WEBVTT 00:00:00.562 --> 00:00:02.390 Oh, causing trouble. 00:00:02.390 --> 00:00:03.223 Yeah. 00:00:03.223 --> 00:00:05.242 All right. Are we ready? 00:00:05.242 --> 00:00:07.490 We're ready. All right, Callie. 00:00:07.490 --> 00:00:08.637 Let's do it. 00:00:08.637 --> 00:00:09.620 Good morning. 00:00:09.620 --> 00:00:11.800 This is Callie Farrar, Commission Secretary. 00:00:11.800 --> 00:00:13.610 I'll be serving as the meeting moderator 00:00:13.610 --> 00:00:15.210 for today's conference. 00:00:15.210 --> 00:00:16.653 Just a few reminders. 00:00:17.635 --> 00:00:18.800 When it is your time to speak, 00:00:18.800 --> 00:00:21.160 you will be transferred over from guest to panelists. 00:00:21.160 --> 00:00:23.860 While transferring, the speaker and audience may experience 00:00:23.860 --> 00:00:26.330 a moment of delay, this is normal. 00:00:26.330 --> 00:00:28.580 Speakers will also need to begin their video 00:00:28.580 --> 00:00:30.870 and remove themselves from mute 00:00:30.870 --> 00:00:33.200 for the video and audio to work. 00:00:33.200 --> 00:00:35.930 Commission does reserve the right to remove any audio 00:00:35.930 --> 00:00:38.250 or video sharing capabilities from any person 00:00:38.250 --> 00:00:40.410 if needed at any time. 00:00:40.410 --> 00:00:42.930 Chairman Craddick, when are ready to begin when you are. 00:00:42.930 --> 00:00:44.370 Thank you, and good morning, Callie. 00:00:44.370 --> 00:00:45.790 This is Christi Craddick. 00:00:45.790 --> 00:00:48.060 This meeting of the Railroad Commission of Texas 00:00:48.060 --> 00:00:50.530 will come to order to consider matters 00:00:50.530 --> 00:00:53.140 which have been duly posted with the Secretary of State 00:00:53.140 --> 00:00:55.990 for June 8th, 2021. 00:00:55.990 --> 00:00:58.410 Under our public participation policy, 00:00:58.410 --> 00:01:02.000 anyone desiring to offer public testimony on any items 00:01:02.000 --> 00:01:04.540 that are not noticed on today's agenda 00:01:04.540 --> 00:01:06.810 was required to register in advance. 00:01:06.810 --> 00:01:10.280 I think we have one person who's registered in advance. 00:01:10.280 --> 00:01:12.890 The Commission will consider the items on the agenda 00:01:12.890 --> 00:01:14.673 as posted on the agenda, 00:01:14.673 --> 00:01:16.270 and, Callie, we're on number one. 00:01:16.270 --> 00:01:19.209 Good morning Christina. I already see you ready to go. 00:01:19.209 --> 00:01:20.700 (laughs) Yes. Thank you. 00:01:20.700 --> 00:01:22.650 Christina Poole is going to be presenting. 00:01:22.650 --> 00:01:25.010 Christina, we are ready when you are. 00:01:25.010 --> 00:01:26.530 Good morning, chairman and Commissioners. 00:01:26.530 --> 00:01:28.640 For the record, my name is Christina Poole 00:01:28.640 --> 00:01:30.730 and I'm with the Oversight and Safety Division. 00:01:30.730 --> 00:01:34.310 The agenda item before you is case number 5923, 00:01:34.310 --> 00:01:37.410 the application of Atmos Energy West Texas division, 00:01:37.410 --> 00:01:40.900 for test year of 2020 annual interim rate adjustment 00:01:40.900 --> 00:01:43.940 for the West Texas Triangle distribution system. 00:01:43.940 --> 00:01:46.040 This is the first interim rate adjustment 00:01:46.040 --> 00:01:49.363 since the company's last rate case, GUD number 10900. 00:01:50.690 --> 00:01:54.250 This adjustment represents an incremental rate requirement 00:01:54.250 --> 00:01:58.600 of approximately $416,183, 00:01:58.600 --> 00:02:00.880 which will be recovered from the customers 00:02:00.880 --> 00:02:03.300 under the proposed rate adjustment. 00:02:03.300 --> 00:02:06.150 The recommended adjustment does not include recovery 00:02:06.150 --> 00:02:09.380 of any costs associated with the winter weather event 00:02:09.380 --> 00:02:11.469 of February, 2021. 00:02:11.469 --> 00:02:14.480 Atmos has also stated its intention by letter 00:02:14.480 --> 00:02:18.360 to defer the effective date of the proposed IRA rate change 00:02:18.360 --> 00:02:21.570 until September 1st in recognizing the ongoing 00:02:21.570 --> 00:02:24.960 economic effects of the COVID-19 pandemic. 00:02:24.960 --> 00:02:28.210 Staff recommends approval of the interim rate adjustment. 00:02:28.210 --> 00:02:29.633 I'm available for questions. 00:02:30.480 --> 00:02:32.330 Thank you. Are there any questions? 00:02:33.320 --> 00:02:35.990 All right. I move we approve the examiner's recommendation. 00:02:35.990 --> 00:02:37.381 Is there a second? 00:02:37.381 --> 00:02:38.214 Second. 00:02:38.214 --> 00:02:39.610 Second by Commissioner Christian. 00:02:39.610 --> 00:02:41.180 All those in favor say aye. 00:02:41.180 --> 00:02:42.470 Aye. Aye. 00:02:42.470 --> 00:02:44.290 Motion passes, that item's approved. 00:02:44.290 --> 00:02:45.620 Thank you, Christina. 00:02:45.620 --> 00:02:47.410 Callie, number two. 00:02:47.410 --> 00:02:48.440 Yes. Thank you. 00:02:48.440 --> 00:02:52.110 Frank Tomicek will be presenting agenda item two. 00:02:52.110 --> 00:02:54.460 Frank we are ready when you are. 00:02:54.460 --> 00:02:55.293 Thank you, Callie. 00:02:55.293 --> 00:02:56.950 Madam Chairman, Commissioners, good morning. 00:02:56.950 --> 00:02:59.930 I'm Frank Tomicek with the Oversight and Safety Division. 00:02:59.930 --> 00:03:03.290 This morning's next agenda item is case number 5924, 00:03:03.290 --> 00:03:05.877 application made by CenterPoint Energy Entex, 00:03:05.877 --> 00:03:08.720 for a test year 2020 annual interim rate adjustment 00:03:08.720 --> 00:03:11.210 for the unincorporated areas and municipalities 00:03:11.210 --> 00:03:12.250 with ceded jurisdiction 00:03:12.250 --> 00:03:14.950 in its South Texas division service area. 00:03:14.950 --> 00:03:16.710 This is the third interim rate adjustment 00:03:16.710 --> 00:03:20.240 since the company's last rate case in GUD number 10669, 00:03:20.240 --> 00:03:22.980 which set base interim rate adjustment component. 00:03:22.980 --> 00:03:23.830 Under these factors, 00:03:23.830 --> 00:03:26.030 the company's identified an annual test year 00:03:26.030 --> 00:03:31.000 incremental rate requirement of approximately $4,602,635, 00:03:31.000 --> 00:03:35.410 of which $1,548,235 will be recovered 00:03:35.410 --> 00:03:37.760 from the environments in ceded jurisdictional customers 00:03:37.760 --> 00:03:39.580 on proposed rate adjustment. 00:03:39.580 --> 00:03:41.650 This recommended rate adjustment does not include 00:03:41.650 --> 00:03:43.200 recovery of any costs associated 00:03:43.200 --> 00:03:45.940 with the winter weather event of February 2021. 00:03:45.940 --> 00:03:47.680 Staff's review of the filing has found it 00:03:47.680 --> 00:03:50.030 to be compliant with the provisions of the group statutes, 00:03:50.030 --> 00:03:51.680 and staff is recommending approval. 00:03:51.680 --> 00:03:53.130 I can address any questions at this time. 00:03:53.130 --> 00:03:56.170 Thank you. Are there any questions? 00:03:56.170 --> 00:03:58.530 All right, I move we approve the examiners recommendation. 00:03:58.530 --> 00:03:59.733 Is there a second? 00:03:59.733 --> 00:04:00.600 Second. 00:04:00.600 --> 00:04:01.930 Second by Commissioner Wright. 00:04:01.930 --> 00:04:03.393 All in favor say aye. Aye. 00:04:04.770 --> 00:04:07.970 Motion passes. That item's approved. Thank you, Frank. 00:04:07.970 --> 00:04:11.310 Let's see, Callie, we've got Sarah's coming up 00:04:11.310 --> 00:04:12.860 for several, correct? 00:04:12.860 --> 00:04:15.670 Yes, that is correct. Thank you. 00:04:15.670 --> 00:04:18.950 Sarah Montoya-Foglesong will be presenting agenda items 00:04:18.950 --> 00:04:22.010 three, four, and six. 00:04:22.010 --> 00:04:24.390 Sarah, we are ready when you are. 00:04:24.390 --> 00:04:25.800 Thank you, Callie. 00:04:25.800 --> 00:04:27.290 Good morning, chairman and Commissioners. 00:04:27.290 --> 00:04:29.357 For the record, my name is Sarah Montoya-Foglesong, 00:04:29.357 --> 00:04:31.550 and I'm representing the market oversight section 00:04:31.550 --> 00:04:33.980 of the oversight and safety division. 00:04:33.980 --> 00:04:36.930 Item number three is case number 5813, 00:04:36.930 --> 00:04:39.227 the application of Texas Gas Service Company 00:04:39.227 --> 00:04:42.040 for test year 2020 annual interim rate adjustment 00:04:42.040 --> 00:04:43.883 for the Central Gulf service area. 00:04:45.000 --> 00:04:47.550 This case represents the first interim rate adjustment 00:04:47.550 --> 00:04:52.550 since the company's most recent rate case, GUD number 10928. 00:04:52.560 --> 00:04:54.920 This adjustment represents an incremental increase 00:04:54.920 --> 00:04:59.920 of $10,698,852, of which $834,130 is recoverable 00:05:05.270 --> 00:05:08.220 from customers subject to the order in this case. 00:05:08.220 --> 00:05:10.040 The recommended adjustment does not include 00:05:10.040 --> 00:05:11.750 recovery of any costs associated 00:05:11.750 --> 00:05:14.850 with the winter weather event of February, 2021. 00:05:14.850 --> 00:05:17.110 Staff recommends approval of the interim rate adjustment 00:05:17.110 --> 00:05:19.910 as revised, and I'm available to answer any questions. 00:05:19.910 --> 00:05:23.200 Good, there any questions? (phone rings) 00:05:23.200 --> 00:05:25.570 All right, I move we approve the examiner's recommendation. 00:05:25.570 --> 00:05:26.711 Is there a second? 00:05:26.711 --> 00:05:27.544 Second. 00:05:27.544 --> 00:05:29.120 Second by Commissioner Christian. 00:05:29.120 --> 00:05:30.925 All in favor say aye. 00:05:30.925 --> 00:05:31.758 Aye. Aye. 00:05:31.758 --> 00:05:33.709 Motion passes, that item's approved. 00:05:33.709 --> 00:05:34.970 (phone ringing) Number four. 00:05:34.970 --> 00:05:39.180 Thank you. Item number four is case number 5925. 00:05:39.180 --> 00:05:41.640 The application filed by CenterPoint Energy Entex 00:05:41.640 --> 00:05:44.398 for test year 2020 annual interim rate adjustment 00:05:44.398 --> 00:05:47.200 for the unincorporated areas of the Houston division 00:05:47.200 --> 00:05:48.980 and cities that have ceded jurisdiction 00:05:48.980 --> 00:05:51.080 to the Railroad Commission of Texas. 00:05:51.080 --> 00:05:53.780 This case represents the fourth interim rate adjustment 00:05:53.780 --> 00:05:58.780 since the company's most recent rate case, GUD number 10567. 00:05:58.826 --> 00:06:01.490 This adjustment represents an incremental increase 00:06:01.490 --> 00:06:06.490 of $13,844,809, of which $7,059,193 is recoverable 00:06:11.520 --> 00:06:14.650 from customers subject to the order in this case. 00:06:14.650 --> 00:06:16.980 The recommended adjustment does not include 00:06:16.980 --> 00:06:18.880 recovery of any costs associated 00:06:18.880 --> 00:06:21.410 with the winter weather event of 2021, 00:06:21.410 --> 00:06:22.900 and staff recommends approval 00:06:22.900 --> 00:06:24.110 of this interim rate adjustment, 00:06:24.110 --> 00:06:27.010 and I'm still available for any questions. 00:06:27.010 --> 00:06:29.520 Thank you. Are there any questions? 00:06:29.520 --> 00:06:31.910 All right, I move we approve the examiner's recommendation. 00:06:31.910 --> 00:06:33.356 Is there a second? 00:06:33.356 --> 00:06:34.340 Second. 00:06:34.340 --> 00:06:35.750 Second by Commissioner Wright. 00:06:35.750 --> 00:06:36.680 All in favor say aye. 00:06:36.680 --> 00:06:39.860 Aye. Aye. Motion passes. 00:06:39.860 --> 00:06:40.940 That item's approved, 00:06:40.940 --> 00:06:43.823 and we're passing number five, is that correct? 00:06:45.830 --> 00:06:47.430 Yes, that is correct. 00:06:47.430 --> 00:06:50.510 Staff is suggesting we pass on item five. 00:06:50.510 --> 00:06:52.940 Okay, so number six, please. 00:06:52.940 --> 00:06:57.750 Thank you, item number six is case number 5926, 00:06:57.750 --> 00:07:01.400 another application filed by CenterPoint Energy Entex. 00:07:01.400 --> 00:07:03.340 This is for the test year 2020 00:07:03.340 --> 00:07:04.670 annual interim rate adjustment 00:07:04.670 --> 00:07:07.738 for the unincorporated areas of the Texas Coast division 00:07:07.738 --> 00:07:09.670 and the cities that have ceded jurisdiction 00:07:09.670 --> 00:07:12.090 to the Railroad Commission of Texas. 00:07:12.090 --> 00:07:14.270 This case represents the fourth interim rate adjustment 00:07:14.270 --> 00:07:19.128 since the company's most recent rate case, GUD number 10567. 00:07:19.128 --> 00:07:21.820 This adjustment represents an incremental increase 00:07:21.820 --> 00:07:26.820 of $3,718,642, of which $1,359,300 is recoverable 00:07:31.300 --> 00:07:34.380 from customers subject to the order in this case. 00:07:34.380 --> 00:07:36.790 The recommended adjustment does not include recovery 00:07:36.790 --> 00:07:39.190 of any costs associated with the winter weather event 00:07:39.190 --> 00:07:41.200 of February, 2021. 00:07:41.200 --> 00:07:44.110 Staff recommends approval of this interim rate adjustment, 00:07:44.110 --> 00:07:47.670 and still I'm available if you have any questions. 00:07:47.670 --> 00:07:49.953 Thank you. Are there any questions? 00:07:49.953 --> 00:07:52.285 All right, I move we approve the examiner's recommendation. 00:07:52.285 --> 00:07:54.061 Is there a second? 00:07:54.061 --> 00:07:54.894 Second. 00:07:54.894 --> 00:07:56.350 Second by Commissioner Christian. 00:07:56.350 --> 00:07:58.220 All those in favor say aye. 00:07:58.220 --> 00:08:00.270 Aye. Aye. Motion passes. 00:08:00.270 --> 00:08:02.270 That item's approved. Thank you, Sarah. 00:08:02.270 --> 00:08:03.103 All right. Thank you. 00:08:03.103 --> 00:08:05.360 Callie, we've got seven and eight. 00:08:05.360 --> 00:08:08.370 Same person, right? Yes. Yes, same person. 00:08:08.370 --> 00:08:09.203 Thank you. 00:08:09.203 --> 00:08:11.100 Tariq Usman will be presenting 00:08:11.100 --> 00:08:12.930 agenda item seven and eight. 00:08:12.930 --> 00:08:16.623 Tariq, we are ready when you are. 00:08:18.263 --> 00:08:19.270 And it looks like we're waiting 00:08:19.270 --> 00:08:21.373 just a little bit for him to come over. 00:08:28.420 --> 00:08:30.403 Good morning Tariq. How are you today? 00:08:31.290 --> 00:08:32.810 Good morning. How are you Callie? 00:08:32.810 --> 00:08:34.763 Good. We are ready when you are. 00:08:36.620 --> 00:08:38.100 Good morning chairman and Commissioners. 00:08:38.100 --> 00:08:40.060 For the record, my name is Tariq Usman. 00:08:40.060 --> 00:08:42.510 I am representing the market oversight section 00:08:42.510 --> 00:08:44.120 of the Oversight and Safety Division. 00:08:44.120 --> 00:08:47.960 The agenda item number seven is case number 5922, 00:08:47.960 --> 00:08:50.737 the application of Atmos Energy West Texas division, 00:08:50.737 --> 00:08:53.987 for the test year 2020 annual interim rate adjustment 00:08:53.987 --> 00:08:56.943 for the unincorporated of the West Texas division. 00:08:58.130 --> 00:09:00.010 This case is the third interim rate adjustment 00:09:00.010 --> 00:09:01.810 the company has filed for the West Texas division 00:09:01.810 --> 00:09:04.990 since a final order was issued in the most recent 00:09:04.990 --> 00:09:09.570 statement of intent Gas Utility Docketed number 10743. 00:09:09.570 --> 00:09:11.700 This adjustment represent an incremental increase 00:09:11.700 --> 00:09:16.700 of $15,065,235, of which $1,266,773 is recoverable 00:09:20.596 --> 00:09:24.260 from customers subject to the order of this docket. 00:09:24.260 --> 00:09:27.025 The recommended adjustment does not include recovery 00:09:27.025 --> 00:09:29.409 of any costs associated with the winter weather event 00:09:29.409 --> 00:09:31.557 of February, 2021. 00:09:31.557 --> 00:09:34.020 I recommend approval of the interim rate adjustment. 00:09:34.020 --> 00:09:36.854 I am available to answer any questions. 00:09:36.854 --> 00:09:38.638 Thank you. Are there any questions? 00:09:38.638 --> 00:09:39.534 No. All right. 00:09:39.534 --> 00:09:41.883 I move we approve the examiner's recommendation. 00:09:41.883 --> 00:09:43.321 Is there a second? 00:09:43.321 --> 00:09:44.500 Second. Second by 00:09:44.500 --> 00:09:45.630 Commissioner Wright. 00:09:45.630 --> 00:09:47.391 All in favor say aye. 00:09:47.391 --> 00:09:48.224 Aye. Aye. 00:09:48.224 --> 00:09:50.594 Aye. Motion passes. That item's approved. 00:09:50.594 --> 00:09:52.525 Tariq, number eight, please. 00:09:52.525 --> 00:09:55.049 Item number eight is case number 5927. 00:09:55.049 --> 00:09:57.796 The application of CenterPoint Energy Entex 00:09:57.796 --> 00:10:00.846 for test year 2020 annual interim rate adjustment 00:10:00.846 --> 00:10:02.296 for the unincorporated areas 00:10:02.296 --> 00:10:04.433 of the Beaumont East Texas division 00:10:04.433 --> 00:10:06.572 and cities that have ceded jurisdiction 00:10:06.572 --> 00:10:08.420 to the Railroad Commission of Texas. 00:10:08.420 --> 00:10:10.363 This case is the first interim rate adjustment 00:10:10.363 --> 00:10:13.703 the company has filed for the Beaumont East Texas division 00:10:13.703 --> 00:10:16.095 since the final order was issued in the most recent 00:10:16.095 --> 00:10:20.780 statement of intent, Gas Utilities Docket number 10920. 00:10:20.780 --> 00:10:22.238 At the request of the company, 00:10:22.238 --> 00:10:26.867 the Commission consolidated case number 6541 and 6657, 00:10:26.867 --> 00:10:29.313 both of which were appeals of municipal denials 00:10:29.313 --> 00:10:31.836 of the interim rate adjustment. 00:10:31.836 --> 00:10:33.715 This adjustment represent a system-wide 00:10:33.715 --> 00:10:36.632 incremental increase of $5,893,107, 00:10:38.714 --> 00:10:42.797 of which $2,070,618 is recoverable from customers 00:10:44.140 --> 00:10:46.622 subject to the order of this docket. 00:10:46.622 --> 00:10:49.166 The recommended adjustment does not include recovery 00:10:49.166 --> 00:10:52.034 of any costs associated with the winter weather event 00:10:52.034 --> 00:10:53.795 of February, 2021. 00:10:53.795 --> 00:10:56.196 I recommend approval of the interim rate adjustment. 00:10:56.196 --> 00:10:58.874 I'm available to answer any questions. 00:10:58.874 --> 00:11:00.377 Thank you. Are there any questions? 00:11:00.377 --> 00:11:01.317 No. All right. 00:11:01.317 --> 00:11:03.320 I move we approve the examiner's recommendation. 00:11:03.320 --> 00:11:05.048 Is there a second? 00:11:05.048 --> 00:11:05.881 Second. 00:11:05.881 --> 00:11:07.470 Second by Commissioner Christian. 00:11:07.470 --> 00:11:09.060 All those in favor say aye. 00:11:09.060 --> 00:11:10.060 Aye. 00:11:10.060 --> 00:11:13.400 Aye. Motion passes. That item's approved. Thank you Tariq. 00:11:13.400 --> 00:11:14.330 Thank you. All right, Callie, 00:11:14.330 --> 00:11:17.970 items nine and 10, we got Veronica, I think. 00:11:17.970 --> 00:11:18.810 Yes, thank you. 00:11:18.810 --> 00:11:21.260 Veronica Ruberto will be presenting 00:11:21.260 --> 00:11:23.483 agenda items nine and 10. 00:11:24.480 --> 00:11:27.763 Veronica, we are ready when you are. 00:11:28.937 --> 00:11:31.237 It looks like we're waiting just a little bit. 00:11:32.950 --> 00:11:35.250 That delay must be quite a delay today. (laughs) 00:11:35.250 --> 00:11:37.390 Good morning, Veronica. How are you? 00:11:37.390 --> 00:11:39.050 Good morning. Thank you, Callie. 00:11:39.050 --> 00:11:40.990 Good morning chairman, Commissioners. 00:11:40.990 --> 00:11:42.660 For the record, Veronica Ruberto, 00:11:42.660 --> 00:11:45.720 Administrative Law Judge with the Hearings division. 00:11:45.720 --> 00:11:47.730 Item number nine is the application 00:11:47.730 --> 00:11:50.150 by San Miguel Electric Cooperative, Inc. 00:11:50.150 --> 00:11:54.220 requesting of case one release of reclamation obligations 00:11:54.220 --> 00:11:59.220 on 146.1 acres within San Miguel Lignite Mine, 00:11:59.350 --> 00:12:04.350 permit number 11H located in McMullen and Atascosa counties. 00:12:04.770 --> 00:12:06.360 The approved postmining land use 00:12:06.360 --> 00:12:08.746 within the subject area is pasture land. 00:12:08.746 --> 00:12:11.430 The permit area is bonded based upon 00:12:11.430 --> 00:12:13.360 the worst case bond method, 00:12:13.360 --> 00:12:15.867 so there is no eligible bond reduction 00:12:15.867 --> 00:12:18.620 until phase three release is approved. 00:12:18.620 --> 00:12:20.910 Evidence in the record supports that San Miguel 00:12:20.910 --> 00:12:22.410 has satisfied all requirements 00:12:22.410 --> 00:12:25.360 for phase one release of the subject area. 00:12:25.360 --> 00:12:27.190 After notice, no comments or requests 00:12:27.190 --> 00:12:28.730 for a hearing were received. 00:12:28.730 --> 00:12:31.950 San Miguel and staff are the only parties to the proceeding. 00:12:31.950 --> 00:12:33.510 No exceptions were filed, 00:12:33.510 --> 00:12:36.950 no changes to the current bond are requested in this docket. 00:12:36.950 --> 00:12:39.750 It is recommended that the requests for phase one release 00:12:39.750 --> 00:12:41.730 of reclamation obligations be approved 00:12:41.730 --> 00:12:45.150 and that the bond amount not be reduced at this time. 00:12:45.150 --> 00:12:47.440 I'm available for questions. 00:12:47.440 --> 00:12:49.950 Thank you. Are there any questions? 00:12:49.950 --> 00:12:52.260 Then I move we approve the examiner's recommendation. 00:12:52.260 --> 00:12:53.659 Is there a second? 00:12:53.659 --> 00:12:54.531 Second. 00:12:54.531 --> 00:12:56.250 Second by Commissioner Wright. 00:12:56.250 --> 00:12:57.792 All in favor say aye. 00:12:57.792 --> 00:12:58.625 Aye. 00:12:58.625 --> 00:13:01.120 Aye. Motion passes. That item's approved. 00:13:01.120 --> 00:13:03.290 Veronica, number 10, please. 00:13:03.290 --> 00:13:07.240 Item number 10 is the application by Farco Mining, Inc. 00:13:07.240 --> 00:13:10.701 requesting a phase three release of reclamation obligations 00:13:10.701 --> 00:13:15.694 on 531.9 acres within the Trevino Mine, 00:13:15.694 --> 00:13:19.990 permit number 45D, located in Webb county. 00:13:19.990 --> 00:13:23.029 Farco is also requesting final closure of the permit 00:13:23.029 --> 00:13:26.210 given the subject acreage represents all the acres 00:13:26.210 --> 00:13:27.780 that remain under bond. 00:13:27.780 --> 00:13:31.070 The approved postmining land use within the release area 00:13:31.070 --> 00:13:34.190 is pasture land and developed water resources. 00:13:34.190 --> 00:13:36.210 Evidence in the record supports that the Farco 00:13:36.210 --> 00:13:38.040 has satisfied all requirements 00:13:38.040 --> 00:13:40.033 for a full release of the subject area. 00:13:41.090 --> 00:13:42.740 After notice, no comments or requests 00:13:42.740 --> 00:13:43.770 for a hearing were received. 00:13:43.770 --> 00:13:46.710 Farco and staff are the only parties to the proceedings. 00:13:46.710 --> 00:13:49.293 No exceptions were filed to the proposed order. 00:13:50.520 --> 00:13:52.380 Evidence supports that the permit area 00:13:52.380 --> 00:13:53.880 has been fully reclaimed. 00:13:53.880 --> 00:13:56.133 It is recommended that the request for release 00:13:56.133 --> 00:13:58.750 for the reclamation obligations for the subject area 00:13:58.750 --> 00:14:01.630 be approved, the permit be terminated, 00:14:01.630 --> 00:14:05.040 and that Farco's surety bond be released in its entirety. 00:14:05.040 --> 00:14:07.400 I'm available for questions. 00:14:07.400 --> 00:14:09.690 Commissioners we also have Cameron Twing 00:14:09.690 --> 00:14:13.050 representing applicant Farco Mining Incorporated, 00:14:13.050 --> 00:14:15.371 registered and available for questions. 00:14:15.371 --> 00:14:16.490 Thank you, Callie. 00:14:16.490 --> 00:14:19.323 Are there any questions of the witness or Veronica? 00:14:20.170 --> 00:14:22.120 It's interesting to see this all the way through, 00:14:22.120 --> 00:14:24.930 so get to close another mine in this state. 00:14:24.930 --> 00:14:28.950 All right, I move we approve the examiner's recommendation. 00:14:28.950 --> 00:14:30.147 Is there a second? 00:14:31.135 --> 00:14:31.968 Second. 00:14:31.968 --> 00:14:33.430 Second by Commissioner Christian. 00:14:33.430 --> 00:14:35.096 All in favor say aye. 00:14:35.096 --> 00:14:37.160 Aye. Aye. Motion passes. 00:14:37.160 --> 00:14:39.560 That item's approved. Thank you, Veronica. 00:14:39.560 --> 00:14:41.210 All right, Callie, if you'll call up presenter 00:14:41.210 --> 00:14:42.933 for 11 through 30, 00:14:43.810 --> 00:14:44.740 Yes, thank you. 00:14:44.740 --> 00:14:47.240 Kristi Reeve will be presenting agenda items 00:14:47.240 --> 00:14:49.997 11 through 30, and she will also be continuing 00:14:49.997 --> 00:14:51.890 with the item 31. 00:14:51.890 --> 00:14:53.713 Kristi, we are ready when you are. 00:14:54.850 --> 00:14:56.500 Good morning chairman and Commissioners. 00:14:56.500 --> 00:14:57.870 For the record, Kristi Reeve, 00:14:57.870 --> 00:15:00.700 Administrative Law Judge with the Hearings division. 00:15:00.700 --> 00:15:04.310 I'll be presenting items number 11 through 31. 00:15:04.310 --> 00:15:08.030 Item numbers 11 through 30 will be presented together 00:15:08.030 --> 00:15:10.910 as they have common parties and facts. 00:15:10.910 --> 00:15:13.360 These items are the result of complaints filed by 00:15:13.360 --> 00:15:17.384 Texas Gulf Coast alleging Promise Energy Operations, LLC 00:15:17.384 --> 00:15:19.250 does not have a good faith claim 00:15:19.250 --> 00:15:21.920 to operate the subject leases and wells. 00:15:21.920 --> 00:15:24.420 Texas Gulf Coast provided evidence in support 00:15:24.420 --> 00:15:27.180 of its contention in the form of the unit agreement 00:15:27.180 --> 00:15:29.980 relied upon by Promise and a lack of production 00:15:29.980 --> 00:15:31.570 from the wells on the unit, 00:15:31.570 --> 00:15:34.030 such that the agreement has expired. 00:15:34.030 --> 00:15:36.700 Promise acknowledges the lack of production, 00:15:36.700 --> 00:15:39.172 but argued force majeure clause prevented 00:15:39.172 --> 00:15:41.580 the unit agreement from expiring. 00:15:41.580 --> 00:15:43.830 Promise failed to provide any legal basis 00:15:43.830 --> 00:15:45.770 in support of this argument. 00:15:45.770 --> 00:15:47.390 It is recommended the Commission find 00:15:47.390 --> 00:15:51.400 Promise failed to provide a reasonably satisfactory showing 00:15:51.400 --> 00:15:54.100 of a good faith claim to operate the wells 00:15:54.100 --> 00:15:55.960 and order the wells to be plugged and abandoned 00:15:55.960 --> 00:15:58.360 in accordance with Statewide rule 14, 00:15:58.360 --> 00:16:00.930 and the subject leases brought into compliance 00:16:00.930 --> 00:16:02.030 with Commission rules. 00:16:02.030 --> 00:16:05.850 No exceptions were filed. I'm available for questions. 00:16:05.850 --> 00:16:07.852 Commissioners, we also have Rob Hargrove 00:16:07.852 --> 00:16:09.680 representing Texas Gulf, 00:16:09.680 --> 00:16:12.152 registered and available for questions. 00:16:12.152 --> 00:16:12.985 Thank you. 00:16:12.985 --> 00:16:17.563 Are there any questions of Mr. Hargrove or Kristi? 00:16:18.980 --> 00:16:22.180 All right, I move we approve the examiner's recommendation 00:16:22.180 --> 00:16:24.500 for items 11 through 30. 00:16:24.500 --> 00:16:25.849 Is there a second? 00:16:25.849 --> 00:16:26.790 Second. 00:16:26.790 --> 00:16:28.170 Second by Commissioner Wright. 00:16:28.170 --> 00:16:29.919 All in favor say aye. 00:16:29.919 --> 00:16:32.140 Aye. Aye. Motion passes. 00:16:32.140 --> 00:16:33.970 Those items are approved. 00:16:33.970 --> 00:16:35.803 Kristi number 31, please. 00:16:36.920 --> 00:16:39.262 Number 31 is a motion for rehearing. 00:16:39.262 --> 00:16:42.871 On April 13th, 2021, the Commission entered an order 00:16:42.871 --> 00:16:45.620 approving Blackhorn's application for renewal 00:16:45.620 --> 00:16:48.610 of its commercial permit to operate an oil and gas 00:16:48.610 --> 00:16:50.452 waste stationery treatment facility 00:16:50.452 --> 00:16:53.170 in accordance with Statewide rule eight. 00:16:53.170 --> 00:16:57.220 On May 10th, 2021 protestants Calvert and Tara Jones 00:16:57.220 --> 00:16:59.860 filed a timely motion for rehearing. 00:16:59.860 --> 00:17:03.576 On May 20th, 2021, Blackhorn filed a timely response 00:17:03.576 --> 00:17:06.030 in opposition to the motion. 00:17:06.030 --> 00:17:08.340 Based on the evidence developed in the record, 00:17:08.340 --> 00:17:09.850 none of the issues raised 00:17:09.850 --> 00:17:11.850 in the motion for rehearing are new. 00:17:11.850 --> 00:17:14.260 All issues raised in the motion were already raised 00:17:14.260 --> 00:17:16.527 by the Joneses and considered by the Commission 00:17:16.527 --> 00:17:20.270 prior to the Commission issuing its order in this case. 00:17:20.270 --> 00:17:22.510 It is recommended that the motion be denied. 00:17:22.510 --> 00:17:23.760 The motion will be overruled 00:17:23.760 --> 00:17:27.410 by operation of law on July 22nd, 2021. 00:17:27.410 --> 00:17:29.063 I'm available for questions. 00:17:29.909 --> 00:17:30.742 Thank you. Commissioners, 00:17:30.742 --> 00:17:32.695 we also have Clay Nance representing 00:17:32.695 --> 00:17:35.910 Blackhorn Environmental Services, LLC, 00:17:35.910 --> 00:17:39.070 registered and available for questions as well. 00:17:39.070 --> 00:17:40.010 Thank you, Callie. 00:17:40.010 --> 00:17:42.220 Are there any questions of Mr. Nance- 00:17:42.220 --> 00:17:44.120 Madame- Or Kristi? 00:17:44.120 --> 00:17:46.100 Madame Chair, I'd like to say a few things 00:17:46.100 --> 00:17:49.840 about this facility and Just have some comments on it. 00:17:49.840 --> 00:17:52.640 While I am ready to vote on the motion, 00:17:52.640 --> 00:17:54.515 the rehearing based on the evidence presented 00:17:54.515 --> 00:17:56.750 at this hearing, I wanted to know, 00:17:56.750 --> 00:17:58.680 does both of my fellow Commissioners know 00:17:58.680 --> 00:18:02.040 that our (indistinct) section issued a permit suspension 00:18:02.040 --> 00:18:04.760 notice of violation and request for additional information 00:18:04.760 --> 00:18:07.252 to Blackhorn Environmental Services, LLC 00:18:07.252 --> 00:18:10.063 for this facility last Friday, June 4th. 00:18:11.340 --> 00:18:13.200 You probably understand that Blackhorn 00:18:13.200 --> 00:18:15.090 has requested a hearing in the matter. 00:18:15.090 --> 00:18:16.680 Blackhorn will be required to provide 00:18:16.680 --> 00:18:19.620 responsive information to prove that they have not violated 00:18:19.620 --> 00:18:21.590 the terms of its permit. 00:18:21.590 --> 00:18:24.780 The people of Texas have my word that we will continue 00:18:24.780 --> 00:18:27.070 to closely monitor this situation. 00:18:27.070 --> 00:18:30.200 With that, I'm ready to hear your motion, Chairman. 00:18:30.200 --> 00:18:32.950 Thank you. Are there any other questions or comments? 00:18:34.250 --> 00:18:35.083 All right. 00:18:35.083 --> 00:18:37.270 I move we approve the examiner's recommendation. 00:18:37.270 --> 00:18:38.928 Is there a second? 00:18:38.928 --> 00:18:39.761 Second. 00:18:39.761 --> 00:18:41.470 Second by Commissioner Christian. 00:18:41.470 --> 00:18:42.610 All in favor say aye. 00:18:42.610 --> 00:18:43.873 Aye. Aye. 00:18:43.873 --> 00:18:46.720 Aye. Motion passes. That item's approved. 00:18:46.720 --> 00:18:48.100 Thank you, Kristi. 00:18:48.100 --> 00:18:48.933 All right. Thank you. 00:18:48.933 --> 00:18:51.783 Let's move on to the oil and gas Consent Agenda. 00:18:52.690 --> 00:18:56.320 Those are items 32 through 126. 00:18:56.320 --> 00:18:59.880 There are 95 items on the Consent Agenda. 00:18:59.880 --> 00:19:02.284 Is there any comments or questions 00:19:02.284 --> 00:19:05.130 or things we need to take up individually? 00:19:05.130 --> 00:19:07.053 I just would like to reiterate again 00:19:07.053 --> 00:19:09.140 that I do have a few comments. 00:19:09.140 --> 00:19:12.660 I want to point out that almost every single application 00:19:12.660 --> 00:19:16.270 regarding state-wide rule 32, concerning flaring 00:19:16.270 --> 00:19:19.310 contains a reduction of the overall term 00:19:19.310 --> 00:19:21.970 for the flaring either by examiner recommendation 00:19:21.970 --> 00:19:24.759 or by voluntary reduction by the operators. 00:19:24.759 --> 00:19:27.490 In all cases, the operators do not consider 00:19:27.490 --> 00:19:30.408 the recommendations of our examiners to be a first. 00:19:30.408 --> 00:19:32.890 In addition, most applications contained 00:19:32.890 --> 00:19:35.750 substantial reductions in requested volumes, 00:19:35.750 --> 00:19:38.081 some by as much as 86%. 00:19:38.081 --> 00:19:40.250 There already are a couple of operators 00:19:40.250 --> 00:19:42.520 who happen to produce very poor quality gas, 00:19:42.520 --> 00:19:46.775 rich with hydrogen sulfide, carbon dioxide and/or nitrogen. 00:19:46.775 --> 00:19:49.780 Those operators don't appear to have any viable, 00:19:49.780 --> 00:19:52.780 let alone sufficient pipeline takeaway options 00:19:52.780 --> 00:19:55.860 and have instead requested flaring applications. 00:19:55.860 --> 00:19:57.879 While those couple of operators have also voluntarily 00:19:57.879 --> 00:20:00.360 reduced their terms and the volumes, 00:20:00.360 --> 00:20:02.380 I would suggest that those operators reach out 00:20:02.380 --> 00:20:05.340 to the many third party vendors who might be able 00:20:05.340 --> 00:20:08.920 to utilize this poor quality gas in unconventional ways. 00:20:08.920 --> 00:20:11.860 Such methods are becoming more and more popular 00:20:11.860 --> 00:20:14.256 to effectively address excess flaring. 00:20:14.256 --> 00:20:17.010 With that, I'm ready to hear your motion. 00:20:17.010 --> 00:20:18.348 Thank you. Any other questions 00:20:18.348 --> 00:20:20.830 or comments on these? 00:20:20.830 --> 00:20:25.820 All right. I move we approve items 32 through 126. 00:20:25.820 --> 00:20:27.134 Is there a second? 00:20:27.134 --> 00:20:27.967 Second. 00:20:27.967 --> 00:20:29.470 Second by Commissioner Wright. 00:20:29.470 --> 00:20:31.375 All in favor say aye. 00:20:31.375 --> 00:20:32.208 Aye. 00:20:32.208 --> 00:20:33.510 Aye. Motion passes. 00:20:33.510 --> 00:20:35.160 Those items are approved. 00:20:35.160 --> 00:20:38.833 We've got, let's move on to rule 15, inactive wells. 00:20:40.010 --> 00:20:45.010 Let's see, there are 23, I think, that we are gonna look at. 00:20:45.950 --> 00:20:49.100 Items one 127 through 151. 00:20:49.100 --> 00:20:52.830 Items 141 and 148 are now in compliance, 00:20:52.830 --> 00:20:57.410 so I move that we approve item 127 through 151 00:20:57.410 --> 00:21:01.360 except for items 141 and 148. 00:21:01.360 --> 00:21:02.788 Is there a second? 00:21:02.788 --> 00:21:03.740 Second. 00:21:03.740 --> 00:21:05.260 Second by Commissioner Christian. 00:21:05.260 --> 00:21:06.797 All in favor say aye. 00:21:06.797 --> 00:21:07.750 Aye. 00:21:07.750 --> 00:21:09.110 Aye. Motion passes. 00:21:09.110 --> 00:21:10.400 Those items are approved, 00:21:10.400 --> 00:21:12.815 and let's go to master default orders. 00:21:12.815 --> 00:21:15.670 There are 15 master default orders. 00:21:15.670 --> 00:21:20.670 I move we approve items 152 through 166. Is there a second? 00:21:21.272 --> 00:21:22.105 Second. 00:21:22.105 --> 00:21:23.450 Second by Commissioner Wright. 00:21:23.450 --> 00:21:25.001 All in favor say aye. 00:21:25.001 --> 00:21:25.834 Aye. 00:21:25.834 --> 00:21:27.080 Aye. Aye. 00:21:27.080 --> 00:21:28.160 Motion passes. 00:21:28.160 --> 00:21:29.510 Those items are approved, 00:21:29.510 --> 00:21:31.931 and let's go to agreed enforcement orders. 00:21:31.931 --> 00:21:34.959 There are 127 agreed enforcement orders. 00:21:34.959 --> 00:21:39.959 I move that we approve items 167 through 293. 00:21:41.010 --> 00:21:42.691 Is there a second? 00:21:42.691 --> 00:21:43.524 Second. 00:21:43.524 --> 00:21:45.330 Second by Commissioner Christian. 00:21:45.330 --> 00:21:46.270 All in favor say aye. 00:21:46.270 --> 00:21:49.210 Aye. Aye. Motion passes. 00:21:49.210 --> 00:21:50.380 Those items are approved, 00:21:50.380 --> 00:21:52.880 and that concludes the hearing sections matter. 00:21:52.880 --> 00:21:55.122 We'll now take up the administrative agenda. 00:21:55.122 --> 00:21:58.110 Callie, if you'll please call up our presenter 00:21:58.110 --> 00:21:59.543 for agenda 294. 00:21:59.543 --> 00:22:00.809 Good morning, Randall. 00:22:00.809 --> 00:22:02.579 Good morning. Quick, and already up. 00:22:02.579 --> 00:22:03.657 How are ya? (Randall laughs) 00:22:03.657 --> 00:22:05.155 Good morning Commissioner. 00:22:05.155 --> 00:22:06.350 For the record, I'm Randall Collins, 00:22:06.350 --> 00:22:08.290 chief operating officer. 00:22:08.290 --> 00:22:11.500 Item number 294 on the agenda seeks Commissioner approval 00:22:11.500 --> 00:22:14.580 of solicitations and contract amendments pursuant 00:22:14.580 --> 00:22:16.460 to the Commission's delegation of authority 00:22:16.460 --> 00:22:21.229 and section 2261.254 of the Texas Government Code. 00:22:21.229 --> 00:22:24.240 The Commission's internal delegation authority 00:22:24.240 --> 00:22:26.450 requires Commissioner approval of contracts 00:22:26.450 --> 00:22:29.160 and associated amendments greater than or equal 00:22:29.160 --> 00:22:33.190 to $1 million or contracts for outside legal services. 00:22:33.190 --> 00:22:36.750 Section 2261.254 of the Texas Government Code 00:22:36.750 --> 00:22:38.536 requires commercial approval of contracts 00:22:38.536 --> 00:22:41.523 and associated amendments greater than $1 million. 00:22:42.420 --> 00:22:45.480 At issue today are two contracts or solicitations 00:22:45.480 --> 00:22:48.490 and one amended contract for the continued development 00:22:48.490 --> 00:22:49.690 of the Lone Star system. 00:22:54.412 --> 00:22:58.900 The additional contract is for outside legal services 00:22:58.900 --> 00:23:03.840 to comply with the bill that was passed 00:23:03.840 --> 00:23:05.890 during the 87th legislature, 00:23:05.890 --> 00:23:08.870 and the necessary approvals will be in place pursuant 00:23:08.870 --> 00:23:11.710 to the Commission's delegation of authority and state law. 00:23:11.710 --> 00:23:13.650 A summary of the contracts and amendments, 00:23:13.650 --> 00:23:15.560 including the numbers and amounts, 00:23:15.560 --> 00:23:17.084 are included in your notebooks. 00:23:17.084 --> 00:23:19.028 Staff requests that the Commission 00:23:19.028 --> 00:23:21.730 to approve the contracts and amendments, 00:23:21.730 --> 00:23:24.280 and I'm available if you have any questions. 00:23:24.280 --> 00:23:26.900 Thank you. Are there any questions? 00:23:26.900 --> 00:23:29.392 All right, I move we approve staff's recommendation. 00:23:29.392 --> 00:23:30.823 Is there a second? 00:23:32.222 --> 00:23:33.055 Second. 00:23:33.055 --> 00:23:34.540 Second by Commissioner Wright. 00:23:34.540 --> 00:23:35.600 All in favor say aye. 00:23:35.600 --> 00:23:38.800 Aye. Aye. Motion passes. 00:23:38.800 --> 00:23:40.850 That item's approved. Thank you, Randall. 00:23:40.850 --> 00:23:41.710 Thank you. 00:23:41.710 --> 00:23:45.000 If you'll please call up, Callie, for 295. 00:23:45.000 --> 00:23:46.980 Morning Haley. Thank you. (laughs) 00:23:46.980 --> 00:23:50.150 Haley Cochran will be presenting agenda item 295. 00:23:50.150 --> 00:23:52.700 Haley, we are ready when you are. 00:23:52.700 --> 00:23:54.310 Good morning chairman, Commissioners. 00:23:54.310 --> 00:23:56.850 Haley Cochran with the Office of General Council. 00:23:56.850 --> 00:23:59.480 Item number 295 is staff's recommendation 00:23:59.480 --> 00:24:00.950 to publish proposed amendments 00:24:00.950 --> 00:24:04.760 to 16 Texas Administrative Code section 8.1 00:24:04.760 --> 00:24:07.670 relating to general applicability and standards. 00:24:07.670 --> 00:24:10.180 The amendments are proposed in subsection B 00:24:10.180 --> 00:24:12.670 to incorporate by reference federal pipeline 00:24:12.670 --> 00:24:15.970 safety requirements added in recent federal rulemakings. 00:24:15.970 --> 00:24:18.060 The rule would be changed to adopt the requirements 00:24:18.060 --> 00:24:21.500 by reference as of September 6th, 2021, 00:24:21.500 --> 00:24:22.840 and therefore would incorporate 00:24:22.840 --> 00:24:24.920 four recent federal rulemakings, 00:24:24.920 --> 00:24:27.540 including FMCSA's minimum safety standards 00:24:27.540 --> 00:24:30.400 for underground natural gas storage facilities. 00:24:30.400 --> 00:24:32.750 The changes to 8.1 will allow the Commission 00:24:32.750 --> 00:24:35.850 to submit a certification and agree to adopt and enforce 00:24:35.850 --> 00:24:37.922 FMCSA's regulations for intrastate 00:24:37.922 --> 00:24:40.880 underground natural gas storage facilities. 00:24:40.880 --> 00:24:42.560 Staff requests the Commission's approval 00:24:42.560 --> 00:24:43.980 to publish the proposed amendments 00:24:43.980 --> 00:24:46.370 in the Texas Register for public comment. 00:24:46.370 --> 00:24:48.510 If approved today, the proposal should appear 00:24:48.510 --> 00:24:51.060 in the June 25th issue of the Register. 00:24:51.060 --> 00:24:52.820 The proposal and an online comment form 00:24:52.820 --> 00:24:55.390 would also be made available on the Commission's website. 00:24:55.390 --> 00:24:57.480 May I answer any questions? 00:24:57.480 --> 00:25:00.060 Thank you. Are there any questions? 00:25:00.060 --> 00:25:02.530 All right, I move we approve staff recommendation. 00:25:02.530 --> 00:25:04.039 Is there a second? 00:25:04.039 --> 00:25:04.930 Second. 00:25:04.930 --> 00:25:06.400 Second by Commissioner Christian. 00:25:06.400 --> 00:25:08.387 All in favor say aye. 00:25:08.387 --> 00:25:09.410 Aye. Aye. 00:25:09.410 --> 00:25:10.930 Motion passes. That item's approved. 00:25:10.930 --> 00:25:12.560 Thank you, Haley. 00:25:12.560 --> 00:25:16.810 All right, item 296 is public participation item, 00:25:16.810 --> 00:25:19.390 and Callie, I understand we have one person 00:25:19.390 --> 00:25:20.820 that is registered. 00:25:20.820 --> 00:25:22.440 We do thank you. 00:25:22.440 --> 00:25:25.763 I'd like to introduce Emma Pabst with Sierra Club, 00:25:27.900 --> 00:25:32.900 and I believe Emma is, she won't be on video, 00:25:33.610 --> 00:25:35.620 it'll just be speaking. 00:25:35.620 --> 00:25:40.150 So if you want, Emma, you now have three minutes 00:25:40.150 --> 00:25:45.150 to speak, and if you, sorry, Chairman Craddick. 00:25:47.419 --> 00:25:49.370 (laughs) If you would like to continue. 00:25:49.370 --> 00:25:52.427 It's fine, so Emma thank you for being here. 00:25:52.427 --> 00:25:53.910 You've got three minutes, 00:25:53.910 --> 00:25:55.810 whatever your comments are, thank you. 00:25:57.150 --> 00:25:58.820 Yes, of course, of course. 00:25:58.820 --> 00:26:01.080 Thank y'all, and good morning. 00:26:01.080 --> 00:26:04.523 I appreciate the opportunity to join y'all in common here. 00:26:05.450 --> 00:26:07.300 For the record, my name is Emma Pabst, 00:26:07.300 --> 00:26:10.240 and I'm a campaign representative with the Sierra Club. 00:26:10.240 --> 00:26:11.892 We're a national nonprofit organization 00:26:11.892 --> 00:26:14.670 that functions as one of the largest member-based 00:26:14.670 --> 00:26:16.643 public interest groups in the nation. 00:26:17.575 --> 00:26:19.810 Here in Texas alone our organization 00:26:19.810 --> 00:26:23.290 has about 29,000 members and it is on their behalf 00:26:23.290 --> 00:26:25.613 that I offer the following comments 00:26:25.613 --> 00:26:29.140 on your agency's draft monitoring and enforcement plan 00:26:29.140 --> 00:26:30.883 for fiscal year 2022. 00:26:32.010 --> 00:26:33.810 From demonstrating the Commission's track record 00:26:33.810 --> 00:26:35.740 on monitoring and enforcement to the planning 00:26:35.740 --> 00:26:37.790 for safe and effective allocation 00:26:37.790 --> 00:26:40.100 of regulatory resources, the goals 00:26:40.100 --> 00:26:43.333 of the draft monitoring and enforcement plan are admirable. 00:26:44.230 --> 00:26:47.610 We, the Sierra Club, of course, supported them in full. 00:26:47.610 --> 00:26:49.360 In order to ensure that the current plan 00:26:49.360 --> 00:26:51.550 is able to achieve those objectives, 00:26:51.550 --> 00:26:55.030 we urge the Commission to pursue three primary improvements 00:26:55.030 --> 00:26:56.730 to the current draft. 00:26:56.730 --> 00:26:59.620 First, to aim higher on monitoring inspections 00:26:59.620 --> 00:27:01.460 and enforcement efforts. 00:27:01.460 --> 00:27:03.111 Second, to increase data transparency 00:27:03.111 --> 00:27:05.450 and stakeholder engagement, 00:27:05.450 --> 00:27:07.460 and third to address additional issues 00:27:07.460 --> 00:27:10.990 as introduced by the Texas legislature this session. 00:27:10.990 --> 00:27:13.750 Firstly, in order to discourage repeat violations 00:27:13.750 --> 00:27:15.840 and to protect the state's natural resources 00:27:15.840 --> 00:27:18.680 and our environment, the Commission should inspect wells 00:27:18.680 --> 00:27:21.810 more frequently, levy higher penalties against violators, 00:27:21.810 --> 00:27:25.601 and increase minimum fines for administrative penalties. 00:27:25.601 --> 00:27:28.350 In a state like Texas, with hundreds of thousands 00:27:28.350 --> 00:27:30.011 of oil and gas wells spread out 00:27:30.011 --> 00:27:33.460 over the 268,000 square miles, 00:27:33.460 --> 00:27:36.304 it can be difficult to enforce the law. 00:27:36.304 --> 00:27:38.660 Renewed monitoring efforts can help 00:27:38.660 --> 00:27:40.480 by raising the well inspections goal 00:27:40.480 --> 00:27:42.970 from 90,000 to a hundred thousand, 00:27:42.970 --> 00:27:46.382 we can encourage operators to proactively comply. 00:27:46.382 --> 00:27:49.810 Furthermore, the use of efficient and consistent penalties 00:27:49.810 --> 00:27:53.210 plays a key role in deterring and punishing violators. 00:27:53.210 --> 00:27:55.510 By levying higher penalties, the Railroad Commission 00:27:55.510 --> 00:27:58.583 can encourage fair competition among industry players 00:27:58.583 --> 00:28:02.011 while disincentivizing dangerous operations. 00:28:02.011 --> 00:28:04.133 Secondly, in order to increase transparency 00:28:04.133 --> 00:28:06.730 and stakeholder engagement at the agency, 00:28:06.730 --> 00:28:09.260 the Commission should publish historical data on the metrics 00:28:09.260 --> 00:28:11.000 that are covered by the plan, 00:28:11.000 --> 00:28:13.340 as well as create additional outreach strategies 00:28:13.340 --> 00:28:16.370 to educate and engage the public about the Commission 00:28:16.370 --> 00:28:19.320 and the organization's objectives. 00:28:19.320 --> 00:28:21.770 Since redesigning the website, key historical data 00:28:21.770 --> 00:28:25.053 on monitoring enforcement and complaints have disappeared. 00:28:25.930 --> 00:28:27.730 To ensure effective public participation 00:28:27.730 --> 00:28:29.480 in this and other processes, 00:28:29.480 --> 00:28:31.280 that information should be republished 00:28:31.280 --> 00:28:34.060 in the draft plan and made available online 00:28:34.060 --> 00:28:36.890 on the Commission's website once again. 00:28:36.890 --> 00:28:39.230 Furthermore, like TCEQ, the Commission should also 00:28:39.230 --> 00:28:41.480 make comments and complaints available online 00:28:41.480 --> 00:28:43.700 as well as clearly define the process by which 00:28:43.700 --> 00:28:46.570 public feedback factors into the draft plan 00:28:46.570 --> 00:28:48.860 and other enforcement efforts. 00:28:48.860 --> 00:28:52.190 This can help build trust and engagement with the agency. 00:28:52.190 --> 00:28:54.127 Therein finally, the Commission should address 00:28:54.127 --> 00:28:57.070 the changes called for by the Texas legislature 00:28:57.070 --> 00:28:59.580 in order to honor the Texans who lost their lives 00:28:59.580 --> 00:29:01.755 as a result of the February freeze. 00:29:01.755 --> 00:29:04.070 To provide more information on these suggestions, 00:29:04.070 --> 00:29:06.310 the Sierra Club has submitted more detailed comments 00:29:06.310 --> 00:29:07.960 to the Railroad Commission. 00:29:07.960 --> 00:29:10.310 By improving the plan and increasing enforcement 00:29:10.310 --> 00:29:12.470 and monitoring efforts across the state, 00:29:12.470 --> 00:29:14.920 each of you can help steward the land that we stand on 00:29:14.920 --> 00:29:18.080 and create a safer, healthier Texas for all of us. 00:29:18.080 --> 00:29:18.913 Thank y'all. 00:29:19.904 --> 00:29:21.233 Thank you, Ms. Pabst. 00:29:22.337 --> 00:29:25.110 Does anybody have any questions or comments? 00:29:25.110 --> 00:29:27.100 All right. Thank you very much. 00:29:27.100 --> 00:29:28.580 Yes sir. Let me make a comment. 00:29:28.580 --> 00:29:30.791 Just, I appreciate her testimony. 00:29:30.791 --> 00:29:32.170 I'm not referring to her, 00:29:32.170 --> 00:29:34.300 just this additional comment. 00:29:34.300 --> 00:29:37.380 I do want to say that I do commend our staff, 00:29:37.380 --> 00:29:40.070 and for decades before I ever got here, 00:29:40.070 --> 00:29:43.240 the surface mining reclamation that we just approved, 00:29:43.240 --> 00:29:45.170 the closing, that's historical. 00:29:45.170 --> 00:29:48.797 I mean that's, when we see over history that our agency 00:29:48.797 --> 00:29:52.360 has restored property after decades 00:29:52.360 --> 00:29:54.550 to as good or better than its original use. 00:29:54.550 --> 00:29:56.110 I think that's something we need to be very, 00:29:56.110 --> 00:29:59.280 applaud our staff and the decades of those 00:29:59.280 --> 00:30:00.990 that've gone before us that have implemented that. 00:30:00.990 --> 00:30:03.650 So that's historical, that shows that we have been 00:30:03.650 --> 00:30:06.270 responsible for decades maybe before 00:30:06.270 --> 00:30:07.870 it even became politically correct 00:30:07.870 --> 00:30:10.390 to make sure that the environment was cared for. 00:30:10.390 --> 00:30:13.420 And this is absolute proof that it's in better shape 00:30:13.420 --> 00:30:14.980 than it was when we started. 00:30:14.980 --> 00:30:17.400 Also just to update commending our staff 00:30:17.400 --> 00:30:19.760 that the latest figures I have 00:30:19.760 --> 00:30:21.650 is that in the state of Texas, 00:30:21.650 --> 00:30:25.280 all of the state, right now seven hundredths of 1% 00:30:25.280 --> 00:30:27.680 of natural gas is being flared. 00:30:27.680 --> 00:30:32.680 That means that over 99%, 99.3% is going 100% 00:30:35.090 --> 00:30:37.887 to its intended safe environmentally clean use. 00:30:37.887 --> 00:30:41.960 And I think that that speaks good of those areas 00:30:41.960 --> 00:30:44.410 and the history of the Texas Railroad Commission. 00:30:45.710 --> 00:30:47.375 Thank you Commissioner. I agree with you. 00:30:47.375 --> 00:30:51.000 We've come a long way, and we've got a lot 00:30:51.000 --> 00:30:52.720 of interesting things that it looks like 00:30:52.720 --> 00:30:54.450 we'll be tasked to do in this interim. 00:30:54.450 --> 00:30:58.270 So we'll get to that update I think next meeting, 00:30:58.270 --> 00:31:00.150 after the Governor has finished signing 00:31:00.150 --> 00:31:01.320 or not signing things. 00:31:01.320 --> 00:31:04.460 But it's been an interesting few months, 00:31:04.460 --> 00:31:06.260 and I think this industry's moving, 00:31:06.260 --> 00:31:08.340 it continues to move the correct direction, 00:31:08.340 --> 00:31:09.840 so I appreciate it. 00:31:09.840 --> 00:31:10.990 Is there anything else? 00:31:12.120 --> 00:31:15.520 All right, item 297's our executive session, 00:31:15.520 --> 00:31:17.600 which we won't be going into. 00:31:17.600 --> 00:31:19.120 And if there's nothing else, 00:31:19.120 --> 00:31:21.640 this meeting of the Railroad Commission is adjourned. 00:31:21.640 --> 00:31:24.850 Thank you all very much. Thank you everybody.