WEBVTT
00:00:00.562 --> 00:00:02.390
Oh, causing trouble.
00:00:02.390 --> 00:00:03.223
Yeah.
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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.
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Good morning.
00:00:09.620 --> 00:00:11.800
This is Callie Farrar,
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 is your time to speak,
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you will be transferred
over from guest to panelists.
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While transferring, the speaker
and audience may experience
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a moment of delay, 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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Commission does reserve
the right to remove any audio
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or video sharing
capabilities from any person
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if needed at any time.
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Chairman Craddick, when are
ready to begin when you are.
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Thank you, and good morning, Callie.
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This is Christi Craddick.
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This meeting of the Railroad
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 June 8th, 2021.
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Under our public participation policy,
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anyone desiring to offer
public testimony on any items
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that are not noticed on today's agenda
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was required to register in advance.
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I think we have one person
who's registered in advance.
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The Commission will consider
the items on the agenda
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as posted on the agenda,
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and, Callie, we're on number one.
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Good morning Christina. I
already see you ready to go.
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(laughs) Yes. Thank you.
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Christina Poole is
going to be presenting.
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Christina, we are ready when you are.
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Good morning, chairman
and Commissioners.
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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.
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The agenda item before
you is case number 5923,
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the application of Atmos
Energy West Texas division,
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for test year of 2020 annual
interim rate adjustment
00:01:40.900 --> 00:01:43.940
for the West Texas
Triangle distribution system.
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This is the first
interim rate adjustment
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since the company's last
rate case, GUD number 10900.
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This adjustment represents
an incremental rate requirement
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of approximately $416,183,
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which will be recovered
from the customers
00:02:00.880 --> 00:02:03.300
under the proposed rate adjustment.
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The recommended adjustment
does not include recovery
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of any costs associated
with the winter weather event
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of February, 2021.
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Atmos has also stated
its intention by letter
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to defer the effective date of
the proposed IRA rate change
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until September 1st in
recognizing the ongoing
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economic effects of
the COVID-19 pandemic.
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Staff recommends approval
of the interim rate adjustment.
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I'm available for questions.
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Thank you. Are
there any questions?
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All right. I move we approve
the examiner's 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.
Aye.
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Motion passes, that item's approved.
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Thank you, Christina.
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Callie, number two.
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Yes. Thank you.
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Frank Tomicek will be
presenting agenda item two.
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Frank we are ready when you are.
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Thank you, Callie.
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Madam Chairman,
Commissioners, good morning.
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I'm Frank Tomicek with the
Oversight and Safety Division.
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This morning's next agenda
item is case number 5924,
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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
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with ceded jurisdiction
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in its South Texas
division service area.
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This is the third
interim rate adjustment
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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.
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Under these factors,
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the company's identified
an annual test year
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incremental rate requirement
of approximately $4,602,635,
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of which $1,548,235 will be recovered
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from the environments in
ceded jurisdictional customers
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on proposed rate adjustment.
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This recommended rate
adjustment does not include
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recovery of any costs associated
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with the winter weather
event of February 2021.
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Staff's review of
the filing has found it
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to be compliant with the
provisions of the group statutes,
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and staff is recommending approval.
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I can address any
questions at this time.
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Thank you. Are
there any questions?
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All right, 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 Wright.
00:04:01.930 --> 00:04:03.393
All in favor say aye.
Aye.
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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.
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Sarah, we are ready when you are.
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Thank you, Callie.
00:04:25.800 --> 00:04:27.290
Good morning, chairman
and Commissioners.
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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.
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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.
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(phone ringing)
Number four.
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Thank you. Item number
four is case number 5925.
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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
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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.
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Haley, we are ready when you are.
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Good morning
chairman, Commissioners.
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Haley Cochran with the
Office of General Council.
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Item number 295 is
staff's recommendation
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to publish proposed amendments
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to 16 Texas Administrative
Code section 8.1
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relating to general
applicability and standards.
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The amendments are
proposed in subsection B
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to incorporate by
reference federal pipeline
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safety requirements added
in recent federal rulemakings.
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The rule would be changed
to adopt the requirements
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by reference as of September 6th, 2021,
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and therefore would incorporate
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four recent federal rulemakings,
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including FMCSA's
minimum safety standards
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for underground natural
gas storage facilities.
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The changes to 8.1 will
allow the Commission
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to submit a certification and
agree to adopt and enforce
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FMCSA's regulations for intrastate
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underground natural
gas storage facilities.
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Staff requests the Commission's approval
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to publish the proposed amendments
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in the Texas Register
for public comment.
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If approved today, the
proposal should appear
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in the June 25th issue of the Register.
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The proposal and an online comment form
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would also be made available
on the Commission's website.
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May I answer any questions?
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Thank you. Are
there any questions?
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All right, I move we approve
staff 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 in favor say aye.
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Aye.
Aye.
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Motion passes.
That item's approved.
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Thank you, Haley.
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All right, item 296 is
public participation item,
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and Callie, I understand
we have one person
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that is registered.
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We do thank you.
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I'd like to introduce Emma
Pabst with Sierra Club,
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and I believe Emma is,
she won't be on video,
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it'll just be speaking.
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So if you want, Emma,
you now have three minutes
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to speak, and if you,
sorry, Chairman Craddick.
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(laughs) If you would like to continue.
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It's fine, so Emma
thank you for being here.
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You've got three minutes,
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whatever your comments are, thank you.
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Yes, of course, of course.
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Thank y'all, and good morning.
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I appreciate the opportunity
to join y'all in common here.
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For the record, my name is Emma Pabst,
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and I'm a campaign
representative with the Sierra Club.
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We're a national nonprofit organization
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that functions as one of
the largest member-based
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public interest groups in the nation.
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Here in Texas alone our organization
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has about 29,000 members
and it is on their behalf
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that I offer the following comments
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on your agency's draft
monitoring and enforcement plan
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for fiscal year 2022.
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From demonstrating the
Commission's track record
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on monitoring and
enforcement to the planning
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for safe and effective allocation
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of regulatory resources, the goals
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of the draft monitoring and
enforcement plan are admirable.
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We, the Sierra Club, of
course, supported them in full.
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In order to ensure that the current plan
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is able to achieve those objectives,
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we urge the Commission to
pursue three primary improvements
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to the current draft.
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First, to aim higher on
monitoring inspections
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and enforcement efforts.
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Second, to increase data transparency
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and stakeholder engagement,
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and third to address additional issues
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as introduced by the Texas
legislature this session.
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Firstly, in order to
discourage repeat violations
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and to protect the
state's natural resources
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and our environment, the
Commission should inspect wells
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more frequently, levy higher
penalties against violators,
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and increase minimum fines
for administrative penalties.
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In a state like Texas,
with hundreds of thousands
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of oil and gas wells spread out
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over the 268,000 square miles,
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it can be difficult to enforce the law.
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Renewed monitoring efforts can help
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by raising the well inspections goal
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from 90,000 to a hundred thousand,
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we can encourage operators
to proactively comply.
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Furthermore, the use of
efficient and consistent penalties
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plays a key role in deterring
and punishing violators.
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By levying higher penalties,
the Railroad Commission
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can encourage fair competition
among industry players
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while disincentivizing
dangerous operations.
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Secondly, in order to
increase transparency
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and stakeholder
engagement at the agency,
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the Commission should publish
historical data on the metrics
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that are covered by the plan,
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as well as create additional
outreach strategies
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to educate and engage the
public about the Commission
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and the organization's objectives.
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Since redesigning the
website, key historical data
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on monitoring enforcement and
complaints have disappeared.
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To ensure effective public participation
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in this and other processes,
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that information should be republished
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in the draft plan and
made available online
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on the Commission's website once again.
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Furthermore, like TCEQ,
the Commission should also
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make comments and
complaints available online
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as well as clearly define
the process by which
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public feedback
factors into the draft plan
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and other enforcement efforts.
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This can help build trust and
engagement with the agency.
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Therein finally, the
Commission should address
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the changes called for
by the Texas legislature
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in order to honor the
Texans who lost their lives
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as a result of the February freeze.
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To provide more information
on these suggestions,
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the Sierra Club has submitted
more detailed comments
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to the Railroad Commission.
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By improving the plan
and increasing enforcement
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and monitoring efforts across the state,
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each of you can help steward
the land that we stand on
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and create a safer,
healthier Texas for all of us.
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Thank y'all.
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Thank you, Ms. Pabst.
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Does anybody have any
questions or comments?
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All right. Thank you very much.
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Yes sir.
Let me make a comment.
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Just, I appreciate her testimony.
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I'm not referring to her,
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just this additional comment.
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I do want to say that I
do commend our staff,
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and for decades before I ever got here,
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the surface mining reclamation
that we just approved,
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the closing, that's historical.
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I mean that's, when we see
over history that our agency
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has restored property after decades
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to as good or better
than its original use.
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I think that's something
we need to be very,
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applaud our staff and
the decades of those
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that've gone before us
that have implemented that.
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So that's historical, that
shows that we have been
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responsible for decades maybe before
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it even became politically correct
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to make sure that the
environment was cared for.
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And this is absolute proof
that it's in better shape
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than it was when we started.
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Also just to update commending our staff
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that the latest figures I have
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is that in the state of Texas,
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all of the state, right now
seven hundredths of 1%
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of natural gas is being flared.
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That means that over
99%, 99.3% is going 100%
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to its intended safe
environmentally clean use.
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And I think that that
speaks good of those areas
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and the history of the
Texas Railroad Commission.
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Thank you
Commissioner. I agree with you.
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We've come a long
way, and we've got a lot
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of interesting things that it looks like
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we'll be tasked to do in this interim.
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So we'll get to that
update I think next meeting,
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after the Governor has finished signing
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or not signing things.
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But it's been an interesting few months,
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and I think this industry's moving,
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it continues to move
the correct direction,
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so I appreciate it.
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Is there anything else?
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All right, item 297's
our executive session,
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which we won't be going into.
00:31:17.600 --> 00:31:19.120
And if there's nothing else,
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this meeting of the Railroad
Commission is adjourned.
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Thank you all very much.
Thank you everybody.