M. R. Gonzalez made a motion to approve the application as presented. Motion seconded by Allan Childs. Motion Carried. 7 For. -0- Oppose. 3 Absent. 1 Recusal. Middle Pecos GCD Minutes for January 16, 2018 Page 6 PRODUCTION PERMIT HEARING for CITY OF FORT STOCKTON Call to order at 10:38 a.m. the Public Hearing on Application for a Production Permit for City of Fort Stockton (Blue Ridge Farm). Alvaro Mandujano, Jr. recused himself via a Disclosure Affidavit. Party representing application: Mark Harral/Attorney. Frank Rodriguez/City of Fort Stockton Manager. Robbie Dominguez/Assistant Director of Public Works. Protestant to application: None Public Comment: None. President McGuairt declared the application uncontested. Manager Ty Edwards presented the application to the Board. The application requests production for a 10 well system located on City of Fort Stockton Blue Ridge Farm, approximately 27 miles West of Fort Stockton, in Pecos County, Texas. The purpose of this well system is for a combined use of Public Supply and Industrial use and request 500 acre-feet a year from the Pecos Valley Aquifer. The application was submitted on August 3, 2017, and it was not administratively complete at that time. Once they answered additional questions, we declared the application administratively complete. The permit application hearing was set for December 12, 2017. We did not have a quorum for the hearing, and the hearing is rescheduled for today. Frank Rodriguez, the Fort Stockton City Manager, was sworn in by President McGuairt. The City is requesting that the permit be for a combined 500 acre feet industrial and public supply use, so that the City can support Pecos County water in the short term as well as the City of Fort Stockton long term for greater than 3 years. Robbie Dominguez, the City of Fort Stockton Assistant Public Works Director, was sworn in by President McGuairt. (Summary) The City of Fort Stockton has redrawn its service distribution territory and now includes the Prison population. The agreement that the City has with WaterBridge has established the City of Fort Stockton as a wholesale provider. The City was able to justify the municipal reserve amount of water in order to serve the growing hotel and industry population. All changes have been approved by the Texas Water Development Board, and have been submitted to Region F for the State Water Plan. Middle Pecos GCD Minutes for January 16, 2018 Page 7 Mark Harral, City of Fort Stockton water attorney: (Testimony Summary) The goal of this permit is to resolve permit issues as we continue to use water for Oil & Gas purposes, industrial for the short term, as well as municipal for the long term. The City would like to use the full amount for industrial use until such time as they need it for public use. The reason the City is asking for Public-Use is because we have gone through the process with the Texas Water Development Board and we have been classified as a wholesale water provider because of our agreement with WaterBridge. The water wells originally purchased at Blue Ridge and the area out there is considered fresh water according to Texas Commission on Environmental Quality standards. The permit application requests water to supply WaterBridge Resources, LLC. WaterBridge will install a water pipeline from the Blue Ridge property and connect all the City's properties (Blue Ridge, Stockton, Riley, and Belding). The City will sell water to WaterBridge at a reduced rate (Commercial Rate of 12 a barrel) and in turn, WaterBridge will build and install the 30” pipeline and infrastructure which will be transferred to the City at the end of the agreement. The water is not for transport outside of Pecos County. Short term goal is to reduce City customers water rates with the money generated or to pay for infrastructure improvements. Long term outlook is that once the Oi! & Gas industry has gone, or in 30 years the water can be used for other purposes and d

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 5.0/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.