WEBVTT

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<v Callie>Good morning.</v>

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This is Callie Ferrar,
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.

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When it's your turn to speak,

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you'll be transferred over
to video and unmuted.

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When transferring,
during this transition,

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the speaker and audience may
experience a moment of delay;

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this is normal.

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Speakers will also
need to begin their video

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and remove themselves from mute

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for the video and audio to work.

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Permission does reserve the right

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to remove any audio or
video-sharing capabilities

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from any person if needed at any time.

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Commissioner Craddick,
we are ready when you are.

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<v ->Thank you, Callie.</v>

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Good morning.

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This is Christi Craddick.

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This meeting of the Rower
Commission of Texas

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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 23rd, 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 on today's agenda

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was required to register in advance.

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We did not have anyone
register in advance.

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The Commission will consider the items

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on the agenda as posted on the agenda.

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Callie, please call up
number one, please.

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<v Callie>Thank you.</v>

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John Godson will be
presenting agenda item one.

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John, we are ready when you are.

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<v ->Madam Chairman.</v>

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<v ->Yes, sir.</v>

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<v ->I was without power,
like I mentioned,</v>

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for all of last week
and with all respect

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unless an objection from another member,

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I move we pass on this
item for the next meeting.

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<v ->I don't have any objection.</v>

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All right, John, we're
gonna pass this week.

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Thank you.

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And I think, Callie,

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we had a couple of people pre-registered

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so we are passing this item.

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Please watch for another
posting and register again.

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We appreciate you all being involved.

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<v Callie>Yes, I'll reach
out to both gentlemen</v>

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that were on here to let them
know to rejoin another day.

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<v ->Okay, all right.</v>

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Thank you.

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Number two.

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<v ->Madam Chairman.</v>

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Again, just like the last item,

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I've not had time to research this.

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For the same reasons, I
move we pass the second item

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to the next meeting.

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<v ->Okay, that's fine.</v>

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Thank you, Robert.

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We'll see you in a week or two.

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We appreciate it.

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<v ->Thank you.</v>

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<v ->All right.</v>

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Oil and Gas Consent Agenda.

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Everybody okay going forward on those?

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All right, there are eight items

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on this Oil and Gas Consent
Agenda items 40 through 47...

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<v Callie>And Commissioners,
before approving,</v>

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we do have John Hicks
representing Driftwood Energy,

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regarding items 41 through 44,

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registered and available
for questions if needed.

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<v ->Oh, thank you.</v>

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Does anybody have any
questions for Mr. Hicks?

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<v ->No.</v>

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<v ->Okay.</v>

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I move that we approve
items 40 through 47.

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Is there a second?

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<v ->Second.</v>

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<v ->Second by
Commissioner Christian.</v>

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All those in favor, say "Aye."

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<v ->Aye.</v>

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Aye, motion passes.

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Those items are approved.

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We're going to master default
items, items 48 through 51.

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There are four of these.

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I move that we approve
items 48 through 51.

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Is there a second?

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<v ->Second.</v>

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<v ->Second by Commissioner Wright.</v>

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Is there a second?

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<v ->I just did it.</v>

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<v ->Oh, sorry, second.</v>

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All in favor, say...

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Sorry, you can tell I'm
not awake this morning.

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All in favor, say "Aye."

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<v ->Aye.</v>

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<v ->Motion passes.</v>

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Those items are approved.

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I apologize for that.

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Let's go to Agreed Enforcement Orders.

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Items 52 through 247.

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There were 196 agreed
enforcement orders.

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I move we approve items 52 through 247.

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Is there a second?

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<v ->Second.</v>

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Second by Commissioner Christian.

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All in favor, say "Aye."

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<v ->Aye.</v>

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<v ->Aye, motion passes.</v>

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Those items are approved.

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And that concludes the
hearing section matters.

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We will now take up our
administrative agenda.

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Callie, if you'll call up
whoever's doing 248 this morning.

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<v Callie>(laughs) Yes ma'am.</v>

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Thank you.

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Paul Deval will be
presenting agenda item 248.

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Paul, we are ready when you are.

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<v ->Good morning, chairman
and Commissioners.</v>

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For the record, my name is Paul Dival,

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Assistant Director of
Technical Permitting

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in the oil and gas division.

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For item 248, oil and gas division staff

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recommends the Commission adopt changes

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to the form PR monthly production report

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and to implement these
changes as follows:

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the proposed revisions

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will support the Commission's regulation

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of flaring and venting
of produced natural gas

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and are a compliment to
the recently-adopted changes

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to Form R 32.

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These changes will require operators

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to distinguish gas that is
flared from gas that is vented

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and operators will
be required to identify

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the authority under which
gas is flared and vented.

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These changes were posted
to the Commission's website

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for public comment for 30 days.

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Five sets of comments were received.

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Most of the comments
cited the industry's need

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to revise their electronic
production accounting systems

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to accommodate the
changes and requested time

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and guidance to do so.

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These changes will require
a significant modification

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to both the Commission's

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and to operator's
production reporting system.

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Therefore, we're asking the Commission

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to adopt the form now to
establish the requirements,

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but to delay implementation

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to provide time for system
modification as follows:

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Gas Disposition Code
Four will be removed

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and Disposition Codes
10 and 11 will be required

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for all filings received on
or after September 1, 2021.

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New filings for Gas
Disposition Code Four

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will not be accepted after that time.

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Operators may begin using

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the two-letter authority
codes immediately,

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but those codes will not be required

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in the remarks field of Form
PR until January 1st, 2022,

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after which all filings for Gas
Disposition Codes 10 and 11

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must contain at least one

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of the four authority codes indicated

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in the Form PR instructions.

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I'm available to answer your questions.

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<v ->Thank you, Paul.</v>

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Are there any questions?

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All right, I move

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that we approve staff's recommendation.

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Is there a second?

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<v ->Second.</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor, say "Aye."

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<v ->Aye.</v>

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Aye, motion passes.

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That item is approved.

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Thank you, Paul, for your work on this.

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We sure appreciate it.

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<v ->Madam Chairman?</v>

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<v ->Yes, sir.</v>

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<v ->I just want to
commend our staff</v>

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of what they're doing now

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and want to make sure
that this goes on record,

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I believe is a compliment to our staff,

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to the Railroad Commission of Texas.

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A lot of times when we are moving,

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as we have been this past year,

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to decrease flaring in Texas,

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when we do something
it's presented as if,

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"Oh we're folding to
political pressures,"

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and this and other,

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and indeed we follow
what the public needs

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and what safety is.

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But I want to commend our staff.

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The fact is, and there's
some bills even introduced

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over in the Texas legislature
to limit this terrible risk

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of climate catastrophe
which flaring is causing.

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Let me just say that the
Railroad Commission of Texas

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has done a darn good job,

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and I'd use a stronger language

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if I weren't on camera,

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of controlling the environmental dangers

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in the state of Texas.

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The fact is, prior to the pandemic

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when we're at full production,

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the flaring, according
to the Commission,

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was 1.7% of natural
gas was not being used

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for its full intended
purpose, being flare.

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That means at that
time, I'm from Tinny Hall.

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The math was like 98.3% of natural gas

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was going to its purpose and
cause in the state of Texas,

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and now, largely due to the downturn,

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but again, by the good work

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of our staff across the state of Texas,

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the flaring is less than one half of 1%.

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May I suggest one half of 1%

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is not an environmental catastrophe.

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And as has just been
shown, our great staff

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and workers across
the state are increasing

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to decrease that one half of 1%.

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So while there's problems in the world,

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I suggest that flaring
in the state of Texas

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is being regimented,
controlled, decreased

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and the proof is in the facts

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and there's better things
the legislature has to do

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then try to instruct the
Railroad Commission

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of how to handle our business,
which we're doing damn well.

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<v ->Thank you,
Commissioner Christian.</v>

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I think we've got great staff

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and thanks for your
work on this, by the way.

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I appreciate it.

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It's gonna be an
interesting legislative cycle.

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I thought it was gonna be quiet;

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not so much this week.

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So, Jim, do you have anything?

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I was gonna just say
a couple of comments

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about kinda what's
going on this week and

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(crosstalk)

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and if you've got something, go ahead.

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<v ->I just want to resonate
with Commissioner Christian</v>

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wonderful job that our staff is doing

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on helping improve and get
a better handle on (indistinct)

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and I commend that.

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Thank you, staff, everyone.

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<v ->Thank you.</v>

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I think Item 249 is public participation

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and no one's registered and
Item 250 was executive session.

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But before we end, I
want to thank staff again.

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Look, since Friday,
February the 12th, I guess,

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it seems like it hasn't been that long,

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but it's been a long couple 10 days,

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our staff has really
worked around the clock.

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They've gotten a lot of phone
calls from all of us, I think,

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to make sure that gas
reliability was going on

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and making sure we had
gas flowing across the state.

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I'm proud of the work this agency's done

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for the last 10 days.

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And I'm really grateful to our staff.

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All hours of the day or night
they were answering calls

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and trying to get people online,

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trying to keep people online

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and trying to keep
the lights on, literally.

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So I appreciate the work
and we're gonna have

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an interesting story to tell this week

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and I think we've got a
really good story to tell

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and they sure made us all
look good, so I appreciate that.

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So are there any
other duly posted things

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that we've got this morning?

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Nope, all right.

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Hearing none.

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This meeting of the Railroad
Commission of Texas

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is adjourned.

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Thank you all, and stay safe.

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Have a good week.

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<v ->See you later.</v>

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Bye-bye.

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<v ->Bye, thank you.</v>