-: And for October 12th, 2021
on our public participation policy,
anyone designed to offer public testimony on any items that
are not noticed on today's agenda
was required to register in advance.
We did not have anyone registered in advance
for this meeting.
The Commission will consider the items on the agenda as
posted on the agenda.
Let's get started with agenda item one.
Claudia: Good morning, chairman and Commissioners.
For the record,
My name is Claudia Godoy with the market oversight section
of the oversight and safety division.
The first agenda before you today is case number 69 39.
The application of Texas Gas Service company,
for test year 2020
annual interim rate adjustment for the
unincorporated portion of the Rio Grande valley
service area.
This is the fourth interim rate adjustments since the
company's last rate case. GUD number 1 0 6 5 6.
This adjustment represents an incremental increase of
two million three hundred and 48 thousand,
$919 dollars
of which
one hundred and eighty one nine hundred I'm sorry,
one hundred and eighty one
nine hundred and thirty nine
is recoverable from customers impacted by this order.
I recommend approval of the interim rate adjustment.
I'm available for questions.
Chairman: Thank you, Claudia.
Are there any questions?
No questions.
I'll move we approve the examiners recommendation.
Is there a second?
Wright: Second.
Chairman: second by Commissioner Craddick.
Craddick: Thanks. It wasn't me, but that's okay.
Chairman: You did. I heard you grunt.
(giggles)
okay.
I revise that it was Commissioner Wright.
Was the second All in favor, say aye.
-: Aye.
-: Any opposed motion passes.
That item is approved. Let's go to item agenda two.
Sara: Good morning. Chairman, Commissioners.
For the record my name is Sarah Montoya Voglesong,
and I'm representing the market oversight section of the
oversight and safety division.
Agenda item number two is case number 5 6 7 5.
The application filed by Wheeler Pipeline LLC,
pursuant to the natural gas policy act,
section three 11 for review of the reasonableness
of the transportation rate.
The applicant provided testimony and supporting data
demonstrating that the requested rates do not exceed a
cost-based rate
and staff recommends approval of these rates.
May I answer any questions?
Chairman: Are there any questions members?
Members: Nope.
Chairman: Hearing none
I move we approve the examiners recommendation.
Is there a second?
Craddick: Second,
-: second by Commissioner Craddick, all in favor,
say aye.
Members: Aye.
Any opposed motion passes. That item is approved.
Sara: Thank you. Also go ahead.
-: Item number three go ahead
Sara: I also have the third item.
The third item is case number 69 4 0.
The application filed by Texas Gas Service Company
for the test of year 2020
annual interim rate adjustment for the
unincorporated areas of the north Texas service area.
This case represents the third interim rate adjustment since
the company's most recent rate case
GUD number 1 0 7 3 9.
This adjustment represents an incremental increase of
$1,553,269
of which $151,967 is recoverable from customers
subject to the order.
In this case
The recommended adjustment does not include any costs
associated with the winter weather
event in February of 2021.
Staff recommends approval of the interim rate adjustment
and I'm available to answer any questions.
Chairman: Are there any questions members?
Members: No
-: Hearing none I move we approve
the examiners recommendation.
Is there a second?
-: second
-: Second by Commissioner Wright.
All in favor say aye.
-: Aye.
-: Any any opposed?
Motion passes.
That item is approved.
Item number four.
We have, I believe Veronica coming.
Veronica: Yes.
Good morning. Chairman Commissioners.
I'll be presenting items four and five.
Item number four is the application
by the Sabine mining company
requesting release of phase one reclamation obligations
for 1369.3 acres
within south Hospital number one mine
permit number 33 I.
located in Harrison county.
After notice a request for a
hearing was made by Mr. Ernal Brewster.
Subsequently the parties contacted him to address his
concerns for the application.
He did not indicate any any disagreement to them.
Following a reasonable time period and opportunity was
provided to Mr. Brewster to indicate whether he
wanted to proceed with a hearing
or whether he wanted to withdraw his request.
No response was filed by Mr. Brewster.
No hearing was held.
Evidence in the record supports that
Sabine has satisfied all requirements for the requested
release of the subject area.
The permit is bonded upon the worst case method.
No changes to the current bond are request in this docket.
No exceptions were filed to the proposed order.
It is recommended that the requests for phase one release
for the subject area be approved
and that Sabine be not be eligible to reduce the amount
of bond at this time.
I'm available for questions.
-: Any questions members
-: I do?
Is there anybody from Sabine here?
-: Anybody from Sabine company?
-: I just want to know how many loads it took
to move that dragline (Chuckles)
-: I don't know.
Would you quit being trivial
you don't have to put jokes in our
Okay are there any questions
of legitimacy members?
(laughing)
I know we approved the examiners recommendation,
is there a second?
-: Second.
-: Second by Commissioner Craddick.
All in favor, say aye.
-: Aye.
-: Any opposed?
Motion passes.
That item is approved. Let's move on to item number five.
-: Item number five is the application
for the Texas municipal power agency
requesting release of phase three reclamation
obligations for 85.1 acres within Gibbons Creek lignite,
mine permit number 2060 located in Grimes county.
The approved post My land uses pastureland.
Evidence in the record supports TMPA
has satisfied all requirements
for the request it released to the subject area.
After notice,
no comments or requests for hearing were received.
TMP and staff are the only parties to the proceeding.
No exceptions were filed,
no changes to the current bond or requested in this docket.
It is recommended that the request for phase three release
for the subject area be approved and that
TMPA be eligible to reduce the amount of the bond
for the part.
I'm available for questions.
-: Any questions members?
-: Nope.
-: Okay. Is there uh,
I move we approve examiners recommendation
is there a second?
Wright: Second.
-: Second by Commissioner Wright?
All in favor say aye.
Members: Aye.
-: Any opposed?
Motion passes that item is approved.
Item number six.
(shuffling)
-: Good morning chairman and Commissioners.
Chairman: Good morning.
-: Good morning, I'm Jennifer Cook Administrative Law Judge
with the Hearings division.
In item six there was a complaint filed
against NGL Water Solutions Permian and Engleford
regarding protests in GL files.
This was presented at the last conference
in past with comments.
Based on the comments a revised order
has been prepared and provided for your consideration
and I'm available for questions.
Chairman: Are there any questions members?
Wright: No.
-: I move we adopt the final order as revised.
Is there a second?
Craddick: Second.
-: All in favor say aye.
Members: Aye
-: Any opposed?
Motion passes,
that item is approved and Commissioner
Craddick did the second
-: You got it wrong
-: I did. She did she second.
-: Yeah you got it right
-: Okay, thank you
keep up here.
-: Hey you keep putting words in my mouth
that are not in my mouth
-: Hey, Hey, y'all calm down.
Okay. This is important business okay.
All right.
We've got Joe here. He'll task you out.
-: You get that.
Chairman: Okay.
-: Good morning chairman,
Commissioners, for the record,
Joe Manifee paralegal with the Hearings division.
I'll be presenting items 7, 3 11,
all of which are P five motions for rehearing
filed as a result of a final order
denying renewal of the operators P five
because of wells that were
noncompliant with Statewide rule 15.
Item number seven in its motion for rehearing,
Mitchell Enrich Oil and Gas LLC
states its failure to timely request a hearing
was due to mistake or accident,
that compliance is eminent
and that granting the rehearing will not delay
or hinder the Commission.
Staff opposes the motion at this time.
11 wells remain non-compliant.
It's recommended the motion be denied.
The motion will be overruled by operational law
on November 11th.
I'm available for questions.
Chairman: Questions members?
Members: No.
-: We approved examiners recommendation. Is there a second?
Wright: Second.
-: Second by Commissioner Wright.
All in favor say aye.
members: Aye
-: Any opposed? Motion passes that item is approved.
Agenda item eight.
-: Item number eight and its' motion for rehearing.
Nessa Tour West Texas LLC
states it's 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 three wells remain non-compliant
with Statewide rule 15.
It's recommended the motion be denied.
The motion will be overruled by operation of law on
November 11th.
I'm available for questions.
-: Any questions members?
-: No
-: I move we adopt the approved examiners recommendation.
Is there a second?
-: Second
-: Second by Commissioner Craddick.
All in favor say aye.
Members: Aye.
-: Any opposed?
Motion passes.
That item is approved.
Item number nine.
-: Item number nine.
Subsequent to filing its motion for rehearing
Oz Gas Corporation has come into compliance.
Therefore, it's recommended the motion be granted and the
underlying docket dismissed this mood.
I'm available for questions.
-: Any questions members?
-: No.
-: I move we approved the examiners recommendations.
Is there a second?
-: Second.
-: Second by Commissioner Wright.
All in favor Say aye.
-: Aye.
-: Any opposed?
Motion passes.
That item is approved.
Agenda item 10 Joseph.
-: Item Number 10 and its motion for rehearing
P F O G Operations LLC
states it's failure to request a hearing
was due to mistake or accident.
That compliance is eminent and that the Commission
would not be injured by granting the rehearing.
Staff opposes the motion at this time.
One well remains noncompliant
with Statewide rule 15.
Due to its failure to comply with H five requirements,
it's recommended the motion be denied.
The motion will be overruled by operation of law
on November 11.
I'm available for questions.
Chairman: Any questions members?
-: No
-: I move we approve the examiners recommendation.
Is there a second?
-: Second.
-: Second by Commissioner Craddick.
All in favor say aye.
-: Aye.
-: Any opposed?
Motion passes that item is approved.
Item number 11.
-: I'm number 11.
Subsequent to filing its motion for rehearing,
R M B Operating LLC has come into compliance
with Statewide rule 15.
It is recommended the motion be granted
and the underlying docket dismiss this mood.
I'm available for questions.
Chairman: Any questions members?
Members: Nope.
-: I move we approve the examiners recommendations.
Is there a second, <v Wright>second.
-: All in favor say aye.
-: Aye.
-: Any opposed?
Motion passes that item is approved.
Thank you, sir.
Craddick: We like good news
-: We had to work him hard today.
-: Good news on a few
-: pay raise for him.
That'd be good to him.
Okay let's move on to um item
-: You just put that on record for him
so he's gonna be in right?
-: Ought to,
ought to, I didn't say we were going to
its a year away.
Okay,
Let's move on to the oil and gas Consent Agenda.
There are 33 items on the Consent Agenda.
I move to approve items 12 through 44.
Is there a second ?
Craddick: Second
-: second by Commissioner Craddick.
All in favor say aye.
-: Aye.
-: Any opposed?
Motion passes those items are approved.
Let's move on to rule 15 and active well items.
There are 15
rule 15 and it has that, 15 rule 15 inactive well items.
I move that we approve items 45 through 63
except four items 46 51 56 and 62.
Is there a second?
Wright: Second.
-: second by Commissioner Wright.
All in favor say aye.
Members: Aye.
-: Any opposed?
Motion passes those items are approved.
Let's move to the master default orders.
There are three master default orders.
I move we approve items 64 through 66.
Is there a second?
Craddick: Second
-: All in favor say aye.
-: Aye
-: Second by Commissioner Craddick.
Aye.
-: Any opposed?
Motion passes those items are approved.
I just feel like I need to state the second record.
-: You. Just really just don't care what I'm saying.
Today at all.
-: Well you said I said you did it. Okay.
-: She ain't miss me too. So.
-: Equal opportunity.
-: We never treated you like this.
What's going on.
Okay.
All right,
let's move on to the agreed enforcement orders.
There are 166 agreed enforcement orders.
I move we approve items 67 to 232.
Is there a second?
-: Second.
-: second by Commissioner Wright?
All in favor say aye.
-: Aye.
-: Any opposed?
Motion passes those items are approved.
That concludes the hearing section.
We will now take up our administrative agendas.
Agenda item 2 33.
(shuffling)
-: Good morning Chairman,
Commissioners.
For the record. RJ D'Silva,
interim director of government relations for the Commission
agenda item 2.33 pertains to section three of Senate bill
three,
which requires the Commission to appoint five people who
represent the natural gas supply chain to the Texas energy
reliability council.
Staff recommendation is to appoint the following members
as alternates representing the operation
of wells producing natural gas is Jason Herrick,
alternate as Richard Richard BA representing the pipeline
industry is Grant Ruckle.
Alternate is Larry Bell representing
injection and storage of
produced water is Danny Wesson.
Alternate as Luke Garrett representing gas processing is
Grant Bacon.
Alternate is Don Baldric
and finally representing gas
distribution companies is Keith Wall.
Alternate is John Paris.
And I'd like to point out that Mr. Wall
is here in back of the room as well.
Chairman: Okay well thank you very much.
And thank you Mr. Wall for offering
to volunteer for such duty.
I appreciate.
-: Offering to volunteer is the real key to this
so thank you for the work
and we are glad to keep this moving forward
we appreciate the members that are willing to serve on this
-: Yeah. Thank you.
All. You all represent the natural gas supply chain
and the production pipelines.
I'm very proud to do you guys have volunteered to do that
and thank you for volunteering.
-: Yeah, me too.
And I appreciate the natural gas industry
that has been so good.
I remember during, during your hearing,
I believe it was Senator Nichols that stated
natural gas saved Texas.
I think that was a great comment there.
So I move that we adopt staff recommendation
for appointments to the Texas energy reliability council.
Is there a second, -: Second
-: Second by Commissioner Craddick all in favor say aye.
-: Aye.
-: Any opposed?
Motion passes.
That item is approved.
Thank you very much.
Agenda item 2 34 is an update from the office
of general counsel.
-: Good morning Chairman and Commissioners.
For the record my name is Alec shock.
general counsel on railroad Commission item 2 34 is
updates on the pending or contemplated litigation or
rule makings.
Today we don't have any updates.
We've had some past few weeks, but nothing to report today.
Thank you Chairman: No news is good news.
And then comes today.
Agenda item 2 35 is oil field cleanup report,
quarterly status report Clay Woodall.
-: Keith May
Chairman: Keith May they have Clay Woodall down here
(mixed laughter)
Chairman: They walked out on you huh and left it to you
-: Good morning Chairman , Commissioners.
Chairman: Good morning
-: My name is Keith May with the oil and gas division.
Chairman: your sure?
(laughter)
Chairman: I'm gonna correct it in my book here.
Item 2 35 is the oil field cleanups
oil field cleanup program
Fourth quarter sash report for fiscal year 2021.
During the fourth quarter of fiscal year 2021 plugging
operations were completed and follows are closed on 384
wells at a cost of 12 million $58,210.
This includes only those wells that were plugged,
invoiced by the plugin contractor
and approved for payment by field operations
During the same period,
346 new Wells that were approved for plugging
with state funds.
At total of 1,485.
Wells are physically plugged during fiscal year 2021
of which 1,453 were closed at a cost of 36 million
$288,518.
Site remediation's performance during the fourth quarter
included 114 cleanup activities
completed and closed at a cost of 11 million,
$242,352 as well as three cleanup activities
completed at a cost of $54,450 using grant funds
And additional 52 new activities
were approved during the same period.
The fiscal year 2021 performance reset remediation included
a total of 275 cleanup activities at a total cost of
13 million
$116,181 may I answer any questions.
Chairman: Excellent work. I tell you our
our staff,
our complete workforce is such an example to the world
on how to clean the oil up.
It's amazing you hear this environmental cleanup stuff
and and all this that goes on.
Do you know?
Probably the oldest environmental agency in the nation is
the railroad Commission of Texas.
It is in our charter for cleanup.
I remember from Kil gore where we went in there,
we went in the agency went in there and gosh,
back in the fifties and did that cleanup.
Also a cost basis analysis.
I'm an old financial guy.
Okay.
So I did a cost based analysis what does it cost?
What's the value and picking on the,
what happened didn't perform during the storm versus what
did perform during the storm.
You know oil derrick lasts from 50 to 70 years
in production for oil and gas okay.
Cost to take it down is what
15 to 20,000 average and not paid for directly
by the taxpayer.
Industry takes care of this.
A windmill life expand is 10 to 15 years.
The cost to take it down is $535,000.
Okay.
Now that's renewable energy
but the cost is kind of high to renew that sucker.
So I commend what you do
and commend what our employees have done.
Wright: I agree with you.
I think our goal was 1400 wells to plug this year.
Is that correct?
Assistant: Yes sir.
-: And you you've exceeded that so far.
That's that's good job.
Thank you'll.
Thank you for your report.
Agenda item 2 36 is our public participation item.
No one is registered indicating that they wish to speak on
any non posted items.
Agenda item 2 37
which is our executive session item
which we will not be going into today.
Are there any other duly posted matters to be brought before
the Commission at this time?
Hearing none,
this meeting of the Railroad Commissioner of Texas
is adjourned.
-: Thank you everyone.
-: Thank you.