Consider and/or act upon Gary Drgac’s Request for Rehearing regarding

Staff Report & Agenda Item Details

Consider and/or act upon Gary Drgac’s Request for Rehearing regarding Randy Braden’s permit applications filed on June 5, 2013 Bob Renbarger, attorney for Gary Drgac, would like to have a rehearing on the Randy Braden permit application. They feel the previous hearings were improperly noticed, that Mr. Drgac was not able to cross examine him, and the one where Mr. Braden was not present nullifies the hearing. He pointed out that Mr. Drgac's wells have “Historic and Existing Use" and should be protected, even more so because they service the town of McCamey. He believes the missing drilling reports from Acosta and Dubose do not allow Mr. Braden to be exempted. Not looking for depositions at the rehearing. Stated that even if the previously granted application was properly granted, that it is a ticking time bomb waiting to explode and contaminate the City of McCamey's water source. Mr. Renbarger said he has spoke with Zach Brady and they have put together a written agreement to see if it will fix Mr. Drgac's concerns. Possibility of a settlement. Mr. Paul Weatherby will prepare a summary of suggestions for both parties to consider at a rehearing. John Dorris made a motion to grant a rehearing regarding Randy Braden's permit application on September 17, 2013 at 10 a.m.. Motion seconded by M. R. Gonzalez. Executive session called at 3:20 p.m. Reconvene regular meeting at 3L28 p.m. The motion that was on the floor before the executive session, was voted on. Motion carried. XIV General Manager’s Correspondence and Report ° He has been discussing oil and gas water usage with representatives and the concern with them being exempt from production permitting. e U. S. Fish and Wildlife Service: Handout on the protection of the six West Texas Invertebrates found in Pecos County, as well as Reeves and Jeff Davis counties. . Holiday Well update: The last update received from TXDOT shows the road is still sinking. e Email from Lloyd Gosselink law firm regarding the Railroad Commissions proposed amendments which fail to provide adequate protections of existing and potential potable groundwater supplies with higher Middle Pecos GCD Minutes of August 20, 2013 Page 13 concentrations of total dissolved solids, especially in the light of the substantial increase in oil and gas activities in Texas. ° Reminder about the upcoming Texas Groundwater Summit to be held August 27-29 in San Marcos, Texas. e A written comment on the protection of groundwater from injection wells will be prepared, and Allan Standen and Mike Gershon will review the comments before submission to the Railroad Commission before 09-12-13. e Brief the Board regarding General Manager’s actions and developments involving Randy Braden’s wells, well drillers associated with R. Braden’s wells, and Gary Drgac’s concerns (no action to be taken) ** Previously discussed in the meeting. ° Update on Rollings Well Jay Garvin bears responsibility for the well blow out and will plug the well. MPGCD helped contain the blowout and monitor the flow. We need to collect reimbursement of funds for our expenses. . We were notified that First Solar has requested that Pecos County designate a certain area of Pecos County as a Reinvestment Zone for tax abatement to be known as the "Barilla Reinvestment Zone". A copy of the notice is in the directors notebooks. This may involve MPGCD if they ask us for a tax abatement. XV___ Directors’ comments No comments XVI Consider and/or act upon agenda for next meeting Rehearing on Randy Braden Production Permit Ratify a properly worded tax rate Production permits Dubose Drilling response XVI Adjourn John Dorris made a motion to adjourn at 3:45 p.m. Seconded by Evans Turpin. Motion Carried.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 4.5/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).