WEBVTT

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<v ->And for October 12th, 2021</v>

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on our public participation policy,

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anyone designed to offer
public testimony on any items that

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are not noticed on today's agenda

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was required to register in advance.

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We did not have anyone
registered in advance

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for this meeting.

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The Commission will consider
the items on the agenda as

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posted on the agenda.

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Let's get started with agenda item one.

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<v Claudia>Good morning,
chairman and Commissioners.</v>

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For the record,

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My name is Claudia Godoy
with the market oversight section

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of the oversight and safety division.

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The first agenda before you
today is case number 69 39.

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The application of Texas
Gas Service company,

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for test year 2020

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annual interim rate adjustment for the

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unincorporated portion
of the Rio Grande valley

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service area.

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This is the fourth interim
rate adjustments since the

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company's last rate case.
GUD number 1 0 6 5 6.

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This adjustment represents
an incremental increase of

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two million three
hundred and 48 thousand,

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$919 dollars

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of which

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one hundred and eighty
one nine hundred I'm sorry,

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one hundred and eighty one

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nine hundred and thirty nine

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is recoverable from customers
impacted by this order.

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I recommend approval of
the interim rate adjustment.

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I'm available for questions.

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<v Chairman>Thank you, Claudia.</v>

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Are there any questions?

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No questions.

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I'll move we approve the
examiners recommendation.

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Is there a second?

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<v Wright>Second.</v>

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<v Chairman>second by
Commissioner Craddick.</v>

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<v Craddick>Thanks. It
wasn't me, but that's okay.</v>

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<v Chairman>You did.
I heard you grunt.</v>

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(giggles)

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okay.

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I revise that it was
Commissioner Wright.

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Was the second
All in favor, say aye.

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<v ->Aye.</v>

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<v ->Any opposed motion passes.</v>

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That item is approved.
Let's go to item agenda two.

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<v Sara>Good morning.
Chairman, Commissioners.</v>

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For the record my name is
Sarah Montoya Voglesong,

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and I'm representing the
market oversight section of the

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oversight and safety division.

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Agenda item number
two is case number 5 6 7 5.

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The application filed by
Wheeler Pipeline LLC,

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pursuant to the natural gas policy act,

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section three 11 for review
of the reasonableness

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of the transportation rate.

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The applicant provided
testimony and supporting data

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demonstrating that the
requested rates do not exceed a

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cost-based rate

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and staff recommends
approval of these rates.

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May I answer any questions?

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<v Chairman>Are there
any questions members?</v>

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<v Members>Nope.</v>

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<v Chairman>Hearing none</v>

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I move we approve the
examiners recommendation.

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Is there a second?

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<v Craddick>Second,</v>

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<v ->second by Commissioner
Craddick, all in favor,</v>

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say aye.

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<v Members>Aye.</v>

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Any opposed motion
passes. That item is approved.

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<v Sara>Thank you. Also go ahead.</v>

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<v ->Item number three go ahead</v>

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<v Sara>I also have the third item.</v>

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The third item is case number 69 4 0.

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The application filed by
Texas Gas Service Company

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for the test of year 2020

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annual interim rate adjustment for the

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unincorporated areas of
the north Texas service area.

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This case represents the third
interim rate adjustment since

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the company's most recent rate case

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GUD number 1 0 7 3 9.

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This adjustment represents
an incremental increase of

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$1,553,269

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of which $151,967 is
recoverable from customers

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subject to the order.

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In this case

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The recommended adjustment
does not include any costs

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associated with the winter weather

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event in February of 2021.

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Staff recommends approval
of the interim rate adjustment

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and I'm available to
answer any questions.

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<v Chairman>Are there
any questions members?</v>

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<v Members>No</v>

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<v ->Hearing none I move we approve</v>

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the examiners recommendation.

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Is there a second?

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<v ->second</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor say aye.

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<v ->Aye.</v>

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<v ->Any any opposed?</v>

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Motion passes.

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That item is approved.

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Item number four.

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We have, I believe Veronica coming.

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<v Veronica >Yes.</v>

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Good morning. Chairman Commissioners.

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I'll be presenting items four and five.

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Item number four is the application

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by the Sabine mining company

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requesting release of phase
one reclamation obligations

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for 1369.3 acres

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within south Hospital number one mine

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permit number 33 I.

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located in Harrison county.

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After notice a request for a

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hearing was made by Mr. Ernal Brewster.

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Subsequently the parties
contacted him to address his

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concerns for the application.

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He did not indicate any
any disagreement to them.

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Following a reasonable time
period and opportunity was

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provided to Mr. Brewster
to indicate whether he

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wanted to proceed with a hearing

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or whether he wanted
to withdraw his request.

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No response was filed by Mr. Brewster.

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No hearing was held.

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Evidence in the record supports that

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Sabine has satisfied all
requirements for the requested

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release of the subject area.

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The permit is bonded
upon the worst case method.

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No changes to the current
bond are request in this docket.

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No exceptions were
filed to the proposed order.

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It is recommended that the
requests for phase one release

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for the subject area be approved

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and that Sabine be not be
eligible to reduce the amount

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of bond at this time.

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I'm available for questions.

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<v ->Any questions members</v>

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<v ->I do?</v>

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Is there anybody from Sabine here?

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<v ->Anybody from Sabine company?</v>

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<v ->I just want to know
how many loads it took</v>

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to move that dragline (Chuckles)

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<v ->I don't know.</v>

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Would you quit being trivial

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you don't have to put jokes in our

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Okay are there any questions

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of legitimacy members?

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(laughing)

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I know we approved the
examiners recommendation,

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is there a second?

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<v ->Second.</v>

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<v ->Second by
Commissioner Craddick.</v>

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All in favor, say aye.

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<v ->Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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That item is approved. Let's
move on to item number five.

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<v ->Item number five
is the application</v>

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for the Texas municipal power agency

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requesting release of
phase three reclamation

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obligations for 85.1 acres
within Gibbons Creek lignite,

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mine permit number 2060
located in Grimes county.

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The approved post My
land uses pastureland.

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Evidence in the record supports TMPA

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has satisfied all requirements

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for the request it released
to the subject area.

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After notice,

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no comments or requests
for hearing were received.

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TMP and staff are the only
parties to the proceeding.

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No exceptions were filed,

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no changes to the current
bond or requested in this docket.

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It is recommended that the
request for phase three release

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for the subject area
be approved and that

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TMPA be eligible to reduce
the amount of the bond

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for the part.

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I'm available for questions.

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<v ->Any questions members?</v>

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<v ->Nope.</v>

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<v ->Okay. Is there uh,</v>

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I move we approve
examiners recommendation

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is there a second?

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<v Wright>Second.</v>

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<v ->Second by Commissioner Wright?</v>

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All in favor say aye.

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<v Members>Aye.</v>

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<v ->Any opposed?</v>

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Motion passes that item is approved.

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Item number six.

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(shuffling)

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<v ->Good morning chairman
and Commissioners.</v>

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<v Chairman>Good morning.</v>

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<v ->Good morning, I'm Jennifer
Cook Administrative Law Judge</v>

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with the Hearings division.

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In item six there was a complaint filed

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against NGL Water Solutions
Permian and Engleford

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regarding protests in GL files.

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This was presented
at the last conference

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in past with comments.

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Based on the comments a revised order

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has been prepared and
provided for your consideration

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and I'm available for questions.

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<v Chairman>Are there
any questions members?</v>

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<v Wright>No.</v>

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<v ->I move we adopt the
final order as revised.</v>

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Is there a second?

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<v Craddick>Second.</v>

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<v ->All in favor say aye.</v>

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<v Members>Aye</v>

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<v ->Any opposed?</v>

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Motion passes,

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that item is approved and Commissioner

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Craddick did the second

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<v ->You got it wrong</v>

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<v ->I did. She did she second.</v>

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<v ->Yeah you got it right</v>

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<v ->Okay, thank you</v>

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keep up here.

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<v ->Hey you keep putting
words in my mouth</v>

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that are not in my mouth

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<v ->Hey, Hey, y'all calm down.</v>

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Okay. This is important business okay.

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All right.

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We've got Joe here. He'll task you out.

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<v ->You get that.</v>

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<v Chairman>Okay.</v>

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<v ->Good morning chairman,</v>

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Commissioners, for the record,

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Joe Manifee paralegal
with the Hearings division.

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I'll be presenting items 7, 3 11,

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all of which are P five
motions for rehearing

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filed as a result of a final order

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denying renewal of the operators P five

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because of wells that were

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noncompliant with Statewide rule 15.

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Item number seven in
its motion for rehearing,

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Mitchell Enrich Oil and Gas LLC

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states its failure to
timely request a hearing

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was due to mistake or accident,

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that compliance is eminent

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and that granting the
rehearing will not delay

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or hinder the Commission.

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Staff opposes the
motion at this time.

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11 wells remain non-compliant.

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It's recommended the motion be denied.

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The motion will be
overruled by operational law

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on November 11th.

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I'm available for questions.

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<v Chairman>Questions members?</v>

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<v Members>No.</v>

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<v ->We approved examiners
recommendation. Is there a second?</v>

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<v Wright>Second.</v>

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<v ->Second by Commissioner Wright.</v>

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All in favor say aye.

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<v members>Aye</v>

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<v ->Any opposed? Motion
passes that item is approved.</v>

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Agenda item eight.

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<v ->Item number eight and
its' motion for rehearing.</v>

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Nessa Tour West Texas LLC

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states it's failure to
request a hearing was due to

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mistake or accident,
that compliance is eminent

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and that granting the
rehearing will not delay

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or injure the Commission.

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Staff opposes the motion.

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At this time three wells
remain non-compliant

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with Statewide rule 15.

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It's recommended the motion be denied.

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The motion will be overruled
by operation of law on

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November 11th.

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I'm available for questions.

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<v ->Any questions members?</v>

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<v ->No</v>

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<v ->I move we adopt the approved
examiners recommendation.</v>

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Is there a second?

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<v ->Second</v>

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<v ->Second by
Commissioner Craddick.</v>

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All in favor say aye.

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<v Members>Aye.</v>

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<v ->Any opposed?</v>

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Motion passes.

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That item is approved.

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Item number nine.

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<v ->Item number nine.</v>

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Subsequent to filing
its motion for rehearing

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Oz Gas Corporation has
come into compliance.

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Therefore, it's recommended
the motion be granted and the

00:09:58.071 --> 00:10:01.460
underlying docket dismissed this mood.

00:10:01.460 --> 00:10:03.117
I'm available for questions.

00:10:03.117 --> 00:10:03.950
<v ->Any questions members?</v>

00:10:03.950 --> 00:10:04.827
<v ->No.</v>

00:10:04.827 --> 00:10:07.190
<v ->I move we approved the
examiners recommendations.</v>

00:10:07.190 --> 00:10:08.023
Is there a second?

00:10:08.023 --> 00:10:08.856
<v ->Second.</v>

00:10:08.856 --> 00:10:09.689
<v ->Second by Commissioner Wright.</v>

00:10:09.689 --> 00:10:10.540
All in favor Say aye.

00:10:10.540 --> 00:10:11.760
<v ->Aye.</v>

00:10:11.760 --> 00:10:12.770
<v ->Any opposed?</v>

00:10:12.770 --> 00:10:13.680
Motion passes.

00:10:13.680 --> 00:10:14.870
That item is approved.

00:10:14.870 --> 00:10:16.880
Agenda item 10 Joseph.

00:10:16.880 --> 00:10:19.880
<v ->Item Number 10 and
its motion for rehearing</v>

00:10:19.880 --> 00:10:23.360
P F O G Operations LLC

00:10:23.360 --> 00:10:25.620
states it's failure to request a hearing

00:10:25.620 --> 00:10:28.000
was due to mistake or accident.

00:10:28.000 --> 00:10:31.210
That compliance is eminent
and that the Commission

00:10:31.210 --> 00:10:35.050
would not be injured by
granting the rehearing.

00:10:35.050 --> 00:10:38.310
Staff opposes the motion at this time.

00:10:38.310 --> 00:10:41.080
One well remains noncompliant

00:10:41.080 --> 00:10:43.300
with Statewide rule 15.

00:10:43.300 --> 00:10:47.610
Due to its failure to comply
with H five requirements,

00:10:47.610 --> 00:10:49.781
it's recommended the motion be denied.

00:10:49.781 --> 00:10:53.320
The motion will be
overruled by operation of law

00:10:53.320 --> 00:10:54.850
on November 11.

00:10:54.850 --> 00:10:56.477
I'm available for questions.

00:10:56.477 --> 00:10:57.617
<v Chairman>Any questions members?</v>

00:10:57.617 --> 00:10:58.740
<v ->No</v>

00:10:58.740 --> 00:11:00.770
<v ->I move we approve the
examiners recommendation.</v>

00:11:00.770 --> 00:11:01.690
Is there a second?

00:11:01.690 --> 00:11:02.523
<v ->Second.</v>

00:11:02.523 --> 00:11:03.356
<v ->Second by
Commissioner Craddick.</v>

00:11:03.356 --> 00:11:05.020
All in favor say aye.

00:11:05.020 --> 00:11:05.853
<v ->Aye.</v>

00:11:05.853 --> 00:11:06.780
<v ->Any opposed?</v>

00:11:06.780 --> 00:11:09.140
Motion passes that item is approved.

00:11:09.140 --> 00:11:11.110
Item number 11.

00:11:11.110 --> 00:11:12.440
<v ->I'm number 11.</v>

00:11:12.440 --> 00:11:15.930
Subsequent to filing
its motion for rehearing,

00:11:15.930 --> 00:11:19.960
R M B Operating LLC
has come into compliance

00:11:19.960 --> 00:11:22.140
with Statewide rule 15.

00:11:22.140 --> 00:11:24.620
It is recommended the motion be granted

00:11:24.620 --> 00:11:27.780
and the underlying
docket dismiss this mood.

00:11:27.780 --> 00:11:29.297
I'm available for questions.

00:11:29.297 --> 00:11:31.340
<v Chairman>Any questions members?</v>

00:11:31.340 --> 00:11:32.173
<v Members>Nope.</v>

00:11:32.173 --> 00:11:33.522
<v ->I move we approve the
examiners recommendations.</v>

00:11:33.522 --> 00:11:35.523
Is there a second, &lt;v
Wright&gt;second.</v>

00:11:35.523 --> 00:11:36.356
<v ->All in favor say aye.</v>

00:11:36.356 --> 00:11:37.570
<v ->Aye.</v>

00:11:37.570 --> 00:11:38.540
<v ->Any opposed?</v>

00:11:38.540 --> 00:11:40.970
Motion passes that item is approved.

00:11:40.970 --> 00:11:41.847
Thank you, sir.

00:11:41.847 --> 00:11:43.311
<v Craddick>We like good news</v>

00:11:43.311 --> 00:11:45.150
<v ->We had to work him hard today.</v>

00:11:45.150 --> 00:11:46.570
<v ->Good news on a few</v>

00:11:46.570 --> 00:11:47.410
<v ->pay raise for him.</v>

00:11:47.410 --> 00:11:48.920
That'd be good to him.

00:11:48.920 --> 00:11:51.700
Okay let's move on to um item

00:11:51.700 --> 00:11:53.021
<v ->You just put that
on record for him</v>

00:11:53.021 --> 00:11:54.786
so he's gonna be in right?

00:11:54.786 --> 00:11:55.619
<v ->Ought to,</v>

00:11:55.619 --> 00:11:57.285
ought to, I didn't
say we were going to

00:11:57.285 --> 00:11:58.790
its a year away.

00:11:58.790 --> 00:11:59.630
Okay,

00:11:59.630 --> 00:12:02.000
Let's move on to the oil
and gas Consent Agenda.

00:12:02.000 --> 00:12:04.590
There are 33 items on
the Consent Agenda.

00:12:04.590 --> 00:12:07.430
I move to approve items 12 through 44.

00:12:07.430 --> 00:12:08.685
Is there a second ?

00:12:08.685 --> 00:12:10.070
<v Craddick>Second</v>

00:12:10.070 --> 00:12:11.260
<v ->second by
Commissioner Craddick.</v>

00:12:11.260 --> 00:12:12.693
All in favor say aye.

00:12:12.693 --> 00:12:13.534
<v ->Aye.</v>

00:12:13.534 --> 00:12:14.367
<v ->Any opposed?</v>

00:12:14.367 --> 00:12:17.365
Motion passes those items are approved.

00:12:17.365 --> 00:12:21.224
Let's move on to rule
15 and active well items.

00:12:21.224 --> 00:12:22.224
There are 15

00:12:23.065 --> 00:12:26.290
rule 15 and it has that, 15
rule 15 inactive well items.

00:12:26.290 --> 00:12:29.946
I move that we approve
items 45 through 63

00:12:29.946 --> 00:12:35.619
except four items
46 51 56 and 62.

00:12:35.619 --> 00:12:36.452
Is there a second?

00:12:36.452 --> 00:12:37.285
<v Wright>Second.</v>

00:12:37.285 --> 00:12:39.044
<v ->second by Commissioner Wright.</v>

00:12:39.044 --> 00:12:39.877
All in favor say aye.

00:12:39.877 --> 00:12:40.710
<v Members>Aye.</v>

00:12:40.710 --> 00:12:41.543
<v ->Any opposed?</v>

00:12:41.543 --> 00:12:43.173
Motion passes those items are approved.

00:12:43.173 --> 00:12:46.210
Let's move to the master default orders.

00:12:46.210 --> 00:12:48.520
There are three master default orders.

00:12:48.520 --> 00:12:51.670
I move we approve items 64 through 66.

00:12:51.670 --> 00:12:52.503
Is there a second?

00:12:52.503 --> 00:12:53.336
<v Craddick>Second</v>

00:12:53.336 --> 00:12:54.169
<v ->All in favor say aye.</v>

00:12:54.169 --> 00:12:55.002
<v ->Aye</v>

00:12:55.002 --> 00:12:55.860
<v ->Second by
Commissioner Craddick.</v>

00:12:55.860 --> 00:12:56.790
Aye.

00:12:56.790 --> 00:12:57.660
<v ->Any opposed?</v>

00:12:57.660 --> 00:12:59.880
Motion passes those items are approved.

00:12:59.880 --> 00:13:02.740
I just feel like I need to
state the second record.

00:13:02.740 --> 00:13:04.950
<v ->You. Just really just
don't care what I'm saying.</v>

00:13:04.950 --> 00:13:05.797
Today at all.

00:13:05.797 --> 00:13:07.360
<v ->Well you said I
said you did it. Okay.</v>

00:13:07.360 --> 00:13:08.760
<v ->She ain't miss me too. So.</v>

00:13:10.020 --> 00:13:11.570
<v ->Equal opportunity.</v>

00:13:11.570 --> 00:13:13.670
<v ->We never treated you like this.</v>

00:13:13.670 --> 00:13:14.503
What's going on.

00:13:14.503 --> 00:13:15.336
Okay.

00:13:15.336 --> 00:13:16.169
All right,

00:13:16.169 --> 00:13:17.680
let's move on to the
agreed enforcement orders.

00:13:17.680 --> 00:13:20.590
There are 166 agreed enforcement orders.

00:13:20.590 --> 00:13:24.610
I move we approve items 67 to 232.

00:13:24.610 --> 00:13:25.580
Is there a second?

00:13:25.580 --> 00:13:26.951
<v ->Second.</v>

00:13:26.951 --> 00:13:28.077
<v ->second by Commissioner Wright?</v>

00:13:28.077 --> 00:13:28.910
All in favor say aye.

00:13:28.910 --> 00:13:29.860
<v ->Aye.</v>

00:13:29.860 --> 00:13:30.693
<v ->Any opposed?</v>

00:13:30.693 --> 00:13:32.770
Motion passes those items are approved.

00:13:32.770 --> 00:13:34.530
That concludes the hearing section.

00:13:34.530 --> 00:13:36.910
We will now take up our
administrative agendas.

00:13:36.910 --> 00:13:38.033
Agenda item 2 33.

00:13:38.033 --> 00:13:40.366
(shuffling)

00:13:42.509 --> 00:13:44.084
<v ->Good morning Chairman,</v>

00:13:44.084 --> 00:13:44.940
Commissioners.

00:13:44.940 --> 00:13:46.300
For the record. RJ D'Silva,

00:13:46.300 --> 00:13:49.260
interim director of government
relations for the Commission

00:13:49.260 --> 00:13:52.392
agenda item 2.33 pertains
to section three of Senate bill

00:13:52.392 --> 00:13:53.740
three,

00:13:53.740 --> 00:13:57.730
which requires the Commission
to appoint five people who

00:13:57.730 --> 00:14:00.890
represent the natural gas
supply chain to the Texas energy

00:14:00.890 --> 00:14:02.500
reliability council.

00:14:02.500 --> 00:14:05.971
Staff recommendation is to
appoint the following members

00:14:05.971 --> 00:14:07.640
as alternates representing the operation

00:14:07.640 --> 00:14:10.773
of wells producing natural
gas is Jason Herrick,

00:14:11.961 --> 00:14:15.305
alternate as Richard Richard
BA representing the pipeline

00:14:15.305 --> 00:14:16.786
industry is Grant Ruckle.

00:14:16.786 --> 00:14:18.510
Alternate is Larry Bell representing

00:14:18.510 --> 00:14:19.760
injection and storage of

00:14:19.760 --> 00:14:21.930
produced water is Danny Wesson.

00:14:21.930 --> 00:14:25.200
Alternate as Luke Garrett
representing gas processing is

00:14:25.200 --> 00:14:26.550
Grant Bacon.

00:14:26.550 --> 00:14:28.740
Alternate is Don Baldric

00:14:28.740 --> 00:14:30.940
and finally representing gas

00:14:30.940 --> 00:14:33.270
distribution companies is Keith Wall.

00:14:33.270 --> 00:14:35.230
Alternate is John Paris.

00:14:35.230 --> 00:14:37.610
And I'd like to point out that Mr. Wall

00:14:37.610 --> 00:14:40.140
is here in back of the room as well.

00:14:40.140 --> 00:14:42.717
<v Chairman>Okay well
thank you very much.</v>

00:14:42.717 --> 00:14:44.158
And thank you Mr. Wall for offering

00:14:44.158 --> 00:14:46.100
to volunteer for such duty.

00:14:46.100 --> 00:14:46.933
I appreciate.

00:14:46.933 --> 00:14:49.205
<v ->Offering to volunteer
is the real key to this</v>

00:14:49.205 --> 00:14:50.038
so thank you for the work

00:14:50.038 --> 00:14:52.350
and we are glad to
keep this moving forward

00:14:52.350 --> 00:14:55.320
we appreciate the members
that are willing to serve on this

00:14:55.320 --> 00:14:57.000
<v ->Yeah. Thank you.</v>

00:14:57.000 --> 00:14:59.530
All. You all represent the
natural gas supply chain

00:14:59.530 --> 00:15:01.900
and the production pipelines.

00:15:01.900 --> 00:15:05.140
I'm very proud to do you guys
have volunteered to do that

00:15:05.140 --> 00:15:07.457
and thank you for volunteering.

00:15:07.457 --> 00:15:08.565
<v ->Yeah, me too.</v>

00:15:08.565 --> 00:15:10.710
And I appreciate the
natural gas industry

00:15:10.710 --> 00:15:11.920
that has been so good.

00:15:11.920 --> 00:15:13.590
I remember during, during your hearing,

00:15:13.590 --> 00:15:15.310
I believe it was Senator
Nichols that stated

00:15:15.310 --> 00:15:17.520
natural gas saved Texas.

00:15:17.520 --> 00:15:19.783
I think that was a great comment there.

00:15:21.250 --> 00:15:23.932
So I move that we adopt
staff recommendation

00:15:23.932 --> 00:15:26.890
for appointments to the
Texas energy reliability council.

00:15:26.890 --> 00:15:28.820
Is there a second,
<v ->Second</v>

00:15:28.820 --> 00:15:31.640
<v ->Second by Commissioner
Craddick all in favor say aye.</v>

00:15:31.640 --> 00:15:32.473
<v ->Aye.</v>

00:15:32.473 --> 00:15:33.480
<v ->Any opposed?</v>

00:15:33.480 --> 00:15:34.330
Motion passes.

00:15:34.330 --> 00:15:35.520
That item is approved.

00:15:35.520 --> 00:15:37.020
Thank you very much.

00:15:37.020 --> 00:15:39.620
Agenda item 2 34 is
an update from the office

00:15:39.620 --> 00:15:40.520
of general counsel.

00:15:40.520 --> 00:15:42.440
<v ->Good morning Chairman
and Commissioners.</v>

00:15:42.440 --> 00:15:44.120
For the record my name is Alec shock.

00:15:44.120 --> 00:15:47.273
general counsel on railroad
Commission item 2 34 is

00:15:47.273 --> 00:15:50.070
updates on the pending
or contemplated litigation or

00:15:50.070 --> 00:15:50.903
rule makings.

00:15:50.903 --> 00:15:52.040
Today we don't have any updates.

00:15:52.040 --> 00:15:54.700
We've had some past few
weeks, but nothing to report today.

00:15:54.700 --> 00:15:57.230
Thank you <v Chairman>No
news is good news.</v>

00:15:58.353 --> 00:15:59.186
And then comes today.

00:15:59.186 --> 00:16:01.810
Agenda item 2 35 is
oil field cleanup report,

00:16:01.810 --> 00:16:04.970
quarterly status
report Clay Woodall.

00:16:04.970 --> 00:16:05.803
<v ->Keith May</v>

00:16:05.803 --> 00:16:08.866
<v Chairman>Keith May they
have Clay Woodall down here</v>

00:16:08.866 --> 00:16:10.027
(mixed laughter)

00:16:10.027 --> 00:16:13.051
<v Chairman>They walked out
on you huh and left it to you</v>

00:16:13.051 --> 00:16:14.840
<v ->Good morning
Chairman , Commissioners.</v>

00:16:14.840 --> 00:16:15.673
<v Chairman>Good morning</v>

00:16:15.673 --> 00:16:16.860
<v ->My name is Keith May
with the oil and gas division.</v>

00:16:16.860 --> 00:16:17.816
<v Chairman>your sure?</v>

00:16:17.816 --> 00:16:18.649
(laughter)

00:16:18.649 --> 00:16:21.703
<v Chairman>I'm gonna
correct it in my book here.</v>

00:16:21.703 --> 00:16:24.073
Item 2 35 is the oil field cleanups

00:16:24.073 --> 00:16:25.660
oil field cleanup program

00:16:25.660 --> 00:16:28.640
Fourth quarter sash
report for fiscal year 2021.

00:16:28.640 --> 00:16:31.590
During the fourth quarter
of fiscal year 2021 plugging

00:16:31.590 --> 00:16:35.060
operations were completed
and follows are closed on 384

00:16:35.060 --> 00:16:40.320
wells at a cost of
12 million $58,210.

00:16:40.320 --> 00:16:42.820
This includes only those
wells that were plugged,

00:16:42.820 --> 00:16:44.740
invoiced by the plugin contractor

00:16:44.740 --> 00:16:46.996
and approved for
payment by field operations

00:16:46.996 --> 00:16:48.550
During the same period,

00:16:48.550 --> 00:16:50.770
346 new Wells that were
approved for plugging

00:16:50.770 --> 00:16:52.360
with state funds.

00:16:52.360 --> 00:16:54.228
At total of 1,485.

00:16:54.228 --> 00:16:58.070
Wells are physically plugged
during fiscal year 2021

00:16:58.070 --> 00:17:03.377
of which 1,453 were
closed at a cost of 36 million

00:17:03.377 --> 00:17:06.383
$288,518.

00:17:07.340 --> 00:17:10.196
Site remediation's performance
during the fourth quarter

00:17:10.196 --> 00:17:12.120
included 114 cleanup activities

00:17:12.120 --> 00:17:15.117
completed and closed
at a cost of 11 million,

00:17:15.117 --> 00:17:21.500
$242,352 as well as
three cleanup activities

00:17:21.500 --> 00:17:26.894
completed at a cost of
$54,450 using grant funds

00:17:26.894 --> 00:17:28.543
And additional 52 new activities

00:17:28.543 --> 00:17:30.663
were approved during the same period.

00:17:31.570 --> 00:17:35.130
The fiscal year 2021 performance
reset remediation included

00:17:35.130 --> 00:17:39.160
a total of 275 cleanup
activities at a total cost of

00:17:39.160 --> 00:17:40.080
13 million

00:17:41.622 --> 00:17:45.600
$116,181 may I
answer any questions.

00:17:45.600 --> 00:17:46.790
<v Chairman>Excellent
work. I tell you our</v>

00:17:46.790 --> 00:17:48.400
our staff,

00:17:48.400 --> 00:17:51.780
our complete workforce is
such an example to the world

00:17:51.780 --> 00:17:53.711
on how to clean the oil up.

00:17:53.711 --> 00:17:56.140
It's amazing you hear this
environmental cleanup stuff

00:17:56.140 --> 00:17:58.050
and and all this that goes on.

00:17:58.050 --> 00:17:59.596
Do you know?

00:17:59.596 --> 00:18:02.350
Probably the oldest environmental
agency in the nation is

00:18:02.350 --> 00:18:04.000
the railroad Commission of Texas.

00:18:04.868 --> 00:18:06.100
It is in our charter for cleanup.

00:18:06.100 --> 00:18:08.870
I remember from Kil gore
where we went in there,

00:18:08.870 --> 00:18:10.400
we went in the agency
went in there and gosh,

00:18:10.400 --> 00:18:12.681
back in the fifties
and did that cleanup.

00:18:12.681 --> 00:18:14.940
Also a cost basis analysis.

00:18:14.940 --> 00:18:16.470
I'm an old financial guy.

00:18:16.470 --> 00:18:17.303
Okay.

00:18:17.303 --> 00:18:19.447
So I did a cost based
analysis what does it cost?

00:18:19.447 --> 00:18:21.066
What's the value and picking on the,

00:18:21.066 --> 00:18:23.760
what happened didn't perform
during the storm versus what

00:18:23.760 --> 00:18:25.350
did perform during the storm.

00:18:25.350 --> 00:18:28.710
You know oil derrick
lasts from 50 to 70 years

00:18:28.710 --> 00:18:30.200
in production for oil and gas okay.

00:18:30.200 --> 00:18:32.220
Cost to take it down is what

00:18:32.220 --> 00:18:35.300
15 to 20,000 average
and not paid for directly

00:18:35.300 --> 00:18:36.750
by the taxpayer.

00:18:36.750 --> 00:18:38.300
Industry takes care of this.

00:18:38.300 --> 00:18:43.180
A windmill life expand
is 10 to 15 years.

00:18:43.180 --> 00:18:46.830
The cost to take it down is $535,000.

00:18:46.830 --> 00:18:47.663
Okay.

00:18:47.663 --> 00:18:49.430
Now that's renewable energy

00:18:49.430 --> 00:18:52.680
but the cost is kind of
high to renew that sucker.

00:18:52.680 --> 00:18:53.736
So I commend what you do

00:18:53.736 --> 00:18:56.534
and commend what our
employees have done.

00:18:56.534 --> 00:18:58.440
<v Wright>I agree with you.</v>

00:18:58.440 --> 00:19:01.200
I think our goal was 1400
wells to plug this year.

00:19:01.200 --> 00:19:02.033
Is that correct?

00:19:02.033 --> 00:19:02.866
<v Assistant>Yes sir.</v>

00:19:02.866 --> 00:19:04.720
<v ->And you you've
exceeded that so far.</v>

00:19:04.720 --> 00:19:05.870
That's that's good job.

00:19:07.120 --> 00:19:07.953
Thank you'll.

00:19:07.953 --> 00:19:10.688
Thank you for your report.

00:19:10.688 --> 00:19:14.020
Agenda item 2 36 is our
public participation item.

00:19:14.020 --> 00:19:17.040
No one is registered indicating
that they wish to speak on

00:19:17.040 --> 00:19:19.360
any non posted items.

00:19:19.360 --> 00:19:20.720
Agenda item 2 37

00:19:20.720 --> 00:19:22.280
which is our executive session item

00:19:22.280 --> 00:19:24.540
which we will not be going into today.

00:19:24.540 --> 00:19:27.180
Are there any other duly posted
matters to be brought before

00:19:27.180 --> 00:19:28.623
the Commission at this time?

00:19:29.640 --> 00:19:30.473
Hearing none,

00:19:30.473 --> 00:19:31.980
this meeting of the Railroad
Commissioner of Texas

00:19:31.980 --> 00:19:32.813
is adjourned.

00:19:33.710 --> 00:19:34.543
<v ->Thank you everyone.</v>

00:19:34.543 --> 00:19:35.543
<v ->Thank you.</v>