PUBLIC HEARING ON DRILLING PERMIT

Staff Report & Agenda Item Details

PUBLIC HEARING ON DRILLING PERMIT APPLICATION FOR HANGING H RANCH, INC Call to order at 1:13 p.m. the public hearing on Application for a Drilling Permit for Hanging H Ranch, Inc. Party representing application: Mark Holly with Hanging H Ranch, Inc. Protestant to application: None. Public Comment: None. President McGuairt declared the application uncontested. Manager Ty Edwards presented the application to the Board. Hanging H Ranch, Inc. has made application for a drilling permit for 1 well located at Old Courtney Ranch Co. on 640 acres in Survey T&P RR Co, Block 48-8 Section 8 on Property ID#6725, approximately 4 miles West of FM 1776 and 5 miles South of Coyanosa. The well is projected to be 1500 feet in depth and drilled into the vil Middle Pecos GCD Minutes for September 17, 2019 Page 12 Rustler Aquifer. The purpose of the well is for Industrial use, and will have an estimated rate of withdrawal of 500 gallons per minute. The surface is owned by Old Courtney Ranch. The Old Courtney Ranch is managed by Hanging H Ranch with a court order from Reeves County. The Rustler aquifer well will require a 12 hour pump test. The application is administratively complete. Mr. Mark Holly was sworn in for testimony. Mr. Hoily said that Roy Jackson was the receiver for the ranch and was appointed by Judge Skeet Jones. | was hired to start selling water. Mr. Holly said the sole purpose of the water well is to sell water to Oil and Gas Operators in the area. The amount of production that will be requested is contingent upon sales. A 1.2 million barrel pond will be built south of the well in order to sell more water. As far as the high Total Dissolved Solids in the Rustler Aquifer, the pit will be lined with a geo-textile liner first, then a 40 mil liner, then a 60 mil liner in the corners. There will be monitors on the well itself and pond monitors on the frac pond. Adjourn Hearing and consider and/or act on Application for a Drilling Permit for Hanging H Ranch, Inc. President Jerry McGuairt adjourned the hearing at 1:23 p.m. Allan Childs, Jr. made a motion to approve the Drilling Permit for Hanging H Ranch, Inc. Motion seconded by Ronnie Cooper. Motion carried unanimously. Vote: 8 For. -0- Against. 3 Absent. REGULAR BOARD MEETING —- CONTINUED The Regular Meeting reconvened at 1:23 p.m. Briefing and take action as necessary on grant funding opportunities (reference TCEQ-related Clean Water Act Section 319(h) Nonpoint Source Grant Program and U.S. Department of Agriculture's Natural Resources Conservation Service- related Pecos Watershed Conservation grant program). 1) TCEQ-related Clean Water Act Section 319(h) Nonpoint Source Grant Program and U.S. Department of Agriculture’s Natural Resources Conservation Service-related Pecos Watershed Conservation grant program: Middle Pecos GCD Minutes for September 17, 2019 Page 13 Vince Clause, Hydrogeologist with Allan Standen, LLC, gave an overview of the grant. This second grant submission was submitted at the end of July this year. Last year a 40-page grant application was submitted which was not awarded. Most of the same information was used for the second submission. The grant is asking for a 60/40 grant match. The District would put up 40%. That would $200,000 in the form of salaries, we will not need to budget additional funds. The 60% is federal funds through the Texas Commission on Environmental Quality. The goal of this grant is to go after monies that are set aside for watershed protection plans to either reduce pollution or create a beneficial habitat. The angle that we are taking here is to reduce pollution from those flowing San Andres wells in imperial. We would frame an argument around how these flowing wells are contributing to non-source point pollution to the Pecos River and to the Pecos River watershed. MPGCD General Manager Ty Edwards put together a well inventory over the last couple of years of the flowing San Andres wells. If we are awarded the grant we

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 4.8/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).