WEBVTT 00:00:11.923 --> 00:00:13.243 All right. Good morning. 00:00:13.243 --> 00:00:15.950 This meeting of the Railroad Commission of Texas 00:00:15.950 --> 00:00:17.910 will come to order to consider matters, 00:00:17.910 --> 00:00:20.590 which have been duly posted with the Secretary of State for 00:00:20.590 --> 00:00:23.190 September 14th, 2021. 00:00:23.190 --> 00:00:25.330 Under a public participation policy, 00:00:25.330 --> 00:00:29.190 anyone desiring to offer public testimony on any items that 00:00:29.190 --> 00:00:32.240 are not noticed on today's agenda was required to register 00:00:32.240 --> 00:00:33.520 in advance. 00:00:33.520 --> 00:00:35.800 We've had several people registering in advance. 00:00:35.800 --> 00:00:37.953 The Commissioner considers items on the agenda 00:00:37.953 --> 00:00:40.350 as posted on the agenda. 00:00:40.350 --> 00:00:42.070 Number one. Good morning, John. 00:00:42.070 --> 00:00:43.860 Good morning, Chairman and Commissioners. 00:00:43.860 --> 00:00:44.840 Good morning. 00:00:44.840 --> 00:00:46.460 I'm Administrative Law Judge John Dodson 00:00:46.460 --> 00:00:47.640 with the Hearings division. 00:00:47.640 --> 00:00:50.643 Agenda item one, GUD 10606 00:00:50.643 --> 00:00:53.210 was presented most recently at the previous 00:00:53.210 --> 00:00:54.620 conference and was passed. 00:00:54.620 --> 00:00:57.050 I remain available for questions if there are any. 00:00:57.050 --> 00:00:57.883 Thank you. 00:00:57.883 --> 00:00:58.950 Are there any questions of John? 00:00:58.950 --> 00:01:01.140 And we also have representatives from 00:01:01.140 --> 00:01:05.270 SINOC and Williamson Mockingbird here available for 00:01:05.270 --> 00:01:06.273 questions as well. 00:01:07.979 --> 00:01:10.713 Have any questions of any of those three people? 00:01:10.713 --> 00:01:11.840 I have none. 00:01:11.840 --> 00:01:12.673 Alright. 00:01:12.673 --> 00:01:14.850 If not, Madam Chairman, Commissioners, 00:01:14.850 --> 00:01:16.720 our last open meeting on August 24th, 00:01:16.720 --> 00:01:19.975 I distributed an alternative final order in this case, 00:01:19.975 --> 00:01:22.533 and I have four copies. If anybody needs it. 00:01:22.533 --> 00:01:24.910 Now, that you've had time to review that order, 00:01:24.910 --> 00:01:27.580 I would like to answer any questions you have. 00:01:27.580 --> 00:01:29.973 Are there any questions regarding this? 00:01:30.910 --> 00:01:32.141 I have none. 00:01:32.141 --> 00:01:34.110 If there are no questions, I'd like to make a 00:01:34.110 --> 00:01:36.800 motion adopting that final order. 00:01:36.800 --> 00:01:38.160 Based on the evidence in the record, 00:01:38.160 --> 00:01:40.530 I respectfully disagree with some of the findings of 00:01:40.530 --> 00:01:43.960 fact and conclusions of law contained in the final order, 00:01:43.960 --> 00:01:46.780 presented with the proposal for decision by the 00:01:46.780 --> 00:01:48.480 Administrative Law Judge. 00:01:48.480 --> 00:01:51.080 I moved to substitute the final order proposed 00:01:51.080 --> 00:01:52.630 by the Administrative Law Judge 00:01:54.027 --> 00:01:56.270 with the final order I distributed to the Commissioners at 00:01:56.270 --> 00:01:58.938 the Commissioners' open meeting on August 24th. 00:01:58.938 --> 00:02:02.921 I further move that the Commission adopt that final order as 00:02:02.921 --> 00:02:04.583 substituted. 00:02:05.775 --> 00:02:08.810 Are there any discussions? 00:02:08.810 --> 00:02:09.743 I second that. 00:02:10.850 --> 00:02:12.262 All in favor, say aye. 00:02:12.262 --> 00:02:13.095 Aye. 00:02:13.095 --> 00:02:13.928 Aye. 00:02:13.928 --> 00:02:15.483 Motion passes, that aye is approved. 00:02:16.960 --> 00:02:18.910 Thank you, John, for your work on this. 00:02:20.070 --> 00:02:20.903 All right. 00:02:20.903 --> 00:02:22.443 Item number two. 00:02:24.719 --> 00:02:27.790 Good morning, Chairman, Commissioners. 00:02:27.790 --> 00:02:29.930 My name is Peter Buva, Technical Examiner, 00:02:29.930 --> 00:02:31.369 with the Hearings division. 00:02:31.369 --> 00:02:34.060 Item number two, is the application of 00:02:34.060 --> 00:02:36.210 Overflow Energy Permian, LLC. 00:02:36.210 --> 00:02:39.640 Pursuant to Statewide Rule 46, to inject fluid into 00:02:39.640 --> 00:02:41.835 a formation productive of boiler gas 00:02:41.835 --> 00:02:45.042 for the Valkyrie SWD lease, well number one, 00:02:45.042 --> 00:02:48.943 Sandbar (Bone Spring) Field in Reeves County, Texas. 00:02:49.931 --> 00:02:53.050 The application is protested by NGL Water Solutions, 00:02:53.050 --> 00:02:55.010 Permian, LLC. 00:02:55.010 --> 00:02:57.730 NGL contends that the proposed injection well is not 00:02:57.730 --> 00:03:00.370 in the public interest and yellows or 00:03:00.370 --> 00:03:03.276 expressed concerns that the proposed Valkyrie SWD 00:03:03.276 --> 00:03:06.070 will endanger it's seven fresh water wells. 00:03:06.070 --> 00:03:07.970 All within four and a half mile radius 00:03:07.970 --> 00:03:09.153 from the proposed well. 00:03:11.040 --> 00:03:14.280 Overflow protest presented evidence addressing each of the 00:03:14.280 --> 00:03:17.726 requirements in Statewide Rule 46 regarding protestants 00:03:17.726 --> 00:03:20.570 claims about the lack of public interest. 00:03:20.570 --> 00:03:23.380 The examiners find that overflow provided evidence in 00:03:23.380 --> 00:03:27.060 support of the industry need for the proposed well. 00:03:27.060 --> 00:03:29.916 NGL's claim, that the protestants own operations are 00:03:29.916 --> 00:03:32.570 sufficient to address the industry need. 00:03:32.570 --> 00:03:33.403 To the exclusion of 00:03:33.403 --> 00:03:35.983 other disposable operators in the particular area. 00:03:35.983 --> 00:03:38.840 It's not an argument in favor of the public interest, 00:03:38.840 --> 00:03:40.543 but against market competition. 00:03:41.810 --> 00:03:44.180 Overflow also showed evidence that the proposed well 00:03:44.180 --> 00:03:47.060 will not endanger fresh water resources. 00:03:47.060 --> 00:03:49.750 The examiners recommend approval of the application, 00:03:49.750 --> 00:03:52.138 exceptions and replies have been filed, 00:03:52.138 --> 00:03:53.980 and I'm available for any questions. 00:03:53.980 --> 00:03:54.837 Thank you, Peter. 00:03:54.837 --> 00:03:56.523 Are there any questions? 00:03:56.523 --> 00:03:57.356 No. 00:03:57.356 --> 00:03:58.501 Alright, I move we approve 00:03:58.501 --> 00:04:00.180 the examiners recommendation. 00:04:00.180 --> 00:04:01.566 Is there a second? 00:04:01.566 --> 00:04:02.399 Second. 00:04:02.399 --> 00:04:03.650 Second by Commissioner Christian. 00:04:03.650 --> 00:04:04.890 All in favor, say aye. 00:04:04.890 --> 00:04:05.723 Aye. 00:04:05.723 --> 00:04:06.635 Aye. 00:04:06.635 --> 00:04:07.800 Motion passes. That item's approved. 00:04:07.800 --> 00:04:09.324 Thank you. 00:04:09.324 --> 00:04:10.157 Item number three. 00:04:13.120 --> 00:04:14.760 Good morning, Chairman and Commissioners. 00:04:14.760 --> 00:04:16.920 For the record, my name is Ezra Johnson, 00:04:16.920 --> 00:04:20.280 Administrative Law Judge with the Hearings division. 00:04:20.280 --> 00:04:23.687 Item three concerns the application of TEP Barnett USA, LLC 00:04:25.830 --> 00:04:28.060 to amend the original drilling permit for 00:04:28.060 --> 00:04:31.200 the Princeton lease, well, number one, 00:04:31.200 --> 00:04:33.200 in the Newark East (Barnett Shale) field 00:04:34.079 --> 00:04:36.350 in Tarrant County, Texas. 00:04:36.350 --> 00:04:39.240 The well was originally permitted and drilled by Chesapeake 00:04:39.240 --> 00:04:43.794 Operating Inc. in 2010 on the pooled Princeton units, 00:04:43.794 --> 00:04:46.677 with a no perforation zone, or NPZ, 00:04:48.030 --> 00:04:51.810 totaling 1,099 feet of horizontal lateral 00:04:51.810 --> 00:04:54.720 between the penetration point in the permitted 00:04:54.720 --> 00:04:58.920 corelative interval, and the first take point in the well. 00:04:58.920 --> 00:05:02.930 TEP Barnett seeks removal of the NPZ designation 00:05:02.930 --> 00:05:06.620 and requests a new exception to Statewide Rule 37, 00:05:06.620 --> 00:05:09.168 to re-complete the well with take points closer 00:05:09.168 --> 00:05:12.790 than allowed by the applicable field rule 00:05:12.790 --> 00:05:16.300 to unleash tracks within the Princeton unit. 00:05:16.300 --> 00:05:20.640 TEP Barnett claims that an exception to Statewide Rule 37 00:05:20.640 --> 00:05:23.632 is needed to prevent waste of a significant volume of 00:05:23.632 --> 00:05:27.993 hydrocarbons or in the alternative to prevent confiscation. 00:05:28.900 --> 00:05:31.680 Janet Ketter, who owns an unleashed track 00:05:31.680 --> 00:05:35.520 approximately eighty-five feet from the NPZ 00:05:35.520 --> 00:05:38.260 filed a protest to the application. 00:05:38.260 --> 00:05:41.524 Ms. Ketter protested, in this case, because she felt 00:05:41.524 --> 00:05:44.090 that TEP Barnett would continue to damage 00:05:44.090 --> 00:05:45.710 her community in the manner that 00:05:45.710 --> 00:05:49.357 she felt that other operators had done by drilling wells and 00:05:49.357 --> 00:05:52.570 operating pipelines in the area. 00:05:52.570 --> 00:05:55.850 TEP Barnett provided evidence sufficient to show that 00:05:55.850 --> 00:06:00.040 re-completion of the well remove the NPZ is necessary to 00:06:00.040 --> 00:06:02.640 prevent confiscation of property. 00:06:02.640 --> 00:06:03.980 The Examiners recommend the 00:06:03.980 --> 00:06:06.260 Commission approve the application. 00:06:06.260 --> 00:06:08.580 No exceptions or replies were filed, 00:06:08.580 --> 00:06:10.193 and I'm available for questions. 00:06:11.270 --> 00:06:12.940 Thank you. Are there any questions? 00:06:12.940 --> 00:06:13.773 No. 00:06:13.773 --> 00:06:15.550 All right, I move we approve the Examiners recommendation. 00:06:15.550 --> 00:06:16.830 Is there a second? 00:06:16.830 --> 00:06:17.663 Second. 00:06:17.663 --> 00:06:18.780 Second by Commissioner Wright. 00:06:18.780 --> 00:06:20.163 All in favor. Say aye. 00:06:20.163 --> 00:06:20.996 Aye. 00:06:20.996 --> 00:06:22.410 Aye. Motion passes, that item is approved. 00:06:22.410 --> 00:06:23.263 Thank you, Ezra. 00:06:24.846 --> 00:06:26.466 Item number four, Commissioners, 00:06:26.466 --> 00:06:28.160 I'd like to take some more time to review this, 00:06:28.160 --> 00:06:30.360 so I'd just like to pass this item this morning if that's 00:06:30.360 --> 00:06:31.193 okay. 00:06:31.193 --> 00:06:32.026 That's good with me. 00:06:32.026 --> 00:06:32.859 Okay. 00:06:32.859 --> 00:06:36.310 All right, let's move on to the oil and gas Consent Agenda. 00:06:36.310 --> 00:06:40.543 There are 32 items on this, items five through 36. 00:06:41.880 --> 00:06:45.200 I move we approve items five through 36. 00:06:45.200 --> 00:06:46.778 Is there a second? 00:06:46.778 --> 00:06:47.866 Second. 00:06:47.866 --> 00:06:50.734 Second by Commissioner Christian, all in favor, say aye. 00:06:50.734 --> 00:06:51.714 Aye. 00:06:51.714 --> 00:06:52.860 Aye, motion passes. Those items are approved. 00:06:52.860 --> 00:06:54.280 I'm sorry, I forgot to ask if there were any 00:06:54.280 --> 00:06:55.113 comments or questions. 00:06:55.113 --> 00:06:56.260 I would like to make some comments, 00:06:56.260 --> 00:06:57.093 if you don't mind. 00:06:57.093 --> 00:06:57.926 I apologize. 00:06:57.926 --> 00:06:58.759 Yes sir. 00:06:58.759 --> 00:07:01.200 As we like to see, there's some good news again. 00:07:01.200 --> 00:07:03.160 There are multiple operators, which have reduced 00:07:03.160 --> 00:07:06.660 the reaffirming volume, some by as much as 92%. 00:07:06.660 --> 00:07:08.400 Other operators, who are not connected 00:07:08.400 --> 00:07:10.538 to a Midstream Takeaway Operator, 00:07:10.538 --> 00:07:12.520 are in the process of doing so. 00:07:12.520 --> 00:07:14.620 This is good progress, because the gas is now 00:07:14.620 --> 00:07:17.180 being used for a marketable purpose. 00:07:17.180 --> 00:07:19.940 In addition, the examiners are continuing to do a great job 00:07:19.940 --> 00:07:22.270 of reducing requested two year exception terms 00:07:22.270 --> 00:07:24.230 down to shorter terms. 00:07:24.230 --> 00:07:26.130 Unfortunately, there is at least one operator 00:07:26.130 --> 00:07:28.590 who is not connected to a Midstream Takeaway Operator, 00:07:28.590 --> 00:07:30.180 and represents to the Commission 00:07:30.180 --> 00:07:32.790 that is not economical to do so. 00:07:32.790 --> 00:07:35.790 However, the examiner in that matter correctly notes 00:07:35.790 --> 00:07:39.030 that the operator fails to take into consideration 00:07:39.030 --> 00:07:40.770 the value of the produced oil 00:07:40.770 --> 00:07:44.110 or the produced other commodities in that equation, 00:07:44.110 --> 00:07:46.300 as the oil is the primary source of revenue 00:07:46.300 --> 00:07:47.250 for the operator. 00:07:47.250 --> 00:07:49.130 The examiner has correctly recommended 00:07:49.130 --> 00:07:51.170 that the requested two year exception term 00:07:51.170 --> 00:07:52.910 be reduced to one year, 00:07:52.910 --> 00:07:55.420 which should give the operator more than enough time 00:07:55.420 --> 00:07:57.230 to consider and implement a solution 00:07:57.230 --> 00:07:59.700 that reduces or eliminates the unnecessary waste 00:07:59.700 --> 00:08:01.490 of our natural resources. 00:08:01.490 --> 00:08:03.630 I think that's the right call. 00:08:03.630 --> 00:08:04.840 I would strongly suggest 00:08:04.840 --> 00:08:07.020 that if operators in these situations 00:08:07.020 --> 00:08:09.950 cannot fully utilize the stranded gas for lease use 00:08:09.950 --> 00:08:13.540 and who refuse to connect to a midstream takeaway provider 00:08:13.540 --> 00:08:14.720 for economic reasons, 00:08:14.720 --> 00:08:16.660 that they contact a third party vendor 00:08:16.660 --> 00:08:19.770 to help utilize otherwise flowed gas for a 00:08:19.770 --> 00:08:21.546 useful purpose. 00:08:21.546 --> 00:08:24.200 There are more and more vendors out there who will be able 00:08:24.200 --> 00:08:27.181 to fully utilize stranded gas for a variety of purposes, 00:08:27.181 --> 00:08:30.030 including electrical generation, Bitcoin mining, 00:08:30.030 --> 00:08:33.270 hydrogen production, and graphene production. 00:08:33.270 --> 00:08:35.940 Many of these vendors processes eliminate 00:08:35.940 --> 00:08:37.640 the vast majority of emissions that 00:08:37.640 --> 00:08:41.200 flooding producers and even pay the operator for the gas. 00:08:41.200 --> 00:08:43.320 If the gas is simply being wasted, however, 00:08:43.320 --> 00:08:46.850 I'm not inclined to vote to consistently approve a flowing 00:08:46.850 --> 00:08:49.220 exception where no improvement is shown. 00:08:49.220 --> 00:08:50.562 That's all the comments I have. Thank you. 00:08:50.562 --> 00:08:52.350 Thank you, and I am sorry I forgot 00:08:52.350 --> 00:08:53.183 to do the comments before. 00:08:53.183 --> 00:08:54.016 Madam Chairman? 00:08:54.016 --> 00:08:54.950 Yes, sir. 00:08:54.950 --> 00:08:55.783 Can I say something? 00:08:55.783 --> 00:08:56.616 I just want to. 00:08:56.616 --> 00:08:57.552 No, no comments for you. 00:08:57.552 --> 00:09:00.465 (laughing) 00:09:00.465 --> 00:09:02.490 No, I want to compliment Commissioner Wright 00:09:02.490 --> 00:09:05.060 for following through on this issue. 00:09:05.060 --> 00:09:07.500 And I think it's, it's encouraging 00:09:07.500 --> 00:09:09.650 and I want to remind all of us that this is, 00:09:09.650 --> 00:09:11.550 what he's watching is that the private industry 00:09:11.550 --> 00:09:13.540 is correcting the problem. 00:09:13.540 --> 00:09:15.490 It's not the, we are monitoring, 00:09:15.490 --> 00:09:18.150 We are encouraging, the Railroad Commission is watching, 00:09:18.150 --> 00:09:19.950 which our staff is tremendous at that. 00:09:19.950 --> 00:09:21.290 But by and large, 00:09:21.290 --> 00:09:23.720 last last I heard was flaring in Texas, 00:09:23.720 --> 00:09:26.990 was down according to Rubber Commission currently 00:09:26.990 --> 00:09:29.870 to 7/10 of a percent of, of natural gas. 00:09:29.870 --> 00:09:33.230 That means 99.3% is going to its intended purpose, 00:09:33.230 --> 00:09:34.600 clean and usable. 00:09:34.600 --> 00:09:38.340 So I just commend Commissioner Wright for keeping up on 00:09:38.340 --> 00:09:42.300 this issue and commend our industry and let the public know 00:09:42.300 --> 00:09:44.630 that maybe some of this that you're hearing in the press is 00:09:44.630 --> 00:09:48.360 not quite as drastic as they present, 00:09:48.360 --> 00:09:51.610 but when the entire problem that the have created 00:09:51.610 --> 00:09:53.860 in the financial markets, these environmental, social, 00:09:53.860 --> 00:09:54.693 and governance funds, 00:09:54.693 --> 00:09:58.140 but the state of Texas has passed our legislature against 00:09:58.140 --> 00:10:01.868 any dollars from Texas doing it are based on such things as 00:10:01.868 --> 00:10:04.520 7/10 of 1%. 00:10:04.520 --> 00:10:06.400 And that's not exactly catastrophic. 00:10:06.400 --> 00:10:09.000 It's not climate catastrophe. 00:10:09.000 --> 00:10:13.970 It's simply an issue that the market is taking care of. 00:10:13.970 --> 00:10:15.240 I couldn't agree more. 00:10:15.240 --> 00:10:18.580 I think the industry in itself has done a wonderful job 00:10:18.580 --> 00:10:22.460 about reducing any, any type of flaring and or emissions. 00:10:22.460 --> 00:10:25.030 We continue to have technologies that's improving that, 00:10:25.030 --> 00:10:27.100 and can continue to expand those markets. 00:10:27.100 --> 00:10:30.150 I just want to continue to try to encourage everyone to look 00:10:30.150 --> 00:10:33.610 for markets that are developing, that are taking this gas. 00:10:33.610 --> 00:10:36.260 I think it's a great thing. We've seen a huge reductions, 00:10:36.260 --> 00:10:37.780 especially this year. 00:10:37.780 --> 00:10:39.540 Yeah. Thank you both for your comments. 00:10:39.540 --> 00:10:40.373 I agree. 00:10:40.373 --> 00:10:43.410 We're moving the right direction and thank you for keeping 00:10:43.410 --> 00:10:45.453 tabs on it for us, Fisher. 00:10:47.440 --> 00:10:52.440 Okay. We're back to Rule 15 inactive well items, 00:10:52.810 --> 00:10:55.340 numbers 37 through 68. 00:10:55.340 --> 00:10:58.310 And I understand that number 65 is in compliance. 00:10:58.310 --> 00:10:59.910 Yes ma'am, all right. 00:10:59.910 --> 00:11:01.906 Are there any comments on these? 00:11:01.906 --> 00:11:06.430 All right, I move we approve items 37 through 68, 00:11:06.430 --> 00:11:09.200 except for item number 65. 00:11:09.200 --> 00:11:10.230 Is there a second? 00:11:10.230 --> 00:11:11.063 Second. 00:11:11.063 --> 00:11:12.380 Second by Commissioner Wright. 00:11:12.380 --> 00:11:13.926 All in favor. Say aye. 00:11:13.926 --> 00:11:14.759 Aye 00:11:14.759 --> 00:11:16.800 Aye. Motion passes. Those items are approved. 00:11:16.800 --> 00:11:18.910 Master default orders. 00:11:18.910 --> 00:11:23.910 There are 37 master default orders, Items 69 through 105. 00:11:25.120 --> 00:11:28.100 I move that we approve Items 69 through 105. 00:11:28.100 --> 00:11:28.933 Is there a second? 00:11:28.933 --> 00:11:29.770 Second. 00:11:29.770 --> 00:11:31.570 Second by Commissioner Christian. 00:11:31.570 --> 00:11:32.530 All in favor, say aye. 00:11:32.530 --> 00:11:33.363 Aye. 00:11:33.363 --> 00:11:36.140 Aye, motion passes. Those items are approved. 00:11:36.140 --> 00:11:39.010 Let's go to agreed enforcement orders. 00:11:39.010 --> 00:11:43.830 There are 155 of these items, 106 through 260. 00:11:43.830 --> 00:11:47.040 I move that we approve items 106 through 260. 00:11:47.040 --> 00:11:48.530 Is there a second? 00:11:48.530 --> 00:11:49.363 Second. 00:11:49.363 --> 00:11:50.800 Second by Commissioner Wright. 00:11:50.800 --> 00:11:51.740 All in favor, say aye. 00:11:51.740 --> 00:11:52.573 Aye. 00:11:52.573 --> 00:11:54.780 Aye, motion passes. Those items are approved. 00:11:54.780 --> 00:11:57.130 That concludes hearing sections matters. 00:11:57.130 --> 00:11:59.333 I will now take up administrative agenda, 00:12:00.537 --> 00:12:02.025 and we've got 261. 00:12:02.025 --> 00:12:02.893 Good morning. 00:12:04.060 --> 00:12:06.100 Good morning, Chairman and Commissioners. 00:12:06.100 --> 00:12:08.630 For the record, I am Wei Wang, Executive Director. 00:12:08.630 --> 00:12:10.390 As we start a new fiscal year, 00:12:10.390 --> 00:12:13.700 I thought I would just give y'all a highlight on our 00:12:13.700 --> 00:12:15.980 performance from last year. 00:12:15.980 --> 00:12:20.620 And first I could speak to some of the performance measures. 00:12:20.620 --> 00:12:23.340 I am glad to report all four departments exceeded their 00:12:23.340 --> 00:12:26.800 inspection performance target set by the legislature, 00:12:26.800 --> 00:12:30.710 specifically pipeline for specialized inspection. 00:12:30.710 --> 00:12:35.280 The goal was 1,200 and we have conducted over 2,000 00:12:35.280 --> 00:12:38.593 specialized inspections for standard comprehensive, 00:12:39.952 --> 00:12:42.652 comprehensive pipeline inspections that go with 3,129. 00:12:44.173 --> 00:12:47.640 And we ended the year with 3,598 for oil and gas. 00:12:48.953 --> 00:12:51.650 The target was 189,000. 00:12:51.650 --> 00:12:54.630 And our inspector completed over 00:12:54.630 --> 00:12:56.442 300,000 inspections. 00:12:56.442 --> 00:12:57.630 [Commissioner] Wow! 00:12:57.630 --> 00:12:59.330 Significantly exceeding that goal. 00:13:00.210 --> 00:13:04.010 For few safety department, the goal was 20,000 inspections 00:13:04.010 --> 00:13:07.740 and we have finished 20,604. 00:13:07.740 --> 00:13:10.220 And lastly, for our mining department, 00:13:10.220 --> 00:13:13.270 the goal with 400 inspections and we finished the year with 00:13:13.270 --> 00:13:14.553 416. 00:13:15.410 --> 00:13:18.210 Now, on the well plugging front, our performance target 00:13:18.210 --> 00:13:20.373 with 14 hand-rolled orphaned wells plugged. 00:13:21.537 --> 00:13:23.940 And as of August 31st, we have plugged, 00:13:23.940 --> 00:13:25.980 paid and completed the files 00:13:27.620 --> 00:13:29.860 for 1,453 wells. 00:13:29.860 --> 00:13:31.390 Now, in addition to meeting, 00:13:31.390 --> 00:13:33.290 we're exceeding performance targets. 00:13:33.290 --> 00:13:37.192 I'm also pleased to report that we completely re-vamped our 00:13:37.192 --> 00:13:39.030 website. 00:13:39.030 --> 00:13:41.910 We have a brand new website and that not only has 00:13:41.910 --> 00:13:43.516 a complete new look, 00:13:43.516 --> 00:13:47.410 we also added feature to make it easier for people to 00:13:47.410 --> 00:13:50.206 navigate through our website and make it easier to find 00:13:50.206 --> 00:13:51.360 informations. 00:13:51.360 --> 00:13:54.470 We also added a few new tools to our website 00:13:54.470 --> 00:13:56.650 to make it more transparent, 00:13:56.650 --> 00:14:00.590 including a new pipeline inspection permitting evaluation 00:14:00.590 --> 00:14:02.640 system, which we call PIPES. 00:14:02.640 --> 00:14:06.920 This will allow our inspectors to put their inspection 00:14:06.920 --> 00:14:09.970 reports and that information is available to the public as 00:14:09.970 --> 00:14:11.480 soon as it's complete. 00:14:11.480 --> 00:14:14.910 And also making data query available on our website. 00:14:14.910 --> 00:14:17.150 So, in closing, 00:14:17.150 --> 00:14:20.600 I look forward to another great year in 2022, 00:14:20.600 --> 00:14:23.790 and also I'd like to take the opportunity to thank our staff 00:14:23.790 --> 00:14:26.030 for their hard work during last year. 00:14:26.030 --> 00:14:27.812 Excellent job, Wei. 00:14:27.812 --> 00:14:28.645 Thank you, Wei. 00:14:28.645 --> 00:14:29.920 We've gotten some of the best staff going. 00:14:29.920 --> 00:14:32.520 So I appreciate the report. Thank you for your work. 00:14:35.320 --> 00:14:36.590 262, Good morning. 00:14:36.590 --> 00:14:38.020 Good morning Chairman, Commissioners. 00:14:38.020 --> 00:14:40.000 David Cooney from the Office of General Counsel, 00:14:40.000 --> 00:14:43.007 standing in for Alex Shock with a report on federal 00:14:43.007 --> 00:14:46.553 developments, nothing specific, just general news. 00:14:47.460 --> 00:14:51.190 The Waters of the United States rule is looming coming from 00:14:51.190 --> 00:14:52.023 the federal government. 00:14:52.023 --> 00:14:53.970 We're looking for that, EPA and 00:14:53.970 --> 00:14:56.750 the U.S. Army Corps of Engineers recently announced 00:14:56.750 --> 00:15:00.120 that returning to using pre-2015 00:15:00.120 --> 00:15:02.520 Waters of the United States rule, 00:15:02.520 --> 00:15:06.690 and we will be monitoring or we're on the lookout for, 00:15:06.690 --> 00:15:09.730 we expect a rule-making proposal to come from them. 00:15:09.730 --> 00:15:12.920 And we're also on the lookout for the proposal on the oil 00:15:12.920 --> 00:15:14.630 and gas methane rule. 00:15:14.630 --> 00:15:16.330 We are maintaining contact with our 00:15:16.330 --> 00:15:19.170 sister agencies and the Office of Attorney General. 00:15:19.170 --> 00:15:21.400 So we can assure coordination. 00:15:21.400 --> 00:15:23.580 That's the report on the federal front. 00:15:23.580 --> 00:15:25.510 Thank you. Any questions? 00:15:25.510 --> 00:15:28.360 On the methane side, have you, have you heard anything? 00:15:29.458 --> 00:15:31.804 I also think I saw an article this morning that was saying 00:15:31.804 --> 00:15:35.070 that they were looking at possibly taxing that. 00:15:35.070 --> 00:15:36.980 Have you heard anything in that regard? 00:15:36.980 --> 00:15:39.700 All I've heard is that they're expecting 00:15:39.700 --> 00:15:44.447 some pretty tight standards in the proposal. 00:15:44.447 --> 00:15:45.860 Thank you, David. 00:15:45.860 --> 00:15:49.390 Thank you for continuing to monitor. Here they come again. 00:15:49.390 --> 00:15:50.371 Thank you. 00:15:50.371 --> 00:15:51.780 (coughing) 00:15:51.780 --> 00:15:52.830 All right. 00:15:52.830 --> 00:15:54.400 Item 263. 00:15:54.400 --> 00:15:55.820 Good morning. 00:15:55.820 --> 00:15:57.190 Good morning. Chairman, Commissioners. 00:15:57.190 --> 00:15:59.890 Haley Cochran with the Office of General Counsel. 00:15:59.890 --> 00:16:02.440 Item number 263 is staff's recommendation 00:16:02.440 --> 00:16:04.960 to publish proposed new Rule 16, 00:16:04.960 --> 00:16:08.900 Texas Administrative Code Section 3.65 and published 00:16:08.900 --> 00:16:12.200 proposed amendments to Section 3.107. 00:16:12.200 --> 00:16:16.680 Section 3.65 is proposed pursuant to House Bill 3648 and 00:16:16.680 --> 00:16:19.193 Senate Bill 3 from the 87th Regular Session. 00:16:20.070 --> 00:16:22.321 House Bill 3648 and Senate Bill 3 00:16:22.321 --> 00:16:26.295 added Section 81.073 to the Natural Resources Code, 00:16:26.295 --> 00:16:29.310 which requires the Commission to adopt rules, 00:16:29.310 --> 00:16:32.990 to designate natural gas facilities as critical customers 00:16:32.990 --> 00:16:36.890 and critical gas suppliers during an energy emergencies. 00:16:36.890 --> 00:16:39.490 The rules must provide that those designated critical 00:16:39.490 --> 00:16:42.780 provide critical customer information as defined by the 00:16:42.780 --> 00:16:44.580 Commission to the electric entities. 00:16:45.500 --> 00:16:47.340 Commission staff collaborated with staff 00:16:47.340 --> 00:16:49.680 from the Public Utility Commission of Texas, 00:16:49.680 --> 00:16:51.410 while drafting the proposed rule, 00:16:51.410 --> 00:16:53.864 which implements Section 4 of Senate Bill 3 and 00:16:53.864 --> 00:16:57.540 Section 1 of House Bill 3648. 00:16:57.540 --> 00:17:00.950 The proposed new rule specifies the criteria and process by 00:17:00.950 --> 00:17:03.360 which entities associated with providing natural gas 00:17:03.360 --> 00:17:06.123 in Texas are designated as critical customers during 00:17:06.123 --> 00:17:07.795 an energy emergency. 00:17:07.795 --> 00:17:09.840 In accordance with Senate Bill 3, 00:17:09.840 --> 00:17:12.360 the proposed rule requires that only facilities that are 00:17:12.360 --> 00:17:15.130 prepared to operate during a weather emergency may be 00:17:15.130 --> 00:17:17.660 designated as critical customers. 00:17:17.660 --> 00:17:19.640 Designation as a critical customer prompts 00:17:19.640 --> 00:17:21.480 a requirement for the facilities operator 00:17:21.480 --> 00:17:24.850 to directly provide electric entities with critical customer 00:17:24.850 --> 00:17:26.120 information. 00:17:26.120 --> 00:17:27.950 Providing the information positions, 00:17:27.950 --> 00:17:30.400 a critical customer to receive power during an energy 00:17:30.400 --> 00:17:34.180 emergency so that it can continue to supply natural gas for 00:17:34.180 --> 00:17:36.850 power generation or other important uses. 00:17:36.850 --> 00:17:39.530 The proposed amendments to Section 3.107, 00:17:39.530 --> 00:17:41.260 add references to the requirements of 00:17:41.260 --> 00:17:43.800 proposed new Section 3.65. 00:17:43.800 --> 00:17:46.030 Staff requests the Commission's approval to publish 00:17:46.030 --> 00:17:47.630 the new rule and amendments 00:17:47.630 --> 00:17:50.390 and the Texas Register for a 30 comment period. 00:17:50.390 --> 00:17:51.290 If approved today, 00:17:51.290 --> 00:17:53.960 the proposal should appear in the October 1st issue of the 00:17:53.960 --> 00:17:55.210 Texas Register. 00:17:55.210 --> 00:17:57.700 The proposal in an online comment forum would also be made 00:17:57.700 --> 00:17:59.720 available on the Commission's website, 00:17:59.720 --> 00:18:02.610 giving people additional time to review and submit comments. 00:18:02.610 --> 00:18:05.780 House Bill 3648 requires that the Commission adopt the new 00:18:05.780 --> 00:18:08.600 rules not later than December 1st of this year. 00:18:08.600 --> 00:18:10.140 May answer any questions? 00:18:10.140 --> 00:18:11.950 Thank you. Are there questions? 00:18:11.950 --> 00:18:12.783 Nope. 00:18:12.783 --> 00:18:14.766 I appreciate staff's work on this and PUC. 00:18:14.766 --> 00:18:17.489 I know we are going to hear from them in a few minutes, 00:18:17.489 --> 00:18:19.990 but I appreciate that, and that we were up and going, right? 00:18:19.990 --> 00:18:22.630 All right. I move, we approve the staff's recommendation. 00:18:22.630 --> 00:18:23.550 Is there a second? 00:18:23.550 --> 00:18:24.383 Second. 00:18:24.383 --> 00:18:25.570 Second by Commissioner Christian. 00:18:25.570 --> 00:18:26.858 All those in favor, say aye. 00:18:26.858 --> 00:18:27.691 Aye. 00:18:27.691 --> 00:18:28.524 Aye. Motion passes. 00:18:28.524 --> 00:18:29.357 That item is approved. 00:18:29.357 --> 00:18:30.780 Thank you, Haley. 00:18:30.780 --> 00:18:34.500 All right, and item 264 as our Public Participation item, 00:18:34.500 --> 00:18:36.400 we have several who've registered. 00:18:36.400 --> 00:18:38.430 So, I think we'll start with Thomas Gleason. 00:18:38.430 --> 00:18:41.870 If he, since we're, we'll just go right into his, 00:18:41.870 --> 00:18:43.089 since we just finished this issue. 00:18:43.089 --> 00:18:44.430 And thanks for being here today, 00:18:44.430 --> 00:18:45.810 we appreciate working with you all. 00:18:45.810 --> 00:18:46.643 Yes ma'am. 00:18:46.643 --> 00:18:47.640 Thank you Madam Chair, Commissioners. 00:18:47.640 --> 00:18:49.510 For the record, Thomas Gleason Executive Director 00:18:49.510 --> 00:18:51.720 of the Public Utility Commission of Texas. 00:18:51.720 --> 00:18:53.380 And as your staff just stated, we've, 00:18:53.380 --> 00:18:56.010 we've worked collaboratively on the rule that was just 00:18:56.010 --> 00:18:59.190 proposed and other rules and projects dealing with 00:18:59.190 --> 00:19:02.593 weatherization of infrastructure, communications, 00:19:03.760 --> 00:19:05.350 information, sharing a number of, 00:19:05.350 --> 00:19:06.840 of items coming out of a session. 00:19:06.840 --> 00:19:10.230 I think it's clear from the legislative session that that 00:19:10.230 --> 00:19:13.300 was our mandate was to work more collaboratively together to 00:19:13.300 --> 00:19:16.670 find solutions to the issues that came to bear from winter 00:19:16.670 --> 00:19:17.700 storm Uri. 00:19:17.700 --> 00:19:20.250 And I'm, from the PUC perspective, I'm practicing, 00:19:20.250 --> 00:19:22.266 I think, I think we're meeting that mark. 00:19:22.266 --> 00:19:25.966 We have multiple project teams that meet one to three times 00:19:25.966 --> 00:19:27.220 a week. 00:19:27.220 --> 00:19:29.510 I meet with your executive director once a week to talk 00:19:29.510 --> 00:19:32.420 holistically about issues facing our two agencies and any 00:19:32.420 --> 00:19:34.130 industries that we regulate. 00:19:34.130 --> 00:19:36.900 And so I think it is fair to say at this point that we're 00:19:36.900 --> 00:19:39.710 moving in the right direction to meet the mandate from the 00:19:39.710 --> 00:19:42.760 legislature to produce the results that the people of Texas 00:19:42.760 --> 00:19:43.593 deserve. 00:19:43.593 --> 00:19:45.970 And I want to thank you all and your executive director and 00:19:45.970 --> 00:19:47.440 your staff for, for the great work 00:19:47.440 --> 00:19:48.990 that we've been able to do together. 00:19:48.990 --> 00:19:52.040 You all have been more than willing to share your resources, 00:19:52.040 --> 00:19:53.867 your ideas and information with us. 00:19:53.867 --> 00:19:55.710 And we really appreciate it. 00:19:55.710 --> 00:19:57.240 Thank you. Anybody? 00:19:57.240 --> 00:19:59.080 And thank you guys for opening your doors 00:19:59.080 --> 00:20:00.430 and getting our two agencies 00:20:00.430 --> 00:20:02.920 to work really strongly on these issues. 00:20:02.920 --> 00:20:04.187 Yes, sir. 00:20:04.187 --> 00:20:06.170 I mean the winter storm showed the real interdependence 00:20:06.170 --> 00:20:08.410 between our two systems. 00:20:08.410 --> 00:20:10.620 And so I think this is a long time coming and I'm proud to 00:20:10.620 --> 00:20:12.520 say that we're, we're getting there. 00:20:12.520 --> 00:20:13.353 Thank you. 00:20:13.353 --> 00:20:14.560 And I, I appreciate the leadership y'all 00:20:14.560 --> 00:20:16.690 are doing in this and commend you for 00:20:16.690 --> 00:20:18.080 taking the bull by the horns. 00:20:18.080 --> 00:20:20.270 And it was a terrible thing that happened. 00:20:20.270 --> 00:20:22.050 And I hope we step up. 00:20:22.050 --> 00:20:24.430 Like we in Texas always have, and come through 00:20:24.430 --> 00:20:26.880 for the people and your agency is doing it. 00:20:26.880 --> 00:20:28.200 Thank you for listening to us. 00:20:28.200 --> 00:20:29.033 Yes, sir. Thank you. 00:20:29.033 --> 00:20:31.352 Thank you, Thomas, for working with us. 00:20:31.352 --> 00:20:32.733 We look forward to continued collaboration. 00:20:32.733 --> 00:20:33.566 Thank you. 00:20:33.566 --> 00:20:34.399 It's easy in the building. 00:20:34.399 --> 00:20:35.760 Thanks for coming down up and however, 00:20:35.760 --> 00:20:37.801 whichever direction we go. 00:20:37.801 --> 00:20:39.490 Thanks. 00:20:39.490 --> 00:20:42.263 All right, we also have, I've got one, two, three, 00:20:42.263 --> 00:20:44.380 I think four people that have registered. 00:20:44.380 --> 00:20:46.830 So I'm just going to start with (indistinct). 00:20:46.830 --> 00:20:49.120 Ashley Williams Watt, who is the landowner 00:20:49.120 --> 00:20:51.173 from, for Antifa. 00:20:53.150 --> 00:20:54.770 Okay. 00:20:54.770 --> 00:20:55.903 Sarah Stogner? 00:20:58.720 --> 00:20:59.973 William Burch? 00:21:02.360 --> 00:21:03.263 Raymond Strop? 00:21:05.220 --> 00:21:06.053 Okay. 00:21:07.170 --> 00:21:08.003 We don't, they aren't here. 00:21:08.003 --> 00:21:08.836 They've registered. 00:21:08.836 --> 00:21:11.420 So please note that they've registered, but we're not here. 00:21:11.420 --> 00:21:12.493 As we've got to them. 00:21:13.660 --> 00:21:16.440 Item 265 is our executive items session, 00:21:16.440 --> 00:21:18.010 which we won't be going into today. 00:21:18.010 --> 00:21:20.150 Are there any other matters to be brought before the 00:21:20.150 --> 00:21:22.000 Commission at this time? 00:21:22.000 --> 00:21:23.070 Hearing none. 00:21:23.070 --> 00:21:26.002 This meeting of the Railroad Commission was adjourned. 00:21:26.002 --> 00:21:26.835 Thank you all very much.