Consider and/or act upon General Manager’s 2020 Annual Report.

Staff Report & Agenda Item Details

Consider and/or act upon General Manager’s 2020 Annual Report. Ty Edwards presented the General Manager’s 2020 Annual Report to the Board. Janet Groth made a motion to accept the 2020 Annual Report with the Annual Financial Audit. Motion seconded by M.R. Gonzalez. Motion passed. Vote: 8FOR. -0-Oppose 2Absent 0 Abstain. Presentation from Schuyler Wight regarding plugging and drilling a San Andres Well in the Imperial area. Mr. Wight gave a presentation on the process he went through to control and plug C-19—a free flowing artesian well in the San Andres Formation. Mr. Wight explained a very practical approach to plugging these types of wells. Mr. Wight did advise the board he would like to drill a new San Andres well for agricultural use. Update on FSH-MPGCD Joint Study and Implementation. The FSH-MPGCD Joint Study is ongoing. All the equipment has been installed for Phase 1 of the project. We are needing one more trip from Eco Kia to complete a few remaining items. Once that is complete, we will move into phase 2 and that will involve looking for new monitor wells in the Belding area and starting the process of drilling a Rustler Monitor well. Minutes of March 23, 2021 Page 4 of 6 x! Update on MPGCD Groundwater Flow Model. Work is ongoing with the Technical Memos, the permits, and historical uses. The work may be completed by the end of 2021, or the beginning of 2022. The Halff Data Management System is going to help the process tremendously. Briefing and take action as necessary on Cockrell Investment Partners, L.P. v. MPGCD and its Board President in his official capacity, Fort Stockton Holdings, L.P. and Republic Water Company of Texas, L.P., Case No. 08-21-00017-CV (El Paso Court of Appeals) and/or Cockrell Investment Partners, L.P. v. MPGCD and its General Manager in his official capacity, and Fort Stockton Holdings, L.P., Cause No. P-8277-83-CV (Pecos County District Court). MPGCD attorney, Mike Gershon: We are going through standard appellate timelines with Cockrell Investment Partners, LP (Cockrell) case in the 112” District. This is regarding the old permit application case. This case has been appealed to the El Paso Court of Appeals. We are waiting on the transcripts to wrap up the record so that briefing deadlines can be set. In the permit renewal case, a hearing is set for March 31, 2021 at 9 am on the 83" District Court's You Tube Page. Cockrell attorney, Ryan Reed: Agreed with Mike Gershon's summary—no other comment. FSH attorney, Ed McCarthy, Jr.: Also agreed with the summary. No additional comment. Progress Reports: Well Registrations, Production Permits, Drilling Permits, Data Loggers, Drought Monitor Map, Water Quality Analysis and General Manager's Correspondence. e D&O Insurance Policy Update on Administrative Appeals ¢ Well Registrations: Total Well Registrations are 3,295 as of 3-23-2020. Exempt 2,334 Non-Exempt 961. e Drought Map as of 03-16-2021 was provided to the Board. Pecos County is moderate drought and shows some of Eastern Pecos County showing no drought at all. ° Legislative: Lloyd Gosselink, Attorneys at Law, has provided us a Groundwater Conservation Districts Bill Tracking Report as of 03-12-2021. Also provided is an Open Government Bill Tracking Report as of 03-12-2021. e GMA 7 did meet on March 18, 2021 and approved proposed DFCs for Pecos County. A public Comment Period has begun and runs through June 18, 2021 and will hold a public hearing on the proposed DFCs on June 15, 2021. ° Registration is open for the Texas Groundwater Summit to be held on August 31-September 2, 2021. Minutes of March 23, 2021 Page 5 of 6 XIl Executive Session pursuant to Texas Government Code §§ 551.071 and/or 551.074 on personnel matters regarding District Secretary. President Jerry McGuairt recessed the regular Board meeting at 11:33 a.m. An Executive Session was called at 11:33 a.m. Pursuant to Section 551.074 of the Texas Government Code, the Board convened in a closed session regard

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 5.1/10). 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).