PUBLIC HEARING ON PRODUCTION PERMIT APPLICATION FOR

Staff Report & Agenda Item Details

PUBLIC HEARING ON PRODUCTION PERMIT APPLICATION FOR GARY KLOSE AND HIS ASSOCIATE COLLIN WOOD Call to order at 10:04 a.m. the Public Hearing on Application for a Production Permit for Gary Klose and Collin Wood. Party representing application: Collin Wood and Gary Klose Protestant to application: None. Public Comment: None. Jerry McGuairt declared the application uncontested. Collin Wood was sworn in for testimony for Mr. Klose: Mr. Wood/Efficient Recycling Solutions, LLC, and Mr. and Mrs. Gary Klose/Klose Land, Inc. have entered an agreement for Water Development. Since 1960s to 1990s the Kloses have owned and farmed Section 22 and Section 27, Block C-2, PSL Survey, and Section 4, Block 48. The water is being requested for construction of a Solar Facility on the property, and for a future water station on Tipton Road for oil field use. The solar facility needs 70-80 acre feet and possibly more, and 320 acre feet which would only be about 6 frac jobs which is a low estimate. Manager Ty Edwards presented the production permit application to the Board. Gary Klose and his associate Collin Wood have made application for a Production Permilt for 3 wells located on the following described lands: Section 22, Block C-2, PSL Survey, A-5066, Section 27, Block C-2, PSL Survey, A- 9443, All of the N/2 and SW/4, A-8120 and SE/4, A-5539 of Section 4, Block 48, Township 8 South, T&P RR, Co. Survey, in Pecos County. The application requests authorization to produce 400 acre-feet/year for Industrial Use from the Pecos Valley Aquifer. The Klose Farm has 6,860 acre feet of Historical and Existing Use permits for Irrigation for the 24 wells on the property from the Pecos Valley Aquifer. The solar farm is expected to need the water for the 18-month construction period and will also use the water for oil-and-gas purposes. The solar facility is expected to use half of the property, and it would not be practical for farming any longer. Minutes of June 16, 2020 Page 2 of 12 Allan Standen, MPGCD Hydrogeologist, was sworn in for testimony and advised of his opinion that after a review of the specific capacity pump tests for the 3 wells in the application, along with two MPGCD monitor wells in the area, there were no expected unreasonable effects. Adjourn Hearing and Consider and/or Act on Application for a Production Permit for Gary Klose and Collin Wood. President Jerry McGuairt adjourned the hearing at 10:24 a.m. The Board and Applicant showed interest in exploring the possibility of reducing the Historical and Existing Use permits and applying for a new production permit if a beneficial need is proven. Alvaro Mandujano, Jr. made a motion to grant 200 acre feet for Industrial Use from the Pecos Valley aquifer. Motion seconded by Janet Groth. Motion passed unanimously. Vote: 9 FOR. -0- Oppose. 2 Absent. Reconvened the Regular meeting at 10:30 a.m. REGULAR BOARD MEETING — CONTINUED Director Vanessa Cardwell stepped out of the meeting for a few minutes.

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