Consider and/or act upon the General Manager’s 2017 Annual Report.

Staff Report & Agenda Item Details

Consider and/or act upon the General Manager’s 2017 Annual Report. General Manager Ty Edwards presented his report with a power point presentation. vill Middie Pecos GCD Minutes for January 16, 2018 Page 9 The meeting was recessed for lunch at 12:02 p.m. An Executive Session for Agenda item VIII convened at 12:03 p.m. The Executive Session adjourned at 12:48 p.m. The regular session reconvened at 1:00 p.m. President McGuairt stated that no decisions or votes were made in executive session. * Note: Ronnie Cooper left the meeting at 12:02 p.m. John Dorris left the meeting at 1:03 p.m. A quorum was present for the remainder of the meeting: McGuairt, Cardwell, Sims, Mandujano, Childs, and Gonzalez. General Manager Ty Edwards resumed the presentation of his report. Vanessa Cardwell made a motion to approve the 2017 Annual Report. Motion seconded by Jeff Sims. Motion Carried Unanimously. Briefing and take action as necessary on Cockrell Investment Partners, L.P v. Middle Pecos Groundwater Conservation District, Cause NO. P-12176-112-CV. The Cockrell Investment Partners, L.P. team (Cockrell) was not present when this agenda item came up. Ed McCarthy with Fort Stockton Holdings, L.P. (FSH) gave an update relative to the on-going talks between Cockrell and FSH. He reported they had not met much, and there is currently no settlement between them. No action taken. Note: Cockrell's team arrived a few minutes later, and was updated on Mr. McCarthy's statement. Sam Cruse with Cockrell’s team agreed with the summary, and did not add further comment. Discuss and act on Maplewood LLC's proposed amendment to tax abatement agreement to extend timeline by one year. Alvaro Mandujano, Jr. made a motion to extend the Maplewood LLC’s tax abatement by one year, and allow President McGuairt to sign the paperwork. Motion seconded by M. R. Gonzalez. Motion Carried Unanimously. xl XIl Xill Middle Pecos GCD Minutes for January 16, 2018 Page 10 Progress Reports: Well Registrations, Production Permits, Drilling Permits, Data Loggers, Drought Monitor Map and ongoing Water Quality Analysis. > vv v Well Registrations: Current registrations total 3,103 wells. 925 of those are non-exempt. This month we have received the following registrations: Stone Ranch; Oscar Gonzalez; Bobby Bennett; 2 exempt wells from Pecos Pecan; and 23 well transfers from Parsley Energy (Previously Trees Estate). Drilling Permits: 2 Notice of intents to Drill have been received from Cody Energy to drill into the Rustler Aquifer and produce water on their lease. Their lease is cut in half by the Pecos/Brewster county line. They would like to use water from the Pecos County wells on the portion of their lease that is in Brewster County, and will submit an Export Fee Agreement next month. Drought Monitor Map: The current drought monitor map presented. Production Permits: Upcoming applications are Weatherby and the City of Fort Stockton. Water Analysis: The Winter Water quality analysis is continuing.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.4/10). 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.