring a level of class, that is beyond compare.
God bless you, and Godspeed Take care."
-: Thank you Ryan, for your service and for your recognition.
'Cause we do have some great staff.
And we appreciate your service.
And Godspeed to you as well.
And Merry Christmas to all.
Wayne I don't know if you have anything to add.
But Merry Christmas is our last conference of the year
for instead.
And so, normally we'd go have a Christmas party.
But I don't think we get to do this year. (laughs)
-: All my best to all, and Merry Christmas.
And Ryan, it's been a pleasure working with you.
All my best to you and your fine family.
And a future is nothing but open book for someone
with a talent you have.
So God bless, have a great time.
And everybody have a great holiday.
And I'm the one that's festive.
I know you've noticed, I've got holy in my tie.
So, I'm the festive Merry Christmas guy.
-: You're ready to go, aren't you?
Well, thank you all.
Let's wish for a better 2021.
And everybody have a wonderful Christmas,
and a wonderful holiday.
Thank you all.
Thank you, Callie.
-: Merry Christmas.
Merry Christmas.
Callie: Thank you Chairman.
-: Merry Christmas.