-: Good morning.
This meeting in the Railroad Commission of Texas
will come to order to consider matters
which have been duly posted with the Secretary of State
for September 28th, 2021.
Under our public participation policy,
anyone desiring to offer public testimony
on any items that are not noticed
on today's agenda was required to register in advance.
And I didn't have anybody registering in advance
in accordance with our policy.
The Commission will consider the items on the agenda,
as posted on the agenda.
But before we get started, we've got service awards.
So Robbi, if you'll come up,
and let's all tell everybody how great they are.
We've got some good folks who've been with us for awhile.
-: Good morning, Chairman and Commissioners.
My name is Robbi Craig
and I'm the chief human capital officer.
I'm here today to present our fiscal year 2021
third and fourth quarter service awards.
First up with five years of service
from our Hearings division is Dana Lewis.
(clapping)
Next, celebrating 10 years of service,
also from our Hearings division,
we'd like to recognize Kristi Reeve in our audience.
(clapping)
Next, celebrating 15 years from our oversight
and safety division, Angie Whitehead.
(clapping)
Next, celebrating 20 years
from our Hearings division is Rose Ruiz.
(clapping)
Also celebrating 20 years from our oil
and gas division is Richard Behal.
(clapping)
Also celebrating 20 years from our oil
and gas division, Lorenzo Garza.
(clapping)
Our next award celebrates 25 years of service
from our oversight and safety division
in San Angelo, Adam Rodriguez.
(clapping)
Next, celebrating 30 years of service
from our oil and gas division, Deborah Davis.
(clapping)
And last but not least, celebrating 30 years of service
from our oversight and safety division, Bruce Waterman.
(clapping)
This concludes today's service award presentation.
(clapping)
-: Well, thank you all for the work you do.
That means none of you can retire.
You're here for the rest of your life.
We have some great staff, by the way.
So this is a nice recognition and y'all know
that they make our worlds run and the trains run on time.
-: You got it.
-: All right, we're at item number one.
Good morning.
-: Good morning, Chairman and Commissioners.
I'm Jennifer Cook, Administrative Law Judge
with the Hearings division.
I am presenting items one through seven today,
starting with item one.
In item one, Waterbridge Texas operating LLC,
and Permian Water LLC filed a complaint
against NGL Water Solutions Permian LLC
and NGL Water Solutions Eagleford LLC
regarding protests NGL files against applications
for injection wells under Statewide rules nine and 46.
Complainants maintain NGL's protests of application
for injection, when it is merely a competitor
are for purposes of delaying
and impeding potential competitors.
In its protest, and in response to motions
to dismiss its protests, NGL consistently asserts claims
that are routinely rejected.
NGL has claimed and continues to claim
it has a right to be a party
when it is not an affected person.
Complainants asked the Commission to issue sanctions
prohibiting NGL's pleadings and protests from compelling
the hearing when NGL is not an affected person.
Complainants also request the Commission order NGL
to pay complainants' attorney fees in this case.
NGL continues to maintain it has a right to file a protest
and be a party, even though it is not an affected person.
It is recommended that the Commission issue an order
that allows Commission staff to treat a protest from NGL
as not from an affected person
unless NGL affirmatively states it is an affected person.
The examiners recommend the Commission order NGL
to pay complainants' attorney fees.
Exceptions and replies were filed,
and I am available for questions.
-: Thank you, Christie.
As noted, there are several people from both NGL
and Waterbridge, if anybody has any questions,
they have pre-registered as well.
So if they have a question to those people
or Christie this morning.
Jennifer, good god, I'm sorry.
Well, I'm looking at her behind you.
No, I'm looking at her behind you.
I know I shouldn't be in charge of some things.
It happens, it does.
-: I know, but it happens.
-: I'm sorry, Jennifer.
-: Madam Chairman, as my chief of staff
and legal counsel worked on this case in the private sector,
I would normally recuse myself from decision
and voting on this matter.
However, I instead consulted with the Commission's
general counsel, Mr. Alex Schoch,
to ensure that I would not be unduly influenced.
With that, I'm ready to discuss the matter here in motion.
-: Thank you, thank you for that.
Anybody have any questions for the other people
that are here?
Okay, I've got some comments in a separate motion
if y'all would give me a minute to read
a big long page for just a second.
All right.
In my view, no substantive rule has been broken.
The examiners based a recommendation on the phrase
from the interest of justice
found in procedural rule 1.102.
I don't agree that respondent's conduct
rises to the level of the sanctions
the examiners have recommended under procedural 1.102.
So it's a stretch for me
that procedural 1.102 has been broken.
Much of the record evidence does not concern
the complainant, but rather third parties.
The record has not established to my satisfaction
that respondent's pleadings were in violation
of procedural rule 1.102 and the proposed sanction
restricting further participation and future participation
in protest holds the respondent to a different standard
than any other party before the Commission.
As a result, I cannot support any of the proposed
protest process or to the proposed monetary sanctions.
So I've got a motion unless either one of y'all
have additional questions or comments about that.
All right, I move that the examiners prepare an order
denying the complaint in its entirety
and bring it back at the next open meeting.
Is there a second?
Christian: Second.
-: Second by Commissioner Christian, all in favor, say aye.
Commissioners: Aye.
-: Motion passes.
And I have a final comment just because this docket,
and I spent a lot of time reading this,
this docket has brought to my attention
inefficiencies related to the current process
of protesting disposal well applications.
It appears that it can lead to delays,
increased cost, and waste of resources
for applicants, as well as our staff.
I'd like staff to look at ways
to alleviate these inefficiencies.
In particular, I've asked staff to give a fresh look
at determination of affected party status
and to an opportunity for sanctions,
if warranted in the context of individual cases.
-: Thank you, Madam Chairman.
-: Yes, sir.
-: Thank you for the work you've done on this.
I agree with you and I don't believe there's
been a violation here and I look forward
to how the staff will bring back that recommendation.
And thank you for doing the work you did on this.
-: Thank you.
-: And I do too, thank you Madam Chairman.
-: Thank you, thank you, Jennifer, and you're up.
Thank you.
-: Item two is a motion for rehearing.
On August 3rd, 2021, the Commission issued an order
approving the subject application.
A timely motion for rehearing was received
from protestant Leon A. Greenland.
The applicant filed a reply in opposition to the motion.
None of the issues raised in the motion
for rehearing are new.
All issues raised in the motion were already raised
by the protestant and considered by the Commission
prior to the Commission issuing the order in this case.
It is recommended that the Commission
deny the motion for rehearing.
The motion will be overruled by operation of law
on November 12th, 2021.
And I'm available for questions.
-: Thank you.
Any questions for Jennifer, any comments?
-: Well, Madam Chairman again, as you may recall,
I recused myself in this matter
at the August 3rd Commission conference.
It was at that conference that you
and Commissioner Christian voted on the merits
of the matter and to approve the subject permit application.
Since this agenda item does not involve the merits
that you and Commissioner Christian voted on previously,
and instead deals only with the motion for rehearing,
which brings up no new issues of fact or law,
I feel as though it is proper for me to vote on this matter,
would that I am ready for your motion.
-: Thank you, any other questions or comments?
Right, I move we approve the examiners' recommendation.
Is there a second?
Christian: Second.
-: Second by Commissioner Christian,
all in favor, say aye.
Commissioners: Aye.
-: Motion passes, that item's approved.
Three and four.
-: And items three and four are also a motion for rehearing.
They're presented together with one order and one vote.
On August 3rd, 2021, the Commission issued an order
granting the subject application.
A timely motion for rehearing was received
from Dallas Petroleum Group LLC.
The applicant filed a reply in opposition to the motion.
None of the issues raised in the motion
for rehearing are new, all issues raised in the motion
were already raised by respondent and considered
by the Commission prior to the Commission
issuing the order in this case.
It is recommended that the Commission
deny the motion for rehearing.
The motion will be overruled by operation of law
on November 12th, 2021.
I'm available for questions.
-: Thank you, are there any questions?
And we have two people from Dallas Petroleum Group
that have pre-registered.
Are there any questions of those two gentlemen?
All right, I'll move we approve
the examiners' recommendation.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright, all in favor, say aye.
Commissioners: Aye.
-: Motions passes, those two items are approved.
Five, six, seven.
-: All right, items five through seven
also involve a motion for rehearing.
They are also presented together with one order.
On July 26th, 2021, the Hearings division issued an order
dismissing the subject applications without prejudice.
A timely motion for rehearing was received
from Blackwell Exploration and Development LLC.
In it Blackwell argues that the application
should be dismissed with prejudice.
Four more originals filed a brief
concurring with Blackwell's motion.
The applicant Pure Oil filed a reply
in opposition to the motion.
In the motion, Blackwell complains the applicant
should not be rewarded for untimely
withdrawing its application after three days of hearing.
At the end of three days, the hearing was recessed
and scheduled to resume at a later date.
The applicant had rested its direct case
and the protestants had presented part of their direct case.
Blackwell relies on the Texas rules of civil procedure,
which does not allow a party to withdraw its case
and refile later, if the party has rested its direct case.
This rule applies to petitions filed
in Texas district courts,
not Commission administrative proceedings.
Blackwell also asserts the wells
and subject salt caverns will never
be suitable for disposal.
The applicant maintains that the salt caverns
are suitable for disposal and notes
that its applications were administratively complete.
It claims it would drew its applications
to reconfigure the wellbores
with additional safeguards and plans to resubmit.
An application for a permit from the Commission
does not merely consist of a claim filed
as part of a legal proceeding as in district court,
it is an administrative process required for authorization
to operate a regulated activity.
It is recommended that the Commission
deny the motion for rehearing.
The motion will be overruled
by operation of law on November 3rd, 2021.
And I'm available for questions.
-: Thank you, are there any questions for Jennifer?
All right, the people pre-registered for both parties,
Pure Oilfield and Blackwell Exploration.
Does anybody want to hear from either one of their parties?
All right, I move we approve the examiners' recommendation.
Is there a second?
Christian: Second.
-: Second by Commissioner Christian.
All in favor, say aye.
Commissioners: Aye.
-: Motions passes, those items are approved.
Thank you, Jennifer.
All right, number eight.
Good morning, Joe.
-: Good morning, Chairman, Commissioners.
For the record, Joe Menefe,
paralegal in the Hearings division.
I'll be presenting items eight and nine,
both of which are P-5 motions for rehearing
filed as a result of a final order,
denying renewal of the operator's P-5 because of wells
non-compliant with Statewide rule 15.
Item number eight, in its motion for rehearing,
CXL Energy LLC states its failure to request a hearing
was due to mistake or accident,
that compliance is eminent and that granting
the rehearing will not delay or injure the Commission.
Staff opposes the motion.
At this time, 25 wells remain noncompliant
with Statewide rule 15.
It is recommended the motion be denied.
The motion will be overruled
by operation of law on November 11th.
I'm available for questions.
-: Thank you, are there any questions?
25 is better than 77, but still that's quite a few.
I move we approve the examiners' recommendation.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright.
All those in favor, say aye.
Commissioners: Aye.
-: Motion passes, that item's approved.
Number nine.
-: Item number nine.
Subsequent to filing its motion for rehearing,
Texron Operating LLC has come into compliance
with Statewide rule 15.
Therefore it's recommended that the motion be granted
and the underlying docket dismissed as moot.
I'm available for questions.
Craddick: Thank you, we like good news.
All right, I move we approve the examiners' recommendation.
Is there a second?
Christian: Second.
Craddick: Second by Commissioner Christian,
all in favor say aye.
Commissioners: Aye.
-: Motion passes, that item's approved.
Thank you, Joe.
All right, let's move to the oil
and gas Consent Agenda items 10 through 30.
Are there any ones we need to discuss
or take up individually?
Okay.
There are 21 items on this.
I move we approve items 10 through 30.
Is there a second?
-: Before we do that, I do have some comments.
I'm sorry, Chairman, I know y'all
are probably shocked again,
but I'm considering agendas I'm very passionate about.
First off, we just received data from staff
containing the latest statistics regarding flaring
and as expected, Texas has again reduced
the amount of gas flared.
According to the statistics for gas wells
and oil wells combined, the amount of gas flared
was 0.57%, just over one half percent.
For gas wells, the amount of gas flared was a paltry 0.16%.
For casinghead gas in oil wells,
the amount of gas flared was 1.22%.
This number is the one we are constantly struggling with.
And for good reason, this occurs typically
in areas where infrastructure hasn't caught up,
but compared to other states
who are doing extraordinarily well,
North Dakota, for instance recently hit
their best flaring rate at 6%,
We were at 0.57% capturing almost 99.5%
of all gas produced in the state.
Refreshingly, our Consent Agenda has just a few
flaring exceptions requests,
but at least two of them concern me.
Item number 11 features an operator, Verdugo-Pablo Energy
with three rails to a single flare stack
and which have always remained unconnected
to a takeaway provider.
There are mitigating factors.
The flare exception volume requested is 80% lower
than the previous exception.
The gas is unfortunately rich in H2S
and there is evidence in the record that it would cost
more than a million dollars to lay a line
to these three wells.
I fully understand that not every pipeline for takeaway
of casinghead gas is going to be economical,
especially if the operator doesn't factor in the value
of the oil in its equation.
Now, since the examiners in this agenda item
reduce the flaring exception term
from two years to one year,
and since the hearings process has taken quite some time,
the expiration date for this particular exception,
if approved, will be in November of this year.
It is for this reason that I will vote
to approve this agenda item.
This gives the operator a chance to review its options
for utilizing its gas rather than flaring it
prior to requesting another exception term.
In addition, the operators should be prepared to explain
to the examiners what steps it's taking to reduce flaring.
It is for this reason that I invite representatives
of Verdugo-Pablo to sit down with me and figure out
how we can most effectively utilize this stranded gas.
As I have said before, I am not inclined to keep voting
to approve flaring exceptions where no improvement
has shown and the gas is simply being wasted.
Next, agenda item number 12 is a perfect example
of my concerns for the broader natural gas markets.
In this case, we have an operator Unitex Oil and Gas LLC,
who was originally connected to a midstream
takeaway operator, West Texas Gas, WTG.
However, WTG deemed the gas plant that serviced
the subject field as unprofitable, closed the plant,
and deconstructed the gathering system,
leaving Unitex unconnected to any line.
Now the closest pipeline is nearly 15 miles away
and will cost Unitex approximately $1.6 million to connect.
I feel for both parties here,
I have said repeatedly that the economics have to work.
On the other hand, we cannot simply
shrug our shoulders and keep flaring.
Therefore I would also like to invite both Unitex
and WTG to sit down with me separately
to discuss how we can make situations like this work.
You have my commitment that I will do everything I can
to improve the marketing of natural gas
as a safe and efficient fuel source.
In Texas, we can do better.
That's all the comments I have, thank you.
-: Thank you.
And thank you for staying on top of flaring
and our numbers continue to improve.
-: They do, I'm very proud of it.
-: So I appreciate the industry and staff
being aware of that as well.
Anything else?
All right, I move that we approve items 10 through 30.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright, all in favor, say aye.
Commissioners: Aye.
-: Motion passes, those items are approved.
Let's go to master default orders, items 31 through 34.
Are there any we need to discuss?
All right, I move that we approve items 31 through 34.
Is there a second?
Christian: Second.
-: Second by Commissioner Christian, all in favor, say aye.
Commissioners: Aye.
-: Motion passes, those items are approved.
Agreed enforcement orders.
These are items 35 through 45,
but I understand staff wants to pass number 39.
Is that correct, all right.
I move that we approve items 35 through 45,
except for item number 39.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright, all in favor say aye.
Commissioners: Aye.
-: Motion passes, those items are approved.
That concludes the hearings sections matter,
and we'll now take up administrative, thank you.
And we've got Robbi again.
-: Good morning again.
My name is Robbi Craig.
Staff seeks approval of proposed revisions
to the employee handbook.
Once approved the revised handbook will supersede
the prior version and will serve as the guiding
human resources policy document
for the Railroad Commission staff.
Attached is a chart of the revisions
and the relevant handbook pages with the draft language
for which staff seeks approval.
I'm available for questions.
Craddick: Thank you, are there any questions?
All right, I'll move we approve staff's recommendation.
Is there a second?
Christian: Second.
Second by Commissioner Christian, all in favor, say aye.
Commissioners: Aye.
-: Motion passes, that item is approved.
-: Thank you.
-: Item 47, good morning Jason.
-: Good morning, Chairman, Commissioners.
For the record, Jason Clark, director of agency projects.
Item number 47 is the proposal to post
on the Commission's website, the new forms,
CID, CIX, and proposed new table CCI,
all related to the new 16 Texas Administrative Code 3.65
proposed at the September 14th, 2021 open meeting.
As part of the Senate bill three and house bill 36 48,
both passed during the 87th legislature,
the agency must establish a process
for designating certain natural gas entities
as critical during an energy emergency.
In accordance with this process and the implementation
of other aspects of Senate bill three,
the agency was also provided the authority and funding
to create the new critical infrastructure division,
which will be responsible for ensuring proper registration,
inspection, and operation of facilities
within its regulatory authority during an energy emergency,
As such, the new division is proposing to publish
two new forms, the form CID, which is for
critical infrastructure designation,
which an operator will use to acknowledge
its critical facilities, and the form CIX,
critical infrastructure exception, which will allow
operators to seek an exception to critical designation
pursuant to natural resources code section 81.073.
Proposed new table CCI, which stands for
critical customer information, dictates the information
and critical facilities operators as responsible
for submitting to electric entities
described by section 38.074, subsection B paragraph one
of the utilities code.
Staff is seeking approval to post the proposed
form revisions to the Commission's website
for a comment period no longer than 30 days.
After the comment period has 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.
I'm available for questions.
-: Thank you, are there any questions?
I appreciate us continuing to move forward
as the legislature is over having a hearing today
that we've sent way to.
We're making good progress at this agency
and thank you for helping us put this together.
Wright: Thank you to the staff
for their hard work on this.
-: I move we approve per the staff's recommendation.
Is there a second?
Wright: Second.
-: Second by Commissioner Wright, all in favor, say aye.
Commissioners: Aye.
-: Motion passes, that item is approved.
Thank you, Jason.
Item 38, good morning Alex.
-: Good morning, Chairman and Commissioners.
For the record, my name is Alex Schoch,
general counsel of the Railroad Commission of Texas.
Item 48 is an update for you today.
There won't be any action requested or vote required
for this item, but I'm reporting on a new case
that's come to our attention.
It's a case that was filed in the Travis County
district court in the 53rd judicial district
it's case D1GN21005412,
public Goldston Oil Company against TCQ.
And it relates to a final order entered by TCQ
that included Goldston and other oil and gas operators
in a Superfund site,
the so-called McBay Oil and Gas Superfund site.
In the defense of Goldston, and some of the other
all gas operators is that all they alleged
that the record would show that there were only
waste transmit to the site was oil and gas waste,
which would be covered by the petroleum exclusion
under the Superfund laws.
That will be their defense in the case going forward.
They, in our view, the law in this matter
is fairly well settled, that petroleum waste
is jurisdictional to the Railroad Commission.
It's the hazardous material, solid waste
that are jurisdictional to the TCQ.
Those differences are well laid out in the statute.
So again, we're just bringing this to your attention.
We're gonna continue monitoring it
and see how this develops as it gets to the court system.
Craddick: Thank you, are there any questions or comments?
-: I'd like to add this and Alex,
thank you for staying on top of this.
Your comments have been really well received
because this case could have far reaching implications
for the oil and gas industry.
I have taken great interest in it.
Specifically I worry about improper retroactive liability
for activities clearly within
the Railroad Commission jurisdiction.
I sent a letter to the TCQ explaining why I feel
that Goldston should not be held as a responsible party
in this matter, selling one load of crude oil in 1986
simply does not equate to the disposal of hazardous waste.
I want to make clear that I support the TCQ's mission
to hold industry responsible,
where it's appropriate and where it's warranted.
But in this case, it appears that Goldston and possibly
other operators are being held to an impossible standard.
I will request our office of general counsel monitor
the various lawsuits against the TCQ,
and please keep me updated.
Thank you.
Schoch: We'll do that.
We'll keep all the Commissioners updated on that matter.
Craddick: Thank you.
-: Jim, Commissioner Wright, we appreciate the work
you're doing on this and I support you in this
and keep an eye on it and thanks for watching it close.
-: Thank you both.
-: And you too for the good work staff's doing.
-: Yes, sir.
Craddick: Thank you for being on top of things,
I appreciate it.
-: Nothing for the item is settled.
-: Okay, great, thank you, Alex.
All right, 49.
Well, I'm moving my notebooks over here.
(laughing)
-: Do I need to get my purse?
-: I didn't say anything.
Today, I'm proud to nominate my fellow Commissioner,
Wayne Christian, be chairman of this agency.
And this last year, this agency's gone through
an interesting legislative session
and I'm very proud of the work we did
to address our budget needs
and our winter storm Uri response, which is underway.
And thank you for the staff for being good partners
as we've moved forward.
Commissioner Christian's proven leadership has provided
this agency with the ability to advance
several key initiatives and his return to Chairman
will keep the important work we do on the right track.
Wayne, thank you, and Jim, thank you for allowing me
to serve as chairman for a third time.
And for that, I'm happy to pass the middle seat over to you.
So I move that Wayne Christian be elected
as Chairman of the Railroad Commission,
and is there a second?
-: I certainly second that, but I'd also like to add,
I've had the good fortune to serve alongside
two outstanding colleagues since my arrival
at the Railroad Commission in January
and want to thank Commissioner Craddick
for her leadership and congratulate my friend
Wayne Christian on his election to Chairman.
Chairman Christian will be forceful advocate
on behalf of our agency
and domestic energy production here in Texas.
And I look forward to working with him
in this capacity to advance our shared goals.
Thank you both.
-: Thank you.
-: Second.
-: So, we have a motion on the second.
All in favor, say aye.
-: Aye.
-: Motion passes, congratulations.
-: Thank you.
(clapping)
-: I'm taking the water.
-: This always seems so rude though, taking the seat.
-: I'm willing to leave it to you.
-: One time we had a fight over that.
-: I recall, I do.
-: Do I stay here or are we supposed to switch?
-: You can go sit down there with them if you want. (laughs)
-: You can move in any, I sat and didn't offer you a seat.
-: Now I will first apologize for the dress this morning.
I heard there were pictures
and I see that y'all dressed for the pictures.
I thought it was for the Christmas card.
Craddick: That's right, you look nice though.
-: No red and green, I apologize for that.
But thank y'all, it's a great honor to be asked.
Let me tell you, Christi, you did
such a fabulous job during session.
You made us very proud as an agency,
as fellow Commissioners, the job you did
in a horrible time, the storm,
and you stood there and defended this agency
and its producers across the state,
like no one could have done it better
and could we be more proud and I think it was summed up
in the statement of one of the centers of end
that said natural gas saved Texas.
And I appreciate the work that you did.
Of course, the budget that we did,
this is historically successful.
And I think you get kudos again
for doing an excellent job with that.
And I make sure I do not want to give any credit
to your Dad for having anything to do
with any of the work you've done over there.
-: No, he didn't do anything.
-: And Jim, you brought to the table, honestly,
an intense desire to watch over, as have I,
the flaring issue, and all of us have looked over that.
And I think the success is there, of an issue
that had been brought up by various sources,
that there was a terrible tragedy going on with flaring
in the state of Texas and tremendous waste.
And I think from the good work you do in this agency
and the staff and all across the state and the industry
has done has followed your leadership on this.
And the task force that we had assigned to look into it.
The industry has worked very hard on this,
but I appreciate your leadership.
You're watching very close to it
and making sure it stays on track, and it's amazing
we've gone from what 2.7 just three years ago
to now just little over a half a percent flaring
and yet you still hearing in the media continually
how this is a terrible, tragic climate issue.
And it's amazing, I did not know this,
I'm reading a book, it's called "Woke Inc."
If you've haven't read it,
it's a tremendously frightening novel,
but you know the first person that brought up
these ESG funds own flaring as being the reason
or methane and flaring being the reason for it was Al Gore.
I did not know that the common, you know, person
that originated a lot of this talk
because they needed, I guess, a job after Bush beat it,
but it is again continuing this.
But being the agency is a hard job of this agency.
And the main reason it's hard is
because the agency is so successful, professional,
and I cannot tell you working for the world's
most respected regulatory agency for oil and gas
as Forbes magazine stated, or the many people
that serve us across the state
in the Railroad Commission of Texas.
And it's an honor to serve you, as your Chairman.
We're having an impact.
It's not an accident that flaring is going this right,
and the liberal media distorts the issue's record,
the education system teaches our future generation
the oil and gas consumption is bad.
The federal government's gotten in the act
and trying to keep it in the ground and shut it down,
yet they'll go over and bow to OPEC to pay,
please increase the production
while we shut you down in America.
So the logic has been lost on this
and the oil and gas industry accounts
for roughly one sixth of the state's economy
and employs almost 400,000 Texans.
Average salary of $129,000, has paid 163 billion in cash
in the last 15 years alone.
And this does far more than fuel our vehicles
and warm our homes, oil has over 6,000 products,
over 6,000 that come from oil alone.
And so many are just not even aware, they think of gasoline
in the tank and understand gasoline,
when you look at an automobile,
the gasoline in the tank is the least percentage
represented by oil in that automobile.
Think of that.
And that's all you hear is the fuel issue.
Advancing technology builds our infrastructure,
protects us from natural disasters,
provides healthcare and education.
And it's just too much at stake
not to stand up and defend this.
And I think the best defense is successful offense
and never have I been a part of an agency that for 150 years
has the reputation as I've already stated.
And that's the best offense for what oil and gas is great.
You know, the last hundred years,
we've decreased environmental deaths by 99%.
And the Texas Railroad Commission has been leading
that charge for 150, or at least that hundred year period.
And as Chairman, I'll work to protect this progress,
ensure the Commission its continues long history
of energy production and responsible
that creates good paying jobs,
provides a consistent predictable regulatory environment,
allows businesses to succeed,
and preserving public safety and protecting the public.
The Governor's appointed the Interstate Oil
and Gas Compact Commission.
I found that Washington continues to dump almost
as best they can in every way they can
to attack our industry.
And I've often passed resolutions back to Congress
on many of these social and government's ESG funds,
and other items that I will mention from time to time.
Texas, not Washington, the private sector,
not government knows best how to meet our energy needs
and that's a fight that we will never quit.
Radicals should have you believe that you must choose
between reliable energy and environmental progress.
That's a false choice.
We have in the past, Texas will continue
to have cheap, plentiful, reliable energy
while advancing technology to clean our environment.
So thank you for allowing me to be the Chairman
and look forward to continuing the progress
and work that y'all have lead.
Thank you.
Item 50 is our public participation.
And while maybe it was not, I'm going to ask
for an exception that we allow us some folk
to speak today because they've volunteered to,
and we want to make sure that is
that the Commissioners have no objection.
I'm going to ask Sarah Stagner and Ashley Watt,
if they would like to speak for a couple of minutes each,
we'd love to hear what you have to say.
-: Thank you, good morning.
My name is Sarah Stagner.
I am here on behalf of the Antina Ranch.
I last stood in front of you one month ago
and asked for your help with an ongoing
Chevron subsurface blowout on the ranch
in Ward and Crane counties.
And I wanted to give you an update.
As a reminder, the Estes 24 is a legacy well
drilled by Gulf in the 1950s,
operated as a waterflood injection well by Chevron
and plugged in the 1990s by Chevron.
We now know the 24 is one of several former injection wells
that has failed and flowed brine to surface.
After nearly three months of efforts,
the Estes 24 is no longer flowing its surface.
It might be replugged.
However, the last pressurized zone was above 189 feet deep.
We now have conclusive evidence
of multiple surface casing failures.
The wall has been blowing out toxic radioactive brine
directly into three separate freshwater aquifers.
We still have no idea of the extent
of this field wide blowout, which well will blow out next,
or if any other wells are already
blowing out subsurface through failed casing.
We do know that Chevron water flooded
this field for over 30 years,
they regularly exceeded their allowed
produced water injection limits
and suffered multiple mechanical integrity test failures
on these injection wells throughout the years.
It appears the reservoirs under this ranch have been filled
past the breaking point and are forcing their way
to surface through 70 year old casing and cement.
It is our understanding that Chevron
and the Railroad Commission are currently negotiating
the extent of testing and remediation that Chevron
will be required to perform on the ranch.
We have asked for a seat at that table for our experts
to participate and have been denied.
These are decisions that will impact
this land for generations to come.
And Ms. Watt has a couple of things to say as well.
Thank you.
-: Good morning, my name is Ashley Williams Watt
and I am the landowner of the Antina Ranch.
I'm a fourth generation West Texas rancher
in the Permian Basin.
My family's been in the Permian since
before the oil industry came
and will be long after it's gone.
To be clear, I'm broadly supportive
of Texas oil and gas industry.
As Commissioner Christian noted, it's an important
economic driver for the state and the nation,
but the citizens of Texas and especially those of us
who live in the oil fields,
deserve safe and clean groundwater.
The oil and gas industry can not be allowed to permanently
destroy the land and waters of West Texas.
If it does, that cost was too great.
This entire subsurface blowout has been a nightmare.
I've been forced to sell most of my cattle,
the water well next to my house
is now saltier than the ocean
and this contaminated well water
likely caused my mother's death in late 2018
from a rare and aggressive cancer of the kidney.
And what has the response been,
from the operator and the regulator?
Chevron hid the first two blowouts from me
and refused to replug the Estes 24
until I complained loudly enough on Twitter.
The Railroad Commission's immediate response
was to lawyer up against me, the landowner, through counsel.
This entire incident has been absolutely embarrassing
for us as a state.
I would like to remind the Commissioners
that you work for the citizens of the state of Texas,
not the operators, not your campaign donors,
not the drilling mud contractors.
You're legally required to protect the groundwater
from oil and gas operations.
When these operations do contaminate groundwater,
we must have a comprehensive, transparent,
and fair plan for remediation.
I asked you for a seat at that table
and your staff has told me no.
My question to the three of you today is what are you going
to do to fulfill your statutory obligations
to protect my groundwater?
-: I will tell you that I've been here since January.
I'm trying to study everything I can about your situation.
I'm still studying everything I can about your situation.
And you have my commitment that I will stay on top
of everything I can do within the law
to make sure that things are done correctly.
-: Thank you, Commissioner Wright.
-: And you mentioned that you had not been able
to meet with us here.
I was understanding, and I asked my office
for my staff to meet with you this past month.
I thought we had.
-: Yes, Commissioner Christian, I met actually in your office
two weeks ago today, your staff was helpful.
They listened, I've asked the representative
from your office legal counsel, Mr. David Cooney
for input, and he has denied it.
He said they have taken my presentation into consideration
and they will negotiate with Chevron behind closed doors
without the landowner being privy to it.
-: Well, we certainly will look into that.
Appreciate so much you being here.
And it is your right as a citizen to be here
and our job to listen and to respond to your request.
And I assure you that your being here
is appreciated and respected, and the most important thing
we do is represent the citizens of Texas,
which is what we're here to do.
-: And I appreciate that, Commissioner Christian.
I'm not some liberal environmentalist.
Ranchers of West Texas are not
a particularly liberal, green crowd,
but the environment's important to us
and we can't do what we do without groundwater.
Christian: Frankly, I believe you ranchers
and the farmers of this state are the best environmentalist
and most green people we have in the nation.
-: Absolutely.
Christian: Thank you for being here.
-: Thank you.
Wright: Yes, thank you.
-: Let's see the next thing on the program here.
All right, item 51 is our executive session item,
which we will not be going into today.
Are there any other duly posted matters
that could be brought before the Commission at this time?
If not this meeting of the Railroad Commission of Texas
is adjourned.
Wright: Thank you everyone.
-: Thank you all very much, I appreciate it.