WEBVTT 00:00:01.970 --> 00:00:03.770 The feed for this streaming event 00:00:03.770 --> 00:00:06.629 brought to you by adminmonitor.com will be- 00:00:06.629 --> 00:00:09.370 To consider matters, which have been duly posted 00:00:09.370 --> 00:00:12.940 with the secretary of state for December 8, 2020 00:00:12.940 --> 00:00:15.430 under our public participation policy. 00:00:15.430 --> 00:00:18.230 Anyone desiring to offer public testimony 00:00:18.230 --> 00:00:21.190 on any items that are not noticed on today's agenda 00:00:21.190 --> 00:00:24.040 was required to register in advance. 00:00:24.040 --> 00:00:26.900 We do not have anyone that registered in advance. 00:00:26.900 --> 00:00:29.570 And so the Commission will consider the items on the agenda 00:00:29.570 --> 00:00:31.040 as posted on the agenda. 00:00:31.040 --> 00:00:33.349 Let's go to number one. 00:00:33.349 --> 00:00:34.980 All right, thank you. 00:00:34.980 --> 00:00:38.173 Tariq Usman will be presenting agenda item one. 00:00:39.380 --> 00:00:41.483 Tariq we are ready when you are. 00:00:44.090 --> 00:00:45.483 Thank you Callie. 00:00:48.420 --> 00:00:49.920 Good morning, chairman and Commissioners. 00:00:49.920 --> 00:00:52.300 For the record, my name is Tariq Usman. 00:00:52.300 --> 00:00:54.810 I am representing the market oversight section 00:00:54.810 --> 00:00:56.930 of the Oversight and Safety Division. 00:00:56.930 --> 00:01:01.040 The docket before you today, is case number 4435. 00:01:01.040 --> 00:01:04.720 The application of taxes gas service for the tax year 2018. 00:01:04.720 --> 00:01:06.610 Annual interim rate adjustment for the 00:01:06.610 --> 00:01:09.080 unincorporated portion of the (indistinct) 00:01:09.080 --> 00:01:10.173 town service area. 00:01:11.330 --> 00:01:13.360 This docket is a first interim rate adjustment. 00:01:13.360 --> 00:01:15.780 The company has filed for the (indistinct) 00:01:15.780 --> 00:01:17.020 town service area. 00:01:17.020 --> 00:01:19.240 Since the final order was issued 00:01:19.240 --> 00:01:22.060 in the most recent statement of intent gas utilities 00:01:22.060 --> 00:01:24.493 token number 10766. 00:01:25.590 --> 00:01:27.650 This adjustment represented incremental increase 00:01:27.650 --> 00:01:32.650 of $47,599 of which $3,722 is recoverable 00:01:33.960 --> 00:01:36.640 from customers subject to the order of this docket. 00:01:36.640 --> 00:01:39.590 I recommend approval of the time rate adjustment. 00:01:39.590 --> 00:01:42.810 I'm available to answer any questions you may have. 00:01:42.810 --> 00:01:43.643 Thank you Tariq. 00:01:43.643 --> 00:01:45.060 Does anybody have any questions? 00:01:45.950 --> 00:01:48.055 I move we approve the examiners recommendation. 00:01:48.055 --> 00:01:49.242 Is there a second? 00:01:49.242 --> 00:01:50.075 Second. 00:01:50.075 --> 00:01:51.230 Second by Commissioner Sitton. 00:01:51.230 --> 00:01:52.342 All in favor, say aye. 00:01:52.342 --> 00:01:53.175 Aye. 00:01:53.175 --> 00:01:54.008 Aye. 00:01:54.008 --> 00:01:54.841 Aye 00:01:54.841 --> 00:01:55.674 Motion passes, item is approved. 00:01:55.674 --> 00:01:56.840 Thank you. 00:01:56.840 --> 00:01:59.170 Callie, number two and three. 00:01:59.170 --> 00:02:01.600 I think it's the same presenter, right? 00:02:01.600 --> 00:02:03.170 Yes, that is correct. 00:02:03.170 --> 00:02:04.003 Right. 00:02:04.003 --> 00:02:07.000 Dee Marlo will be presenting items two and three. 00:02:07.000 --> 00:02:09.083 Dee Marlo, we are ready when you are. 00:02:10.576 --> 00:02:12.170 (indistinct) chairman and Commissioners. 00:02:12.170 --> 00:02:14.520 I'm Dee Marlo Chico, Administrative Law Judge 00:02:14.520 --> 00:02:16.260 with the Hearings division. 00:02:16.260 --> 00:02:20.100 I will be presenting items number two and three. 00:02:20.100 --> 00:02:23.930 Item number two is a 150 days suspension order 00:02:23.930 --> 00:02:28.750 for a rate case filed by Kosar Gas LTD to increase rates 00:02:28.750 --> 00:02:31.950 in the unincorporated areas of Collin Denton 00:02:31.950 --> 00:02:34.220 and Kaufman counties, Texas. 00:02:34.220 --> 00:02:36.700 The proposed rate increase will become effective 00:02:36.700 --> 00:02:39.750 on January 23rd, 2021. 00:02:39.750 --> 00:02:42.760 The examiners recommend issuance of the suspension order 00:02:42.760 --> 00:02:47.030 to allow for a proper evaluation of the applicant's filing. 00:02:47.030 --> 00:02:48.430 I'm available for questions. 00:02:49.340 --> 00:02:50.173 Thank you. 00:02:50.173 --> 00:02:51.800 Are there any questions 00:02:51.800 --> 00:02:53.870 I move we approve the examiners recommendation. 00:02:53.870 --> 00:02:55.222 Is there a second? 00:02:55.222 --> 00:02:56.055 Second 00:02:56.055 --> 00:02:57.480 Second by Commissioner Christian. 00:02:57.480 --> 00:02:58.719 All in favor say aye. 00:02:58.719 --> 00:02:59.552 Aye. 00:02:59.552 --> 00:03:00.385 Aye 00:03:00.385 --> 00:03:01.218 Aye. 00:03:01.218 --> 00:03:02.280 Motion passes, that item is approved. 00:03:02.280 --> 00:03:03.820 Number three please. 00:03:03.820 --> 00:03:04.680 Yes, ma'am. 00:03:04.680 --> 00:03:07.570 Item number three is a gas utility rate case 00:03:07.570 --> 00:03:10.900 that resulted in a settlement between EPCOR Gas 00:03:10.900 --> 00:03:14.930 Texas incorporated, two interveners, staff, 00:03:14.930 --> 00:03:16.440 and the city of Magnolia, 00:03:16.440 --> 00:03:20.370 and protested High Meadow Ranch Community Association. 00:03:20.370 --> 00:03:23.550 The remaining prior to since Mr. (indistinct) 00:03:23.550 --> 00:03:26.483 and Mr.Frank Hicks do not oppose the settlement. 00:03:27.520 --> 00:03:31.580 EPCOR gas filed a statement of intent on June 29th, 2020 00:03:31.580 --> 00:03:34.610 to increase rates within the unincorporated areas 00:03:34.610 --> 00:03:38.670 of Austin, Colorado, Grimes, Harris, Montgomery 00:03:38.670 --> 00:03:40.710 and Waller County, Texas. 00:03:40.710 --> 00:03:44.350 The settlement includes a reduction of about $200,000 00:03:44.350 --> 00:03:47.330 from EPCOR gas's original request. 00:03:47.330 --> 00:03:50.100 The examiners recommend approval of the settlement 00:03:50.100 --> 00:03:52.730 as set forth in the proposed final order. 00:03:52.730 --> 00:03:54.710 The settlement represents diverse interests 00:03:54.710 --> 00:03:58.370 and the parties have engaged in significant discovery 00:03:58.370 --> 00:04:00.260 regarding the issues in dispute. 00:04:00.260 --> 00:04:03.510 Exceptions in a reply were filed, 00:04:03.510 --> 00:04:06.270 the amended final order which contains a corrected date 00:04:06.270 --> 00:04:07.890 will be provided to you today. 00:04:07.890 --> 00:04:12.140 The deadline for Commission actions is, January 15th, 2021. 00:04:12.140 --> 00:04:13.703 I'm available for questions. 00:04:13.703 --> 00:04:17.090 Commissioners we also have Ian Koffin representing 00:04:17.090 --> 00:04:20.723 EPCOR gas Texas, registered is available for questions. 00:04:21.580 --> 00:04:22.413 Thank you. 00:04:22.413 --> 00:04:26.060 Are there any questions of Ms.Chico or Ms.(indistinct)? 00:04:27.564 --> 00:04:28.397 No. 00:04:28.397 --> 00:04:29.230 Okay. 00:04:29.230 --> 00:04:30.430 I move, we approve the examiners recommendation. 00:04:30.430 --> 00:04:31.919 Is there a second? 00:04:31.919 --> 00:04:32.752 Second. 00:04:32.752 --> 00:04:33.820 Second by Commissioner Sitton. 00:04:33.820 --> 00:04:35.869 All those in favor, say aye. 00:04:35.869 --> 00:04:36.702 Aye. 00:04:36.702 --> 00:04:37.535 Aye. 00:04:37.535 --> 00:04:38.760 Motion passes that I'm approved. 00:04:38.760 --> 00:04:39.770 Thank you. 00:04:39.770 --> 00:04:40.900 All right, Callie. 00:04:40.900 --> 00:04:42.050 Number four. 00:04:42.050 --> 00:04:42.883 Yes, thank you. 00:04:42.883 --> 00:04:46.740 Kyle Lebby will be presenting agenda item four. 00:04:46.740 --> 00:04:48.340 Kyle, we are ready when you are. 00:04:50.285 --> 00:04:52.090 Good morning, chairman Commissioners. 00:04:52.090 --> 00:04:54.610 Kyle Lebby, Administrative Law Judge. 00:04:54.610 --> 00:04:58.730 Item four's request by San Miguel Electric Cooperative Inc, 00:04:58.730 --> 00:05:00.890 for acceptance of two replacement of blanket bond 00:05:00.890 --> 00:05:03.270 for reclamation operations arise in all three 00:05:03.270 --> 00:05:08.050 of its permitted mines, designated permits number 11G, 00:05:08.050 --> 00:05:12.330 52A, and 60 located collectively in Atascosa, 00:05:12.330 --> 00:05:13.180 McMoRan counties. 00:05:14.060 --> 00:05:17.310 The profit bonds are in a mass of 131 million 00:05:17.310 --> 00:05:18.830 and $9 million. 00:05:18.830 --> 00:05:21.220 And both were in the form of a self bond with third-party 00:05:21.220 --> 00:05:23.940 guaranteeing an indemnity agreement. 00:05:23.940 --> 00:05:26.350 Third-party guarantees an indemnity agreements of our 00:05:26.350 --> 00:05:30.060 national rural utilities Cooperative Finance Corporation, 00:05:30.060 --> 00:05:31.600 or CFC. 00:05:31.600 --> 00:05:33.740 Currently each of San Miguel is permitted mines 00:05:33.740 --> 00:05:36.120 are bonded independently from the others 00:05:36.120 --> 00:05:39.000 by a single self bond with third-party guarantee, 00:05:39.000 --> 00:05:41.790 with CFC committed as the guarantor. 00:05:41.790 --> 00:05:45.720 The total amount of the three existing bonds is 130 million. 00:05:45.720 --> 00:05:48.550 The profit bonds will be applicable to all three permits 00:05:48.550 --> 00:05:49.810 upon acceptance. 00:05:49.810 --> 00:05:52.330 And replacement of the existing bond, 00:05:52.330 --> 00:05:55.370 resulting in a $10 million increase in the total bond amount 00:05:55.370 --> 00:05:58.640 for San Miguel Statewide mining operations. 00:05:58.640 --> 00:06:01.350 Record support CFC in San Miguel meet requirements 00:06:01.350 --> 00:06:03.940 for self bonding with third-party guarantor, 00:06:03.940 --> 00:06:06.563 based on a criteria set out in the regulations. 00:06:07.713 --> 00:06:10.710 Authorization documents have been submitted as well as 00:06:10.710 --> 00:06:13.160 required financial statements, 00:06:13.160 --> 00:06:15.760 of staff council and staff financial reviews 00:06:15.760 --> 00:06:20.060 indicate the CFC and San Miguel demonstrated they meet 00:06:20.060 --> 00:06:23.230 the financial criteria for acceptance. 00:06:23.230 --> 00:06:26.190 Additionally, the profit bond will be sufficient amount, 00:06:26.190 --> 00:06:29.290 upon acceptance based on reclamation cost estimates for each 00:06:29.290 --> 00:06:31.880 of the permits that have been approved administratively 00:06:31.880 --> 00:06:35.280 by the Surface Mine Reclamation Division. 00:06:35.280 --> 00:06:38.220 San Miguel and staff are the only parties to the proceeding. 00:06:38.220 --> 00:06:39.713 No exceptions were filed. 00:06:39.713 --> 00:06:42.460 It's recommended the Commission accept the profit bonds 00:06:42.460 --> 00:06:44.540 to replace the existing bonds for San Miguel 00:06:44.540 --> 00:06:46.163 Statewide money and operations. 00:06:47.100 --> 00:06:49.050 I'm available for questions. 00:06:49.050 --> 00:06:49.883 Thank you. 00:06:49.883 --> 00:06:50.716 Are there any questions? 00:06:51.820 --> 00:06:54.003 I move we approve the examiners recommendation. 00:06:54.003 --> 00:06:55.255 Is there a second? 00:06:55.255 --> 00:06:56.088 Second. 00:06:56.088 --> 00:06:57.440 Second by Commissioner Christian. 00:06:57.440 --> 00:06:58.594 All in favor, say aye. 00:06:58.594 --> 00:06:59.427 Aye. 00:06:59.427 --> 00:07:00.260 Aye 00:07:00.260 --> 00:07:01.093 Aye. 00:07:01.093 --> 00:07:02.040 Motion passes, that item is approved. 00:07:02.040 --> 00:07:02.913 Thank you, Kyle. 00:07:06.100 --> 00:07:06.933 Number five. 00:07:07.933 --> 00:07:08.766 Thank you. 00:07:08.766 --> 00:07:11.900 Ashley Corel will be presenting agenda item five. 00:07:11.900 --> 00:07:14.093 Ashley, we are ready when you are. 00:07:21.324 --> 00:07:24.960 And it looks like we are getting your transferred over. 00:07:24.960 --> 00:07:25.793 There she is. 00:07:25.793 --> 00:07:26.993 Good morning, Ashley. 00:07:28.290 --> 00:07:30.200 Good morning, chairman and Commissioners. 00:07:30.200 --> 00:07:31.330 I am Ashley Corel, 00:07:31.330 --> 00:07:34.210 Technical Examiner for the Hearings division. 00:07:34.210 --> 00:07:37.110 Item number five is the application of HR Martin County 00:07:37.110 --> 00:07:40.770 Landfill, LLC for permit to operate a commercial 00:07:40.770 --> 00:07:44.040 oil and gas waste stationery treatment facility, 00:07:44.040 --> 00:07:47.580 under state wide rule eight, in Martin County, Texas. 00:07:47.580 --> 00:07:49.430 This item was presented in past, 00:07:49.430 --> 00:07:51.770 at the October 20th conference. 00:07:51.770 --> 00:07:54.350 I'm available to answer any questions. 00:07:54.350 --> 00:07:56.630 Commissioners, we have quite a few for this one. 00:07:56.630 --> 00:07:58.083 So make yourself comfortable. 00:07:59.460 --> 00:08:01.260 Representing HR Martin Landfill, 00:08:01.260 --> 00:08:03.783 we have Dustin Bailey CEO, Luke Garrett COO, 00:08:04.920 --> 00:08:08.970 George Page general council, George Neal local attorney, 00:08:08.970 --> 00:08:11.150 Tim George local attorney, 00:08:11.150 --> 00:08:14.400 Pat (indistinct) engineer witness, or engineering witness. 00:08:14.400 --> 00:08:15.320 Excuse me. 00:08:15.320 --> 00:08:18.310 We also have Olga (indistinct), John Saul, 00:08:18.310 --> 00:08:21.740 representing protestant for (indistinct) ranch. 00:08:21.740 --> 00:08:24.720 We also have Peter T Gregg representing Protestants. 00:08:24.720 --> 00:08:28.460 Robert Kelton, Jeffrey Johnson, and Sandra Johnson. 00:08:28.460 --> 00:08:31.450 And Amy Bush hydrologist with the premium base 00:08:31.450 --> 00:08:33.510 in the water conservation district. 00:08:33.510 --> 00:08:35.670 All are registered and available for questions, 00:08:35.670 --> 00:08:37.033 or comments if needed. 00:08:39.370 --> 00:08:40.580 Thank you. 00:08:40.580 --> 00:08:41.903 Are there any questions? 00:08:44.020 --> 00:08:47.173 For witnesses or for Ashley? 00:08:50.039 --> 00:08:51.275 No questions. 00:08:51.275 --> 00:08:52.637 Okay. 00:08:52.637 --> 00:08:54.900 Christian I have a motion. 00:08:54.900 --> 00:08:55.900 Okay. 00:08:55.900 --> 00:08:56.733 Okay. 00:08:56.733 --> 00:08:58.870 And, I ask for patience, 00:08:58.870 --> 00:09:01.340 there's five points I have in this. 00:09:01.340 --> 00:09:04.150 And, I'd like to read them so they're definite. 00:09:04.150 --> 00:09:04.983 Okay. 00:09:04.983 --> 00:09:07.950 I'd like to move to grant the applicants permit application 00:09:07.950 --> 00:09:09.650 and order the following; 00:09:09.650 --> 00:09:13.110 One, Oil and Gas Division staff is ordered to issue the 00:09:13.110 --> 00:09:15.410 permit when the order is final. 00:09:15.410 --> 00:09:18.600 Two, Oil and Gas Division staff is ordered to use 00:09:18.600 --> 00:09:21.340 the applicant substitute findings of fact, 00:09:21.340 --> 00:09:25.240 and conclusions of law found in attachment C of applicants, 00:09:25.240 --> 00:09:28.020 exceptions to the proposal for decision. 00:09:28.020 --> 00:09:30.890 As necessary, to support the final order granting 00:09:30.890 --> 00:09:31.980 the permit. 00:09:31.980 --> 00:09:35.560 Three, Oil and Gas division staff is ordered to include 00:09:35.560 --> 00:09:38.060 the permit as a permit condition. 00:09:38.060 --> 00:09:41.390 The requirement that Oil and Gas Division staff approve 00:09:41.390 --> 00:09:45.830 the geosynthetic clay liner specifications, 00:09:45.830 --> 00:09:48.823 and top prior to installation. 00:09:50.397 --> 00:09:52.980 Four, Oil and Gas Division staff is ordered to include 00:09:52.980 --> 00:09:55.800 in the permit as a permit condition. 00:09:55.800 --> 00:09:57.810 The requirement that the liner be extended 00:09:57.810 --> 00:10:00.960 along the interior side of the temporary berms, 00:10:00.960 --> 00:10:03.930 so as the liner system for the temporary berms matches 00:10:03.930 --> 00:10:07.300 the liner system for the entire disposal sale. 00:10:07.300 --> 00:10:09.970 Staff is authorized to require a reasonable number 00:10:09.970 --> 00:10:13.410 of additional diagrams to accomplish this goal. 00:10:13.410 --> 00:10:17.110 Five, Oil and Gas Division staff is ordered to include 00:10:17.110 --> 00:10:19.970 in the permit as a permit condition, 00:10:19.970 --> 00:10:23.330 a requirement that the underneath each drying pad, 00:10:23.330 --> 00:10:25.350 there'll be constructed a substantially singular 00:10:25.350 --> 00:10:28.640 liner system to what underlies the collective 00:10:28.640 --> 00:10:29.823 receiving pits. 00:10:32.570 --> 00:10:33.565 Thank you. 00:10:33.565 --> 00:10:34.610 I move the motion? 00:10:34.610 --> 00:10:35.870 Yeah, I second that. 00:10:35.870 --> 00:10:37.953 I would like to have a little bit of discussion. 00:10:39.090 --> 00:10:39.923 Okay. 00:10:41.600 --> 00:10:44.483 So the basis of my second is, 00:10:45.800 --> 00:10:46.679 just a line at my logic here. 00:10:46.679 --> 00:10:50.480 During the last conference we discussed this topic. 00:10:50.480 --> 00:10:54.150 We spent some time on the cracks of the case 00:10:54.150 --> 00:10:57.580 which appeared to be that the collegia layer 00:10:57.580 --> 00:10:58.810 is not a confining layer. 00:10:58.810 --> 00:11:03.810 And we asked both people from both sides about this issue 00:11:04.060 --> 00:11:06.600 whether or not the collegia was a confining layer, 00:11:06.600 --> 00:11:08.170 which clearly it wasn't. 00:11:08.170 --> 00:11:11.500 And whether or not that was grounds kind of independently 00:11:12.390 --> 00:11:13.780 to not grant this permit. 00:11:13.780 --> 00:11:17.550 We heard from particularly the representatives 00:11:17.550 --> 00:11:19.110 from the protestants. 00:11:19.110 --> 00:11:23.490 It was their positions seem to be, yes, that's right. 00:11:23.490 --> 00:11:26.550 Because of the position of the water table relative 00:11:26.550 --> 00:11:28.173 to the depth of the cell. 00:11:29.930 --> 00:11:34.930 And when I asked about, "Well, what would create conditions 00:11:35.780 --> 00:11:37.870 in which you feel like this permit would be acceptable?" 00:11:37.870 --> 00:11:40.345 And at one point it was, "Well we need a GCL layer 00:11:40.345 --> 00:11:43.990 on the entire permanent area, the entire facility." 00:11:43.990 --> 00:11:45.670 So looking back into the record, 00:11:45.670 --> 00:11:49.660 and looking at some of the other facilities that we have 00:11:49.660 --> 00:11:51.454 permitted in the area, there are three within a hundred mile 00:11:51.454 --> 00:11:56.454 radius permit number STF-O126, is only 15 miles away. 00:11:58.090 --> 00:12:01.730 Permit number 113 is 85 roughly miles away, 00:12:01.730 --> 00:12:03.440 permit 110 is 85 miles away. 00:12:03.440 --> 00:12:06.840 All of which, do not have clay confining layers. 00:12:06.840 --> 00:12:08.970 All of which, the water tables fairly close. 00:12:08.970 --> 00:12:12.237 And all those cases, we have allowed for the GCL, 00:12:12.237 --> 00:12:16.090 the geosynthetic clay liner to serve as the 00:12:16.090 --> 00:12:16.960 predominant barrier. 00:12:16.960 --> 00:12:19.860 So, in order to be consistent, what we've done in the past, 00:12:19.860 --> 00:12:21.160 I find that we ought to ... 00:12:21.160 --> 00:12:23.980 That we should approve this application. 00:12:23.980 --> 00:12:28.550 And that, the position that collegia not being ... 00:12:28.550 --> 00:12:31.330 There not being a natural confining layer, 00:12:31.330 --> 00:12:34.370 is not in the past been consistent practice for us 00:12:34.370 --> 00:12:35.410 to have done these applications. 00:12:35.410 --> 00:12:40.043 So, hence my position to support Wayne's motion. 00:12:41.450 --> 00:12:42.283 Okay. 00:12:42.283 --> 00:12:43.320 Wayne do you have any other thing? 00:12:43.320 --> 00:12:44.520 Anything else? 00:12:44.520 --> 00:12:46.710 We have a motion and a second. 00:12:46.710 --> 00:12:48.484 All those in favor, say aye. 00:12:48.484 --> 00:12:49.317 Aye. 00:12:49.317 --> 00:12:50.150 Aye. 00:12:50.150 --> 00:12:50.983 Opposed. 00:12:50.983 --> 00:12:52.162 Nay. 00:12:52.162 --> 00:12:54.100 Motion passes, two to one. 00:12:54.100 --> 00:12:55.143 Thank you, Ashley. 00:12:57.754 --> 00:13:00.083 All right, item number six. 00:13:01.080 --> 00:13:02.320 Thank you. 00:13:02.320 --> 00:13:05.630 Jennifer Cook will be presenting agenda item six. 00:13:05.630 --> 00:13:07.453 Jennifer, we are ready when you are. 00:13:09.080 --> 00:13:10.640 Good morning chairman and Commissioners. 00:13:10.640 --> 00:13:12.775 I'm Jennifer Cook, an Administrative Law Judge 00:13:12.775 --> 00:13:14.960 in the Hearings division. 00:13:14.960 --> 00:13:19.960 And item six, MT-Energie, LLC seeks a determination 00:13:19.990 --> 00:13:24.630 that it be allowed to renew its Commission form P-5. 00:13:24.630 --> 00:13:29.310 Staff maintains MT-Energie is not in compliance 00:13:29.310 --> 00:13:32.475 with the Commission's inactive well rule, 00:13:32.475 --> 00:13:36.920 and does not be allowed to renew its Commission form P-5. 00:13:36.920 --> 00:13:40.360 Staff provided evidence and MT-Energie acknowledges, 00:13:40.360 --> 00:13:43.160 that MT-Energie noncompliant with the Commission's 00:13:43.160 --> 00:13:46.060 inactive well rule, regarding the subject wells. 00:13:46.060 --> 00:13:48.760 MT-Energie maintains it became the operator of these 00:13:48.760 --> 00:13:51.440 abandoned wells, because it wants to bring these wells back 00:13:51.440 --> 00:13:54.350 into production, but the regulatory framework 00:13:54.350 --> 00:13:59.350 has made it difficult for MT-Energie to achieve compliance. 00:13:59.530 --> 00:14:02.840 It is recommended that the Commission issue an order denying 00:14:02.840 --> 00:14:05.780 the renewal of MT-Energie form P-5. 00:14:05.780 --> 00:14:08.469 No exceptions or replies have been filed. 00:14:08.469 --> 00:14:11.370 And I'm available for questions. 00:14:11.370 --> 00:14:12.203 Thank you, Jennifer. 00:14:12.203 --> 00:14:13.230 Are there any questions? 00:14:14.340 --> 00:14:16.380 I move we approve the examiners recommendation. 00:14:16.380 --> 00:14:17.591 Is there a second? 00:14:17.591 --> 00:14:18.424 Second. 00:14:18.424 --> 00:14:19.680 Second by Commissioner Christian. 00:14:19.680 --> 00:14:20.651 All in favor, say aye. 00:14:20.651 --> 00:14:21.484 Aye. 00:14:21.484 --> 00:14:22.317 Aye. 00:14:22.317 --> 00:14:23.150 Aye. 00:14:23.150 --> 00:14:23.983 Motion passes, item is approved. 00:14:23.983 --> 00:14:25.120 Thank you. 00:14:25.120 --> 00:14:26.940 Item number seven. 00:14:26.940 --> 00:14:27.950 Yes, thank you. 00:14:27.950 --> 00:14:31.220 Ezra Johnson will be presenting agenda item seven. 00:14:31.220 --> 00:14:32.873 Ezra we are ready when you are. 00:14:34.800 --> 00:14:36.540 Good morning, chairman and Commissioners. 00:14:36.540 --> 00:14:38.750 For the record, my name is Ezra Johnson, 00:14:38.750 --> 00:14:41.350 Administrative Law Judge with the Hearings division. 00:14:42.260 --> 00:14:45.760 Item seven concerns a motion for rehearing of a final order 00:14:45.760 --> 00:14:50.180 denying the application of Front Street operating LLC, 00:14:50.180 --> 00:14:53.000 to supersede the final order issued by the Commission 00:14:53.000 --> 00:14:57.200 on October 1st, 2019 to plug 20 wells located 00:14:57.200 --> 00:15:01.030 on six Commission leases in Hearne County, Texas. 00:15:01.030 --> 00:15:03.800 Front Street filed a timely motion for rehearing 00:15:03.800 --> 00:15:06.470 arguing that the Commission misapplied the burden of proof 00:15:06.470 --> 00:15:09.960 and otherwise acted outside of its jurisdiction, 00:15:09.960 --> 00:15:12.590 and denying Front Streets application to supersede 00:15:12.590 --> 00:15:14.110 the final order. 00:15:14.110 --> 00:15:16.440 Responses to the motion were filed. 00:15:16.440 --> 00:15:18.100 None of the issues raised in the motion 00:15:18.100 --> 00:15:19.670 for rehearing are new. 00:15:19.670 --> 00:15:22.100 All issues raised in the motion were already raised 00:15:22.100 --> 00:15:24.770 by Front Street and considered by the Commission prior 00:15:24.770 --> 00:15:27.940 to the Commission issuing the order in this case. 00:15:27.940 --> 00:15:30.540 The examiners recommend that the Commission deny the motion 00:15:30.540 --> 00:15:31.860 for rehearing. 00:15:31.860 --> 00:15:34.410 The motion be overruled by operation of law 00:15:34.410 --> 00:15:36.480 on December 10th, 2020. 00:15:36.480 --> 00:15:38.080 And I'm available for questions. 00:15:40.281 --> 00:15:43.020 (indistinct) we also have Rob Hargrove, 00:15:43.020 --> 00:15:45.250 representing the (indistinct) Farmer Family. 00:15:45.250 --> 00:15:47.963 Registered and available for questions if needed. 00:15:48.910 --> 00:15:49.743 Thank you. 00:15:49.743 --> 00:15:52.103 Are there any questions of his for Ezra or Rob? 00:15:53.400 --> 00:15:55.640 Okay, I move we approve the examiners recommendation. 00:15:55.640 --> 00:15:56.768 Is there a second? 00:15:56.768 --> 00:15:57.810 Second. 00:15:57.810 --> 00:15:59.070 Second by Commissioner Sitton. 00:15:59.070 --> 00:16:00.875 All those in favor, say aye. 00:16:00.875 --> 00:16:01.708 Aye. 00:16:01.708 --> 00:16:02.541 Aye. 00:16:02.541 --> 00:16:03.690 Motion passes, item is approved. 00:16:03.690 --> 00:16:04.563 Thank you Ezra. 00:16:05.640 --> 00:16:06.990 Item number eight. 00:16:06.990 --> 00:16:07.823 Well, thank you. 00:16:07.823 --> 00:16:11.030 Kristi Reeve will be presenting agenda item eight. 00:16:11.030 --> 00:16:12.730 Kristi, we are ready when you are. 00:16:13.740 --> 00:16:15.320 Good morning, chairman Commissioners. 00:16:15.320 --> 00:16:17.840 For the record, Kristi Reeve, the Administrative Law Judge 00:16:17.840 --> 00:16:19.740 with the Hearings division. 00:16:19.740 --> 00:16:23.780 On September 22nd, 2020 the Commission aided an order 00:16:23.780 --> 00:16:27.770 approving Wasser Operating, LLCs application for a permit 00:16:27.770 --> 00:16:30.810 to dispose of oil and gas waste in accordance with Statewide 00:16:30.810 --> 00:16:31.870 rule nine. 00:16:31.870 --> 00:16:36.060 And denying protestant Pioneer Natural Resources USA's 00:16:36.060 --> 00:16:38.880 motion to reopen the record to take new evidence 00:16:39.852 --> 00:16:43.590 regarding the decline and disposal demand since the hearing. 00:16:43.590 --> 00:16:47.790 On October 16th, 2020 Protestant Pioneer timely filed 00:16:47.790 --> 00:16:49.710 a motion for rehearing. 00:16:49.710 --> 00:16:53.120 On November 2nd, 2020 applicant Wasser filed 00:16:53.120 --> 00:16:56.480 a timely response and opposition of the motion. 00:16:56.480 --> 00:16:58.780 None of the issues raised in the motion for rehearing 00:16:58.780 --> 00:16:59.810 are new. 00:16:59.810 --> 00:17:02.170 All issues raised in the motion were already raised 00:17:02.170 --> 00:17:03.070 by Pioneer. 00:17:03.070 --> 00:17:05.592 And considered by the Commission prior to the Commission 00:17:05.592 --> 00:17:08.130 issuing the order in this case. 00:17:08.130 --> 00:17:10.320 It is recommended the motion be denied. 00:17:10.320 --> 00:17:12.814 The motion will be overruled by operation of law 00:17:12.814 --> 00:17:15.270 on December 31st, 2020 00:17:15.270 --> 00:17:16.993 I'm available for questions. 00:17:17.840 --> 00:17:19.870 Commissioners, we have Olga (indistinct), 00:17:19.870 --> 00:17:22.840 and John Saul representing Wasser Operating. 00:17:22.840 --> 00:17:25.900 And Brian Sullivan representing Pioneer Resources. 00:17:25.900 --> 00:17:28.793 Registered and available for questions if needed. 00:17:29.730 --> 00:17:30.689 Thank you. 00:17:30.689 --> 00:17:32.916 Does anybody have any questions? 00:17:32.916 --> 00:17:35.060 All right, I move we approve the examiners recommendation. 00:17:35.060 --> 00:17:36.699 Is there a second? 00:17:36.699 --> 00:17:37.750 Second 00:17:37.750 --> 00:17:38.970 Second by Commissioner Sitton. 00:17:38.970 --> 00:17:40.641 All those in favor say aye. 00:17:40.641 --> 00:17:41.474 Aye. 00:17:41.474 --> 00:17:42.307 Aye. 00:17:42.307 --> 00:17:43.140 Aye. 00:17:43.140 --> 00:17:43.973 Motion passes, items is approved. 00:17:43.973 --> 00:17:45.160 Thank you, Kristi. 00:17:45.160 --> 00:17:46.020 Thank you very much. 00:17:46.020 --> 00:17:46.853 Right. 00:17:46.853 --> 00:17:50.630 Now Callie we've got nine through 13. 00:17:50.630 --> 00:17:51.910 Yes, thank you. 00:17:51.910 --> 00:17:54.320 Charles Zhang we'll be presenting agenda items 00:17:54.320 --> 00:17:55.960 nine through 13. 00:17:55.960 --> 00:17:58.870 And he will also continue on through 18. 00:17:58.870 --> 00:17:59.703 Great. 00:17:59.703 --> 00:18:00.740 Good morning, Charles. 00:18:00.740 --> 00:18:01.573 Good morning. 00:18:01.573 --> 00:18:02.406 Thank you, Callie. 00:18:03.750 --> 00:18:06.030 Good morning, chairman and Commissioners. 00:18:06.030 --> 00:18:08.590 I am Charles Zhang, Administrative Law Judge 00:18:08.590 --> 00:18:09.730 with the Hearings division. 00:18:09.730 --> 00:18:12.580 And I will be presenting items nine through (indistinct). 00:18:14.410 --> 00:18:17.230 Item 13 will be presented together, 00:18:17.230 --> 00:18:21.000 as they have common facts, parties, and legal issues. 00:18:21.000 --> 00:18:24.710 These are applications of TEP Barnett USA, LLC 00:18:24.710 --> 00:18:27.399 under the mineral interest pooling act to form five units 00:18:27.399 --> 00:18:32.399 in the New York East Barnett Shell field in Tarrant 00:18:32.620 --> 00:18:34.280 and Dallas counties. 00:18:34.280 --> 00:18:37.330 The applications are protested by the son of a lessee 00:18:37.330 --> 00:18:38.510 to the units. 00:18:38.510 --> 00:18:42.170 The protestant did not ask that the applications be denied, 00:18:42.170 --> 00:18:45.773 but rather requested that additional hearings be held. 00:18:46.685 --> 00:18:49.340 TEP Barnett provided sufficient evidence to show 00:18:49.340 --> 00:18:52.840 a pooling order under MEBA is necessary to prevent waste, 00:18:52.840 --> 00:18:55.660 to protect relative rights, and to avoid the unnecessary 00:18:55.660 --> 00:18:57.440 drilling of wells. 00:18:57.440 --> 00:19:00.160 The examiners recommend the Commission dismiss the protest 00:19:00.160 --> 00:19:03.850 and for lack of standing, and approve the applications. 00:19:03.850 --> 00:19:05.160 No exceptions were filed. 00:19:05.160 --> 00:19:07.400 I'm available for questions. 00:19:07.400 --> 00:19:08.233 Thank you. 00:19:08.233 --> 00:19:09.770 Are there any questions 00:19:09.770 --> 00:19:12.040 I move we approve the examiners recommendation 00:19:12.040 --> 00:19:14.150 for items nine through 13. 00:19:14.150 --> 00:19:15.679 Is there a second? 00:19:15.679 --> 00:19:16.512 Second. 00:19:16.512 --> 00:19:17.790 Second by Commissioner Sitton. 00:19:17.790 --> 00:19:19.314 All those in favor, say aye. 00:19:19.314 --> 00:19:20.147 Aye. 00:19:20.147 --> 00:19:20.980 Aye. 00:19:20.980 --> 00:19:21.813 Aye. 00:19:21.813 --> 00:19:24.060 Motion passes, those items are approved. 00:19:24.060 --> 00:19:25.723 Charles number 14, please. 00:19:26.720 --> 00:19:29.740 Number 14 concerns a motion for rehearing filed 00:19:29.740 --> 00:19:33.450 by Siana Oil & Gas as a result of a final order 00:19:33.450 --> 00:19:36.350 ordering Siana to plug their disposal well. 00:19:36.350 --> 00:19:39.930 The troll, VW lease well number 1-R, 00:19:39.930 --> 00:19:43.580 in compliance with Statewide rule 14-B2, 00:19:43.580 --> 00:19:48.560 and to pay an administrative penalty of $6,500. 00:19:48.560 --> 00:19:50.530 The default order followed Siana's failure 00:19:50.530 --> 00:19:52.920 to file an answer, to request a hearing, 00:19:52.920 --> 00:19:55.910 or to enter into an agreed upon settlement. 00:19:55.910 --> 00:19:59.110 Siana filed a timely motion for rehearing stating that 00:19:59.110 --> 00:20:01.250 had they participated in a hearing, 00:20:01.250 --> 00:20:03.000 they would have shown there's a critical need 00:20:03.000 --> 00:20:06.050 in the vicinity for disposal capacity. 00:20:06.050 --> 00:20:08.490 It is recommended that the Commission denied the motion 00:20:08.490 --> 00:20:09.630 for rehearing. 00:20:09.630 --> 00:20:12.340 The motion will be overruled by operation of law 00:20:12.340 --> 00:20:14.800 on December 31st, 2020. 00:20:14.800 --> 00:20:16.653 And I am available for questions. 00:20:17.540 --> 00:20:18.373 Thank you. 00:20:18.373 --> 00:20:19.950 Are there any questions? 00:20:19.950 --> 00:20:22.040 I move we approve the examiners recommendation. 00:20:22.040 --> 00:20:22.873 Is there a second? 00:20:22.873 --> 00:20:23.820 Second. 00:20:23.820 --> 00:20:25.260 Second by Commissioner Christian. 00:20:25.260 --> 00:20:26.989 All those in favor, say aye. 00:20:26.989 --> 00:20:27.822 Aye. 00:20:27.822 --> 00:20:28.655 Aye. 00:20:28.655 --> 00:20:29.488 Aye. 00:20:29.488 --> 00:20:30.321 Motion passes, item is approved. 00:20:30.321 --> 00:20:31.154 Number 15. 00:20:32.779 --> 00:20:35.500 Items 15 through 18 are all P-5 motions 00:20:35.500 --> 00:20:38.510 for rehearing filed as a result of final orders 00:20:38.510 --> 00:20:42.200 denying renewal of the operators P-5 because of wells 00:20:42.200 --> 00:20:44.500 that were noncompliant with Statewide rule 15. 00:20:45.520 --> 00:20:49.730 In item 15, and its motion for rehearing Front Street 00:20:49.730 --> 00:20:53.750 Operating LLC, states their inability to comply with 00:20:53.750 --> 00:20:56.580 Commission rules is due to wrongful denial of their 00:20:56.580 --> 00:20:59.460 good faith claim which prevents them for restoring 00:20:59.460 --> 00:21:03.170 the wells, or from obtaining plugging extensions. 00:21:03.170 --> 00:21:05.180 Staff opposes the motion. 00:21:05.180 --> 00:21:09.130 41 wells remain noncompliant with Statewide rule 15. 00:21:09.130 --> 00:21:11.670 It is recommended that the motion be denied. 00:21:11.670 --> 00:21:13.810 The motion for rehearing will be overruled 00:21:13.810 --> 00:21:17.790 by operation of law on December 31st, 2020. 00:21:17.790 --> 00:21:19.553 And I am available for questions. 00:21:20.470 --> 00:21:22.080 Are there any questions? 00:21:22.080 --> 00:21:24.120 I move we approve the examiners recommendation. 00:21:24.120 --> 00:21:25.528 Is there a second? 00:21:25.528 --> 00:21:26.361 Second. 00:21:26.361 --> 00:21:27.500 Second by Commissioner Sitton. 00:21:27.500 --> 00:21:29.496 All those in favor, say aye. 00:21:29.496 --> 00:21:30.329 Aye. 00:21:30.329 --> 00:21:31.162 Aye. 00:21:31.162 --> 00:21:32.580 Mission passes, items approved. 00:21:32.580 --> 00:21:33.923 Number 16, Charles. 00:21:34.780 --> 00:21:37.470 Item 16, and its motion for rehearing 00:21:37.470 --> 00:21:41.690 Novo Energy Resources states that their failure to request 00:21:41.690 --> 00:21:44.350 a hearing was due to COVID-19, 00:21:44.350 --> 00:21:46.550 that all documentation has been filed, 00:21:46.550 --> 00:21:50.690 and it's awaiting processing, or will be filed imminently. 00:21:50.690 --> 00:21:52.280 Staff opposes the motion. 00:21:52.280 --> 00:21:56.020 Four wells remain noncompliant with Statewide rule 15. 00:21:56.020 --> 00:21:58.780 It is recommended that the motion be denied. 00:21:58.780 --> 00:22:00.780 The motion for rehearing will be overruled 00:22:00.780 --> 00:22:04.680 by operation of law on December 31st, 2020. 00:22:04.680 --> 00:22:06.080 I am available for questions 00:22:06.920 --> 00:22:08.680 Okay, are there any questions? 00:22:08.680 --> 00:22:10.740 I move we approve the examiners recommendation. 00:22:10.740 --> 00:22:11.940 Is there a second? 00:22:11.940 --> 00:22:12.773 Second. 00:22:12.773 --> 00:22:13.940 Second by Commissioner Christian. 00:22:13.940 --> 00:22:15.679 All those in favor, say aye. 00:22:15.679 --> 00:22:16.512 Aye. 00:22:16.512 --> 00:22:17.345 Aye. 00:22:17.345 --> 00:22:18.178 Aye. 00:22:18.178 --> 00:22:19.011 Motion passes, items approved. 00:22:19.011 --> 00:22:20.760 Number 17. 00:22:20.760 --> 00:22:24.390 Number 17, and its motion for rehearing PFOG 00:22:24.390 --> 00:22:27.970 Operations LLC, states that their failure to request 00:22:27.970 --> 00:22:30.630 a hearing was due to COVID-19, 00:22:30.630 --> 00:22:32.610 that all documentation has been filed, 00:22:32.610 --> 00:22:36.050 and is awaiting processing, or will be filed imminently. 00:22:36.050 --> 00:22:38.120 Staff opposes the motion. 00:22:38.120 --> 00:22:41.720 One well remains noncompliant with Statewide rule 15. 00:22:41.720 --> 00:22:44.230 It is recommended that the motion be denied. 00:22:44.230 --> 00:22:46.170 The motion for rehearing will be overruled 00:22:46.170 --> 00:22:49.590 by operation of law on December 31st, 2020. 00:22:49.590 --> 00:22:51.888 I am available for questions. 00:22:51.888 --> 00:22:52.721 Great. 00:22:52.721 --> 00:22:54.100 Are there any questions? 00:22:54.100 --> 00:22:56.180 I move we approve the examiners recommendation. 00:22:56.180 --> 00:22:57.749 Is there a second? 00:22:57.749 --> 00:22:58.582 Second. 00:22:58.582 --> 00:22:59.670 Second by Commissioner Sitton. 00:22:59.670 --> 00:23:01.509 All those in favor, say aye. 00:23:01.509 --> 00:23:02.342 Aye. 00:23:02.342 --> 00:23:03.175 Aye. 00:23:03.175 --> 00:23:04.008 Aye. 00:23:04.008 --> 00:23:04.841 Motion passes item is approved. 00:23:04.841 --> 00:23:05.674 Number 18. 00:23:06.840 --> 00:23:11.030 Item 18, subsequent to filing its motion for rehearing, 00:23:11.030 --> 00:23:14.070 Atm Energy Group, LLC has come into compliance with 00:23:14.070 --> 00:23:15.700 Statewide rule 15. 00:23:15.700 --> 00:23:18.800 Therefore it is recommended that the motion be granted, 00:23:18.800 --> 00:23:21.380 and the underlying docket be dismissed as moot. 00:23:21.380 --> 00:23:23.240 I am available for questions.. 00:23:23.240 --> 00:23:24.274 Thank you. 00:23:24.274 --> 00:23:25.840 Are there any questions? 00:23:25.840 --> 00:23:27.340 Always like good news. 00:23:27.340 --> 00:23:29.730 All right, I move we approve the examiners recommendation. 00:23:29.730 --> 00:23:31.189 Is there a second? 00:23:31.189 --> 00:23:32.022 Second. 00:23:32.022 --> 00:23:33.290 Second by Commissioner Christian. 00:23:33.290 --> 00:23:34.847 All those in favor say aye. 00:23:34.847 --> 00:23:35.680 Aye. 00:23:35.680 --> 00:23:36.513 Aye. 00:23:36.513 --> 00:23:37.346 Aye. 00:23:37.346 --> 00:23:38.190 Motion passes, that item is approved. 00:23:38.190 --> 00:23:39.490 Thank you, Charles. 00:23:39.490 --> 00:23:40.340 Thank you. 00:23:40.340 --> 00:23:41.850 All right, Callie. 00:23:41.850 --> 00:23:42.907 Yes, thank you. 00:23:42.907 --> 00:23:47.203 Joseph Menefe will be presenting items 19 through 24. 00:23:48.170 --> 00:23:50.153 Joseph, we are ready when you are. 00:23:56.730 --> 00:23:59.000 Good morning chairman, Commissioners. 00:23:59.000 --> 00:24:01.360 For the record, I am Joseph Menefe, 00:24:01.360 --> 00:24:03.510 a paralegal in the Hearings division. 00:24:03.510 --> 00:24:07.920 I will be presenting items 19 through 24. 00:24:07.920 --> 00:24:11.500 All of which are (indistinct) motions for rehearing. 00:24:11.500 --> 00:24:14.130 Filed as a result of final orders 00:24:14.130 --> 00:24:17.340 denying renewal of the operators P-5, 00:24:17.340 --> 00:24:19.630 because of wells that were noncompliant 00:24:19.630 --> 00:24:21.303 with Statewide rule 15. 00:24:22.350 --> 00:24:26.590 Item number 19, subsequent to filing its motion 00:24:26.590 --> 00:24:31.230 for rehearing Sendero Energy, Inc has come into compliance 00:24:31.230 --> 00:24:33.310 with Statewide rule 15. 00:24:33.310 --> 00:24:36.210 Therefore it's recommended the motion be granted, 00:24:36.210 --> 00:24:39.600 and the underlying docket dismissed this moot. 00:24:39.600 --> 00:24:41.480 I'm available for questions. 00:24:41.480 --> 00:24:42.313 Great. 00:24:42.313 --> 00:24:43.640 Are there any questions? 00:24:43.640 --> 00:24:45.760 I move we approve the examiners recommendation. 00:24:45.760 --> 00:24:46.703 Is there a second? 00:24:47.612 --> 00:24:48.445 Second. 00:24:48.445 --> 00:24:49.500 Second by Commissioner Sitton. 00:24:49.500 --> 00:24:51.433 All those in favor say aye. 00:24:51.433 --> 00:24:52.266 Aye. 00:24:52.266 --> 00:24:53.099 Aye. 00:24:53.099 --> 00:24:54.287 Motion passes, that item is approved. 00:24:54.287 --> 00:24:55.648 Number 20. 00:24:55.648 --> 00:24:59.137 Item number 20, subsequent to filing its motion 00:24:59.137 --> 00:25:04.060 for rehearing, the next Prod, LLC has come into compliance 00:25:04.060 --> 00:25:06.190 with Statewide rule 15. 00:25:06.190 --> 00:25:09.000 Therefore it's recommended the motion be granted 00:25:09.000 --> 00:25:12.400 and the underlying docket dismissed as moot. 00:25:12.400 --> 00:25:14.350 I'm available for questions. 00:25:14.350 --> 00:25:15.183 Thank you. 00:25:15.183 --> 00:25:16.680 Are there any questions? 00:25:16.680 --> 00:25:18.760 I move we approve the examiners recommendation. 00:25:18.760 --> 00:25:19.922 Is there a second? 00:25:19.922 --> 00:25:20.755 Second. 00:25:20.755 --> 00:25:22.080 Second by Commissioner of Christian. 00:25:22.080 --> 00:25:23.640 All those in favor say aye. 00:25:23.640 --> 00:25:24.473 Aye. 00:25:24.473 --> 00:25:25.306 Aye. 00:25:25.306 --> 00:25:26.139 Aye. 00:25:26.139 --> 00:25:27.235 Motion passes, that item is approved. 00:25:27.235 --> 00:25:28.068 Number 21. 00:25:28.922 --> 00:25:32.950 Item number 21, subsequent to filing its motion 00:25:32.950 --> 00:25:37.120 for rehearing, Sedona Oil & Gas Corp has come into 00:25:37.120 --> 00:25:40.160 compliance with Statewide rule 15. 00:25:40.160 --> 00:25:42.850 Therefore, it's recommended the motion be granted, 00:25:42.850 --> 00:25:45.990 and the underlying docket dismissed as moot. 00:25:45.990 --> 00:25:48.010 I'm available for questions. 00:25:48.010 --> 00:25:48.843 Thank you. 00:25:48.843 --> 00:25:50.580 Are there any questions? 00:25:50.580 --> 00:25:52.530 I move we approve the examiners recommendation. 00:25:52.530 --> 00:25:53.997 Is there a second? 00:25:53.997 --> 00:25:54.830 Second. 00:25:54.830 --> 00:25:55.900 Second by Commissioner Sitton. 00:25:55.900 --> 00:25:58.195 All those in favor, say aye. 00:25:58.195 --> 00:25:59.028 Aye. 00:25:59.028 --> 00:25:59.861 Aye. 00:25:59.861 --> 00:26:00.694 Aye. 00:26:00.694 --> 00:26:01.527 Motion passes, that item is approved. 00:26:01.527 --> 00:26:02.360 22. 00:26:02.360 --> 00:26:06.110 Item number 22, and it's motion for rehearing. 00:26:06.110 --> 00:26:09.611 Ken-Cro States its failure to request a hearing, 00:26:09.611 --> 00:26:12.035 was due to COVID-19. 00:26:12.035 --> 00:26:15.497 That all compliance documentation has been filed, 00:26:15.497 --> 00:26:19.469 is awaiting processing or will be filed imminently. 00:26:19.469 --> 00:26:21.918 And that granting the rehearing will not delay 00:26:21.918 --> 00:26:23.825 or enter the Commission. 00:26:23.825 --> 00:26:26.190 Staff opposes the motion. 00:26:26.190 --> 00:26:30.917 41 wells remain noncompliant with Statewide rule 15. 00:26:30.917 --> 00:26:33.779 It is recommended the motion be denied. 00:26:33.779 --> 00:26:36.848 The motion will be overruled by operation of law 00:26:36.848 --> 00:26:38.865 on December 31st. 00:26:38.865 --> 00:26:40.816 I'm available for questions. 00:26:40.816 --> 00:26:41.649 Thank you. 00:26:41.649 --> 00:26:43.063 Are there any questions? 00:26:43.063 --> 00:26:45.145 I move we approve the examiner for recommendation. 00:26:45.145 --> 00:26:46.951 Is there a second? 00:26:46.951 --> 00:26:47.784 Second. 00:26:47.784 --> 00:26:49.349 Second by Commissioner Christian. 00:26:49.349 --> 00:26:50.996 All those in favor say aye. 00:26:50.996 --> 00:26:51.829 Aye. 00:26:51.829 --> 00:26:52.662 Aye. 00:26:52.662 --> 00:26:53.495 Aye. 00:26:53.495 --> 00:26:54.328 Motion passes, that item is approved. 00:26:54.328 --> 00:26:55.161 Number 23. 00:26:56.171 --> 00:26:57.815 Item number 23. 00:26:57.815 --> 00:27:02.431 In this motion, Dominion Production Company, LLC 00:27:02.431 --> 00:27:05.312 states its failure to request a hearing was due 00:27:05.312 --> 00:27:06.814 to COVID-19. 00:27:06.814 --> 00:27:10.063 That all compliance documentation has been filed, 00:27:10.063 --> 00:27:13.793 is awaiting processing, or will be filed eminently. 00:27:13.793 --> 00:27:16.958 And that granting the rehearing will not delay or injure 00:27:16.958 --> 00:27:18.407 the Commission. 00:27:18.407 --> 00:27:20.620 Staff proposes the motion. 00:27:20.620 --> 00:27:25.440 Two wells remain noncompliant with Statewide rule 15. 00:27:25.440 --> 00:27:28.170 It is recommended the motion be denied. 00:27:28.170 --> 00:27:31.060 The motion will be overruled by operation of law 00:27:31.060 --> 00:27:33.070 on December 31st. 00:27:33.070 --> 00:27:34.960 I'm available for questions. 00:27:34.960 --> 00:27:36.820 Are there any questions? 00:27:36.820 --> 00:27:39.050 I move we approve the examiners recommendation. 00:27:39.050 --> 00:27:40.221 Is there a second? 00:27:40.221 --> 00:27:41.640 Second. 00:27:41.640 --> 00:27:42.790 Second by Commissioner Sitton. 00:27:42.790 --> 00:27:44.816 So all those in favor, say aye. 00:27:44.816 --> 00:27:45.649 Aye. 00:27:45.649 --> 00:27:46.482 Aye. 00:27:46.482 --> 00:27:47.315 Aye. 00:27:47.315 --> 00:27:48.927 Motion passes, that item is approved. 00:27:48.927 --> 00:27:49.840 And 24. 00:27:49.840 --> 00:27:50.950 Joe, you've done pretty well. 00:27:50.950 --> 00:27:52.980 Let's get one more good news please. 00:27:52.980 --> 00:27:56.130 One more good news, item number 24. 00:27:56.130 --> 00:27:59.592 Subsequent to filing its motion for rehearing, 00:27:59.592 --> 00:28:03.660 (indistinct) West Texas, LLC has come into compliance 00:28:03.660 --> 00:28:05.780 with Statewide rule 15. 00:28:05.780 --> 00:28:08.637 Therefore it's recommended the motion be granted 00:28:08.637 --> 00:28:11.800 and the underlying docket dismissed as moot. 00:28:11.800 --> 00:28:13.450 I'm available for questions. 00:28:13.450 --> 00:28:15.370 Are there any questions? 00:28:15.370 --> 00:28:17.740 Right, I move we approve the examiners recommendation. 00:28:17.740 --> 00:28:18.573 Is there a second? 00:28:18.573 --> 00:28:19.600 Second. 00:28:19.600 --> 00:28:21.020 Second by Commissioner Christian. 00:28:21.020 --> 00:28:22.265 All those in favor say aye. 00:28:22.265 --> 00:28:23.098 Aye. 00:28:23.098 --> 00:28:23.931 Aye. 00:28:23.931 --> 00:28:24.764 Aye. 00:28:24.764 --> 00:28:25.870 Motion passes, that item is approved. 00:28:25.870 --> 00:28:27.440 Thank you Joe for your work. 00:28:27.440 --> 00:28:28.540 All right. 00:28:28.540 --> 00:28:30.370 Oil and gas (indistinct). 00:28:30.370 --> 00:28:31.680 Callie. 00:28:31.680 --> 00:28:34.730 Let's see, we have ... 00:28:34.730 --> 00:28:38.670 Those are items number 25 to 229. 00:28:38.670 --> 00:28:41.823 There are 205 items on that agenda. 00:28:43.156 --> 00:28:43.989 But we are gonna ... 00:28:43.989 --> 00:28:47.337 We've had a request to pass items 53 through 174. 00:28:48.900 --> 00:28:52.810 Item 182 and item 183. 00:28:52.810 --> 00:28:57.350 So I'm gonna move that we approve items 25 through 229. 00:28:57.350 --> 00:29:01.060 Except for items 53 through 174. 00:29:01.060 --> 00:29:04.163 Item 182 and item 183. 00:29:06.270 --> 00:29:08.415 Is there a second? 00:29:08.415 --> 00:29:09.248 Second. 00:29:09.248 --> 00:29:10.500 Second by Commissioner Sitton. 00:29:10.500 --> 00:29:12.346 All those in favor say aye. 00:29:12.346 --> 00:29:13.179 Aye. 00:29:13.179 --> 00:29:14.012 Aye. 00:29:14.012 --> 00:29:14.845 Aye. 00:29:14.845 --> 00:29:16.120 Motion passes, those items are approved. 00:29:16.120 --> 00:29:17.640 Master default orders. 00:29:17.640 --> 00:29:21.280 These are items 230 through 254. 00:29:21.280 --> 00:29:24.570 There are 25 master default order items. 00:29:24.570 --> 00:29:28.530 I move we approve items 230 through 254. 00:29:28.530 --> 00:29:29.893 Is there a second? 00:29:29.893 --> 00:29:30.726 Second. 00:29:30.726 --> 00:29:32.140 Second by Commissioner Christian. 00:29:32.140 --> 00:29:34.032 All those in favor say aye. 00:29:34.032 --> 00:29:34.865 Aye 00:29:34.865 --> 00:29:35.698 Aye. 00:29:35.698 --> 00:29:36.531 Aye. 00:29:36.531 --> 00:29:37.980 Motion passes, those items are approved. 00:29:37.980 --> 00:29:39.840 Agreed enforcement orders. 00:29:39.840 --> 00:29:44.840 Items 255, 344, there are 90 agreed enforcement orders. 00:29:45.500 --> 00:29:49.307 I move that we approve items 225 through 344. 00:29:50.440 --> 00:29:52.440 Is there a second? 00:29:52.440 --> 00:29:53.273 Second. 00:29:53.273 --> 00:29:54.470 Second by Commissioner Sitton. 00:29:54.470 --> 00:29:55.540 All those in favor, say aye. 00:29:55.540 --> 00:29:57.069 Aye. 00:29:57.069 --> 00:29:57.902 Aye. 00:29:57.902 --> 00:29:58.735 Aye. 00:29:58.735 --> 00:29:59.650 Motion passes, those items are approved. 00:29:59.650 --> 00:30:01.500 That concludes the hearing section matter. 00:30:01.500 --> 00:30:04.370 And we'll now take up the administrative agenda. 00:30:04.370 --> 00:30:08.660 And Callie, please call up agenda presenter for 345. 00:30:08.660 --> 00:30:11.180 And I think 346 as well. 00:30:11.180 --> 00:30:12.030 That is correct. 00:30:12.030 --> 00:30:14.690 Haley Cochran will be presenting both agenda 00:30:14.690 --> 00:30:17.420 item 345 and 346. 00:30:17.420 --> 00:30:19.103 Haley, we are ready when you are. 00:30:20.980 --> 00:30:22.350 Morning Haley. 00:30:22.350 --> 00:30:23.910 Good morning, chairman Commissioners. 00:30:23.910 --> 00:30:26.440 Haley Cochran with the opposite of general counsel. 00:30:26.440 --> 00:30:29.560 item number 345 pertains to propose revisions to the 00:30:29.560 --> 00:30:31.520 Commission's employee handbook. 00:30:31.520 --> 00:30:33.900 The proposed revisions include edits to the tuition 00:30:33.900 --> 00:30:37.840 reimbursement program, breaks and leave provisions, 00:30:37.840 --> 00:30:39.890 and personal appearance standards. 00:30:39.890 --> 00:30:42.060 Included in your notebook materials is a table 00:30:42.060 --> 00:30:45.100 of the proposed revisions, and the relevant handbook pages 00:30:45.100 --> 00:30:47.850 with draft policy language for your approval. 00:30:47.850 --> 00:30:50.038 If approved, these revised policies will supersede 00:30:50.038 --> 00:30:53.160 the prior versions included in the current handbook, 00:30:53.160 --> 00:30:56.394 and the updated handbook will serve as the guiding resources 00:30:56.394 --> 00:30:59.720 policy document for Railroad Commission staff. 00:30:59.720 --> 00:31:01.930 May I answer any questions? 00:31:01.930 --> 00:31:04.080 Are there any questions? 00:31:04.080 --> 00:31:06.510 Right I move we approve the staff's recommendation. 00:31:06.510 --> 00:31:07.613 Is there a second? 00:31:08.563 --> 00:31:09.396 Second. 00:31:09.396 --> 00:31:10.940 Second by Commissioner Christian. 00:31:10.940 --> 00:31:12.074 All in favor, say aye. 00:31:12.074 --> 00:31:12.907 Aye. 00:31:12.907 --> 00:31:13.740 Aye. 00:31:13.740 --> 00:31:14.573 Aye. 00:31:14.573 --> 00:31:15.853 Motion passes, that item is approved. 00:31:15.853 --> 00:31:17.730 And, 346. 00:31:17.730 --> 00:31:20.490 Yes, item 346 is staff's recommendation to 00:31:20.490 --> 00:31:24.520 adopt amendments to 16 Texas Administrative Code Chapter 12. 00:31:24.520 --> 00:31:25.960 The amendments is better organized, 00:31:25.960 --> 00:31:29.070 and clarify certain procedures, informed Commission rules 00:31:29.070 --> 00:31:31.060 to federal regulations and guidance, 00:31:31.060 --> 00:31:33.540 and update references to statutes or additions 00:31:33.540 --> 00:31:35.090 of external documents. 00:31:35.090 --> 00:31:37.720 On October 20th, the Commission approved publication 00:31:37.720 --> 00:31:39.740 of the proposed amendments and the Texas register 00:31:39.740 --> 00:31:41.080 for public comment. 00:31:41.080 --> 00:31:43.140 The comment period ended on November 23rd. 00:31:43.140 --> 00:31:45.400 And no comments were received on the proposal. 00:31:45.400 --> 00:31:47.560 The federal office of Surface Mining Reclamation 00:31:47.560 --> 00:31:50.740 and Enforcement approved the amendments on December 1st. 00:31:50.740 --> 00:31:53.490 Staff recommends that the Commission adopt the amendments 00:31:53.490 --> 00:31:55.620 without changes to the proposed tax. 00:31:55.620 --> 00:31:56.840 May I answer any questions? 00:31:56.840 --> 00:31:57.830 Thank you. 00:31:57.830 --> 00:31:59.133 Are there any questions? 00:32:00.000 --> 00:32:01.869 I move we approve staff's recommendation. 00:32:01.869 --> 00:32:03.103 Is there a second? 00:32:03.103 --> 00:32:03.936 Second 00:32:03.936 --> 00:32:05.190 Second by Commissioner Sitton. 00:32:05.190 --> 00:32:06.728 All those in favor, say aye. 00:32:06.728 --> 00:32:07.561 Aye. 00:32:07.561 --> 00:32:08.394 Aye. 00:32:08.394 --> 00:32:09.227 Aye. 00:32:09.227 --> 00:32:10.060 Motion passes, that item is approved. 00:32:10.060 --> 00:32:11.247 Thank you, Haley. 00:32:11.247 --> 00:32:12.080 Thank you. 00:32:12.080 --> 00:32:12.913 Item 347. 00:32:12.913 --> 00:32:13.746 Callie. 00:32:13.746 --> 00:32:14.640 Yes, thank you. 00:32:14.640 --> 00:32:18.798 Keith Mann we'll be presenting agenda item 347. 00:32:18.798 --> 00:32:21.233 Keith, we are ready when you are. 00:32:21.233 --> 00:32:22.915 Morning Keith. 00:32:22.915 --> 00:32:23.766 Morning. 00:32:23.766 --> 00:32:24.860 Good morning, chairman and Commissioners. 00:32:24.860 --> 00:32:26.420 For the record, my name is Keith Mann, 00:32:26.420 --> 00:32:28.040 with the Oil and Gas Division. 00:32:28.040 --> 00:32:30.810 Item 347 is the oil field clean-up programs. 00:32:30.810 --> 00:32:33.850 Fourth quarter status report for fiscal year 2020. 00:32:33.850 --> 00:32:36.720 We're in the fourth quarter of the fiscal year, 2020 00:32:36.720 --> 00:32:39.770 plenty operations were completed and files were closed, 00:32:39.770 --> 00:32:42.760 on 445 wells at a cost of $9,6382. 00:32:46.020 --> 00:32:48.500 This includes only those wells that were plugged, 00:32:48.500 --> 00:32:50.340 in the (indistinct) contractor, 00:32:50.340 --> 00:32:53.180 and approved for payment by field operations. 00:32:53.180 --> 00:32:56.250 During the same period, 566 new wells were approved 00:32:56.250 --> 00:32:58.250 for plugging with state funds. 00:32:58.250 --> 00:33:02.290 A total of 1,498 wells are physically plugged, 00:33:02.290 --> 00:33:04.020 in fiscal year 2020. 00:33:04.020 --> 00:33:09.020 Of which 1,477 were closed, at a cost of $30,700,941. 00:33:12.870 --> 00:33:14.800 Certain mediations performance during the fourth quarter 00:33:14.800 --> 00:33:18.340 included, 70 cleanup activities completed and closed 00:33:18.340 --> 00:33:23.340 at a cost of $6,474,522. 00:33:23.530 --> 00:33:26.780 67 of these activities utilize Oil & Gas regulation 00:33:26.780 --> 00:33:27.940 and cleanup funds. 00:33:27.940 --> 00:33:30.300 All three use grant funds. 00:33:30.300 --> 00:33:32.680 An additional 35 new activities were approved 00:33:32.680 --> 00:33:33.873 during the same period. 00:33:34.750 --> 00:33:37.220 The fiscal year 2020 performance (indistinct) included 00:33:37.220 --> 00:33:41.260 a total of, 58 cleanup activities at a cost of $8,535,828. 00:33:43.770 --> 00:33:45.393 May I answer any questions? 00:33:46.710 --> 00:33:47.543 Thank you. 00:33:48.720 --> 00:33:50.840 A lot of good things that we're doing that people forget. 00:33:50.840 --> 00:33:51.673 Yes. 00:33:51.673 --> 00:33:52.506 So I appreciate it. 00:33:52.506 --> 00:33:54.480 Anybody have any questions? 00:33:54.480 --> 00:33:55.762 Great, thank you for your work. 00:33:55.762 --> 00:33:56.988 Appreciate it Keith. 00:33:56.988 --> 00:33:58.019 Thank you. 00:33:58.019 --> 00:33:59.852 All right, item 348. 00:34:01.581 --> 00:34:02.414 Thank you. 00:34:02.414 --> 00:34:07.040 Paul Dubois will be presenting agenda item 348 and 349. 00:34:07.040 --> 00:34:08.703 Paul, we are ready when you are. 00:34:10.240 --> 00:34:11.817 Morning chairman Commissioners. 00:34:11.817 --> 00:34:13.740 For the record my name is Paul Dubois. 00:34:13.740 --> 00:34:15.810 I'm the assistant director for technical permitting 00:34:15.810 --> 00:34:17.173 in the Oil & Gas Division. 00:34:18.210 --> 00:34:21.640 For item 348, Oil & Gas Division is preparing to 00:34:21.640 --> 00:34:24.430 make non-substantive changes to the following 00:34:24.430 --> 00:34:26.090 Oil & Gas forms. 00:34:26.090 --> 00:34:29.110 Form W-1H the application for permit to drill, 00:34:29.110 --> 00:34:30.563 recomplete, or reenter. 00:34:32.320 --> 00:34:33.764 I'm sorry form W-1. 00:34:33.764 --> 00:34:37.500 Form W-1H application for permit to drill, recomplete, 00:34:37.500 --> 00:34:40.540 or reenter supplemental horizontal wells information. 00:34:40.540 --> 00:34:44.010 Form W-1D the application for permit to drill, 00:34:44.010 --> 00:34:46.900 recomplete, or reenter supplemental directional 00:34:46.900 --> 00:34:48.600 well information. 00:34:48.600 --> 00:34:52.630 Form P-1B the producers monthly supplement report. 00:34:52.630 --> 00:34:55.860 Form G-3 gas storage data sheet. 00:34:55.860 --> 00:35:00.360 Form P-7 new field designation and or discovery allowable 00:35:00.360 --> 00:35:01.980 application. 00:35:01.980 --> 00:35:04.610 Form R-1 monthly report for operations, 00:35:04.610 --> 00:35:06.143 statement for refineries. 00:35:07.130 --> 00:35:10.680 Form R-3 monthly report for gas processing plants. 00:35:10.680 --> 00:35:13.480 Form W-5 packer setting report. 00:35:13.480 --> 00:35:16.333 And form W-7 bottom hole pressure report. 00:35:17.180 --> 00:35:19.810 These forms were identified as careless during a review 00:35:19.810 --> 00:35:21.863 of all forms in the Oil & Gas Division. 00:35:22.700 --> 00:35:25.010 The following non-substantive changes will be 00:35:25.010 --> 00:35:30.010 made to correct typos, make formal address changes, 00:35:30.010 --> 00:35:32.800 remove old form references, 00:35:32.800 --> 00:35:35.210 align with existing online systems, 00:35:35.210 --> 00:35:37.640 and update the new revision date. 00:35:37.640 --> 00:35:40.330 With your approval, we will revise these forms immediately 00:35:40.330 --> 00:35:43.500 and upload the revised forms to the Commission website. 00:35:43.500 --> 00:35:46.240 I'm available to answer your questions. 00:35:46.240 --> 00:35:48.750 Are there any questions? 00:35:48.750 --> 00:35:50.871 I move we approve staff recommendations. 00:35:50.871 --> 00:35:51.998 Is there a second? 00:35:51.998 --> 00:35:52.950 Second. 00:35:52.950 --> 00:35:54.670 Second by Commissioner Christian. 00:35:54.670 --> 00:35:56.089 All those in favor say aye. 00:35:56.089 --> 00:35:56.922 Aye. 00:35:56.922 --> 00:35:57.755 Aye. 00:35:57.755 --> 00:35:58.588 Aye. 00:35:58.588 --> 00:36:00.100 Motion passes that item is approved. 00:36:00.100 --> 00:36:01.200 Paul 349 00:36:02.260 --> 00:36:06.760 Item 349, the staff's request to propose changes to form 00:36:06.760 --> 00:36:08.990 PR, the monthly production report, 00:36:08.990 --> 00:36:12.033 for public comment on the Railroad Commission's website. 00:36:12.930 --> 00:36:16.190 The proposed revisions will support the RSCs regulation 00:36:16.190 --> 00:36:19.680 of flaring and venting of produced natural gas. 00:36:19.680 --> 00:36:23.070 The proposed revisions are to the form PR instructions, 00:36:23.070 --> 00:36:25.480 and how operators complete the form. 00:36:25.480 --> 00:36:27.550 Not to the structure of the form itself, 00:36:27.550 --> 00:36:30.143 other than the form of revision date. 00:36:31.210 --> 00:36:33.610 The proposed revisions include three changes 00:36:33.610 --> 00:36:35.223 to the form PR instructions. 00:36:36.910 --> 00:36:40.480 Disposition code four, which is currently used to report 00:36:40.480 --> 00:36:43.020 the volume of gas that was vented or flared 00:36:43.020 --> 00:36:44.193 will be discontinued. 00:36:45.630 --> 00:36:48.360 Two new disposition codes will be implemented to 00:36:48.360 --> 00:36:53.360 allow operators to allocate gas between venting and flaring. 00:36:54.200 --> 00:36:57.830 Or gas that was flared, disposition code 10 will be used. 00:36:57.830 --> 00:37:02.660 Or gas that was vented disposition code 11 will be used. 00:37:02.660 --> 00:37:05.080 This change will allow the Commission to distinguish 00:37:05.080 --> 00:37:08.403 the legal disposition of gas that was flared and vented. 00:37:10.410 --> 00:37:13.640 And finally, an operator will be required to enter one 00:37:13.640 --> 00:37:16.970 or more two letter codes to the existing remarks field 00:37:16.970 --> 00:37:20.170 on the form when gas is allocated to disposition codes 00:37:20.170 --> 00:37:21.033 and/or 11. 00:37:21.940 --> 00:37:24.250 The two letter codes correspond to the authority 00:37:24.250 --> 00:37:27.150 under which the gas was flared or vented, 00:37:27.150 --> 00:37:28.890 and include the following: 00:37:28.890 --> 00:37:31.610 AR authorized by rule. 00:37:31.610 --> 00:37:34.830 AE authorized by exception. 00:37:34.830 --> 00:37:35.880 EP exception pending. 00:37:37.977 --> 00:37:39.603 And EX exempt. 00:37:40.500 --> 00:37:42.748 The current four PR instructions require an operator 00:37:42.748 --> 00:37:45.850 to indicate why the gas was vented or flared 00:37:45.850 --> 00:37:48.500 in the remarks field on foreign PR. 00:37:48.500 --> 00:37:51.810 The proposed revision makes these remarks uniform, 00:37:51.810 --> 00:37:54.390 by requiring categorization of the authorization 00:37:54.390 --> 00:37:55.423 for the release. 00:37:56.380 --> 00:37:59.680 Following a 30 day posting on the Commission's website, 00:37:59.680 --> 00:38:02.430 Oil & Gas staff will review the comments if any, 00:38:02.430 --> 00:38:05.360 and make necessary changes to the proposal. 00:38:05.360 --> 00:38:07.500 Then Oil & Gas staff will consider requesting 00:38:07.500 --> 00:38:11.220 adoption the revised form PR monthly production report 00:38:11.220 --> 00:38:13.270 at the next available conference. 00:38:13.270 --> 00:38:15.220 I'm available to answer your questions. 00:38:16.450 --> 00:38:17.750 Are there any questions? 00:38:18.650 --> 00:38:21.410 Thank you for the work on both of these. 00:38:21.410 --> 00:38:23.600 I move we approve the staff's recommendation. 00:38:23.600 --> 00:38:24.500 Is there a second. 00:38:25.407 --> 00:38:26.240 Second. 00:38:26.240 --> 00:38:27.410 Second by Commissioner Sitton. 00:38:27.410 --> 00:38:28.590 All those in favor say aye. 00:38:28.590 --> 00:38:29.423 Aye. 00:38:29.423 --> 00:38:30.256 Aye. 00:38:30.256 --> 00:38:31.089 Aye. 00:38:31.089 --> 00:38:32.570 Motion passes, that item is approved. 00:38:32.570 --> 00:38:33.840 Thank you, Paul. 00:38:33.840 --> 00:38:34.673 All right. 00:38:34.673 --> 00:38:37.820 Item 350 Yes, thank you. 00:38:37.820 --> 00:38:41.363 Kari French will be presenting agenda item 350. 00:38:42.350 --> 00:38:44.333 Kari, we are ready when you are. 00:38:45.730 --> 00:38:47.487 Good morning, chairman Commissioners. 00:38:47.487 --> 00:38:49.640 For for the record, my name is Kari French. 00:38:49.640 --> 00:38:52.170 I'm the director of the Oversight and Safety Division. 00:38:52.170 --> 00:38:56.270 And I will be presenting agenda item 350 today. 00:38:56.270 --> 00:38:58.790 This morning, I bring to you for your signature, 00:38:58.790 --> 00:39:01.590 a letter approving the role of the Texas Energy 00:39:01.590 --> 00:39:04.760 Reliability Council, also known as TERC. 00:39:04.760 --> 00:39:07.430 The role they play in the allocation of natural gas 00:39:07.430 --> 00:39:11.590 during emergencies and recognizing the TERC membership. 00:39:11.590 --> 00:39:14.340 This letter also recognizes the leadership 00:39:14.340 --> 00:39:17.670 and dedication of outgoing Chairman, Dick Erskine, 00:39:17.670 --> 00:39:22.090 and approves the Chairmanship of Jim Cisarik. 00:39:22.090 --> 00:39:24.420 Chairmanship of the reliability council, 00:39:24.420 --> 00:39:26.280 is a voluntary position. 00:39:26.280 --> 00:39:29.570 And I would like to thank Dick Erskine for his contributions 00:39:29.570 --> 00:39:31.880 to the mission of the reliability council 00:39:31.880 --> 00:39:34.090 over the last two years. 00:39:34.090 --> 00:39:37.120 I also would like to thank Jim Cisarik for his willingness 00:39:37.120 --> 00:39:38.700 to step into the chairmanship, 00:39:38.700 --> 00:39:40.850 and know that under his guidance, 00:39:40.850 --> 00:39:43.570 the members of the reliability council will continue 00:39:43.570 --> 00:39:45.750 to ensure that high priority, 00:39:45.750 --> 00:39:49.150 human needs are met in the event of a necessary curtailment 00:39:49.150 --> 00:39:51.950 of gas distribution, or supply. 00:39:51.950 --> 00:39:53.380 If there are no questions, 00:39:53.380 --> 00:39:56.030 I would appreciate your consideration of this matter. 00:39:57.260 --> 00:39:58.190 Thank you Kari. 00:39:58.190 --> 00:39:59.393 Are there any questions? 00:40:00.440 --> 00:40:01.580 This is an important group, 00:40:01.580 --> 00:40:03.950 and I appreciate all of the people who work on it. 00:40:03.950 --> 00:40:08.660 So, and thank you to Dick for his service. 00:40:08.660 --> 00:40:10.950 I guess he really thinks he's gonna retire now. 00:40:10.950 --> 00:40:12.340 I don't know that happened. 00:40:12.340 --> 00:40:13.930 And for Jim for stepping in. 00:40:13.930 --> 00:40:17.890 So both good folks who have have a lot of good history 00:40:17.890 --> 00:40:18.723 in this industry. 00:40:18.723 --> 00:40:21.630 So, I move we approve staff's recommendation. 00:40:21.630 --> 00:40:22.737 Is there a second? 00:40:22.737 --> 00:40:23.570 Second. 00:40:23.570 --> 00:40:24.990 Second by Commissioner Christian. 00:40:24.990 --> 00:40:26.572 All those in favor, say aye. 00:40:26.572 --> 00:40:27.405 Aye. 00:40:27.405 --> 00:40:28.238 Aye. 00:40:28.238 --> 00:40:29.071 Aye. 00:40:29.071 --> 00:40:29.904 Thank you Kari. 00:40:29.904 --> 00:40:30.737 That item is approved. 00:40:30.737 --> 00:40:32.120 Thank you so much. 00:40:32.120 --> 00:40:36.410 All right, item 351 is our public participation item. 00:40:36.410 --> 00:40:39.530 And no one's registered indicating they wish to speak. 00:40:39.530 --> 00:40:42.100 Item 352 is the executive session, 00:40:42.100 --> 00:40:43.910 which we won't be going into today. 00:40:43.910 --> 00:40:47.060 And, is there anything else that we have today? 00:40:47.060 --> 00:40:48.042 There is. 00:40:48.042 --> 00:40:51.612 Christi, mind if you all would indulge me for a few minutes. 00:40:51.612 --> 00:40:52.980 Sure. 00:40:52.980 --> 00:40:54.580 Well, I may have noticed that this will be my last 00:40:54.580 --> 00:40:55.500 conference today. 00:40:55.500 --> 00:41:00.090 And I thought about what comments to make here. 00:41:00.090 --> 00:41:04.100 And it is, as I've watched elected officials come and go 00:41:04.100 --> 00:41:04.933 over the years. 00:41:06.270 --> 00:41:08.280 It strikes me that one thing very unique about 00:41:08.280 --> 00:41:09.900 the Railroad Commission is that, 00:41:09.900 --> 00:41:11.453 when serving as a Commissioner, 00:41:12.540 --> 00:41:14.300 unlike other elected official jobs, 00:41:14.300 --> 00:41:16.610 there is a group of people that really have a good sense 00:41:16.610 --> 00:41:18.810 of whether or not we do a good job. 00:41:18.810 --> 00:41:19.970 I mean, our agency is ... 00:41:19.970 --> 00:41:23.070 This agency I should say, is very narrow in its scope. 00:41:23.070 --> 00:41:26.210 And our staff here, our team here, 00:41:26.210 --> 00:41:28.050 they're very effected by what we do, 00:41:28.050 --> 00:41:29.770 and they are very in tune with what we do. 00:41:29.770 --> 00:41:33.720 And so, I think the more thing to do, 00:41:33.720 --> 00:41:36.750 is to recognize the true excellence of the people 00:41:36.750 --> 00:41:38.300 that work here. 00:41:38.300 --> 00:41:40.920 When I first got to the Railroad Commission, 00:41:40.920 --> 00:41:41.753 and people would ask me all the time, 00:41:41.753 --> 00:41:43.530 "Hey Ryan, what things surprise you?" 00:41:43.530 --> 00:41:45.650 And even though I've worked around the Oil & Gas industry 00:41:45.650 --> 00:41:48.140 for 20 years prior to coming here, 00:41:48.140 --> 00:41:53.140 I have constantly been struck by the level of knowledge 00:41:53.620 --> 00:41:58.120 and commitment to doing excellent work that defines 00:41:58.120 --> 00:42:01.870 our staff at the Texas Railroad Commission. 00:42:01.870 --> 00:42:04.420 I think it was Thomas Jefferson who said something to the 00:42:04.420 --> 00:42:07.420 effect of our political system works its best, 00:42:07.420 --> 00:42:10.960 when those in office approach these jobs, 00:42:10.960 --> 00:42:15.370 not as who you are, but just what you do temporarily. 00:42:15.370 --> 00:42:17.490 And yes, so many the people who are here part of the 00:42:17.490 --> 00:42:21.590 Railroad Commission team, they're here for 10, 20, 30 years. 00:42:21.590 --> 00:42:24.460 And in particular, recognizing a few that I got to work 00:42:24.460 --> 00:42:25.330 with personally. 00:42:25.330 --> 00:42:27.440 First of all, Callie (indistinct), 00:42:27.440 --> 00:42:29.938 you've only been our secretary, 00:42:29.938 --> 00:42:31.930 our Commissioner secretary for, 00:42:31.930 --> 00:42:34.520 gosh, I don't wanna say maybe a year or a little longer now. 00:42:34.520 --> 00:42:36.450 But, you always bring a smile. 00:42:36.450 --> 00:42:37.833 You are always pleasant. 00:42:39.563 --> 00:42:41.940 It's just great to interact with you every time. 00:42:41.940 --> 00:42:44.040 In technical permitting, Tiffany Amberson, 00:42:45.841 --> 00:42:49.090 your knowledge, and your directness about expectations, 00:42:49.090 --> 00:42:50.510 I find that every time I get to talk to you, 00:42:50.510 --> 00:42:52.730 you have so much confidence in what you do, 00:42:52.730 --> 00:42:54.650 and how you do it. 00:42:54.650 --> 00:42:55.970 Lorenzo Gaza, Joseph Dooley, 00:42:55.970 --> 00:42:57.670 our assistant Oil & Gas directors. 00:42:58.560 --> 00:43:01.760 In all of the time I've gotten to work with the two of you, 00:43:01.760 --> 00:43:04.070 once again, a great handle on the operations that 00:43:04.070 --> 00:43:05.210 you've been responsible for. 00:43:05.210 --> 00:43:08.940 If I've ever had questions, you are very quick to respond, 00:43:08.940 --> 00:43:11.083 always with a smile, always with patience. 00:43:12.146 --> 00:43:15.160 (indistinct), when it comes to talking about 00:43:15.160 --> 00:43:18.710 frequent flyers, your ability to kind of navigate. 00:43:18.710 --> 00:43:22.930 You're those operators who may be struggling to ... 00:43:22.930 --> 00:43:23.860 Because of some instance, 00:43:23.860 --> 00:43:25.600 but really are doing the right things. 00:43:25.600 --> 00:43:27.930 And those who we seem to have to deal with a lot. 00:43:27.930 --> 00:43:31.080 Your insight into that has been more than educational. 00:43:31.080 --> 00:43:33.740 It's been so valuable to us. 00:43:33.740 --> 00:43:38.270 Clay Woodul is we worked on ramping up our well 00:43:38.270 --> 00:43:42.390 plugging program, you were always willing to have those 00:43:42.390 --> 00:43:44.750 discussions and be challenged. 00:43:44.750 --> 00:43:48.790 And I love the energy with what you present on those topics 00:43:48.790 --> 00:43:50.790 about how we're doing and the numbers of wells 00:43:50.790 --> 00:43:52.070 were getting plugged. 00:43:52.070 --> 00:43:53.960 From a technical perspective expertise, 00:43:53.960 --> 00:43:58.170 Leslie Savage your dedication for, I don't know, 35 years. 00:43:58.170 --> 00:44:00.080 Your knowledge of the geology, 00:44:00.080 --> 00:44:01.520 it's humbling to be around you. 00:44:01.520 --> 00:44:04.360 Paul Dubois, one of my most proud moments as a 00:44:04.360 --> 00:44:06.970 Railroad Commissioner was when I as a professional engineer, 00:44:06.970 --> 00:44:09.860 got to turn in my letter of recommendation for you to get 00:44:09.860 --> 00:44:10.820 your PE license. 00:44:10.820 --> 00:44:13.050 Once again, working alongside you has been 00:44:13.050 --> 00:44:14.720 a constant education. 00:44:14.720 --> 00:44:15.820 All of our district directors. 00:44:15.820 --> 00:44:19.110 And when I've gotten a chance to get out into the 00:44:19.110 --> 00:44:21.660 district offices, and interact with you, 00:44:21.660 --> 00:44:23.090 man, it's just been ... 00:44:23.090 --> 00:44:24.500 I wish I could let you all by name. 00:44:24.500 --> 00:44:26.920 One in particular and not to separate USI, 00:44:26.920 --> 00:44:29.690 but Travis Baer in San Antonio. 00:44:29.690 --> 00:44:31.990 A couple of times we got to work together with Travis, 00:44:31.990 --> 00:44:33.885 it's just so neat. 00:44:33.885 --> 00:44:37.010 I feel like I should just carry your bags, when I'm out. 00:44:37.010 --> 00:44:39.640 Because you seem to always have a good handle 00:44:39.640 --> 00:44:43.100 on what's going on in the area and serve the public so well. 00:44:43.100 --> 00:44:45.590 On Hearings division, Kristi Reed, Dana Lewis, 00:44:45.590 --> 00:44:47.733 and all of the hearings examiners, 00:44:48.880 --> 00:44:51.670 I know that every day most of you must have opportunities 00:44:51.670 --> 00:44:53.630 to go somewhere else for more money because of 00:44:53.630 --> 00:44:56.330 your knowledge, and the work that you do, 00:44:56.330 --> 00:44:59.790 to document these cases and deal with both the politics, 00:44:59.790 --> 00:45:02.143 and the technical issues, and follow the rules. 00:45:03.410 --> 00:45:05.800 Once again, it's a pleasure to watch. 00:45:05.800 --> 00:45:09.570 Ryan and Harris, as we have ramped up our IT program, 00:45:09.570 --> 00:45:11.230 and things have changed, not ... 00:45:11.230 --> 00:45:15.030 You have to strike the balance of what do we do today 00:45:15.030 --> 00:45:17.620 in short-term to react to some of the budget items 00:45:17.620 --> 00:45:18.453 that we get. 00:45:18.453 --> 00:45:23.209 And yet you do that with such consistency, 00:45:23.209 --> 00:45:27.080 as we strategize short-term and long-term needs. 00:45:27.080 --> 00:45:32.080 Kari, French, your thoughtfulness, your class constantly, 00:45:33.060 --> 00:45:36.050 as I interact with you, and your advice over the years 00:45:36.050 --> 00:45:38.730 has been really ... 00:45:38.730 --> 00:45:42.500 Once again, your grace under the dealings of politics 00:45:42.500 --> 00:45:44.240 has been really, really special. 00:45:44.240 --> 00:45:49.240 Danny Sorrells, your combination of knowledge of industry 00:45:50.100 --> 00:45:52.000 which is pretty rare because you're out there so long 00:45:52.000 --> 00:45:54.780 and you're just no nonsense approach, 00:45:54.780 --> 00:45:57.840 is not only refreshing, it kind of keeps us on our toes, 00:45:57.840 --> 00:45:58.940 and I love it. 00:45:58.940 --> 00:46:02.700 Randall Collins, you run an operation here, 00:46:02.700 --> 00:46:06.440 which is just ... You almost never hear from you, 00:46:06.440 --> 00:46:07.960 because you're just making things ... 00:46:07.960 --> 00:46:09.710 Keeping the trains running on time, 00:46:09.710 --> 00:46:10.860 if you'll pardon the pun. 00:46:10.860 --> 00:46:11.830 And I love to work with you. 00:46:11.830 --> 00:46:13.860 And finally, Wei Wang, 00:46:13.860 --> 00:46:15.670 from one of my first day here at the Commission 00:46:15.670 --> 00:46:20.670 when you were our CFO, your analytical approach 00:46:21.200 --> 00:46:24.441 to doing a job like this, I think is somewhat unique. 00:46:24.441 --> 00:46:27.500 And, I so enjoyed the exchanges over the years, 00:46:27.500 --> 00:46:32.290 talking about how you use WTI prices to sort of forecast 00:46:32.290 --> 00:46:34.840 what's going on with the Railroad Commission. 00:46:34.840 --> 00:46:35.960 That's just a few names. 00:46:35.960 --> 00:46:38.690 So many names I really should mention if ... 00:46:38.690 --> 00:46:40.880 And forgive me for not going through all of them. 00:46:40.880 --> 00:46:45.120 But I will tell you, it's probably hard for someone to come 00:46:45.120 --> 00:46:47.800 into office like this and be around such a class group 00:46:47.800 --> 00:46:50.890 of people, and not be deeply personally affected by it. 00:46:50.890 --> 00:46:53.417 I will let you all be the judge of my time here 00:46:53.417 --> 00:46:54.470 at the Commission. 00:46:54.470 --> 00:46:56.800 But let me say this, "I'm a better man, 00:46:56.800 --> 00:46:58.620 for I have gotten to work with all of you. 00:46:58.620 --> 00:46:59.960 And I am deeply thankful, 00:46:59.960 --> 00:47:02.090 for the time that you invested in me, 00:47:02.090 --> 00:47:03.820 and that you gave me, and that you honored me 00:47:03.820 --> 00:47:06.440 with your patience, and with your support. 00:47:06.440 --> 00:47:08.030 I am indebted to you all. 00:47:08.030 --> 00:47:09.740 And I wish you nothing but the best. 00:47:09.740 --> 00:47:11.430 As the Railroad Commission goes forward, 00:47:11.430 --> 00:47:15.100 you're a vital agency to such an important industry 00:47:15.100 --> 00:47:17.920 to not just our state, but our entire nation. 00:47:17.920 --> 00:47:21.460 And, you bring a level of class, that is beyond compare. 00:47:21.460 --> 00:47:25.270 God bless you, and Godspeed Take care." 00:47:25.270 --> 00:47:28.830 Thank you Ryan, for your service and for your recognition. 00:47:28.830 --> 00:47:30.110 'Cause we do have some great staff. 00:47:30.110 --> 00:47:31.430 And we appreciate your service. 00:47:31.430 --> 00:47:34.010 And Godspeed to you as well. 00:47:34.010 --> 00:47:35.760 And Merry Christmas to all. 00:47:35.760 --> 00:47:37.270 Wayne I don't know if you have anything to add. 00:47:37.270 --> 00:47:39.830 But Merry Christmas is our last conference of the year 00:47:39.830 --> 00:47:40.663 for instead. 00:47:40.663 --> 00:47:43.470 And so, normally we'd go have a Christmas party. 00:47:43.470 --> 00:47:45.900 But I don't think we get to do this year. (laughs) 00:47:45.900 --> 00:47:47.760 All my best to all, and Merry Christmas. 00:47:47.760 --> 00:47:50.627 And Ryan, it's been a pleasure working with you. 00:47:50.627 --> 00:47:53.670 All my best to you and your fine family. 00:47:53.670 --> 00:47:57.810 And a future is nothing but open book for someone 00:47:57.810 --> 00:47:59.000 with a talent you have. 00:47:59.000 --> 00:48:01.250 So God bless, have a great time. 00:48:01.250 --> 00:48:02.690 And everybody have a great holiday. 00:48:02.690 --> 00:48:04.320 And I'm the one that's festive. 00:48:04.320 --> 00:48:06.740 I know you've noticed, I've got holy in my tie. 00:48:06.740 --> 00:48:10.100 So, I'm the festive Merry Christmas guy. 00:48:10.100 --> 00:48:11.890 You're ready to go, aren't you? 00:48:11.890 --> 00:48:13.093 Well, thank you all. 00:48:14.040 --> 00:48:16.850 Let's wish for a better 2021. 00:48:16.850 --> 00:48:18.397 And everybody have a wonderful Christmas, 00:48:18.397 --> 00:48:19.900 and a wonderful holiday. 00:48:19.900 --> 00:48:21.160 Thank you all. 00:48:21.160 --> 00:48:21.993 Thank you, Callie. 00:48:21.993 --> 00:48:22.826 Merry Christmas. 00:48:22.826 --> 00:48:23.659 Merry Christmas. 00:48:23.659 --> 00:48:24.492 Thank you Chairman. 00:48:24.492 --> 00:48:25.767 Merry Christmas.