Update and possible action on San Andres efforts at RRC and TCEQ, and

Staff Report & Agenda Item Details

Update and possible action on San Andres efforts at RRC and TCEQ, and MPGCD v. RRC and Commissioners, Cause No. D-1-GN-24-005222 (200" District Court, Travis County) and second cause filed on October 11, 2024. The Board was briefed on the regulatory hearing activity from last fall through this summer at the Railroad Commission, and ultimately the Commissioners’ final action on our request that wells be added to RRC’s plugging list and prioritized for plugging. The RRC denied all our requests, which is not a surprise. This procedure was required to exhaust administrative remedies before seeking a judicial opinion about RRC’s jurisdiction and duty to plug. The next step was for the District to file an original petition for judicial review, declaratory relief, and mandamus relief in the Travis County District Court, which was accomplished on August 16, 2024. Because RRC undertook additional procedural steps, we were conservative to ensure that we exhausted administrative remedies and then filed a second original petition on October 11, 2024. The Railroad Commission has filed its Original Answer denying all allegations in the first lawsuit. District Judge Laurie Eiserloh with Travis County 455" District Court. The Judge recently gave a notice asking for a briefing schedule with a hearing set for March 10, 2025. The District has met with TCEQ's senior management and program staff and discussed the new grant program to plug wells in Pecos County. TCEQ has Rulemaking set for January 29, 2025. The District will attend and make comment. Update on Fort Stockton Holdings, L.P. (FSH)-MPGCD Joint Study, Threshold Water Level Update and Drilling of New Rustler Monitor on Williams Farms. The Board and General Manager discussed the ongoing groundwater monitoring of the FSH threshold water levels. All wells are working and operating properly, and no wells are near any threshold water levels that would trigger cutbacks according to the FSH special permit conditions. A link to the FSH threshold water levels is available at https://mpgcd.halff.com/Dashboard. General Manager Ty Edwards screen-shared and provided an overview of current data. Began work on Rustler Monitor Well Recommendations and beginning scope of work on drilling of well and bid specs for same. Met on site with Jeff Williams and Raymond Straub to decide on a preliminary drilling location and source water. Raymond Straub joined zoom and gave an update on the finalization of the drilling specs and bid sheet for all work necessary for the proposed Rustler well. Next steps will be to finalize the documents and send them to FSH for approval. Briefing and take action as necessary on Petition for Inquiry filed at TCEQ by Cockrell Investment Partners, L.P. Page 5 of 8 Minutes of 01-21-2025 xIll Legal Counsel Mike Gershon briefed the Board on a petition filed by Cockrell Investment Partners, LP. at TCEQ on December 30, 2024. Cockrell is an affected person as defined in Texas Water Code Section 36.3011 (as a local landowner and permit holder) and submitted its Petition for Inquiry pursuant to that statute and 30 Texas Administrative Code Section 293.23. It is Cockrell's position that the District has failed to adopt rules, the rules adopted by the District are not designed to achieve the desired future conditions and the groundwater in the management area of the District is not adequately protected by the rules it has adopted. Much of Cockrell’s petition criticizes the Fort Stockton Holdings’ permitting and settlement and is critical of the District's management and its approach to groundwater regulation. TCEQ's Governor-appointed Commissioners will take up the petition on March 13, 2025, and allow oral argument by Cockrell, the District, TCEQ's Executive Director and Office of Public Interest Counsel, and other interested persons. Prior to then we can file a response seeking dismissal of the petition, as can the groundwater districts in GMA 3 and GMA 7. The deadline to respo