R. Gonzalez, Board Secretary

Staff Report & Agenda Item Details

M. R. Gonzalez, Board Secretary MIDDLE PECOS GROUNDWATER CONSERVATION DISTRICT 405 North Spring Drive Fort Stockton, Texas 79735 (432) 336-0698 phone (432) 336-3407 fax Email: mpgcd@mpged.org Website: www.mpgcd.org Directors Janet Groth, President Vanessa Cardwell, Vice President MM. R. Gonzalez, Secretary/Treasurer Alvaro Mandujano, Jr. Ronald Cooper Weldon Blackwelder Jeff Sims Puja Boinpally Larry Drgac Billy Jackson Wayne Tinkler Ty Edwards, General Manager February 9, 2026 Mr. Mel Riggs, President Mr. Jeff Williams, Vice President Mr. Ed McCarthy Fort Stockton Holdings, LP 6 Desta Drive, Suite 5725 Midland, Texas 78705 Re: Fort Stockton Holdings, LP’s Application to Renew Production Permit Authorizing Export Originally Issued July 18, 2017 Dear Gentlemen: In accordance with our District Rule 11.8(f) and Texas Water Code §§ 36.1145 and 36.122, this letter serves as my decision and notice to Fort Stockton Holdings, LP (FSH) on FSH’s above-referenced application (Renewal Application), which was filed on January 15, 2026. My decision is to grant the Renewal Application as specified_in this letter. Specifically, FSH’s production permit referenced above (Permit) is hereby renewed effective July 18, 2026, for another three-year permit term and subject to all the conditions incorporated into the Permit when it was issued on July 18, 2017 and renewed on July 18, 2020 and again on July 18, 2023,' as long as FSH satisfactorily continues to address its commitments in the agreements that implement the Special Permit Conditions. Please note that Rule 1 1.8(f) requires that I inform the District’s Board of this decision. which the Board may overrule. Rule 11.8(f) also provides you with the right to appeal my decision to the Board. Our next meeting is currently scheduled for February 18, 2026, at the District’s office, and I encourage you to attend. Sincerely, [7 Ty Edwards General Manager ' The Permit’s conditions include the two-page set of 15 Special Permit Conditions and the District’s rules, as may be amended. For convenient reference and to be clear about the Permit and its conditions, | have attached a copy. Fort Stockton Holdings, LP’s Application to Renew Production Permit February 9, 2026 Page 2 ce: Mr. Mark Tisdale, General Counsel Mr. Eddie R. McCarthy III, Attorney Fort Stockton Holdings. LP Ms. Janet Groth, Board President Ms. Vanessa Cardwwell, Board Vice President Members of the Board of Directors Bill Hutchison, Ph.D., P.E., P.G. Vince Clause, P.G. Mr. Mike Gershon, General Counsel Middle Pecos Groundwater Conservation District William R. Hutchison, Ph.D., P.E., P.G. 909 Davy St. Brenham, TX 77833 512-745-0599 billhutch@texasgw.com February 6, 2026 Mr. Ty Edwards, General Manager Middle Pecos Groundwater Conservation District PO Box 1644 Fort Stockton, TX 79735 RE: Fort Stockton Holdings Permit Renewal Dear Mr. Edwards: Pursuant to your request, this letter summarizes the groundwater conditions in Pecos County relative to the District’s decision to renew the Fort Stockton Holdings (FSH) permit: • The annual review of groundwater levels relative to the desired future condition in all of Pecos County • The summary of groundwater elevations in the 11 monitoring wells associated with FSH permit • A comparison of historic pumping in Management Zone 1 with the pumping associated with the development of the desired future condition. As required in Texas Water Code 36.122(k), “the district shall consider relevant and current data for the conservation of groundwater resources..” as part of its renewal decision. Overall Consistency of Recent Groundwater Conditions with the Desired Future Condition As required in the District management plan, a review of groundwater conditions relative to the desired future condition is completed annually. Because of the lag in data availability, the most recent review (dated February 6, 2026) covers the years 2005 to 2024