M. R. Gonzalez Secretary/Treasurer, Precinct 2 John Dorris Vice President, Precinct 3 Janet Groth Precinct 1 Merrell Daggett Precinct 2 Weldon Blackwelder Precinct 3 Alvaro Mandujano, Jr. Precinct 4 Terry Whigham Pecos County At Large Quorum Present. Board members absent: Vanessa Cardwell, Jeffery McMahon, and Ronald Cooper Others present: Paul Weatherby, Mike Gershon, Gail Reeves, Ty Edwards, Harvey Gray, Darrell Peckham, Brock Thompson, Jeff Williams, Ed McCarthy, Jr., Elizabeth Ferry, James Cravens, Gil Van Deventer, Mr. and Mrs. David Mitchell, Tim Pfannenstiel, Ed Goebel, John Lichtenberger, Ernest Woodward, Gladys Dorris, and Bob Beal/Fort Stockton Pioneer. CONTINUATION of SHOW CAUSE HEARING ON ALLEGED VIOLATION OF DISTRICT’S RULES BY BUGINGTON ENERGY, LLC | Call to Order at 10:04 a.m. by President Jerry McGuairt. Il Show Cause Hearing on alleged violations of District’s Rules 14.1(d), 14.2(a) and (c), and 14.3(a)-(c) pertaining to waste, pollution and degradation of quality of groundwater by BUGINGTON ENERGY, LLC and Bugington Energy, LLC’s compliance with District’s July 21, 2015 enforcement order. Bugington Energy, LLC, did not have any of their company officers or employees or legal representatives in attendance at the hearing. ¢ On August 5", Paul Weatherby and Jerry McGuairt traveled to Austin to meet with Mr. Cooney (the enforcement director) of the Texas Railroad Commission (RRC) and share the two enforcement orders issued by MPGCD to Bugington Energy, LLC. Troupe Brewer, attorney for Lloyd Gosselink, attended the meeting with MPGCD. The RRC has not accelerated the timeline for Bugington Energy, LLC to investigate and remediate the polluted sites. e The order issued by the MPGCD Board on 07-21-2015 to Bugington Energy, LLC to pay a $30,000 fine by August 17" has not been received. Hl Middle Pecos GCD Minutes for August 18, 2015 Page 2 An Executive Session was called at 10:13 a.m. by President Jerry McGuairt pursuant to the Texas Open Meetings Act, Sections 551.071 of the Texas Government Code, to consult with attorney. The Board reconvened into open session at 10:42 a.m. President McGuairt stated that no decisions or votes were made in executive session. Consider and act on alleged violations by BUGINGTON ENERGY, LLC, and consider and act on appropriate penalty or other enforcement remedy to be imposed and/or pursued in court. Weldon Blackwelder made a motion to table the item. Motion seconded by Terry Whigham. Motion died without a vote. Adjourn. Jerry McGuairt announced that no action would be taken and the hearing would be continued to the September 15'" Board Meeting at 10 a.m. at the MPGCD office. REGULAR BOARD MEETING Call to order regular Board meeting at 10:43 a.m.

Bastiat Liberty & Property Rights Analysis

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.