R. Gonzalez Secretary/Treasurer, Precinct 2

Staff Report & Agenda Item Details

M. R. Gonzalez Secretary/Treasurer, Precinct 2 Janet Groth Precinct 1 Weldon Blackwelder Precinct 3 Alvaro Mandujano, Jr. Precinct 4 Jeff Sims City of lraan Quorum Present. Board members absent: Ronald Cooper, Vanessa Cardwell, and Allan Childs, Jr. Note: Precinct 2/ Open Position Others present: Ty Edwards, Mike Gershon, Bill Dugat, Gail Reeves, Harvey Gray, Melissa Mills, Joe Shuster, Drew Miller, Jeff Williams, Brock Thompson, Ed McCarthy, Mike Thornhill, Greg Neal, Jimmy Perkins, Marty Jones, Paula McGuairt, Ryan Reed, Mark Harral, James Cravens, Larry Hoelscher, David Novick, Stephanie Blair/Permian Court Reporters Inc., and Bob Beal/Fort Stockton Pioneer. REGULAR BOARD MEETING | Call to order regular Board meeting at 9:02 a.m. by President Jerry McGuairt. iH} Comments from public and media No comments ttl Consider and/or act upon Appointment of New Director for Precinct 2. Tabled. Middle Pecos GCD Minutes for February 21, 2017 Page 2 Administer the Statement of Elected Officer and Oath of Office for Precinct 2 Director. Tabled. Presentation of District auditor's report on financials for Fiscal Year 10-01- 2015 through 09-30-2016 and act to approve auditor's report. Rocky Rives with Smith and Rives, PC Certified Public Accountants presented the audit to the Board and answered all questions. The opinion rendered is an unmodified opinion which is the best that can be rendered. The financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information of the MPGCD, as of September 30, 2016, and the respective changes in financial position thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. There are no findings that require disclosure or corrective action in the audit report. John Dorris made a motion to approve the Audit for Fiscal Year ending 09-30-2016 as presented. Seconded by Janet Groth. Motion Carried unanimously. The regular Board Meeting was recessed at 9:13 a.m. AMENDMENT OF HISTORIC & EXISTING USE PERMIT HEARING FOR LARRY HOELSCHER Call to order at 9:13 a.m. by President Jerry McGuairt. Party representing application: Larry Hoelscher. Protestant to application: None Manager Ty Edwards presented the application to the Board. The application requests to Amend an Historic and Existing Use (H&E) Permit by adding 1 well into the existing H&E permit. The well is located on Survey Claunch, MRS Block OW Section 61, approximately 1 mile North of Coyanosa and 1 mile East of FM 1776, in Pecos County, Texas. The purpose of this well is for Irrigation Use and requests to add 1 well to an existing H&E permit from the Pecos Valley Aquifer. Middle Pecos GCD Minutes for February 21, 2017 Page 3 Mr. Hoelscher is not asking for additional water to be added to the production permit, and he plans on keeping the old well as a backup well. The application is administratively complete. Public Comment: Ed McCarthy on behalf of Fort Stockton Holdings, said that he has concems about amending an Historic and Existing Use permit, because of the Guitar case and everything should stay the same. A new permit should be sought for the new well drilled since the new well was not a replacement well and the old well was not plugged. MPGCD attomey, Mike Gershon, explained to the Board that MPGCD rule 11.1.b allows this type of amendment if the well being added is from the same aquifer and is used for the same purpose. Larry Hoelscher was sworn in and testified that the old well wasn’t plugged and is a backup well, and the new well will be used in its place. Adjourn hearing and consider and/or act on Application for an Amendment to an Historic and Existing Use Permit for Larry Hoelscher. Jerry McGuairt adjourned the hearing at 09:25 a.m. Alvaro Mandujano, Jr. made a motion to approve the application as presented. Motion seconded by Weldon Blac

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.4/10). 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.