Consider and/or act upon Depository Contract with Pecos County State

Staff Report & Agenda Item Details

Consider and/or act upon Depository Contract with Pecos County State Bank. Pecos County State Bank submitted a formal contract for the district deposits for the time period of March 1, 2018 through February 28, 2023. Middle Pecos GCD Minutes for February 20, 2018 Page 8 John Dorris made a motion that MPGCD set policy and strategy to invest District funds in Demand Deposit accounts, Certificates of Deposit and other interest- bearing bank accounts at Pecos County State Bank- in compliance with the Public Funds Investment Act for the next 12 months. Motion seconded by Alvaro Mandujano, Jr. 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 (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 reported that there are no developments in the lawsuit. Sam Cruse, attomey with Cockrell Investment Partners, LP, said that they had provided Fort Stockton Holdings, LP with a proposal to the ‘Management Zone 1’ rules, and that Fort Stockton Holdings, LP is reviewing the proposal. There should be further updates at the next meeting. Ed McCarthy, attorney for Fort Stockton Holdings, L.P., concurred with Mr. Cruse. Mike Gershon, attorney for Middle Pecos GCD, reflected on the timeline in the settlement agreement between Fort Stockton Holdings, L.P. and Middle Pecos GCD, and noted that there is no need to move forward with the ‘rule making’ portion of the agreement until Cockrell Investment Partners, LP and Fort Stockton Holdings, L.P. reached a conclusion with their discussions. No action taken. Progress Reports: Well Registrations, Production Permits, Drilling Permits, Data Loggers, Drought Monitor Map and ongoing Water Quality Analysis. > Well Registrations: Current registrations total 3,106 wells. 925 of those are non-exempt. This month we have received 3 ‘exempt’ registrations. Drilling Permits: 2 Notice of Intents to Drill have been received. Drought Monitor Map: The current drought monitor map presented. Data Loggers: Will set up meetings to get with La Escalera Ranch and with the City of Fort Stockton and discuss a path forward to install telemetry for monitor well(s). Water Analysis: Finished the Winter Water quality analysis. VvVvV Vv Middle Pecos GCD Agenda for February 20, 2018 Page 9 Xl Consider and/or act upon General Manager’s Correspondence. > Directors and Officers Liability Insurance has been secured from Professional Risk Solutions for 02-05-2018 to 02-05-2019. > Edwards will attend the Groundwater Management Area 7 meeting on March 22, 2018. The ‘Desired Future Conditions’ will be discussed. > Allan Standen will be working on the January waterwell levels for Cockrell Investment Partners, Fort Stockton Holdings, and La Escalera Ranch. XII Directors’ comments. No comments. XIll_ Consider and/or act upon agenda for next meeting. There may be 2 permit hearings and a rule workshop. Continuation of Production Permit with Authorization to Export Hearing for Cody Energy, LLC Hearing Continuance Attendance: Ty Edwards, Mike Gershon, Allan Standen, Gail Reeves, Melissa Mills, Morgan Williams, Paula McGuairt, Jeff Williams, Mike Thornhill, Ed McCarthy, Brock Thompson, Gerald D. Lyda, Tom and Val Beard, Kim Dillard, Robin Fisher, Davin McGinnis, Dan Rowe, Rafael Almodovar, and Phil Bozone The Permit Hearing was reconvened at 1:27 p.m. Note: Alvaro Mandujano, Jr. left the meeting at this point and did not return. Davin McGinnis, attorney for Cody Energy, LLC, revealed the talks with Leoncita Land Company and La Escalera Ranch, LP did not result in a settlement. Cody offered to cut the term of the permit request to a 3 month permit for 40 acre feet. Leoncita Land Company and La Escalera Ranch, LP reinstated their request for a

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.7/10). 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.