Consider and/or act upon an Engagement Letter with Smith & Rives, PC for

Staff Report & Agenda Item Details

Consider and/or act upon an Engagement Letter with Smith & Rives, PC for the Audit for the Year Ending September 30, 2017. Ronnie Cooper made a motion to enter upon the engagement letter with Smith & Rives, PC to conduct the audit for the year ending September 30, 2017. Motion seconded by John Dorris. Motion Carried Unanimously. Vill Middle Pecos GCD Minutes for June 20, 2017 Page 6 Briefing and take action as necessary on matters involving Fort Stockton Holdings, LP (FSHLP), Republic Water Co. of Texas, LLC (Republic LLC) and Clayton Williams Farms, Inc.’s settlement and following, related pending lawsuits and contested hearing: Republic LLC's state-court lawsuit, Court of Appeals Case No. 08-17-00001-CV; FSHLP v. Pecos County, MPGCD, et al., Court of Appeals Case No. 08-15-00382-CV; In re the Application of Republic LLC, State Office of Administrative Hearings Docket No. 959-17-3195. On 05-31-2017 the Eighth District Court of Appeals of Texas in El Paso, TX Remanded the case back to MPGCD. The Settlement Agreement states that MPGCD will immediately within 20 calendar days post a notice of a hearing. Our next regularly scheduled Board Meeting is June 18" and if Mr. McCarthy agrees we will proceed at that time. No action required. No action taken. Briefing and take action as necessary on matters regarding Fort Stockton City Council’s Special-Called Meeting on May 30, 2017 (Agenda Items A & B) and June 2, and June 13, 2017 (Agenda Item C), including FSHLP litigation; groundwater-related activity at Blue Ridge Farms; recommended policies regarding metering and use of City property; and City’s contemplated litigation regarding the surface-use of Blue Ridge Farms (reference Schuyler Wight, Jay Cleo Thompson, Samson Exploration, LLC, & Halcén Resources). Manager Edwards: There has been a lot of activity at Blue Ridge Farms. The City personnel have found wells that need to be registered. Fort Stockton Attorney Mark Harral: e Schuyler Wight: The City has a farming and grazing lease with Schuyler Wight for irrigation purposes only. He utilizes water wells on Blue Ridge that are in Pecos County and in Reeves County. The water use is not metered. He has a water tie to provide water to Halcon and formerly Samson. e Halcon: They have a surface use agreement in Reeves County. They do not meter their water use. They rely on Schuyler Wight to produce water for their oil and gas purposes. e OXY: The have a surface use agreement that was purchased from Jay Cleo Thompson. They install temporary water meters when they use the property. They have been very open to working with the City to complty with the Water Code rules. No action needed or taken. Xl Xil xill Middle Pecos GCD Minutes for June 20, 2017 Page 7 Briefing and take action as necessary on matters regarding 85" Texas Legislature’s Regular and Special Sessions, and upcoming interim session. No significant legislation passed this session that affected groundwater. The special session called for July will not have many water issues. No action needed or taken. Discuss and/or act upon the General Manager’s Semi-Annual Report. Schuyler Wight said that several years ago there was a monitor well at the Santa Rosa Springs, and he asked if MPGCD could put another monitor on the Springs. There was no answer from the Board. The General Manager's Semi-Annual report was handed out. No action taken. Tabled until the July meeting. Progress Reports: Well Registrations, Production Permits, Drilling Permits, Data Loggers, Drought Monitor Map and ongoing Water Quality Analysis. > Well Registrations: Several registrations have been received from the City of Fort Stockton, and from oil and gas companies. > Drought Monitor Map: The current drought monitor map presented. > Production Permits: We will have a permit hearing for Berkshire Holdings and for the City of Fort Stockton next month. a Permit Report: A report showing the Historic and Existing Use permits that were issued, a

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.2/10). 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.