PUBLIC HEARING ON PRODUCTION PERMIT

Staff Report & Agenda Item Details

PUBLIC HEARING ON PRODUCTION PERMIT APPLICATION FOR XTO ENERGY, INC. Call to order at 10:48 a.m. the public hearing on Application for a Production Permit for XTO Energy, Inc. by Presiding Officer Janet Groth. Middle Pecos GCD Minutes for December 17, 2019 Page 7 Party representing application for XTO: James Graham Protestant seeking party status: Paul Weatherby. Mr. Weatherby testified that he is an adjacent landowner and is concerned about the amount requested for the permit and for the ‘use’. The amount of acre feet requested, and over permitting by the MPGCD Board could negatively impact his water levels. Sworn in for testimony: James Graham, Pau! Weatherby and Ty Edwards. Mr. Weatherby was asked by the Board how 20 gallons per minute (gpm) is going to affect him. Mr. Weatherby explained that 20 gpm should not directly affect his water supply. His concern is over permitting the well for public supply use. Larry Drgac made a motion to grant party status to Paul Weatherby. Motion seconded by Alvaro Mandujano, Jr. Motion carried Unanimously. Presiding Officer Janet Groth declared the application contested. MPGCD General Manager Ty Edwards presented the application: XTO Energy Inc., an Exxon Mobil Subsidiary has made application for a Production Permit for 1 well located on 29.988 acres (Property Id# 45803) in Survey T&P RR CO Block 48 T/S 8 Section 10, approximately 2 miles West of FM 1776 on Weatherby Road in Pecos County, Texas. The application request authorization to produce 40.325 acre-feet/year for Public Supply Use from the Pecos Valley Aquifer. XTO is seeking 25 gallons per minute which is .6 gallons per day for 60 employees per Texas Commission on Environmental Quality (TCEQ) requirements in their office in Coyanosa, and the amount they have requested is based.on 100% employment of 60 employees. MPGCD monitors wells on Mr. Weatherby’s property along with others in the area. The well has a meter on it to report usage. The Consultant requested 25 gpm for 365 days a year at 24 hours per day. The permit is administratively complete. Testimony of Paul Weatherby/Protestant: (Summary) My research of the largest water users in Fort Stockton shows that The Best Western used 7.18 acre feet per year, and Wal-Mart used 20.9 acre feet per year. The average family of 4 used 36,000 gallons per year/or .11 acre feet per year. As compared to 60 XTO employees equaling 15 families would be 1.66 acre feet per year. Mr. Weatherby concluded that 5 acre feet per year would provide enough water to XTO. He explained that he has property neighboring XTO's facility and has worked with them by selling them water and allowing frac tanks on his property for industrial supply water. He has no issues with XTO, other than the calculations used by the Consultant for this permit request. Middle Pecos GCD Minutes for December 17, 2019 Page 8 James Graham with XTO Energy, Inc: He expressed appreciation for Mr. Weatherby. He said that the facility would not use that much water for Public Supply, and that his Consultant mentioned that Texas Commission on Environmental Quality (TCEQ) requirements were being met. MPGCD attorney Mike Gershon: The permit request should be for the amount of water that XTO Energy needs. The facility engineer would need to design the distribution lines and storage system on-site to meet the TCEQ infrastructure tequirements. Presiding Officer Janet Groth tabled the hearing 11:23 a.m. to allow Mr. Graham and Mr. Weatherby to contact the Consultant and discuss the amount needed for the permit. NOTE: Other Agenda items were discussed by the Board from 11:23 a.m. to 12:06 p.m. At 12:06 p.m. the hearing reconvened. The hearing is shown here in its entirety for continuity. Mr. Graham reported that discussions with the XTO Consultant and Mr. Weatherby have resulted in a consensus that XTO Energy will accept 15 acre feet annually for the production permit. Adjourn Hearing and consider and/or act on Application for a

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.6/10). 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.