Consider and/or act upon Renewal of Lease on Office Building.

Staff Report & Agenda Item Details

Consider and/or act upon Renewal of Lease on Office Building. Alvaro Mandujano, Jr. made a motion to renew the office building lease with Pecos County. Motion seconded by Vanessa Cardwell. Motion carried unanimously. Vote: 8 For. 0 Oppose. 3 Absent. Note: Commencement Date July 1, 2018. Termination Date June 30, 2023. Briefing and take action as necessary on Cockrell Investment Partners, L.P. v. Middle Pecos Groundwater Conservation District, Cause No. P-12176-112-CV (Pecos County District Court), and implementation of the District’s settlement agreement with Fort Stockton Holdings, L.P., Clayton Williams Farms, Inc., and Republic Water Company of Texas, LLC. Mike Gershon, MPGCD attorney, reported to the Board that a Rule 11 Agreement was entered and filed in the Court House on May 11, 2018. The agreement will allow additional time for Cockrell Investment to confer with Fort Stockton Holdings, L.P. in an effort to resolve Cockrell Investment’s objections to two Fort Stockton Holdings, L.P. permit applications that are related to the lawsuit. The parties agree: 1) Abatement of Discovery; 2) Hearing on the District's Plea to the Jurisdiction; 3) No other activity in pending lawsuit during settlement discussions. Ryan Reed, attorney for Cockrell Investments Partners, L.P. (Cockrell): 1) The intention is to maintain the status quo and not proceed with litigation while there are ongoing negotiations between Cockrell and Fort Stockton Holdings (FSH). 2) Talks began October 2017 with a face to face meeting between Cockrell and FSH. We received a proposal last week which is a hard NO for us. 3) The issue that Cockrell is concerned about is reasonable summer thresholds and meaningful cutbacks year round. There has been much discussion about the winter thresholds and aquifer recovery — that provides Cockrell no protection in the event that the aquifer levels are drawn down significantly during the summer months which is the growing season for the Belding Pecan Farm. Vil vill Middle Pecos GCD Minutes for May 15, 2018 Page 8 4) Cockrell would like to add this to the rules: Summer Threshold: If the 10-day rolling average water level in the Prison Well hits 2,950 ft. Mean Sea Level (msl) at any time during the year or goes below, then all production permits are subject to a 100% cutback until the 10-day rolling average water level in the Prison Well rises above 2,950 ft. msl for at least 15 days. We are proposing a very simple threshold. If the water level gets drawn down very low in one reliable well here in the County — then there will be a short cutback in the summer. Eddie McCarthy Ill, attorney for Fort Stockton Holdings, L.P.: Talks are continuing in good faith. A monitoring system is in place. Both parties are working to get information. No action taken. The meeting was recessed from 12:00 noon to 1:02 p.m. for lunch. Progress Reports: Well Registrations, Production Permits, Drilling Permits, pata Loggers, Drought Monitor Map and ongoing Water Quality Analysis. Well Registrations: Current registrations total 3,113 Exempt wells. 922 Non-Exempt wells. We have received 3 new well registrations. Drought Monitor Map: In packet. We currently have abnormally Dry areas in Southern Pecos County, and moderate drought is dominant in Pecos County, and a swath of severe drought in a portion of Pecos County. Production Permits: Next meeting we will anticipate a Drilling/Production Permit Application from the new RV Park. The new owners of the Tafti Farm may have an application for a Production Permit. Pecos County WCID#1 hearing will be re-posted for a hearing. Drilling: Rosehill drilled west of Bob Hayter. BlueStone drilled on La Escalera. Water Analysis: 2 analysis pulled: from a new free flowing well; and on Hwy 67 for Mr. Hernandez. Texas Water Development Board has been here, and 3 weather stations have been installed around Pecos County.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.8/10). 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.