-: Morning, this is Callie Farrar.
I will be moderating.
Oh, I want to tell you who I am.
This is Callie Farrar, Commission Secretary.
I'll be serving as a meeting moderator
for today's conference.
Just a few reminders.
When it is your time to speak,
you'll be transferred over from guest to panelist.
While transferring, the speaker and audience
may experience a moment delay.
This is normal.
Speakers will also need to begin their video
and remove themselves from mute for the video
and audio to work.
Commission does reserve the right to remove any audio
or video sharing capabilities from any person
if needed at any time.
Chairman Craddick, we are ready to begin when you are.
-: Thank you.
Good morning, Callie and good morning Commissioners.
This is Chairman Craddick.
This meeting of the Railroad Commission of Texas
will come to order to consider matters
which have been duly posted with the Secretary of State
for June 22nd, 2021.
Under our Public Participation Policy,
anyone desiring to offer public testimony on any items
that are not noted on today's agenda
was required to register in advance
and we didn't have anyone registered in advance,
I don't think.
The Commission will consider the items on the agenda
as posted on the agenda.
And Callie, if you'll please call up the person
that's here for number one.
Oh, Christina's already up.
We're ready for you, good morning.
(chuckles)
-: Good morning, Chairman and Commissioners.
For the record, my name is Christina Pool.
I'm with the Oversight and Safety Division.
The agenda item before you is case number 6 1 6 1,
the application of Texas Gas Service Company
for test year 2020 annual interim rate adjustment
for the unincorporated areas
of the company's west Texas service area.
This docket is the fifth interim rate adjustment
since the company's last rate case, GUD number 10 5 0 6.
This adjustment represents a rate requirement
of approximately $9,718,520.00
of which $842,739.00
will be recovered from the customers
under the proposed right adjustment.
The recommended adjustment does not include recovery
of any costs associated with the winter weather event
of February, 2021.
Staff recommends approval of the interim rate adjustment.
I'm available for questions.
-: Thank you, are there any questions?
All right, I move that we approve
the examiners recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All in favor, say aye.
-: Aye. -: Aye.
-: Motion passes, that item's approved.
Thank you, Christina.
Callie, item number two.
Callie: Yes, thank you.
DiMarla Chico will be presenting agenda item two.
DiMarla, we are ready when you are.
Good morning, Chairman and Commissioners.
I'm DiMarlo Chico, Administrative Law Judge
with the Hearings division.
Item two is a gas rate case that resulted in a settlement
between applicant LDC, LLC and intervener staff.
The settlement resolved all issues.
LDC filed a statement of intent on December 29th, 2020,
to increase the rate and the environment
of the city of Montgomery, Texas.
The settlement includes a reduction
of approximately $108,000.00 from LDC's original requests.
Examiners recommend approval of the settlement
as set forth in the proposed final order.
The settlement represents diverse interest and the parties
have engaged in significant discovery regarding
the issues in dispute.
No exceptions were filed.
The deadline for Commission action is July 3rd, 2021.
I'm available for questions.
Callie: Commissioners, we also have Carl Nampa.
Sorry if I butchered that name,
and Mike Swain representing the applicant LDC LLC,
available for questions as well.
-: Thank you, Callie.
Are there any questions of them
or any questions of DiMarla?
Alright, I move we approve the examiner's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
-: Aye. -: Aye.
-: Motion passes, that item's approved.
Thank you.
Callie, number three.
Callie: Yes, thank you.
Veronica Roberto will be presenting agenda item three.
Veronica, we are ready when you are.
-: Good morning, Chairman, Commissioners.
Veronica Roberto, Administrative Law Judge
for the Hearings division.
Item number three is the application
by Walnut Creek Mining Company for the renewal, revision
and expansion of permit number 27H
within Calvert Mine located in Robertson County.
The new proposed permit area encompasses
approximately 7,774 acres.
Walnut Creek anticipates to mine approximately 1.9 tons
of lignite during the proposed five-year permit term.
The permit area is bonded in an approximate amount
of $43.1 million
and that amount is sufficient
for the recommended reclamation cost estimate
for the permit area.
Evidence in the record supports that Walnut Creek
has satisfied our requirements for the requested mining
and reclamation obligations within the proposed permit.
The only parties to the proceeding
are Walnut Creek and staff.
All comment after notice of the application
are addressed in the proposed order.
No exceptions were filed, no hearing on the merits withheld.
It is recommended the Walnut Creek's application
be approved with the adoption
of permit provisions contained in appendix one
and that permit number 27H be renumbered
and issued as permit number 27I.
I'm available for questions.
Chairman: Thank you, Veronica.
Are there any questions?
All right, I move we approve the examiner's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All in favor, say aye.
-: Aye. -: Aye.
-: Motion passes.
That item's approved, thank you.
All right, Callie.
It's my understanding that staff wishes
to pass item number four.
-: Yes. -: So, if you will call
up the presenter for items five through nine, please.
Callie: Thank you.
Robert Music will be presenting agenda items five
through nine.
Robert, we are ready when you are.
Give him just a minute.
Switching gears here.
-: I think this is Robert's last conference.
Is that right?
Callie: I believe so, yes.
We'll have to give him a little bit of a hard time.
(chuckling)
-: Okay, just a second.
For some reason it was having, okay.
Callie: No problem, we can see and we can hear you.
So ready whenever you are.
We can let you go out without a little bit of,
you know, excitement. -: Yeah.
But okay, good morning, Chairman and Commissioners.
My name is Robert Music, Technical Examiner
for the Hearings division.
Item numbers five through nine
are five applications of Stronghold Energy
to Operating LLC seeking a two year exception
to Statewide rule 32 to flare gas from five flare points
and nine fields in Crane County, Texas.
All of the approximately 300 wells associated
with the subject leases are connected
to Targa Midstream Services LLC.
The applications request blaring authority based
on their daily production volumes in combination
with production estimates for 48 new or re-completed wells
that are anticipated to be brought online
over the next two years.
The proposed monthly flare limit is determined
by multiplying the daily volume by 31 days from each month,
for each month,
which results in flaring authority for the subject leases
that is well in excess of their current
and historical production capacity.
The hearing record supports a maximum daily flair volume
based on the highest one day gas production
from their currently producing wells.
In addition, the monthly limit is based
on the daily volume multiplied by a factor of five
or approximately 16% of their potential production
of gas from the subject wells.
Evidence indicates an exception period of nine months
is warranted to allow Stronghold the time to complete
a portion of their 48 wells and assess actual
(audio distorts)
needs the levels of (audio distorts)
and the deliverability of (audio distorts)
That's already for the five applications.
The examiner's recommendation is based
on the 2020 production data
with the monthly flare limit established using
a five day period to correct any routine upsets
from maintenance or the pipeline curtailment schedule.
The examiners also recommend a nine month exception period
in order to bring newly completed wells online
to demonstrate the volumes that are needed
to produce subject leases
to remain compliant with rule 32 requirement.
Although the five applications were not protested,
Stronghold considers the examiner,
Stronghold considers the examiner's recommendation first.
Exceptions were filed.
(audio distorts)
Callie: Commissioners, we also have Caleb Troksclare,
attorney and Dale Miller, consultant,
representing Stronghold Energy.
Along with Sarah Stokner representing the land owner
of Antina Ranch.
-: Thank you.
Does anybody have any questions of,
people who've registered or Robert?
No, okay.
Mr. Christian, you can't hear?
-: Huh. -: There you go.
-: Madam Chairman, I have a motion with a few comments
before if that's okay. -: Okay.
-: Approving a nine month exception
would only leave approximately three months
of flaring authority remaining.
The applicant seeks an exception
due to the frequent path line upsets,
something outside the applicant's control.
The applicant has contractually agreed
to pay his pipeline operator much higher fees
so the upgrades to the pipeline system
can be made in the hopes
there will be less frequent interruptions.
Given this, I think a nine month exception is unreasonable.
However, this is a one time exception.
If the applicant in this case
comes back seeking additional flaring exception,
I would strongly encourage them to have a better plan
than they currently have for how they're going
to reduce their flare.
I move, therefore, that to approve
the staff's recommendation except
that the flare exception end date,
as referenced in attachment A of the proposed final order,
be changed from September 30th, 2021,
to June 30th, 2022, for all the subject wells.
-: Thank you.
Are there any, is there a second to that motion?
-: Commission Christian, I agree with your comments
and I do second your motion.
When I read the file on this matter,
it appears that the operator is doing virtually everything
it can to get its gas to the market.
I believe that two years is too long of an exception period,
but also I believe that nine months is too short.
At least in this case.
It's so short, in fact,
that the operator would have to file
another exception request within the next short period.
I would strongly encourage both the upstream operator
and the midstream operator in this matter
to resolve this issue before that 18 month period ends,
if it ends up being approved.
Thank you.
-: Thank you.
We have a motion and a second.
Any further discussion?
Or any further questions?
All right.
All in favor, say aye.
-: Aye. -: Aye.
-: Opposed, none?
Motion passes, that item's approved
as amended or as,
that item's approved, thank you, Robert.
I appreciate your work for us.
-: Thank you, a performing order will be submitted.
-: Great, thank you very much.
-: Thank you, Robert.
-: Alright, Callie, item number 10.
Callie: Yes, thank you.
Jennifer Cook will be presenting agenda item 10.
Jennifer, we are ready when you are.
-: Good morning, Chairman and Commissioners,
I'm Jennifer Cook, Administrative Law Judge
with the Hearings division.
In item 10, Robert A Orseck and Greco Ranch LLP filed
a complaint claiming Creative Well and Gas Operating LLC
does not have a good faith claim to operate
the subject well.
Complainants are mineral interest owners
where the well is located.
They assert the underlying contractual lease relied
on by Creative has terminated for lack of production.
They request that the well be ordered plugged.
Creative acknowledges it is the Commission operator
of record for the well
and that the underlying contractual lease has expired.
It is recommended that the Commission find Creative
does not have a good faith claim and order the well plugged.
No exceptions were filed and I'm available for questions.
-: Thank you, Jennifer.
Is there any questions?
All right, I move we approve the examiner's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes.
That item's approved.
Callie, number 11, please.
Callie: Yes, thank you.
Ezra Johnson will be presenting agenda item 11.
Ezra, we are ready when you are.
-: Good morning, Chairman and Commissioners.
For the record, my name is Ezra Johnson,
Administrative Law Judge with the Hearings division.
Item 11 is a complaint filed by Deborah Christian,
trustee of the Christian Living Trust
that responded Pine Creek Operating
does not have a good faith claim right
to operate active oil and gas wells located
on the George Jones lease in district six E
and that the well should be ordered plugged.
The trust is the owner of surface
and undivided mineral interests in 110 acres
in Gregg county, Texas,
where the subject lease is located.
The trustee asserts that the applicable contractual lease
was either void from inception or has expired
due to a cessation of production in excess
of the time permitted under the terms
of the contractual lease.
In response, Pine Creek introduced evidence of a
(audio distorts)
contractual oil and gas lease purporting to cover
an undivided mineral interest in the lands included
in the subject lease.
No exceptions or replies were filed.
The examiners recommend the Commission find
that Pine Creek provided a reasonably satisfactory showing
of a good claim right to operate the subject lease
and deny the Christian Living Trust request
of the wells they're on be plugged.
I'm available for questions.
-: Thank you, sir.
Are there any questions?
All right, I move we approve the examiners recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All those in favor, say aye.
-: Aye -: Aye.
-: Aye, motion passes.
That item's approved, thank you.
Callie, If you'll please call up the presenter
for twelve, thirteen, fourteen.
Callie: Yes, thank you.
Christy Reeve will be presenting agenda items 12 through 14.
Christy, we are ready when you are.
-: Good morning, Chairman, Commissioners,
Christy Reeve, Administrative Law Judge
with the Hearings division.
Item numbers 12 through 14 will be presented together
as they have common parties and facts.
On April 27th, 2021, the Commission entered orders
finding Iron Horse Operations LLC
did not have a good faith claim right
to operate the subject leases and denying
the form P4 applications.
The orders were the result of a good faith claim review
of the applications requested by the Commission's office
of General Counsel, legal enforcement section
and Iron Horse's failure to respond
to the ALJ's letter requesting
it either provide evidence supporting its good faith claim
or request a hearing.
On May 21st, 2021,
the Commission received Iron Horse's timely motion
for rehearing.
No response was filed by staff.
Iron Horse's motion fails all prongs
of the Craddick test and fails to comply
with the requirements of the APA.
It is recommended the motion for rehearing be denied.
The motion will be overruled by operation of law
on August 5th, 2021.
I'm available for questions.
-: Thank you, are there any questions?
I move we approve the examiner's recommendation
for items 12 through 14.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved.
Thank you, Christy. -: Thank you.
-: Okay, we're gonna move on to the oil
and gas Consent Agenda.
Those are items 15 through 136.
There are 122 items on this Consent Agenda.
Would any, does anybody have any questions
or comments about these specifically?
-: Madam Chairman, I have a few comments
about the Consent Agenda items,
if you don't mind. -: Yes, sir.
-: You probably guessed I would.
As was done in the past few months,
I again applaud Commission staff for delivering
into the details or delving into the details
with regard to the state right rural 32 matters
in the Consent Agenda.
These are complicated cases requiring judgment calls
by the examiners.
I also applaud the operators who appear to be willing
to meet in the middle.
The good news here is that almost all of these applications
for exceptions to state right 32
contain significant volume reductions requiring.
In addition, the term length for periodic grain
has been reduced in a significant number
of applications, as well.
I noticed that there are a few applications
that requested and received recommendations
of two years for acquiring term.
In these specific cases there were specific reductions
in the potential flare and buy in.
Some as much as 99%,
which is why I will still vote to approve
these applications, however in the future,
I would urge the staff against recommending
any term as long as two years.
That's simply too long of a period to undergo
before potential changes could be made.
Another thing I noticed in the agenda
were several operators that had failed to connect
to that takeaway provider for whatever reason,
whether it be for poor quality of gas or the high expense
of pipe infrastructure installation.
I would urge these operators to find a solution
so that our natural resources are not wasted.
As I previously stated in these open meetings,
these are there,
there are third party vendors who process gas
for multiple uses from operators who may
or may not be connected to pipelines.
While this is not specifically mandated by the Commission,
it would be prudent for an operator to find a market
in corresponding use for its gas.
As you all have probably guessed,
I'm going to continue to beat this drum.
Texas has done a fantastic job of reducing
(audio distorts)
but we can always do better.
With that, Chairman Craddick, I'm ready to hear your motion.
-: Thank you, are there any other thoughts, comments?
All right, I move we approve items 15 through 136.
Is there a second?
-: Second. -: Second
by Commissioner Christian, all in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved from the master default orders.
The, there are 16 master default orders.
I move that we approve items 137 through 152.
Is there a second?
-: Second. -: Second
second by Commissioner Wright.
All in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes.
Those items are approved.
Let's go to Agreed Enforcement Orders.
There are 59 Agreed Enforcement Orders.
I move we approve items 153 through 211.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All in favor, say aye,
-: Aye. -: Aye.
-: Aye, motion passes, those items are approved.
And that concludes the hearing section matters.
We'll now take up the administrative agenda
and Callie, if you'll get the folks ready for 212
and I think we've got Wai up first, good morning.
-: Good morning, Chairman, Commissioners.
I'm Wai Wang, Executive Director
of 87th Legislature ended on May 31st
and all of the many bills that were passed
this session, 13 of them would have direct impact
on our agency and staff have already started implementation.
And I also have Jeremy with me this morning
and he's gonna give you an update on the significant bills.
Thank you. -: Thank you.
Morning, Jeremy.
-: Good morning, Chairman, Commissioners.
My name is Jeremy Mazer.
I'm the Director of Government Relations
for the Railroad Commission of Texas.
Wai's correct, 13 bills did pass the session
that directly affect this agency.
Foremost among these bills are those that are responsive
to the issues observed during winter storm, Uri,
in February.
Here at the Legislature passed three significant pieces
of legislation that placed the Railroad Commission front
and center with regard to the state,
with regard to oversight over the state's energy sector.
These bills do multiple things.
First of which is it requires that your Commission designate
certain natural gas facilities and entities as critical
during a weather emergency.
It also requires that the Commission adopt use
(audio distorts)
for operators implement measures to prepare
to operate during an emergency situation.
In addition, these bills assign the Railroad Commission
to two new advisory groups relating to the states,
the energy sector.
These include the Texas Energy Reliability Council
and the Texas Energy Supply Chain Security
and Mapping Committee.
In addition, the Legislature passed House Bill 1520,
which authorizes the Commission to approve a financing order
to issue bonds by great need to customers affected
by the high price of gas during natural,
during February's winter storm.
In addition to that, the Legislature passed a bill,
giving your Commission primacy jurisdiction
over carbon capture and sequestration in Texas.
And in addition to that,
that several bills were passed that give us jurisdiction
over commercial fluid waste recycling
and it also requires that we adopt rules governing
the location of perishable disposable pits.
That's a, that's my presentation in a nutshell.
I'm open to any questions you may have.
Chairman: Thank you, does somebody have any questions?
Man: Jeremy, are you okay?
-: Yeah, I'm fine.
I've just got something stuck in my throat
at the wrong moment.
Man: Thought you'd been around Tate.
(laughing)
-: Well, thank you for your work this session.
It was an interesting session.
We appreciate you giving us an update and,
and shelf giving, getting us through session.
Hopefully they don't want anything else as they come back.
So we've got, between that and budget, we've got,
we've got our hands full this cycle, I think.
So, I appreciate the work you and your team did.
-: Wonderful. -: Thank you.
-: Thank you, guys.
-: Thank you.
All right, item 213.
Callie: Yes, thank you.
Robbie Craig will be presenting agenda item 213.
Robbie, we are ready when you are.
Give her just a minute to come over.
Let's see, we'll give her a couple more minutes
and see if, she's coming.
-: From me to you. -: Here she comes.
-: Good morning. -: Good morning.
It was a little slower today.
Good morning, Chairman and Commissioners.
My name is Robbie Craig
and I'm the Director of Human Resources.
I'm here today to present item 213 on the agenda.
Staff seeks approval of proposed proposed revisions
to the employee handbook.
The revisions are proposed to incorporate a telework policy
which would allow conditioned employees to telework
beginning September 7th, 2021, pursuant to a telework plan.
The plan would be incorporated by reference
into the handbook,
but the executive director would have authority
to amend the plan.
Once approved, the revised handbook will supersede
the prior version and will serve
as the guiding human resources policies document
for Railroad Commission staff.
Staff seeks approval of the proposed handbook revisions
and authority for the Executive Director to amend
the telework plan as necessary.
The policy language for which staff seeks approval
and the telework plan are included
in your notebook materials.
May I answer any questions?
-: Thank you, are there any questions?
All right, I move we approved the staff's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes, that item's approved.
Thank you, Robbie, for your work on this.
Callie, 214.
Callie: Thank you, Alex Schoch will be commenting
on agenda item 214.
Alex, we are ready when you are.
-: Very good, well, I'm ready, too.
Good morning, Chairman and Commissioners.
-: Good morning. -: For the record,
my name is Alex Schoch,
the General Council of the Railroad Commission of Texas.
With item 214, we are restoring the agenda item
to provide you with updates on actions
by federal agencies that may impact areas
within the Commission's area of jurisdiction.
The new administration in Washington D.C.
has launched an ambitious energy
and environmental initiative
and this is expected to result in a bitty,
a busy federal rulemaking agenda.
As been, has been our practice in the past,
we will update you on relevant developments
and in some cases,
we'll come to you to request authority
to submit comments on some of the proposed rulemaking
that we ended up saying.
For example, the U.S. EPA just a couple
of weeks ago announced the proposed repeal,
the Navigable Waters Protection Rule,
which had been adopted during the prior administration
to replace the overly broad waters
that the United States rule proposed by the Obama EPA.
It appears the U.S. EPA plans to restore
the pre 2015 definition of the waters
of the United States and the Clean Water Act
and throw out all the good work that was done
to put a better rule in place.
We'll be reviewing this recent repeal proposal
and we'll be coming back to advise
of any comments recommended.
However, the recent actions by the U.S. Fish
and Wildlife Service lead us today to item 215
where David Cooney will be talking about a specific rule
where a commenting will be an order.
So if there's any, no more questions
or no questions about this general topic,
I'll turn it over to David Cooney to present 215.
-: Thank you, Alex.
I think it's going to be a busy time again.
Anybody have any questions or comments?
(audio distorts)
It'll be not great, I think.
All right. -: We'll have plenty
to do in addition to all the lege gave us, so,
-: That's right. -: We'll be good.
-: Thank you, all right. -: Thank you.
Callie: Good morning, David.
-: Morning, Callie.
Pardon me if I jumped the gun a little bit.
David Cooney, Senior Attorney in the Office
of General Counsel.
I'm here to present item number 215.
The purpose of item 215 is to advise the Commissioners
of a proposed listing of the Lesser Prairie Chicken
under the endangered species act.
The proposal was filed June 1st, this year, June 1st, 2021.
And the staff seeks approval for the Executive Director
and staff to develop and file comments in response
to the rule because the comments are due August 2nd, 2021.
This proposal, this proposal listing the endangered,
the Lesser Prairie Chicken is,
divides the habitat of the Lesser Prairie Chicken
into two distinct,
what they call distinct population segments,
a Northern and a Southern.
The Northern segment covers the east side
of the panhandle and Kansas and Colorado
and new, and one other state.
And it's proposed to be listed as threatened.
The Southern distinct population segment
is in the Permian basin along the Texas, New Mexico border
on the Western side of the panhandle
and that population segment is proposed
to be listed as endangered.
You may recall that this has all been done before.
This is a Lesser Prairie Chicken redo.
The Lesser Prairie Chicken was proposed and listed
as threatened in the 2012 to 2014 time period
in response to settlement of a lawsuit.
In that time, it was listed as threatened.
However, in September of 2015,
the listing was vacated by the U.S. District Court
for the Western District of Texas
because Fish and Wildlife in essence
did not assign sufficient weight
the voluntary conservation plans that were in place
and to which all of the stakeholders committed to follow.
In June, 2019, a new complaint was filed
by Wild Earth Guardians, defenders of wildlife
in the Center for Biological Diversity.
In September of 2019, that suit filed to seek listing
again of the Lesser Prairie Chicken.
In September of 2019, as settlement of that,
the settlement of that claim led to the current listing.
I can report based on what was done
since we got this filing on June 1st,
that efforts to maintain and implement
and enhance conservation plans continue
in the private sector.
But because the common deadline falls
before the next conference,
staff seeks approval to prepare and file these comments.
And we will, of course keep everyone informed
of significant developments as they occur.
We will not just go from here and blast off
to the due day without checking in with everybody available
and I'm available for questions.
-: Thank you, Dave.
Any questions or comments?
-: Madam Chairman. -: I can see it on your face,
you're ready. -: Right.
(chuckling)
Commissioner: I applaud the staff for taking quick action
on this already.
It appears the liberals are going back to the playbook
of weaponizing Endangered Species Act
in their war against fossil fuels.
Texas has proven it's possible
to increase domestic production, to create jobs,
economic growth and national security,
while at the same time protecting the environment
and endangered wildlife.
This is another example of the Biden Administration
putting American last.
We cannot allow bureaucrats in D.C. to make the false choice
between protecting wildlife, growing our economy
and saving our soldiers and our lives overseas
due to the loss of our energy security.
And they make this false choice between protecting wildlife
and growing our economy.
We can and have, and will continue to do both in Texas.
I want to assure our constituents
that your Railroad Commission takes threats
of federal overreach seriously and will fight back
every time the Biden Administration
oversteps the attacks of Texas sovereignty.
Our state is the ninth largest economy in the world.
It is envied by worldwide,
by our consistent, predictable regulatory environment
and low taxes.
We must rely on science,
not politicized rhetoric to make our decisions.
Chairman: Thank you, Commissioner Christian.
Commissioner Wright, do you have any comments?
-: Yeah, David.
The Lesser Prairie Chicken,
wasn't there a bunch of effort put forth
here in the recent years by the industry
to improve habitat for them all over
in the Western part of Texas?
-: Yes, yes, Commissioner, there certainly,
there certainly has been
and that's what I meant when I referenced in my presentation
that those efforts continue.
There are, like the private sector is actively engaged
in seeking out ways to enhance the habitat
and be protective in the field.
-: Do you have some results out there now
that show that the, that the count has greatly improved
from those efforts?
-: I beg your pardon, I'm sorry.
I need...
-: I said, those efforts that have been put out
in the past years that had,
I thought I saw something the other day
to where there was a count that had highly improved,
the Lesser Prairie Chicken.
There were, there were more of them now
than there were back pre 2015.
Is that, is that true?
-: Yes, Commissioner, that, that information is out there.
As you may expect, this is a subject matter where there,
there can be disagreement even about what the,
what the facts, what the facts are and that, that,
that kind of model has,
has led to lawsuits in this case before.
But yes, yes, definitely.
That information is available.
-: Thank you so much.
That's all I have, Chairman.
-: Thank you, thank you, David
for y'all paying attention and for being on top of this
and we appreciate you commenting on our behalf.
And so I would like to move,
we approve the staff's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All those in favor, say aye.
-: Aye. -: Aye.
-: Aye, motion passes, that item's approved.
Thanks for your work
and I'm sure we'll see you again on a few more.
So Callie, let's see agenda items, 16,20, 216 and 217.
Let me get my numbers, right.
(chuckles)
Callie: Thank you, Jason Clark
will be presenting both agenda items.
Jason, we are ready when you are.
Oh, no no.
(audio distorts)
It's Keith, I'm so sorry.
I won't do this again.
(chuckling)
-: Okay, Keith we're glad you're here
'cause I-- I got Jason, Jason can do it.
You wanna do it, Jason?
Callie: My bad, Keith.
Keith will be presenting agenda items 216 and 217.
Thank you, Keith.
-: Good morning, Chairman and Commissioners.
For the record, my name is Keith May
with the Oil and Gas Division.
I'll be presenting items 216 and 217.
So item 216 for your approval is the Commission's Oil
and Gas Monitoring Enforcement Plan for fiscal year 2022.
A draft of this plan was before you on May 11th
and it was made available for public comment
until June 10th.
During that period, the Commission received a total
of 16 comments from the public, environmental
and industry groups.
The final version of the plan includes items that support
the goals of demonstrating the Commission's oil
and gas monitoring and enforcement activities
and the strategic use of Commissioned resources
to ensure public safety and to protect the environment.
This plan must be posted to the Commission's website
no later than July 1st.
That deadline will be met with your approval today.
Can I answer any questions?
-: Are there any questions?
All right, I appreciate y'all's work on this.
I move we approve the staff's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
Commissioners: Aye.
-: Aye, that item's approved.
Thank you, Keith, on that one and 217.
-: All right, thank you.
Item 217 is the Oil Field Cleanup Program's
third quarter status report for fiscal year 2021.
During the third quarter of 2021 plugging operations
were completed and files are closed on 413 wells
at a cost of $10,069,319.00.
This includes only those wells that were plugged,
invoiced by the plugging contractor and approved
for payment by field operations.
During the same period,
407 new Wells are approved for plugging with state funds.
A total of 1,230 wells were physically plugged
through the end of the third quarter
of which 1069 have been invoiced and paid.
The state managed Cleanup Program completed
and closed 68 cleanup activities at a cost
of $1,047,878.00 using OGRC funds,
as well as one cleanup activity completed
with a total expenditure of $12,638.00 using grant funds.
During the same period, 82 new activities
were authorized for cleanup with state funds.
A total of 156 cleanup activities were completed
and closed to the end of the third quarter using OGRC funds
and two activities with grant funds,
totaling 158 completed activities.
May I answer any questions?
-: Are there any questions?
All right, thank you for the work on this, Keith,
and for the presentation.
I appreciate what staff continues to move us forward.
All right, Callie, items 218 and 219.
Now Jason can come.
(chuckling)
Callie: Yes, thank you.
Jason Clark will be presenting both agenda items 218
and 219.
Jason, we are ready when you are.
-: Thank you, good morning, Chairman, Commissioners.
For the record by name is Jason Clark,
Director of Agency Projects.
I'll be presenting both items 218 and 219.
As part of the agency's ongoing All For Relief Initiative
and in an effort to find opportunities
where efficiencies are possible,
staff is requesting your approval on two items.
I'll present each one separately with division staff
available to answer any specific questions.
Item 218 is for the Oversight Safety Division
and it staff's requests to adopt proposed changes
to the following forms.
The PS48, the form T4B and the PMR.
The non-substantive changes were made to provide clarity
through improved form structure and related instructions.
Notable changes include a reorganization of the forms
and converting them into a fillable PDF format.
I'm available for questions or as I said,
we have division staff available.
Chairman: So Jason, just to clarify, I have that as 219.
Should that be 218 and I maybe--
-: We can swap them, I apologize for that.
-: No, it doesn't matter.
I just want to make sure whichever one I'm approving.
You tell me, I may have it wrong in my notebook.
-: If you have it in your notebook as 219,
we'll make it to 219 and I'll,
I'm sorry that I did it out of order.
-: No, no, does anybody know the difference?
Hang on a second.
Callie, can you tell me the difference?
Callie: Yes, let me go take a look real quick.
Chairman: And like I said,
it may be wrong in my notebook.
I just want to double check.
Callie: Let me go see what the agenda says.
Chairman: Nope, you're right.
It's me, it's me, it's me.
So I have, I have 218 as P4 and H1S
and 219 as the one you just did.
So I just want to make sure.
So you just presented 219.
-: Yes, Ma'am.
Chairman: If you don't mind,
I'm going to take 219 and 218 out of order,
just so we do them appropriately.
So this is item 219 on your agenda.
Does anybody have any questions?
All right, I move we approve staff's recommendation
on item 219.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All in favor, say aye.
Commissioners: Aye.
Chairman: Aye, motion passes.
That item's approved.
And now we're going back to 218.
-: Yes, Chairman.
Item 218 is for the Oil and Gas Division
and staff's request for the following actions.
First is the discontinuance of the form H1S
which is the application for an injection well
under an area permit.
After a thorough review,
staff has determined that this form is obsolete
and has not been used in a number of years.
Additionally, the same information is currently
being submitted on the form H1A,
thereby making the form H1S duplicative and unnecessary.
With your approval today, the use of the form H1S
will be discontinued effective June 23rd, 2021.
Chairman: Okay and then this has P4 stuff in it as well.
Is that correct?
-: Yes, Chairman.
So the second is staff's recommendation or request
to approve and be able to post proposed changes
to the form P4,
which is the Producers Transportation Authority
and Certificate of Compliance.
We will post these changes to the Commission's website
for a comment period no longer than 30 days.
After the comment period is ended,
staff will review all submitted comments,
determine if changes are necessary,
and if so, prepare responses that will be presented
for your review and approval at a future conference.
Notable substantive revisions to the form include
the inclusion of a field for a docket number,
if applicable, and providing separate check boxes
for both unitization and subdivision relating
to the purpose of filing.
Copies of the original forms with the proposed changes
were also included in your notebooks for review.
I'm available or as I said,
we have division staff available for question.
Chairman: Okay, thank you.
Are there any questions?
All right, thank y'all for continuing
to do cleanup for us.
So I'm move we approve staff's recommendation
on item 218.
Is there a second?
-: Second. -: Second
by Commissioner Wright.
All in favor, say aye.
Commissioners: Aye.
Chairman: Aye, motion passes, that item's approved.
Thank you, Jason, for your work.
Thank you. -: Thank you.
Woman: Chairman, Chairman, excuse me one moment.
I'm looking at the agenda and I do think
that was item 218.
Chairman: Yes, Ma'am.
That's what-- (audio distorts)
Woman: Rather, and the first one Jason Clark presented
was item 218 according to the agenda I have.
-: On my agenda,
it says it's 219 was the first one he did
and 218 was the H1S and P4.
Woman: Okay, I just wanted to--
(audio distorts)
Chairman: Okay, I can do 'em however you want,
but I'm not arguing.
I just, I'm looking at my, my agenda.
Jason may be right, I may be wrong.
So Dana, if we need to readjust, I'll fix it
if you want me to.
Wai: Chairman, this is Wai.
I'm looking at the agenda posted online.
The first item was 219.
The form that Jason presented first, that was 219.
Chairman: That's how I have it, Wai.
So I, I wanna just make sure we've done it correctly,
so there's no question.
Wai: I think we did.
-: Okay. -: And ultimately
both were approved.
Chairman: Yes, Ma'am, that's correct.
So I appreciate Jason doing the work.
Y'all all maybe work,
but the one that I have is what matches what Wai has.
So it's fine with me.
I just want to make sure we've done it right.
If y'all think we have, we'll move on now.
I appreciate him doing the presentation
and the work of the staff.
Callie: I will also confirmed the documents
that y'all are signing off on are correct with the agenda
and with the number.
Chairman: Great, thank you, Callie.
I appreciate it. -: Mmh hmm.
-: Okay, all right, if you'll call up 220, please.
Good morning, April.
-: Good morning, Chairman and Commissioners.
This is April Richardson with the Rover Commission
of Texas Oversight and Safety Division.
I'm the Director of Alternative Fuel Safety.
Item 220 is the Alternative Fuel Safety Department's request
for approval to adopt changes to three CNG forms.
The changes made to these forms are corrections
to remove previous designations used
for Alternative Fuel Safety Department
and update those references to the current department name.
All headers and contact information were updated
on these forms to current division and department names
and any outdated contact information was also corrected.
Updates were also made to these forms as a result
of Chapter 13 changes.
The updates for CNG form 1500 and CNG form 1500A
include updating the measurements for CNG facilities
from standard cubic feet water volume
to standard cubic feet,
updating documentation requirements
for CNG facility applications,
language changes for consistency with forms used
for other fuel types and updating section references.
CNG form 1501 was updated with the new section reference
and corrections were made to the measurements
for containers from water capacity
to standard cubic feet water volume.
AFS requests approval to publish the proposed revisions
to these forms on the Commission website for review
through the end of July.
We are also requesting that if no comments are received
or only comments in support with no suggested revisions,
that the forms automatically go into effect
on August 1st, 2021.
If comments are received that are not in support
of the revisions,
then the forms will be proposed for adoption
at a future conference.
May I answer any questions?
-: Thank you, April. -: Well done.
-: Yes. -: What is the comment date
on these, April?
-: It would be through the end of July.
Commissioner: End of July, okay, thank you.
-: Yes, sir.
Chairman: Okay, any other questions?
All right, I move, we approve the staff's recommendation.
Is there a second?
-: Second. -: Second
by Commissioner Christian.
All in favor, say aye.
Commissioners: Aye.
Chairman: Aye, motion passes.
That item's approved, thank you, April, for your work.
All right, item 221 is our public participation item
and I don't have anybody registered for today.
Item 222's executive session,
which we're not going into.
And so is there anything else,
any other comments, questions
or quirks today?
So, all right.
(chuckling)
Callie: Just wanna let you know know
that the orders will take me just a minute
to get ready and prepare,
especially with the motion made,
that Commissioner Christian made.
-: Okay, thank you, Callie. -: You're welcome.
-: We'll be waiting for them then.
All right, hearing none,
this meeting of the Railroad Commission is adjourned.
Everybody have a great July, we'll see you in August.
Thank you very much.
-: Thank you, everyone.
-: Thank you. -: Thank you.