WEBVTT
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Yes.
Good morning.
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I'm sorry.
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I had technical difficulties
right at the last minute.
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Got to love those.
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I know.
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All right, whenever you're ready
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we're ready to go.
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Okay.
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Good morning.
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This is Callie Ferar,
Commission secretary.
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I'll be serving as the meeting moderator
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for today's conference.
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Just a few reminders,
when it's your time to speak
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you will be transferred
over to (indistinct).
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Callie, if you can hear
us, you've got a problem.
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Callie, we can't hear you.
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I tell you what
fellow Commissioners,
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we're in bad shape if
we have to come there
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and fix the computer system.
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That's right.
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Well, I was going to say,
I think she's gonna say,
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you'll be transferred
in when it's your turn
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and she's gonna introduce me.
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So how about we start?
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And then we can-we'll start working.
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How about that?
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She'll get it figured out.
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Sounds good.
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All right.
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So good morning.
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This is Chairman Craddick, this meeting
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of the Railroad Commission
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of Texas will come to
order to consider matters
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which have been duly posted
with the secretary of state
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for February 9th, 2021 under
a public participation policy.
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Anyone desiring to
offer public testimony
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on any items that are not noticed
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on today's agenda was
required to register in advance.
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We didn't have anyone
register in advance
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so the Commission
will consider the items
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on the agenda as posted on the agenda.
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So we're ready for
item number one, Callie,
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if you're on, great, and if you aren't,
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whoever's supposed to
be up for item number one
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we're ready for you,
John, I think it's you.
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Good morning.
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Thank you.
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Good morning, Chairman
and Commissioners.
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I'm administrative law
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Judge John Dotson
with the Hearings division.
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Agenda item 1OS4347 consolidated
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is a gas utility rate case that resulted
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in a settlement by the parties.
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West Texas gas seeks a rate increase
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for the utility service it provides
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its Texas customers based on the cost
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of providing service.
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Commission staff intervened,
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as well as a coalition
of several effected cities
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served by West Texas Gas.
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Ultimately, the parties
reached a settlement
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resolving all issues and agreeing
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to a reduced settled increase
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for West Texas Gas totaling $2,187,500.
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On January 15th, the PFD was issued
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and no exceptions were filed.
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Consistent with the PFD,
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the recommendation is
to approve the settlement,
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and today is the last
scheduled conference prior
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to the deadline for Commission action.
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I'm available for questions.
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Thank you, John.
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And I think we've got one person.
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Isn't that correct?
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Callie? That has pre-write.
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We have Kate Norman
representing West Texas Gas
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also available for questions.
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Thank you, Deanna.
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Does anybody have any questions
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of Ms.Norman or John Dotson?
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All right.
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I move, we approve the
examiners recommendation,
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is there a second?
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Second.
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Second by
Commissioner Christian.
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All those in favor, say aye.
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Aye.
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Aye.
Aye.
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Motion passes that
aye was approved.
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Thank you.
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All right.
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Presenter for number two and three.
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I'm sorry.
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Thank you.
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Jennifer Cook will be
presenting agenda item two
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through three, Jennifer,
we're ready when you are.
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Morning, Jennifer.
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Good morning.
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Good morning Chairman and Commissioners.
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I'm Jennifer Cook,
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an Administrative Law Judge
with the Hearings division.
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I am presenting items
two and three separately.
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Item two is a motion
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for rehearing filed by the protestants
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of an application of HR
Martin County Landfill LLC
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for a waste facility.
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On December 8, 2020,
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the Commission issued an
order approving an application
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of HR Martin.
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Two timely motions
for rehearing were filed.
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One filed by John W. Maybe
and Joseph Guy Maybe,
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and one filed by Edward Frank Kelton,
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Betty and Kelton Howell,
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Jeffrey M. Johnston,
and Sandra K. Johnston.
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HR Martin filed a reply
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in opposition to the motions.
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In the motions, the protestants
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alleged the following
four points of error.
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One, they claimed the additional
permit requirements added
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by the Commission in
its final order, have not
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been subjected to Commission
staff technical review
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and the protestants did not
have an opportunity to review
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and protest those additions.
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Two, the protestants complained
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there was undue reliance
on three other permits
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that were used to support
granting the application
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as consistent with those permits.
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The protestants assert
that those other permits,
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based on Commission data,
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are different from the
HR Martin proposed permit
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and should not be
considered as precedent.
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Three, the protests claim heir
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and argued the only
evidence of the record
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controverts the claim
that the three permits
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referenced service precedent,
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Four and last, the
protestants assert the revisions
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to the permit in the final order did not
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address the unlined areas
of the proposed facility.
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HR Martin asserts none of the issues
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raised in the motions
consists of new information.
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All issues raised in the
motions were already considered
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by the Commission
prior to the Commission
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issuing an order in the case.
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HR Martin maintains
there is no due process
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violation caused by the
Commission requiring more
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stringent permit conditions
than in the application
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to address concerns
weight raised by the protests.
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It is recommended that the
Commission deny the motions,
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the motions will be
overruled by operation
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of law on March 18, 2021.
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And I'm available for questions.
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Good morning,
Commissioners.
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I think I am back and
running now and good timing.
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'Cause we also have Dustin Bailey, CEO
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Luke Garrett, COO,
general counsel, George Pig,
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(dog bark)
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with HR Martin County
Landfill, George Neil,
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and Tim George local attorneys all
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for application HR
Morton County landfill, LLC.
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We also have Olga Khobar, Zahra,
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I'm sorry, I butchered that,
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and John Soul for protestants
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Maybe ranch available for questions.
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Thank you, Deanna and
Callie, are there any questions
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of the witness of the
council of witnesses?
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Are there any questions of Jennifer?
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No.
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Okay.
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All right.
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Madame Chairman,
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I move we approve the
examiners recommendation.
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And I second it.
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All right.
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We have a motion and a second.
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All those in favor, say aye.
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Aye.
Aye.
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The motion passes,
that item's approved.
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Thank you, Jennifer.
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Number three.
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Item three is a motion
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for rehearing filed by MT Energy LLC.
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On December 8, 2020,
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the Commission issued an
order denying the renewal
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of MT Energy's form P-5.
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A timely motion for rehearing
was received from MT Energy.
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Staff filed a reply
to the motion stating
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that MT Energy has
resolved all outstanding issues
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with its form P-5.
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Staff request that the motion be granted
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and the case be dismissed as moot.
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It is recommended that
the motion be granted
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and the case be dismissed as moot.
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The motion will be overruled
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by operation of law on March 18, 2021.
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And I'm available for questions.
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Thank you.
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Are there any questions?
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And I move we approve the
examiners recommendation,
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Is there a second?
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Second.
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Second by Commissioner
Christian, I wasn't looking,
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I didn't hear very good.
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Sorry.
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All in favor, say aye.
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Aye.
Aye.
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Motion passes,
that item is approved.
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Thank you, Jennifer.
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All right, Callie,
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if you could hear us,
number 4 through 19.
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And if not, we'll hear from Deanna.
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Whoever wants to
talk to us this morning.
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That'd be great.
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Thank you.
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Christie Reeve will be
presenting the agenda items
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4 through 9, Christie
we're ready when you are.
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Good morning
Chairman, Commissioners.
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I'm Christie Reeve,
Administrative Law Judge
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with the Hearings division.
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Items number 4 through 9
will be presented together
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as are all, all are derived from
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the same motion for rehearing.
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On December 8th, 2020, the
Commission signed final orders
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and numerous single
signature P-4 dockets
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transferring the subject
wells from TKP petroleum
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to Borderline operating.
00:08:53.440 --> 00:08:56.000
On December 30th, 2020, prior to the
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final orders becoming final,
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Borderline filed a
motion for rehearing.
00:09:00.810 --> 00:09:02.510
In its motion, Borderline states,
00:09:02.510 --> 00:09:05.040
subsequent to the
signing of the final orders,
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it learned that a Commission
contractor had plugged two
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of the subject wells.
00:09:09.770 --> 00:09:13.060
Borderline alleges one well
was damaged beyond repair
00:09:13.060 --> 00:09:14.260
when the casing was cut
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and unintentionally dropped down whole.
00:09:16.690 --> 00:09:18.980
Borderline filed the
motion seeking to reverse
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the final orders.
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It is recommended that
the motion be granted.
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The motion will be overruled
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by operation of law on March 18th, 2021.
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I'm available for questions.
00:09:29.530 --> 00:09:30.363
Thank you, Christie.
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Are there any questions?
00:09:31.490 --> 00:09:34.310
Yes, I do have a question.
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Commissioner, go ahead.
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I assume this means,
00:09:37.855 --> 00:09:41.007
and this is for you
the examiner, Christie,
00:09:41.007 --> 00:09:43.400
I assume this means
that the well that ended
00:09:43.400 --> 00:09:46.400
up being plugged had
an order to be plugged
00:09:46.400 --> 00:09:48.360
but that we didn't
timely get the message
00:09:48.360 --> 00:09:50.700
that a new operator
was taking over the wells,
00:09:50.700 --> 00:09:51.533
is that correct?
00:09:54.217 --> 00:09:56.850
I don't know if there
is an actual order,
00:09:56.850 --> 00:10:00.250
but the wells were
on the orphan well list,
00:10:00.250 --> 00:10:02.820
so they can be on that list without
00:10:02.820 --> 00:10:05.163
actually having a plug order on them.
00:10:06.190 --> 00:10:10.573
But when an operator
files a single signature P-4,
00:10:11.670 --> 00:10:14.270
we do send notice
to the district office.
00:10:14.270 --> 00:10:17.940
But because some of those
do not always come to fruition,
00:10:17.940 --> 00:10:20.130
it's my understanding that the district,
00:10:20.130 --> 00:10:21.350
if they already have a contract,
00:10:21.350 --> 00:10:23.010
don't stop what they're doing
00:10:23.010 --> 00:10:24.690
until they get a final order
00:10:24.690 --> 00:10:28.412
from the Commission saying
the wells have been transferred.
00:10:28.412 --> 00:10:29.245
Okay.
00:10:29.245 --> 00:10:30.216
So does that mean we'll be looking
00:10:30.216 --> 00:10:33.050
at the original operator
for reimbursement
00:10:33.050 --> 00:10:34.730
of the plugging expenses?
00:10:34.730 --> 00:10:35.990
Yes, sir.
00:10:35.990 --> 00:10:36.823
Okay.
00:10:37.700 --> 00:10:39.830
Is there any recommendations we can have
00:10:39.830 --> 00:10:44.617
from you guys about not
letting this occur in the future?
00:10:45.524 --> 00:10:47.553
I'm certain
there a possibility.
00:10:47.553 --> 00:10:51.680
I think it would require
some additional things.
00:10:51.680 --> 00:10:54.770
I'm going to say with management
00:10:54.770 --> 00:10:59.100
to some notification and coordination
00:10:59.100 --> 00:11:02.478
between the oil and gas
division and the Hearings division.
00:11:02.478 --> 00:11:03.311
Okay.
00:11:03.311 --> 00:11:05.390
Thank you very much
for explaining that to me.
00:11:05.390 --> 00:11:06.490
You're welcome, sir.
00:11:07.661 --> 00:11:09.087
Chairman, that's
all my questions.
00:11:09.087 --> 00:11:09.920
Do you have any questions?
00:11:09.920 --> 00:11:10.753
Okay.
00:11:10.753 --> 00:11:11.586
Thank you.
00:11:11.586 --> 00:11:12.419
All right.
00:11:12.419 --> 00:11:14.190
I move we approve the
examiners recommendations
00:11:14.190 --> 00:11:16.450
for items four through nine.
00:11:16.450 --> 00:11:18.189
Is there a second?
00:11:18.189 --> 00:11:19.022
I second.
00:11:19.022 --> 00:11:20.380
Second by Commissioner Wright?
00:11:20.380 --> 00:11:22.796
All those in favor, say aye.
00:11:22.796 --> 00:11:23.830
Aye.
Aye.
00:11:23.830 --> 00:11:24.663
Motion passes.
00:11:24.663 --> 00:11:25.820
Those items are approved.
00:11:25.820 --> 00:11:27.335
Thank you.
00:11:27.335 --> 00:11:28.168
Thank you.
00:11:28.168 --> 00:11:29.001
All right.
00:11:29.001 --> 00:11:30.430
We're moving to the Consent Agenda.
00:11:30.430 --> 00:11:34.030
There are 177 items
on the Consent Agenda.
00:11:34.030 --> 00:11:37.340
I know Commissioner Christian,
you had maybe a couple
00:11:37.340 --> 00:11:40.530
of comments about some
things we have on here.
00:11:40.530 --> 00:11:41.860
So you're trying to
limit me to a couple
00:11:41.860 --> 00:11:44.127
that means you're trying
to say shut up, Christian.
00:11:44.127 --> 00:11:45.153
No, a couple.
00:11:45.153 --> 00:11:46.010
Just a few.
00:11:46.010 --> 00:11:48.510
How about a few? I'll expand it.
00:11:48.510 --> 00:11:50.123
More than three! How's that?
00:11:51.750 --> 00:11:54.350
No, I think it's
important for us to realize
00:11:54.350 --> 00:11:56.660
and our constituents to realize
00:11:56.660 --> 00:11:59.036
across the state that the
Railroad Commission has
00:11:59.036 --> 00:12:01.560
been very active in
addressing the flaring issue.
00:12:01.560 --> 00:12:03.057
And one of these items addresses that,
00:12:03.057 --> 00:12:05.570
and I mentioned that,
that's why I bring it up,
00:12:05.570 --> 00:12:08.080
is we appointed a blue ribbon
task force to address that,
00:12:08.080 --> 00:12:11.230
that the industry would look into that.
00:12:11.230 --> 00:12:13.480
And my philosophy on
regulation generally is
00:12:13.480 --> 00:12:16.259
that all changes should
be consistent, predictable,
00:12:16.259 --> 00:12:18.230
and based on science.
00:12:18.230 --> 00:12:20.750
With the industry on its knees right now
00:12:20.750 --> 00:12:24.260
financially due to the demand
drop associated with COVID,
00:12:24.260 --> 00:12:26.950
I realize that any changes
we make must be done
00:12:26.950 --> 00:12:29.840
in a way that is
thoughtful and deliberate.
00:12:29.840 --> 00:12:32.200
If not, we risk killing jobs and harming
00:12:32.200 --> 00:12:34.090
our economy in Texas.
00:12:34.090 --> 00:12:35.140
I'm also cognizant
00:12:35.140 --> 00:12:38.090
that any policies that
decreased production in Texas
00:12:38.090 --> 00:12:43.090
will increase and our less
environmentally friendly regions
00:12:43.830 --> 00:12:45.233
of Texas in the world.
00:12:46.940 --> 00:12:48.770
On a lifecycle basis, Russia
00:12:48.770 --> 00:12:51.610
natural gas produced
40% more carbon emissions
00:12:51.610 --> 00:12:53.980
than American natural gas.
00:12:53.980 --> 00:12:54.940
Natural gas.
00:12:54.940 --> 00:12:57.400
Producing in America
is good for the world.
00:12:57.400 --> 00:13:00.200
We are the cleanest in the world.
00:13:00.200 --> 00:13:04.650
Our flaring emissions
went from 2.7% prior
00:13:04.650 --> 00:13:06.600
to the pandemic down to less than
00:13:06.600 --> 00:13:09.440
a half a percent as of today.
00:13:09.440 --> 00:13:10.400
I'm also cognizant
00:13:10.400 --> 00:13:13.020
that any policy that
decreased production in Texas
00:13:13.860 --> 00:13:16.060
are a problem for that world.
00:13:16.060 --> 00:13:17.920
There has been a dramatic decrease
00:13:17.920 --> 00:13:19.590
in the volume of
flaring over the last year.
00:13:19.590 --> 00:13:22.960
Our agency announced those returns,
00:13:22.960 --> 00:13:25.370
and that means that 99.5%
00:13:26.420 --> 00:13:28.767
of our natural gas
went to beneficial use.
00:13:29.800 --> 00:13:32.660
That being said, we can
always do better and want to.
00:13:32.660 --> 00:13:36.223
We must phase out flaring
for economic reasons alone.
00:13:37.340 --> 00:13:40.260
Decreasing flaring allows
more natural gas to be used
00:13:40.260 --> 00:13:42.790
for its intended purpose,
providing affordable,
00:13:42.790 --> 00:13:44.980
reliable energy for Texans.
00:13:44.980 --> 00:13:47.570
It also helps companies
get back on their feet
00:13:47.570 --> 00:13:48.861
and employ Texan workers.
00:13:48.861 --> 00:13:50.361
Hello?
00:13:52.440 --> 00:13:53.730
Are we not being heard?
00:13:53.730 --> 00:13:55.001
You are being heard.
00:13:55.001 --> 00:13:55.834
Okay.
00:13:55.834 --> 00:13:56.890
Somebody said hello!
00:13:56.890 --> 00:13:58.352
Okay.
00:13:58.352 --> 00:13:59.443
That being said, we can do better.
00:14:01.930 --> 00:14:03.390
The decreasing firings allows
00:14:03.390 --> 00:14:06.220
for natural gas to be used
for its intended purpose.
00:14:06.220 --> 00:14:07.053
Providing affordable
00:14:07.053 --> 00:14:09.800
reliable energy for Texans
also gets companies back
00:14:09.800 --> 00:14:12.470
on their feet to employ Texas workers,
00:14:12.470 --> 00:14:16.890
making them more attractive
on Wall Street, the investments.
00:14:16.890 --> 00:14:18.550
Getting an exception
to our flaring rules
00:14:18.550 --> 00:14:20.090
should not be easy.
00:14:20.090 --> 00:14:22.730
Staff should ask tougher
questions, follow up questions,
00:14:22.730 --> 00:14:24.150
and generally just dig deeper
00:14:24.150 --> 00:14:27.600
into reasons why an
exception is being sought.
00:14:27.600 --> 00:14:29.600
I'm supporting and supportive
00:14:29.600 --> 00:14:31.380
of Commissioner Pratt's request
00:14:31.380 --> 00:14:34.150
to ensure staff includes greater detail
00:14:34.150 --> 00:14:35.490
about a company's need to flare
00:14:35.490 --> 00:14:37.690
and their timeline for
having infrastructure
00:14:37.690 --> 00:14:42.350
to place to move their gas
to market and future PFDs.
00:14:42.350 --> 00:14:45.750
This will help us make better
rulings on flaring exceptions
00:14:45.750 --> 00:14:48.180
while the Commission
evaluates the new data obtained
00:14:48.180 --> 00:14:51.610
for our recent changes to form R-32.
00:14:51.610 --> 00:14:53.130
With this new data, we will be able
00:14:53.130 --> 00:14:54.960
to work with stakeholders
00:14:54.960 --> 00:14:56.210
to determine a path forward to reduce,
00:14:56.210 --> 00:14:59.303
or even eliminate, routine flaring.
00:15:00.227 --> 00:15:02.370
It's also amazing to me that we live
00:15:02.370 --> 00:15:06.080
in a day and age where we've
actually had the best decade
00:15:06.080 --> 00:15:07.830
in human history.
00:15:07.830 --> 00:15:09.600
I think we should digest that.
00:15:09.600 --> 00:15:10.433
We've just lived
00:15:10.433 --> 00:15:15.040
through the best decade
in recorded human history.
00:15:15.040 --> 00:15:16.260
Poverty around the world has gone
00:15:16.260 --> 00:15:19.470
from 40% to less than 10% today,
00:15:19.470 --> 00:15:22.050
even after the COVID pandemic.
00:15:22.050 --> 00:15:25.230
We also have the cleanest
environment in history.
00:15:25.230 --> 00:15:28.360
EPA says 30 over the past 50 years
00:15:28.360 --> 00:15:31.660
we've reduced every poisonous chemical,
00:15:31.660 --> 00:15:36.273
as identified by the EPA, by over 75%.
00:15:37.240 --> 00:15:38.650
We are sitting here looking
00:15:38.650 --> 00:15:42.340
at the panic that sometimes is used
00:15:42.340 --> 00:15:44.810
by special interests and basically both
00:15:44.810 --> 00:15:47.297
consist of, sad to say,
00:15:47.297 --> 00:15:50.210
when everything is
good, even Rex Tillerson
00:15:50.210 --> 00:15:52.630
former secretary of state,
former chair of Exxon,
00:15:52.630 --> 00:15:53.980
and the Railroad Commission agree
00:15:53.980 --> 00:15:56.650
that on flaring, as he said it,
00:15:56.650 --> 00:15:58.510
he can't identify one place
00:15:58.510 --> 00:16:02.020
water had been contaminated
and water was a big issue to us.
00:16:02.020 --> 00:16:03.350
The Railroad Commission did that study,
00:16:03.350 --> 00:16:05.100
and it showed that we couldn't identify
00:16:05.100 --> 00:16:09.580
neither primary or secondary
sources for disposal wells
00:16:09.580 --> 00:16:12.900
or injection wells of water
that had been contaminated.
00:16:12.900 --> 00:16:16.510
So the truth of the history is,
we've done a darn good job.
00:16:16.510 --> 00:16:18.440
Our industry, our, in state of Texas,
00:16:18.440 --> 00:16:20.830
has done the best job
in history doing that.
00:16:20.830 --> 00:16:23.490
But we keep seeing these red flares come
00:16:23.490 --> 00:16:26.280
up from the folks that
want to change things
00:16:26.280 --> 00:16:28.320
and stop the production of oil and gas.
00:16:28.320 --> 00:16:32.130
I'm looking just at the
national issue that most can see
00:16:32.130 --> 00:16:36.400
in 1973 Time magazine,
the big three, then '77
00:16:36.400 --> 00:16:40.290
the big three, and how to
survive the coming Ice Age.
00:16:40.290 --> 00:16:43.090
Then all of a sudden
we found that didn't work
00:16:43.090 --> 00:16:44.547
because they sent a ship of sactus
00:16:44.547 --> 00:16:46.040
and I'm afraid that UT
00:16:46.040 --> 00:16:48.140
was participating in that
one, if I remember right,
00:16:48.140 --> 00:16:51.970
down to look at the way
the icebergs were all melting
00:16:51.970 --> 00:16:55.100
at the poles, and
their ship got thrown in
00:16:55.100 --> 00:16:57.930
and had to call a tanker,
(laughs) a Naval vessel to
00:16:57.930 --> 00:17:01.879
come break them out
because it was not, not melting.
00:17:01.879 --> 00:17:03.330
It was frozen then.
00:17:03.330 --> 00:17:07.080
So then they changed
the global warming 2001
00:17:07.080 --> 00:17:08.360
be worried, be worried.
00:17:08.360 --> 00:17:10.110
Time magazine said of 2008
00:17:10.110 --> 00:17:13.140
"How to win the global war on warming".
00:17:13.140 --> 00:17:15.090
Well, that didn't really take place.
00:17:15.090 --> 00:17:17.230
So all of a sudden they started throwing
00:17:17.230 --> 00:17:20.060
up environmental changes.
00:17:20.060 --> 00:17:21.930
Then they went to water
was going to be polluted.
00:17:21.930 --> 00:17:24.530
Then we went through,
now flaring is an issue,
00:17:24.530 --> 00:17:26.040
and all of these issues are important,
00:17:26.040 --> 00:17:29.420
but the fact is our industry, our nation
00:17:29.420 --> 00:17:32.100
our technology addressed them
00:17:32.100 --> 00:17:33.940
and they've moved off the center stage.
00:17:33.940 --> 00:17:35.700
And now we're back to flaring, now,
00:17:35.700 --> 00:17:38.350
there's a big flare that's up
00:17:38.350 --> 00:17:39.457
to our legislators saying,
00:17:39.457 --> 00:17:41.520
"Oh, we must do something about this".
00:17:41.520 --> 00:17:43.910
Well, as I mentioned, we've
done something about that.
00:17:43.910 --> 00:17:46.540
The industry is
decreasing as we intend to.
00:17:46.540 --> 00:17:48.780
It's a waste of our resources.
00:17:48.780 --> 00:17:53.060
But we right now are looking at the idea
00:17:53.060 --> 00:17:57.817
that wind and solar are
getting 1,212 times more
00:17:59.130 --> 00:18:02.283
than solar gets into oil and
gas in federal tax subsidies.
00:18:03.370 --> 00:18:06.030
It's just scary and frightening
00:18:06.030 --> 00:18:09.520
when you see 1 out of 10
jobs, 30% of our Texas budget,
00:18:09.520 --> 00:18:12.370
all the rainy day fund, 50 to one return
00:18:12.370 --> 00:18:13.650
to the taxpayer from the funds
00:18:13.650 --> 00:18:15.320
they give the Railroad Commission,
00:18:15.320 --> 00:18:19.270
job refineries and all
that are under attack.
00:18:19.270 --> 00:18:21.890
When we, as an industry
should be darn proud
00:18:21.890 --> 00:18:23.270
of what we've done in this country.
00:18:23.270 --> 00:18:24.350
And as a Railroad Commission,
00:18:24.350 --> 00:18:27.040
our folks have done an excellent job.
00:18:27.040 --> 00:18:28.250
And I'm just kind of tired
00:18:28.250 --> 00:18:32.100
of the Commissioner
of seeing us be put down
00:18:32.100 --> 00:18:35.420
as polluting the world when
the facts are in opposition.
00:18:35.420 --> 00:18:39.530
In other words, fellow
Commissioners and constituents,
00:18:39.530 --> 00:18:41.270
they're lying to us when they say
00:18:41.270 --> 00:18:43.700
that we're destroying the environment.
00:18:43.700 --> 00:18:48.250
We have seen a 99%
decrease environmental deaths
00:18:48.250 --> 00:18:50.515
since the industrial revolution started.
00:18:50.515 --> 00:18:52.820
99%.
00:18:52.820 --> 00:18:56.243
So with that, I'll rest my loud mouth.
00:18:57.650 --> 00:18:58.850
Thank you,
Commissioner Christian
00:18:58.850 --> 00:19:00.880
for your comments and for your thoughts.
00:19:00.880 --> 00:19:03.310
You know, I think that we're obviously
00:19:03.310 --> 00:19:04.830
addressing flaring this morning,
00:19:04.830 --> 00:19:07.810
and there are lots of
issues that I think this agency
00:19:07.810 --> 00:19:10.350
and this industry does a good job with
00:19:10.350 --> 00:19:14.190
and we can always have
opportunity to improve, obviously
00:19:14.190 --> 00:19:15.690
and flaring being one of them.
00:19:15.690 --> 00:19:16.750
Thank you for your leadership
00:19:16.750 --> 00:19:18.330
on getting our new flaring data sheet.
00:19:18.330 --> 00:19:21.270
I think we're all ready to get more data
00:19:21.270 --> 00:19:23.930
and have be more transparent
about what's going on.
00:19:23.930 --> 00:19:25.700
And I do appreciate the staff,
00:19:25.700 --> 00:19:26.870
you mentioned that as well,
00:19:26.870 --> 00:19:29.580
that they've really been
thoughtful about looking at things.
00:19:29.580 --> 00:19:33.200
And I think we, it's
helpful to look wholistically
00:19:33.200 --> 00:19:36.390
at every case instead
of just one issue or not
00:19:36.390 --> 00:19:39.880
and maybe beef those up,
which we're talking about today.
00:19:39.880 --> 00:19:42.100
But look, it's not just
one part of the industry,
00:19:42.100 --> 00:19:44.170
it's the whole industry
who really needs to think
00:19:44.170 --> 00:19:45.003
about flaring.
00:19:45.003 --> 00:19:47.810
It's not that we aren't
connected in a lot of places,
00:19:47.810 --> 00:19:50.400
in fact, I'd say most of our pipeline,
00:19:50.400 --> 00:19:53.560
our pipeline challenges are
we don't have enough volume
00:19:53.560 --> 00:19:56.680
of ability and instead of and take away
00:19:56.680 --> 00:19:59.630
capacity instead of
takeaway capacity, we aren't
00:19:59.630 --> 00:20:01.330
we're connected a lot of places
00:20:01.330 --> 00:20:04.700
but have capacity issues
and outages as well.
00:20:04.700 --> 00:20:08.430
So I appreciate that staff and industry
00:20:08.430 --> 00:20:11.210
are both trying to be
more thoughtful about it.
00:20:11.210 --> 00:20:12.043
'Cause I agree.
00:20:12.043 --> 00:20:14.470
We don't want to flare just to flare.
00:20:14.470 --> 00:20:16.190
So I know Commissioner Wright,
00:20:16.190 --> 00:20:18.040
You've got some comments
00:20:18.040 --> 00:20:20.230
and I appreciate your
thoughtfulness as well.
00:20:20.230 --> 00:20:23.180
Since you've been on the
Commission, working on this issue.
00:20:24.250 --> 00:20:27.380
Fellow Commissioners,
I guess take a deep seat
00:20:27.380 --> 00:20:29.180
'cause mine is kind of lengthy also.
00:20:32.897 --> 00:20:36.520
And in fact, I have a few
statements that I'd like to say.
00:20:36.520 --> 00:20:38.590
I know as Commissioners, it is my duty
00:20:38.590 --> 00:20:40.710
to ensure we are doing
everything possible
00:20:40.710 --> 00:20:44.597
to utilize our natural gas
as a reliable energy source.
00:20:44.597 --> 00:20:47.150
I also know flaring exception
requests have been allowed
00:20:47.150 --> 00:20:50.180
for a host of reasons,
including system failures,
00:20:50.180 --> 00:20:51.780
emergency and pipeline issues
00:20:51.780 --> 00:20:53.893
when equated to its economic viability.
00:20:54.830 --> 00:20:57.460
I realized the practice of
obtaining two year plans
00:20:58.530 --> 00:21:00.690
become expected for those reasons.
00:21:00.690 --> 00:21:02.420
And that decisions by our producers
00:21:02.420 --> 00:21:03.680
have been based on the ability
00:21:03.680 --> 00:21:06.030
of obtaining these
lengthy, lengthy exceptions.
00:21:06.900 --> 00:21:09.160
It is certainly not my
intent to penalize our
00:21:09.160 --> 00:21:12.450
industry that drives most of
our economy here in Texas.
00:21:12.450 --> 00:21:14.429
I'll always make decisions based
00:21:14.429 --> 00:21:16.810
on what is best for Texas.
00:21:16.810 --> 00:21:18.250
In this regard, I want to ensure
00:21:18.250 --> 00:21:21.560
I have the ability to
understand each effort issues
00:21:21.560 --> 00:21:24.220
and thus ensure these
applicants continue to do their
00:21:24.220 --> 00:21:27.983
utmost best to utilize our
produced gas as energy.
00:21:29.140 --> 00:21:32.200
It is again, not my intent to
change the process midway
00:21:32.200 --> 00:21:34.775
through, when investments
made have been made based
00:21:34.775 --> 00:21:36.960
on our historical actions.
00:21:36.960 --> 00:21:38.930
I do however, want to let staff
00:21:38.930 --> 00:21:42.320
and the industry know that I
intend to continue to explore
00:21:42.320 --> 00:21:44.570
how we can allow for
flaring exceptions due
00:21:44.570 --> 00:21:47.080
to unforeseen issues while limiting
00:21:47.080 --> 00:21:50.520
or eliminating your
request for routine flaring.
00:21:50.520 --> 00:21:52.420
I stand committed to working along side
00:21:52.420 --> 00:21:55.790
the industry and our
experts to reach this goal.
00:21:55.790 --> 00:21:58.770
And will strive to
encourage this henceforth.
00:21:58.770 --> 00:22:00.020
As you may recall, I looked
00:22:00.020 --> 00:22:03.540
to pass on some of the
Statewide rule 32 exceptions
00:22:03.540 --> 00:22:05.530
through request at
our last open meeting.
00:22:05.530 --> 00:22:08.210
I did so in order to familiarize myself
00:22:08.210 --> 00:22:10.390
with the information we
require from applicants
00:22:10.390 --> 00:22:12.760
when considering their request.
00:22:12.760 --> 00:22:14.150
As I stated in January,
00:22:14.150 --> 00:22:16.960
when someone requests
an exception to the Statewide
00:22:16.960 --> 00:22:18.440
Rule 32,
00:22:18.440 --> 00:22:20.720
I want to know if and
how they are working
00:22:20.720 --> 00:22:22.170
to reduce flaring
00:22:22.170 --> 00:22:25.948
but what I see is wasting
our state's natural resource.
00:22:25.948 --> 00:22:28.670
I applaud the staff's
efforts tremendously
00:22:28.670 --> 00:22:31.970
to continue to push for
greater transparency.
00:22:31.970 --> 00:22:34.410
We need to flare and find
that information through us.
00:22:34.410 --> 00:22:37.880
As we continue to work to
identify ways alongside industry
00:22:37.880 --> 00:22:39.677
to reduce flaring.
00:22:39.677 --> 00:22:42.580
Flaring is a necessary
last resort during an upset,
00:22:42.580 --> 00:22:44.850
and we have work to do internally,
00:22:44.850 --> 00:22:46.450
and at the Commission, to ensure
00:22:46.450 --> 00:22:50.140
that we are not approving
requests that go beyond that.
00:22:50.140 --> 00:22:53.560
To that end, I have
a rather long motion.
00:22:53.560 --> 00:22:56.070
I move that we remand items
00:22:56.070 --> 00:23:01.070
number 135, 136, 138
through 142, 145, 151,
00:23:03.660 --> 00:23:05.653
and 158 for the following reasons.
00:23:06.670 --> 00:23:10.580
I move that we remand
numbers 135 and 136
00:23:10.580 --> 00:23:11.950
back to the Hearings division
00:23:11.950 --> 00:23:14.150
for the express and limited purpose
00:23:14.150 --> 00:23:15.950
of reviewing the
information in the record
00:23:15.950 --> 00:23:19.550
to determine the possibility
of getting the gas to market
00:23:19.550 --> 00:23:22.040
and or if calculations
were made to determining
00:23:22.040 --> 00:23:23.760
if a pipeline can be constructed
00:23:23.760 --> 00:23:26.990
for less than the amounts
asserted by the operator.
00:23:26.990 --> 00:23:30.060
The proposed file of
orders for these two items
00:23:30.060 --> 00:23:33.310
collectively state that the
operator proposes to flare
00:23:33.310 --> 00:23:35.230
over $1 million in natural gas
00:23:35.230 --> 00:23:38.940
because it will be too
expensive to build a pipeline.
00:23:38.940 --> 00:23:41.373
That seems worthy
of further investigation.
00:23:42.270 --> 00:23:44.173
Further, I move that we remand number
00:23:44.173 --> 00:23:49.070
138 through 142, 145, and
151 to the areas of division
00:23:49.070 --> 00:23:51.240
to investigate why
these flaring exceptions
00:23:51.240 --> 00:23:53.810
over the last four years have increased,
00:23:53.810 --> 00:23:57.410
some of them dramatically,
rather than decreased.
00:23:57.410 --> 00:23:59.720
Finally, I move to remand number 158
00:23:59.720 --> 00:24:02.213
to the Hearings division
to further investigate
00:24:02.213 --> 00:24:04.810
the possibility of either
treating the CO2 rich gas
00:24:04.810 --> 00:24:07.340
and getting it to market, or the safety
00:24:07.340 --> 00:24:09.650
of attempting to flare the CO2 rich acid
00:24:09.650 --> 00:24:12.730
if it turns out it can not
be efficiently treated.
00:24:12.730 --> 00:24:16.660
Since CO2 injection programs
are becoming more popular,
00:24:16.660 --> 00:24:19.450
I personally don't want
this sort of flaring exception
00:24:19.450 --> 00:24:21.190
authority to become routine.
00:24:21.190 --> 00:24:22.023
Thank you.
00:24:23.110 --> 00:24:24.240
So we have a motion.
00:24:24.240 --> 00:24:25.880
Is there a second?
00:24:25.880 --> 00:24:26.713
Second.
00:24:26.713 --> 00:24:28.690
Second by
Commissioner Christian.
00:24:28.690 --> 00:24:31.573
All those in favor, say aye.
00:24:31.573 --> 00:24:32.770
Aye.
Aye.
00:24:32.770 --> 00:24:33.990
Motion passes.
00:24:33.990 --> 00:24:38.990
Items 135, 136, 138 through 142,
00:24:39.062 --> 00:24:43.833
145, 151, and 158 are remanded.
00:24:46.010 --> 00:24:46.843
Okay.
00:24:49.750 --> 00:24:54.283
Now, back to items 10 through 186,
00:24:54.283 --> 00:24:58.180
I move we approve items 10 through 186
00:24:58.180 --> 00:25:01.820
except for the items which
have just been remanded.
00:25:01.820 --> 00:25:02.903
Is there a second?
00:25:03.801 --> 00:25:04.634
Second.
00:25:04.634 --> 00:25:05.870
Second by Commissioner Wright.
00:25:05.870 --> 00:25:07.823
All in favor, say aye.
00:25:07.823 --> 00:25:08.680
Aye.
Aye.
00:25:08.680 --> 00:25:11.380
Motion passes that
those items are approved.
00:25:11.380 --> 00:25:13.680
Thank you all for your work on this.
00:25:13.680 --> 00:25:16.040
Let's move to master default orders.
00:25:16.040 --> 00:25:18.380
There are 7 master default orders.
00:25:18.380 --> 00:25:22.557
I move we approve items 187 through 193.
00:25:23.490 --> 00:25:25.199
Is there a second?
00:25:25.199 --> 00:25:26.032
Second.
00:25:26.032 --> 00:25:27.430
Second by
Commissioner Christian.
00:25:27.430 --> 00:25:29.717
All in favor, say aye.
00:25:29.717 --> 00:25:30.550
Aye.
Aye.
00:25:30.550 --> 00:25:31.410
Motion passes.
00:25:31.410 --> 00:25:32.807
Those items are approved,
00:25:32.807 --> 00:25:35.380
and we're going to agree
to enforcement orders.
00:25:35.380 --> 00:25:38.940
There were 111 agreed
enforcement orders.
00:25:38.940 --> 00:25:43.150
I move we approve items 194 through 304.
00:25:43.150 --> 00:25:44.889
Is there a second?
00:25:44.889 --> 00:25:45.722
Second.
00:25:45.722 --> 00:25:46.900
Second by Commissioner Wright.
00:25:46.900 --> 00:25:48.900
All in favor, say aye.
00:25:48.900 --> 00:25:49.733
Aye.
Aye.
00:25:49.733 --> 00:25:50.566
Motion passes.
00:25:50.566 --> 00:25:52.000
Those items for approved.
00:25:52.000 --> 00:25:54.070
That concludes the
hearing section matters,
00:25:54.070 --> 00:25:56.610
and we'll now take up
our administrative agenda
00:25:56.610 --> 00:26:00.340
and Callie if you can, call up April,
00:26:00.340 --> 00:26:01.960
and April, if not, come on.
00:26:01.960 --> 00:26:05.220
We're ready for you on item 305, please.
00:26:05.220 --> 00:26:07.130
Good morning, Mr. Chairman
and Commissioners.
00:26:07.130 --> 00:26:09.380
For the record, my
name is April Richardson,
00:26:09.380 --> 00:26:12.590
director of alternative
fuel safety in the oversight,
00:26:12.590 --> 00:26:14.860
excuse me, oversight
and safety division.
00:26:14.860 --> 00:26:19.130
Item 305 is the alternative
fuel safety department's request
00:26:19.130 --> 00:26:22.930
for approval to post
proposed revisions to C
00:26:22.930 --> 00:26:27.790
and G form 1001 and L and G form 2001
00:26:27.790 --> 00:26:31.810
and the new C and G form 1001 M
00:26:31.810 --> 00:26:34.950
and L and G form 2001 M
00:26:34.950 --> 00:26:38.400
on the Commission website
for public review and comment
00:26:38.400 --> 00:26:40.400
through the end of February.
00:26:40.400 --> 00:26:43.720
We are also requesting that
if no comments are received,
00:26:43.720 --> 00:26:47.770
or only comments in support
with no suggested revisions,
00:26:47.770 --> 00:26:49.950
that the forms
automatically go into effect
00:26:49.950 --> 00:26:51.913
on March 1st of 2021.
00:26:53.210 --> 00:26:55.130
If comments are received that are not
00:26:55.130 --> 00:26:56.860
in support of the revisions,
00:26:56.860 --> 00:26:59.520
or otherwise require changes,
00:26:59.520 --> 00:27:01.670
then the forms will be
proposed for adoption
00:27:01.670 --> 00:27:03.263
at a future conference.
00:27:04.370 --> 00:27:09.020
C and G form 1001 and L and G form 2001
00:27:09.020 --> 00:27:11.350
are the applications for C and G
00:27:11.350 --> 00:27:15.090
and L and G license or license renewal.
00:27:15.090 --> 00:27:17.700
The changes proposed
to these forms are related
00:27:17.700 --> 00:27:21.510
to the Chapter 13 and 14 rule
changes that were approved
00:27:21.510 --> 00:27:25.470
at conference on January 26, 2021.
00:27:25.470 --> 00:27:26.820
They add fields to assist
00:27:26.820 --> 00:27:29.570
with the processing of the application.
00:27:29.570 --> 00:27:31.430
The changes also include updates
00:27:31.430 --> 00:27:36.430
to division and department
names, contact information,
00:27:36.504 --> 00:27:38.533
and the form instructions.
00:27:39.480 --> 00:27:44.480
C and G form 1001 M
and L and G form 2001 M
00:27:44.810 --> 00:27:47.900
are proposed new
forms created as a result
00:27:47.900 --> 00:27:51.570
of the Chapter 13 and 14 rule
changes that were approved
00:27:51.570 --> 00:27:54.450
at conference on January 26.
00:27:54.450 --> 00:27:56.570
These forms allow C and G and L and G
00:27:56.570 --> 00:28:00.390
container manufacturers
to apply for a registration
00:28:00.390 --> 00:28:04.100
or use the form to renew
an existing registration.
00:28:04.100 --> 00:28:06.430
May I answer any questions?
00:28:06.430 --> 00:28:07.263
Thank you.
00:28:07.263 --> 00:28:08.738
Are there any questions?
00:28:08.738 --> 00:28:09.571
I don't.
00:28:09.571 --> 00:28:10.404
_ All right.
00:28:10.404 --> 00:28:12.380
I move we approve the
staff's recommendation.
00:28:12.380 --> 00:28:13.727
Is there a second?
00:28:13.727 --> 00:28:14.560
Second.
00:28:14.560 --> 00:28:15.990
Second by
Commissioner Christian,
00:28:15.990 --> 00:28:18.063
all in favor, say aye.
00:28:18.063 --> 00:28:18.896
Aye.
Aye.
00:28:18.896 --> 00:28:19.729
Motion passes.
00:28:19.729 --> 00:28:20.590
That item's approved.
00:28:20.590 --> 00:28:22.220
Thank you, April.
00:28:22.220 --> 00:28:24.880
Item 306 is public participation,
00:28:24.880 --> 00:28:27.730
and I don't have anyone
registered indicating
00:28:27.730 --> 00:28:30.800
they wish to speak on
any non-posted items.
00:28:30.800 --> 00:28:33.410
Item 307 is our executive session,
00:28:33.410 --> 00:28:35.610
which we won't be going into today.
00:28:35.610 --> 00:28:38.140
Are there any other duly posted matters
00:28:38.140 --> 00:28:39.960
to be brought before the Commission?
00:28:39.960 --> 00:28:42.160
Did I miss anything this morning?
00:28:42.160 --> 00:28:43.560
All right, hearing none, this meeting
00:28:43.560 --> 00:28:46.150
of the Railroad Commission
of Texas is adjourned.
00:28:46.150 --> 00:28:46.983
Thank you all.
00:28:46.983 --> 00:28:48.040
Have a great week.
00:28:48.040 --> 00:28:49.119
Thank you.
00:28:49.119 --> 00:28:50.119
Thank you.