PUBLIC HEARING ON APPLICATION TO AMEND

Staff Report & Agenda Item Details

PUBLIC HEARING ON APPLICATION TO AMEND Call to order at 10:42 a.m. by President McGuairt. Party representing application: Harvey Gray Protestant to application: No protestants Public Comment: Reid McCoy representing McCoy Remme Ranches and Maddox Ranch will not enter a protest. Jerry McGuairt declared the hearing as uncontested. Manager Ty Edwards presented the application to the Board. The application tequests to amend an existing production permit to add industrial use into the existing production permit. The wells are located on T&P RR CO Block 49T9 Section 47 and Block 49T10 Section 7 and Section 11 approximately 22 miles west of Fort Stockton on the north side of I-10, in Pecos County, Texas. The purpose of the wells is currently for public supply. On 10-15-2011 a 246 acre feet production permit was issued for wells 2-3-4-5-6-7.1-7.2 for public supply use from the Edwards-Trinity aquifer. On 04-21-2015 well 15 was added to this permit. The application requests to add industrial use to the existing production permit for wells 2-3-4-5-6-7.1-7.2-15 from the Edwards-Trinity Aquifer. There is an oil company that is off lease that wants to purchase water. We monitor several wells in the area. The application is administratively complete. Middle Pecos GCD Minutes for June 19, 2018 Page 5 Harvey Gray, PCWCID#1's Board President, was sworn in to give testimony. The water sells will come from the oldest wells and several of the wells are high in Radium. The anticipated sells are 10,000 barrels (1.3 acre feet). The revenue will be used to replace older water lines and make improvements to the system. Adjourn hearing and consider and/or act on Application to Amend an Existing Production Permit for Pecos County WCID#1. President McGuairt adjourned the hearing at 11:01 a.m. Board comments: Since the PCWCID#1 is a public supply source, he would like to see a competitive rate charged so as not to under-cut other people selling water in the area. Other comments were concerned about affecting the quantity and quality of the public supply wells. Alvaro Mandujano, Jr. made a motion to approve the permit amendment as presented. Motion seconded by M. R. Gonzalez. Motion carried. Vote: Vote: 8 For. 2 Oppose. 41 Absent. CONTINUED HEARING ON APPLICATION FOR A CONSOLIDATED DRILLING AND PRODUCTION PERMIT WITH AUTHORIZATION TO EXPORT FOR CHARLTON RESOURCES, LLC Call to order at 11:04 a.m. by President McGuairt. Party representing application: Mark Harral, Attorney representing Charlton Resources, LLC. Public Comment: None. Protestant to application: Adam Friedman, Attorney representing Alpha Water Resources. (Written comments submitted 05-14-2018 by Mr. Friedman) Ty Edwards, MPGCD Genera! Manager, gave a recap for the hearing. Charlton Resources, LLC has submitted a Consolidated Drilling and Production Permit with Authorization to Export for a 2 well system located on Survey H&TC RR CO Block 3 Section 27, North Corner of FM 1053 and FM 1450 Intersection, in Pecos County, Texas. The application seeks to re-enter an existing well (Holladay#1) and to drill a new well to an estimated depth of 3,150 feet into the San Andres Formation for a total combined production of 967 acre-feet a year for Industrial Use from the San Andres Formation. Middle Pecos GCD Minutes for June 19, 2018 Page 6 (Recap continued) At the Public Hearing on 05-15-2018 Alpha Water Resources requested a contested case hearing and party status in the hearing. Adam Friedman, Attorney representing Alpha Water Resources, presented their justiciable interest. Mr. Harral filed an objection to party status for Alpha Water Resources and questioned their justiciable interest to do business in the State of Texas because documents cannot be found in filings with the Texas Secretary of State, the Delaware Secretary of State, or with the Pecos County Clerk. In the event that party status is granted Charlton Resources, LLC has filed a request for State Office of Administrati

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.5/10). 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.