WEBVTT
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Momentarily, thank you.
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This meeting of the
Railroad Commission of Texas
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will come to order to consider matters
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which have been duly posted
by the Secretary of State
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for October 26th, 2021.
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Under our public participation policy,
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anyone designed to
offer public testimony
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on any items that 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
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as posted on the agenda.
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Let's get started with item number one.
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Good morning, Chairman.
Good morning.
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Chairman and Commissioners.
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For the record, my
name is Claudia Gidoy.
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I'm representing the
market oversight section
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of the Oversight and Safety Division.
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Agenda item number
one is case number 7053,
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the application of Texas
Gas Service Company
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for test year 2019 annual
interim rate adjustment
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for the unincorporated portion
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of the Borger SKellytown service area.
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This case is a second
interim rate adjustment
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the company has filed
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for the Borger SKellytown service area.
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Since the final order was issued
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in the most recent statement of intent,
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gas utilities docket number 10766,
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the adjustment represents a decrease
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in the company's revenue
requirement in the amount of $1,902
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of which $146 is refundable to customers
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subject to this order.
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The recommended
adjustment does not include
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recovery of any costs associated
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with the winter weather
event of February, 2021.
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I recommend approval of
the intermediate adjustment.
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I'm available to answer questions.
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Are there
any questions, members?
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No.
Okay, I move we approve
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the examiner's recommendation.
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Is there second?
Second.
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Second, Commissioner Craddick.
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All in favor, say aye.
Aye.
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Any opposed?
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Hear none, motion passes.
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Agenda item number
two is case number 7252.
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The application filed
by Atmos Pipeline Texas
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for the 2021 Rider Rev adjustment.
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This is the fourth Rider Rev adjustment
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since the company's
last statement of intent,
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gas utilities docket number 10580.
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In which the company's other revenue
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was approved at $69,411,586.
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This amount represents the benchmark
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for a measurement of a debit or credit
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for the Rider Rev adjustment.
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In this application,
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the Rider Rev adjustment
represents a decrease
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in rates to customers as other revenue
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increased to $104,682,821.
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The difference in other
revenue from GUD number 10580
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is a decrease of $35,271,235.
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Of this amount, 75% or $26,453,426
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will be accredit to city gate service
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and pipeline transportation customers.
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I recommend approval of
the Rider Rev adjustment.
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I'm available to answer questions.
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Are there
any questions, members?
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No.
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I move we approve the
examiner's recommendation.
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Is there a second?
Second.
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Second by Commissioner Wright.
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All in favor, say aye.
Aye.
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Any opposed?
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Motion passes, that item is approved.
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Agenda item number three.
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Austin.
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Good morning,
Chairman and Commissioners.
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Good morning.
My name is Austin Gasky,
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I'm Technical Examiner
for the Hearings division.
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Item number three is the application
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of Blackbeard Operating LLC
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for a blanket exception
to Statewide rule 10
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for the Sandhills clear
fort and Sandhills tub fields.
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Additionally, Blackbeard
requests to field wide,
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maximum efficient
rate and net gas-oil ratio
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of 300 barrels of oil per day
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with the daily casing
head gas limit of 3000 MCF
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of gas per day per well.
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Alternatively, to field wide MER
and GOR allowable increase,
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Blackbeard requests
salvage classification
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for unlimited oil and gas
allowables for the fields.
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Lastly, Blackbird request cancellation
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of accrued over production
for its leases in the field.
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Milwee Oil Incorporated,
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an operator in the Sandhills tub field,
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protests all components
of the application.
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Milwee argues that
Blackbird has not proven
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the need for increased
oil and gas allowables,
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and Blackbeard's accelerated
production of the fields
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will lead to premature abandonment
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resulting in stranded reserves.
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The examiners find insufficient evidence
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that field wide approval
of Blackbeard's request
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would protect relative
rights or prevent waste.
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The examiners recommend the Commission
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deny Blackbeard's request
for blanket Statewide
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rule 10 exception.
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The request to classify
the fields of salvage,
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the request for field-wide MER and GOR,
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and deny cancellation of
overproduction in the fields.
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However, the examiners
do recommend approval
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of exception to Statewide rule 10
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for the subject leases
being the 6-Pounder,
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the Yellowjacket and Landlubbers units.
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I'm available for questions.
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Members, Austin is available.
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We also have David Jackson
with Milwee Oil company
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available for questions.
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Are there any questions
for either Austin
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or Mr. Jackson?
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Chairman Christian, I've
not been able to research
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this item as thoroughly as I would like.
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Therefore I would like to pass this item
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until our next
conference, if that's okay.
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Very good.
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Item is passed to the next conference.
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Let's move on.
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Thank you very much, Austin.
Thank you.
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Let's move on to
the item agenda 4-14.
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Ezra?
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Good morning, Chairman
and Commissioners.
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For the record, my name is Ezra Johnson,
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Administrative Law Judge
with the Hearings division.
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As mentioned, items 4-14
will be presented together
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as they have common parties and facts,
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and will require one vote and one order.
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These items concerning
a motion for rehearing
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of a final order in these
dockets granting an application
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of Tall Dune Resources, LLC
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to transfer operatorship of gas wells
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in the Conger PENN field
in Sterling County, Texas.
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For the current operator of record,
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Siana Oil and Gas.
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Siana filed a timely
motion for rehearing
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stating that Tall Dune was obligated,
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but failed to provide written notice
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of the subject applications to Siana.
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Siana further claims that the form P4s
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for the subject properties
were previously filed
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in favor of a third party.
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Siana also argues that
additional information is needed
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to verify the good
faith claim of Tall Dune
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to operate the subject properties.
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Tall Dune filed a timely
response opposing the motion.
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The motion does not
allege with particularity
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the additional
information that is required
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to establish Tall
Dune's good faith claim,
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or that Siana did not receive
the notice of opportunity
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for hearing in these dockets
from the Hearings division.
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The form P4s referenced in the motion
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have been disclaimed by the third party.
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Accordingly, Siana's
motion fails to allege facts
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and circumstances sufficient to show
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a valid basis for rehearing.
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And in addition, the
motion does not identify
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with particularity any findings of fact,
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conclusions of law, or legal rulings
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that are claimed to be erroneous,
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nor is there any indication
of a legal and factual basis
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for any such claimed
error has been indicated,
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as is required by the APA
and Commission rules.
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The examiners recommend
that the Commission
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deny the motion for rehearing.
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The motion will be
overruled by operation of law
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on December 2nd, 2021,
and I'm available for questions.
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Members, we have Ezra.
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In addition to Ezra, we have Greg Clip
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with Tall dune Resources available.
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Are there any questions
of Ezra or Mr. Clip?
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No.
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No questions.
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I move we approve the
examiner's recommendation.
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Is there a second?
Second.
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Second by
Commissioner Craddick.
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All in favor, say aye.
Aye.
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Any opposed?
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Motion passes, those items are approved.
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Let's move on to the oil
and gas Consent Agenda.
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And there are 63 items
on the Consent Agenda.
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I move we approve items 15-77.
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Is there a second?
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On the flaring issues,
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I do have some questions for,
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I don't know if there's
any presenters here today.
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John Moore or Johnson.
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Good morning.
Good morning.
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Can you identify yourself,
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so that will have for the record?
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Yeah sure, for the record,
my name is John Moore.
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I'm a Technical Examiner
in the Hearings division.
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Thank you, sir.
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Thank
you for coming up, John.
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Yes, sir.
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Do you mind?
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No, sure.
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John, thanks for being here.
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I really appreciate it,
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but first I wanted to commend you
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and the rest of the hearing staff
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regarding the mini
state ride rule 32 flaring
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exception applications that routinely
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come before this Commission.
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You guys have done a great job.
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Thank you all so much.
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Thank you, sir.
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Starting in
January of this year,
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after I was sworn in,
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I believe at one of my very first
00:08:54.718 --> 00:08:58.439
Commissioner's conferences,
I made some specific requests
00:08:58.439 --> 00:09:01.108
to the Hearings division in
an attempt to ultimately reduce
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both flaring volumes as well
as lengths of flaring terms.
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I believe those items are working,
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but I wanted that trend to continue.
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To that end, I wanted
to ask a few questions
00:09:12.980 --> 00:09:15.071
that might help overall flaring volumes
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continue to decrease.
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First, have we, do we, can
we require that an operator
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consider the current cost of gas
00:09:24.276 --> 00:09:27.443
when performing cost benefit analysis?
00:09:28.671 --> 00:09:30.015
That's my one question
00:09:30.015 --> 00:09:32.412
that I'd like for you guys to consider.
00:09:32.412 --> 00:09:34.746
What about the price of
the oil they are extracting?
00:09:34.746 --> 00:09:37.085
Shouldn't that be
taken into consideration?
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That's another thing
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I'd like to see if you
guys could consider.
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In addition, what about
the actual cost of treatment
00:09:44.757 --> 00:09:47.586
to remove hydrogen
sulfide, carbon dioxide,
00:09:47.586 --> 00:09:50.208
nitrogen from the gas stream?
00:09:50.208 --> 00:09:53.045
Are we verifying those estimates?
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In other words, whenever the
comment comes up about H2S
00:09:58.226 --> 00:09:59.638
and what those costs are
00:09:59.638 --> 00:10:02.513
given the price of what
natural gas is today,
00:10:02.513 --> 00:10:05.755
or have we got any way
or do we know of any way
00:10:05.755 --> 00:10:07.766
to actually run those cost analysis?
00:10:07.766 --> 00:10:10.538
I'd like for you guys to
give that some thought,
00:10:10.538 --> 00:10:11.581
if you could.
00:10:11.581 --> 00:10:13.908
Yes, sir.
00:10:13.908 --> 00:10:15.079
One last question.
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It's apparent that the
country is suffering
00:10:16.854 --> 00:10:19.765
through some severe supply chain issues.
00:10:19.765 --> 00:10:22.080
Are we seeing any
evidence of these issues
00:10:22.080 --> 00:10:24.325
causing elevated flaring instances,
00:10:24.325 --> 00:10:25.864
and that's a question that I don't know
00:10:25.864 --> 00:10:27.972
if you know the answer to today,
00:10:27.972 --> 00:10:30.967
but what I'm hearing is that
a lot of these parts and things
00:10:30.967 --> 00:10:34.612
that are needed for our
compressors or our way backlogged
00:10:34.612 --> 00:10:36.014
because of supply chain issues.
00:10:36.014 --> 00:10:38.958
Is that something you
guys have been hearing?
00:10:38.958 --> 00:10:40.669
I'll defer to Judge Johnson.
00:10:40.669 --> 00:10:43.083
He's got some personal
experience with that.
00:10:43.083 --> 00:10:45.546
Okay.
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Once again, Ezra Johnson ALJ
00:10:47.931 --> 00:10:50.586
for the Hearings
division for the record.
00:10:50.586 --> 00:10:54.609
Yes, Commissioner Wright,
we have in our recent hearings,
00:10:54.609 --> 00:10:57.270
been getting indications from operators
00:10:57.270 --> 00:11:00.724
that supply chain
issues and labor issues
00:11:00.724 --> 00:11:05.262
have created circumstances
where equipment malfunctions,
00:11:05.262 --> 00:11:09.207
it is more difficult, takes
longer to get replacement parts
00:11:09.207 --> 00:11:11.394
or replacement equipment,
00:11:11.394 --> 00:11:14.894
and that the labor
shortage also may means
00:11:15.938 --> 00:11:18.641
that where equipment is available,
00:11:18.641 --> 00:11:22.267
there isn't always someone
onsite to be able to install it.
00:11:22.267 --> 00:11:26.077
So they are asking us
for additional flexibility
00:11:26.077 --> 00:11:29.910
in these rule 32 exception
hearings to account
00:11:30.834 --> 00:11:32.251
for those issues.
00:11:33.480 --> 00:11:36.507
So is that something you're
seeing more and more today
00:11:36.507 --> 00:11:38.869
than say, a year ago?
00:11:38.869 --> 00:11:41.881
Well, certainly more
than we were a year ago.
00:11:41.881 --> 00:11:44.530
Both the increase in demand
00:11:44.530 --> 00:11:47.363
that has resulted from the economy
00:11:48.596 --> 00:11:51.513
recovering from the global pandemic
00:11:53.245 --> 00:11:57.828
has accelerated the need
for more parts and more labor.
00:11:58.685 --> 00:12:00.436
And right now, there's a lag
00:12:00.436 --> 00:12:03.519
in being able to obtain those inputs.
00:12:04.628 --> 00:12:09.628
So, yes, I can't say that we've
had an overwhelming number
00:12:10.039 --> 00:12:12.075
of those requests,
00:12:12.075 --> 00:12:15.326
but we are starting at least
starting to see an uptick
00:12:15.326 --> 00:12:19.389
in that being addressed,
that being brought to us.
00:12:19.389 --> 00:12:21.694
Is there
anything that you could think of
00:12:21.694 --> 00:12:23.127
that the Commission could be doing
00:12:23.127 --> 00:12:25.533
to help those circumstances
besides requiring people
00:12:25.533 --> 00:12:28.450
to work 24 hours a day at the port?
00:12:29.317 --> 00:12:33.021
Well, I think I would
need to humbly decline
00:12:33.021 --> 00:12:35.944
to speculate from my position
00:12:35.944 --> 00:12:37.549
about what the Commission could do
00:12:37.549 --> 00:12:40.535
about global supply chain issues.
00:12:40.535 --> 00:12:42.624
But if I were to say anything,
00:12:42.624 --> 00:12:46.728
it would be, there are,
of course other legal uses
00:12:46.728 --> 00:12:49.749
to which this natural gas can be put
00:12:49.749 --> 00:12:52.774
besides being put into a pipeline.
00:12:52.774 --> 00:12:55.943
Anything the Commission
can do to encourage
00:12:55.943 --> 00:12:59.067
other alternative uses
I think would alleviate
00:12:59.067 --> 00:13:00.935
some of these problems.
I agree.
00:13:00.935 --> 00:13:01.810
Well, thank you.
00:13:01.810 --> 00:13:02.643
Thank you both for your time.
00:13:02.643 --> 00:13:03.827
I appreciate that,
00:13:03.827 --> 00:13:05.865
and I would appreciate you
guys giving some thought
00:13:05.865 --> 00:13:08.960
to my first questions and
getting back to me on it.
00:13:08.960 --> 00:13:10.291
Thank you.
Certainly, certainly.
00:13:10.291 --> 00:13:12.606
Any more questions?
No, sir.
00:13:12.606 --> 00:13:14.298
I appreciate that,
00:13:14.298 --> 00:13:16.801
and I appreciate the work that
you're doing, Commissioner.
00:13:16.801 --> 00:13:19.662
It's something I think that I
wanna brag about our staff,
00:13:19.662 --> 00:13:21.545
our Railroad Commission,
00:13:21.545 --> 00:13:23.292
and looking at the historical records,
00:13:23.292 --> 00:13:26.135
again, the Railroad Commission of Texas
00:13:26.135 --> 00:13:29.524
was one of the first environmentally
concerned organizations
00:13:29.524 --> 00:13:31.837
in the nation, perhaps the world
00:13:31.837 --> 00:13:33.793
that was concerned with cleanliness.
00:13:33.793 --> 00:13:35.847
And my gosh, I can remember back in the,
00:13:35.847 --> 00:13:37.630
I can't remember back,
but I remember that
00:13:37.630 --> 00:13:39.421
one of the first--
So you can?
00:13:39.421 --> 00:13:42.651
How far back are you going?
When I was a child, okay?
00:13:42.651 --> 00:13:44.896
Kilgore, Texas had all this, I mean,
00:13:44.896 --> 00:13:46.324
it was one barrack after another.
00:13:46.324 --> 00:13:47.767
Dirty, muddy streets.
00:13:47.767 --> 00:13:50.019
You can go to the museum
in the Kilgore and see,
00:13:50.019 --> 00:13:52.241
and it was the Railroad
Commission of Texas
00:13:52.241 --> 00:13:54.249
that came in and cleaned up that thing.
00:13:54.249 --> 00:13:57.144
It increased the regulations,
the spacing issues.
00:13:57.144 --> 00:14:00.171
I mean, it was invented
by this institution.
00:14:00.171 --> 00:14:03.717
And it's kind of interesting
to me that so little
00:14:03.717 --> 00:14:06.857
is known that when people gripe
00:14:06.857 --> 00:14:09.937
about the environmental
issues and whatever,
00:14:09.937 --> 00:14:14.161
here's our staff in the
organization for decades.
00:14:14.161 --> 00:14:16.694
I mean, the federal government admits
00:14:16.694 --> 00:14:19.520
and openly brags that
in the past 50 years,
00:14:19.520 --> 00:14:24.270
we've decreased every EPA
heinous gas by 77 plus percent.
00:14:26.639 --> 00:14:29.923
Environmental deaths are down 99%
00:14:29.923 --> 00:14:32.597
since the last 100 years.
00:14:32.597 --> 00:14:36.225
It's just, I don't remember
in the 2017 study
00:14:36.225 --> 00:14:39.893
that came back from the feds
and from our Commission jointly
00:14:39.893 --> 00:14:42.606
that they could not find
primary drinking water
00:14:42.606 --> 00:14:45.016
or even secondary
resources drinking water
00:14:45.016 --> 00:14:47.461
that had been polluted
for injection wells
00:14:47.461 --> 00:14:48.828
or disposal wells.
00:14:48.828 --> 00:14:49.786
And it goes on and on.
00:14:49.786 --> 00:14:51.006
The world's not perfect.
00:14:51.006 --> 00:14:53.914
We've got these problems,
but that you're following this
00:14:53.914 --> 00:14:56.476
is such an example that I
commend you, Commissioner,
00:14:56.476 --> 00:14:58.295
that we continue to follow it
00:14:58.295 --> 00:15:01.255
and correct things as best we can.
00:15:01.255 --> 00:15:05.174
In fact, it's amazing that
flaring right now is, I think,
00:15:05.174 --> 00:15:07.009
anybody can correct me if I'm wrong,
00:15:07.009 --> 00:15:08.822
I'm usually wrong a lot of times.
00:15:08.822 --> 00:15:12.793
I think it's 0.55%, one half a percent.
00:15:12.793 --> 00:15:17.126
Almost 99.5% of natural
gas is not being flared
00:15:17.990 --> 00:15:19.447
in the state of Texas.
00:15:19.447 --> 00:15:22.066
And that's just astounding to me.
00:15:22.066 --> 00:15:26.911
I think you hear so much
negative in the media, the press.
00:15:26.911 --> 00:15:29.504
And the voters, the
citizens are not aware
00:15:29.504 --> 00:15:33.287
of the good job our staff
and this industry has done
00:15:33.287 --> 00:15:35.252
for a cleaner environment,
00:15:35.252 --> 00:15:37.917
the cleanest industrialized
nation on the planet.
00:15:37.917 --> 00:15:40.881
Chairman, I think the
Railroad Commission this year
00:15:40.881 --> 00:15:44.637
especially has done a
great job about other ideas
00:15:44.637 --> 00:15:46.225
of what we do with flared gas
00:15:46.225 --> 00:15:48.307
and how we create
more of a market for that.
00:15:48.307 --> 00:15:50.278
I'm so proud of our division
00:15:50.278 --> 00:15:52.188
that's been really on top of that.
00:15:52.188 --> 00:15:55.634
But I'm concerned now
about did we get parts
00:15:55.634 --> 00:15:58.455
to go out and fix the problems
that we have in the field?
00:15:58.455 --> 00:16:01.092
And you know, it's like
we take one step forward
00:16:01.092 --> 00:16:03.002
and sometimes we get a step back.
00:16:03.002 --> 00:16:04.574
And I don't know how we control
00:16:04.574 --> 00:16:05.938
any of those issues right now
00:16:05.938 --> 00:16:08.318
with the way that our supply chain is.
00:16:08.318 --> 00:16:09.834
So that's got me concerned.
00:16:09.834 --> 00:16:10.787
Yes, yes.
00:16:10.787 --> 00:16:15.188
But again, very clearly that
is of no fault of any people
00:16:15.188 --> 00:16:16.723
of the Railroad Commission of Texas.
00:16:16.723 --> 00:16:18.314
Not at all.
And that you're aware
00:16:18.314 --> 00:16:20.463
of it and watching it
is our job to monitor.
00:16:20.463 --> 00:16:21.815
And they're doing a darn good job
00:16:21.815 --> 00:16:23.027
and you're doing a darn good job.
00:16:23.027 --> 00:16:24.983
Appreciate you for it
Thank you, I appreciate it.
00:16:24.983 --> 00:16:26.999
You wanna say
anything (indistinct)?
00:16:26.999 --> 00:16:28.310
I don't doing anything--
00:16:28.310 --> 00:16:30.711
(indistinct)
00:16:30.711 --> 00:16:33.414
I think agency has,
historically, I agree.
00:16:33.414 --> 00:16:34.705
They've done a very good job,
00:16:34.705 --> 00:16:36.808
and I appreciate not just this agency,
00:16:36.808 --> 00:16:40.014
but this industry trying to
work and move the ball forward
00:16:40.014 --> 00:16:41.893
and have best practices in the state.
00:16:41.893 --> 00:16:44.135
I think we have a good history of that,
00:16:44.135 --> 00:16:46.266
and I appreciate what
this agency's doing
00:16:46.266 --> 00:16:48.506
and what our people do.
00:16:48.506 --> 00:16:53.183
It's great to be a part of
these three Commissioners,
00:16:53.183 --> 00:16:54.797
I think are great team.
00:16:54.797 --> 00:16:56.947
I appreciate both of
you, the work you do,
00:16:56.947 --> 00:16:59.983
and it is an honor
to work for historically
00:16:59.983 --> 00:17:01.714
this agency, this Commission.
00:17:01.714 --> 00:17:03.197
It really is an honor.
00:17:03.197 --> 00:17:05.327
Okay, let's move on to agendas.
00:17:05.327 --> 00:17:09.091
There are 63 items in the
Consent Agenda, all right?
00:17:09.091 --> 00:17:11.824
I move to approve items 15-77.
00:17:11.824 --> 00:17:13.318
Is there a second?
Second.
00:17:13.318 --> 00:17:14.665
Second by Commissioner Wright.
00:17:14.665 --> 00:17:17.773
All in favor, say aye.
Aye.
00:17:17.773 --> 00:17:18.660
Any opposed?
00:17:18.660 --> 00:17:21.192
Motion passes, those items are approved.
00:17:21.192 --> 00:17:24.178
Move on to the master default orders.
00:17:24.178 --> 00:17:26.565
There are eight master default orders.
00:17:26.565 --> 00:17:30.665
Staff request we pass items
86 to the next conference,
00:17:30.665 --> 00:17:34.140
so I move that we approve item 78-85,
00:17:34.140 --> 00:17:36.741
and pass item 86 to the next conference.
00:17:36.741 --> 00:17:38.096
Is there a second?
Second.
00:17:38.096 --> 00:17:39.356
Second by
Commissioner Craddick.
00:17:39.356 --> 00:17:41.273
All in favor, say aye.
Aye.
00:17:41.273 --> 00:17:42.447
Any opposed?
00:17:42.447 --> 00:17:45.043
Motion passes, those items are approved.
00:17:45.043 --> 00:17:47.410
Let's move on to agreed
enforcement orders.
00:17:47.410 --> 00:17:49.972
There are 118 agreed enforcement orders.
00:17:49.972 --> 00:17:53.162
I move that we approve items 87-204.
00:17:53.162 --> 00:17:54.715
Is there a second?
Second.
00:17:54.715 --> 00:17:56.037
Second by Commissioner Wright.
00:17:56.037 --> 00:17:57.772
All in favor, say aye.
Aye.
00:17:57.772 --> 00:17:58.648
Any opposed?
00:17:58.648 --> 00:18:00.700
Motion passes, those items are approved.
00:18:00.700 --> 00:18:02.550
That concludes the hearing section.
00:18:02.550 --> 00:18:05.180
We will now take up our
administrative agenda.
00:18:05.180 --> 00:18:08.990
Agenda item 205 is the
Executive Director Report.
00:18:08.990 --> 00:18:10.804
Good morning, Chairman
and Commissioners.
00:18:10.804 --> 00:18:13.589
Wei Wang, executive
director of the agency.
00:18:13.589 --> 00:18:16.440
As we come off the
summer and get into the fall,
00:18:16.440 --> 00:18:18.160
I thought I'd give y'all a quick update
00:18:18.160 --> 00:18:20.966
on the agency actions
we have taken so far
00:18:20.966 --> 00:18:23.470
in terms of weather winter preparation
00:18:23.470 --> 00:18:25.060
for the upcoming winter.
00:18:25.060 --> 00:18:28.540
So back in March, when ERCOT
revised their application form
00:18:28.540 --> 00:18:30.030
for critical load designation,
00:18:30.030 --> 00:18:32.040
which they allowed oil field services
00:18:32.040 --> 00:18:34.410
to be eligible for that designation,
00:18:34.410 --> 00:18:36.640
we send out a letter
and notice or operator
00:18:36.640 --> 00:18:39.370
to all of the operators
under our jurisdiction
00:18:39.370 --> 00:18:41.960
asking them to apply
for that designation.
00:18:41.960 --> 00:18:43.290
And earlier this month,
00:18:43.290 --> 00:18:46.340
we also send out
another notice to operator
00:18:46.340 --> 00:18:49.250
asking all operators to
take all necessary actions,
00:18:49.250 --> 00:18:51.500
to prepare for the upcoming winter.
00:18:51.500 --> 00:18:53.630
In addition to that,
we also reminded them
00:18:53.630 --> 00:18:56.210
to update their critical
load designation
00:18:56.210 --> 00:18:59.020
and submit that information
to their electric providers.
00:18:59.020 --> 00:19:00.610
And as recent as last week,
00:19:00.610 --> 00:19:03.860
we send out a third
reminder telling operators
00:19:03.860 --> 00:19:07.180
to submit their application
to their electric providers,
00:19:07.180 --> 00:19:09.800
their utilities by November 1st.
00:19:09.800 --> 00:19:11.920
In addition to that,
as operators started
00:19:11.920 --> 00:19:14.040
making modification to their facilities
00:19:14.040 --> 00:19:16.920
and during the fall to prepare
for the upcoming winter,
00:19:16.920 --> 00:19:19.740
we're sending our
inspectors to these facilities
00:19:19.740 --> 00:19:21.890
to physically make observation,
00:19:21.890 --> 00:19:25.270
assess the situation,
and also ask questions.
00:19:25.270 --> 00:19:27.430
So as of last week, we have visited
00:19:27.430 --> 00:19:30.310
over 300 facilities already.
00:19:30.310 --> 00:19:33.700
Our goal was to focus on
the large producing leases,
00:19:33.700 --> 00:19:37.090
the gas processing plants
and their ground storages,
00:19:37.090 --> 00:19:38.820
and transmission pipelines,
00:19:38.820 --> 00:19:42.480
as well as disposal
wells to perform site visits,
00:19:42.480 --> 00:19:45.236
make observation,
and ask their staff on site
00:19:45.236 --> 00:19:48.320
about their plans and
process and technology
00:19:48.320 --> 00:19:51.520
and equipment they're
using for this upcoming winter.
00:19:51.520 --> 00:19:54.700
And we'll continue to do
that throughout this winter.
00:19:54.700 --> 00:19:56.850
So again, that's just a quick update,
00:19:56.850 --> 00:19:59.090
and I'll continue to provide more update
00:19:59.090 --> 00:20:04.090
as we proceed with our
plan for the site visits.
00:20:04.700 --> 00:20:06.540
So I'm available for questions.
00:20:06.540 --> 00:20:08.700
Wei, I'd like to say
you guys have done
00:20:08.700 --> 00:20:11.920
a really good job about
working with PUC here.
00:20:11.920 --> 00:20:14.550
What I've seen this
past couple of months.
00:20:14.550 --> 00:20:15.383
Great job.
00:20:15.383 --> 00:20:16.853
Thank you for leading that.
00:20:18.167 --> 00:20:20.760
And Wei, I appreciate
you and the staff.
00:20:20.760 --> 00:20:24.829
And a couple weeks ago, I
was out in Midland, Texas
00:20:24.829 --> 00:20:29.250
at an event and I was
approached by some of the folks
00:20:29.250 --> 00:20:32.870
in the industry there that
acquainted me with the fact
00:20:32.870 --> 00:20:35.470
that you had appeared
before Senate Committee
00:20:35.470 --> 00:20:38.310
and that you were
treated very disrespectfully.
00:20:38.310 --> 00:20:41.860
And I continue to receive
that from different people
00:20:41.860 --> 00:20:43.470
in the industry that watched that.
00:20:43.470 --> 00:20:46.700
I want you to know that
this Commission appreciates,
00:20:46.700 --> 00:20:49.340
supports, honors your work.
00:20:49.340 --> 00:20:52.700
You're one of the, you're a
leader that we're proud of.
00:20:52.700 --> 00:20:56.760
And we, I apologize personally,
00:20:56.760 --> 00:20:59.770
how disappointed I am as
how the Senate treated you
00:20:59.770 --> 00:21:01.200
in that situation.
00:21:01.200 --> 00:21:02.210
It was inappropriate.
00:21:02.210 --> 00:21:03.250
It was rude.
00:21:03.250 --> 00:21:04.490
It was arrogant.
00:21:04.490 --> 00:21:06.600
It was everything that we don't like.
00:21:06.600 --> 00:21:09.060
And just want to let
you know that I'm sorry
00:21:09.060 --> 00:21:10.540
that you experienced that
00:21:10.540 --> 00:21:13.790
and disappointed that
our friends in the Senate
00:21:13.790 --> 00:21:15.850
decided to do that on that occasion.
00:21:15.850 --> 00:21:17.830
And there's a lot in the industry
00:21:17.830 --> 00:21:21.070
that are still talking
about how unprofessional
00:21:21.070 --> 00:21:22.620
that entire situation was.
00:21:22.620 --> 00:21:26.350
So we appreciate you and want
you to know that we are sorry
00:21:26.350 --> 00:21:29.300
you had to endure that, and
thank you for your good work.
00:21:29.300 --> 00:21:30.133
Thanks, sir.
00:21:30.133 --> 00:21:31.870
I think, you know, I just
wanna take the opportunity
00:21:31.870 --> 00:21:36.300
to say we have a culture
here of one agency, one team.
00:21:36.300 --> 00:21:38.820
And everybody on our
staff has been helping
00:21:38.820 --> 00:21:42.240
our newly created Critical
Infrastructure Division.
00:21:42.240 --> 00:21:45.890
We're actively hiring staff
with our own gas division
00:21:45.890 --> 00:21:47.870
and our pipeline safety department.
00:21:47.870 --> 00:21:50.010
They've been sharing their inspectors
00:21:50.010 --> 00:21:51.760
to help with the site visits,
00:21:51.760 --> 00:21:53.930
and everybody is coming
together, you know,
00:21:53.930 --> 00:21:58.260
on the multiple sections
that's requiring the bill
00:21:58.260 --> 00:22:01.610
that we're all working together
as one agency, one team
00:22:01.610 --> 00:22:04.550
to make sure that we
are doing all we can
00:22:04.550 --> 00:22:06.430
to prepare for this upcoming winter.
00:22:06.430 --> 00:22:09.870
Well, and
literally almost 1,000,
00:22:09.870 --> 00:22:11.650
how many total employees do we now have?
00:22:11.650 --> 00:22:13.420
We have a about 840.
00:22:13.420 --> 00:22:17.550
840 employees, and
this agency are good folks
00:22:17.550 --> 00:22:19.140
across the state of Texas.
00:22:19.140 --> 00:22:23.330
We appreciate you, and
we indeed are proud to be
00:22:23.330 --> 00:22:25.440
part of the team that's
working to help the citizens
00:22:25.440 --> 00:22:26.920
of Texas protect them and make sure
00:22:26.920 --> 00:22:29.650
that we look over their
natural resources appropriately,
00:22:29.650 --> 00:22:31.280
and honor you for the good work that you
00:22:31.280 --> 00:22:32.970
and all of our workers do.
00:22:32.970 --> 00:22:34.110
Thank you, sir.
Thank you.
00:22:34.110 --> 00:22:35.670
And if I could just add,
00:22:35.670 --> 00:22:37.970
thank you, Wei, 'cause
you and your team,
00:22:37.970 --> 00:22:40.130
you've got a whole group of them,
00:22:40.130 --> 00:22:44.200
not just on point and
on task, all of them,
00:22:44.200 --> 00:22:45.870
but frankly ahead of the game.
00:22:45.870 --> 00:22:48.970
So we appreciate it
and y'all have reacted
00:22:48.970 --> 00:22:51.710
very appropriately and
very quickly, I believe.
00:22:51.710 --> 00:22:55.820
And so, we are really
appreciative of what you're doing
00:22:55.820 --> 00:22:58.562
and thank you for being very engaged
00:22:58.562 --> 00:23:00.350
and being a leader on this,
00:23:00.350 --> 00:23:03.860
'cause I think this agency has
come back with good feedback
00:23:03.860 --> 00:23:06.730
and good information
and are doing a good job
00:23:06.730 --> 00:23:07.563
across the board.
00:23:07.563 --> 00:23:09.210
So thank you for what you're doing
00:23:09.210 --> 00:23:10.850
and thank you for your team.
00:23:10.850 --> 00:23:11.683
Thank you.
00:23:11.683 --> 00:23:13.930
Thank you.
Thanks, Wei.
00:23:13.930 --> 00:23:15.083
Randall Collins.
00:23:17.050 --> 00:23:18.750
Bring us words of wisdom, Randall.
00:23:19.760 --> 00:23:20.790
Or cut the mic off.
00:23:20.790 --> 00:23:22.109
Yeah, cut the mic off.
00:23:22.109 --> 00:23:24.582
(laughter)
00:23:24.582 --> 00:23:26.431
At least I
probably (indistinct).
00:23:26.431 --> 00:23:28.387
(laughter)
00:23:28.387 --> 00:23:30.410
Chairman, Commissioners, for the record,
00:23:30.410 --> 00:23:32.630
I am Randall Collins,
chief operating officer
00:23:32.630 --> 00:23:34.490
and stand up comedian.
00:23:34.490 --> 00:23:37.150
Item number 206 on the agenda
seeks Commission approval
00:23:37.150 --> 00:23:39.550
for two solicitations and
a contract amendment
00:23:39.550 --> 00:23:42.400
pursuant to the Commission's
delegation of authority
00:23:42.400 --> 00:23:46.770
and section 2261.254
Texas Government Code.
00:23:46.770 --> 00:23:49.298
The Commission's internal
delegation of authority
00:23:49.298 --> 00:23:52.230
requires Commission
approval for contracts
00:23:52.230 --> 00:23:54.470
in excess of $1 million.
00:23:54.470 --> 00:23:59.470
Section 2261.254 of
Texas Government Code,
00:24:00.170 --> 00:24:03.440
requires approval of contracts
and associated amendments
00:24:03.440 --> 00:24:05.220
greater than $1 million
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or contracts for outside legal services.
00:24:08.070 --> 00:24:11.610
At issue today are two
contracts or solicitations
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and one amended
contract for site remediation.
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Approval of these items today
00:24:16.500 --> 00:24:18.460
will ensure the agency's
continued development
00:24:18.460 --> 00:24:20.780
of the critical infrastructure division
00:24:20.780 --> 00:24:22.100
in compliance with SB three,
00:24:22.100 --> 00:24:24.980
and that the Commission
remains on schedule
00:24:24.980 --> 00:24:26.720
in site remediation projects,
00:24:26.720 --> 00:24:28.800
along with the necessary approvals
00:24:28.800 --> 00:24:30.900
pursuant to the Commission's
delegation of authority
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and state law.
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The summary of the two
critical infrastructure contracts
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and the site remediation
amendment details and amounts
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are included in your notebooks.
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Staff requests Commission
to approve the contracts
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and amendments and I'm
available if you have any questions.
00:24:45.980 --> 00:24:48.670
Are there
any questions, members?
00:24:48.670 --> 00:24:50.270
I move we approve these contracts.
00:24:50.270 --> 00:24:51.850
Is there a second.
Second.
00:24:51.850 --> 00:24:52.910
Second by
Commissioner Craddick.
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All in favor, say aye.
Aye.
00:24:55.040 --> 00:24:56.010
Any opposed?
00:24:56.010 --> 00:24:57.880
Motion passes, that item is approved.
00:24:57.880 --> 00:24:59.390
Thank you.
Thank you.
00:24:59.390 --> 00:25:03.530
Agenda item 207 is the
proposed internal audit plan
00:25:03.530 --> 00:25:05.670
for fiscal year 2022.
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Good morning, Chairman
and Commissioners.
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Dor the record, my name is Paul Delaney.
00:25:08.750 --> 00:25:11.200
I'm the internal auditor for
the Railroad Commission.
00:25:11.200 --> 00:25:13.480
Section 2102 of the
Texas Government Code
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requires each state agency
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to prepare an annual audit plan,
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and then submit a copy of that plan
00:25:19.260 --> 00:25:23.130
to the State Auditor's office
by November 1st of each year.
00:25:23.130 --> 00:25:24.520
As a result of that requirement,
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I conducted an
agency-wide risk assessment.
00:25:27.040 --> 00:25:29.725
I received input from
executive management,
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and then I developed the audit plan
00:25:31.420 --> 00:25:33.330
that you have before you.
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If any of the proposed audits
are not completed in FY 22,
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they'll be added to the
following year's plan.
00:25:39.510 --> 00:25:41.640
I'm requesting that the
audit plan be approved,
00:25:41.640 --> 00:25:43.640
and I'm available to
answer any questions.
00:25:43.640 --> 00:25:45.440
Are there any
questions, members?
00:25:45.440 --> 00:25:47.870
I move we approve the
proposed internal audit plan
00:25:47.870 --> 00:25:50.030
for the fiscal year 2022.
00:25:50.030 --> 00:25:51.320
Is there a second.
Second.
00:25:51.320 --> 00:25:52.610
Second by Commissioner Wright.
00:25:52.610 --> 00:25:54.980
All in favor, say aye.
Aye.
00:25:54.980 --> 00:25:56.010
Any opposed?
00:25:56.010 --> 00:25:57.820
Motion passes, that item is approved.
00:25:57.820 --> 00:25:59.520
Thank you.
thank you.
00:25:59.520 --> 00:26:01.790
Agenda item 208 is an update
00:26:01.790 --> 00:26:03.603
from the Office of General Counsel.
00:26:04.600 --> 00:26:06.220
Good morning,
Chairman, Commissioners.
00:26:06.220 --> 00:26:08.430
I'm David Cooney from the
Office of General Counsel.
00:26:08.430 --> 00:26:09.520
We have nothing to report
00:26:09.520 --> 00:26:12.400
on the federal litigation side of this,
00:26:12.400 --> 00:26:14.830
but hold onto your hats,
00:26:14.830 --> 00:26:16.480
EPA is expected to publish
00:26:16.480 --> 00:26:20.920
its oil and gas methane
emission rules this week.
00:26:20.920 --> 00:26:23.310
Staff has poised and ready to cooperate
00:26:23.310 --> 00:26:25.700
as we have traditionally on these rules
00:26:25.700 --> 00:26:29.600
with our sister agencies,
the TCEQ and the PUC.
00:26:29.600 --> 00:26:32.930
We will be formulating
comments once we see them
00:26:32.930 --> 00:26:36.220
and keep you posted of
developments as they occur.
00:26:36.220 --> 00:26:37.890
Thank you, that's
very significant.
00:26:37.890 --> 00:26:38.860
Appreciate you watching that.
00:26:38.860 --> 00:26:40.970
That's a high cost risk
00:26:40.970 --> 00:26:44.528
to the entire Governor
family in the United States.
00:26:44.528 --> 00:26:45.720
Very dangerous.
00:26:45.720 --> 00:26:46.553
Thank you, Dave.
00:26:47.610 --> 00:26:50.910
Agenda 209 item is our
public participation item.
00:26:50.910 --> 00:26:52.290
No one is registered indicating
00:26:52.290 --> 00:26:55.820
that they wish to speak
on any nonposted items.
00:26:55.820 --> 00:26:58.714
Agenda item 210 is our
executive session item,
00:26:58.714 --> 00:27:01.330
which we will not be going into today.
00:27:01.330 --> 00:27:03.330
Are there any other duly posted matters
00:27:03.330 --> 00:27:06.100
to be brought before the
Commission at this time?
00:27:06.100 --> 00:27:07.950
Hearing none, this meeting
of the Railroad Commission
00:27:07.950 --> 00:27:10.510
of Texas is adjourned.
00:27:10.510 --> 00:27:11.960
Can I carry my water with me?