PUBLIC HEARING ON PROPOSED RULES

Staff Report & Agenda Item Details

PUBLIC HEARING ON PROPOSED RULES I Call to order at 10:50 AM II The Middle Pecos Groundwater Conservation District (District) will receive public input at a hearing on proposed amendments to the District’s rules intended to address (1) pre-registration, registration and permitting requirements under Sections 9 and 11 of the District’s rules, (2) integration of the Desired Future Conditions hearings and other requirements imposed on the District and interested stakeholders by Chapter 36 of the Texas Water Code, (3) hydrogeological report and associated permitting requirements, (4) application of the groundwater transfer criteria set forth in section 36.122(f), (5) establishment of a fourth management zone covering areas not currently within a management zone, (6) aggregation of withdrawal among multiple wells, (7) procedural adjustments to the notice and hearings process for enforcement due to rules violations, (8) development of baseline aquifer levels to further implement the District’s Management Zone rules, and (9) reporting of groundwater production and use. Middle Pecos GCD Minutes for December 17, 2013 Page 5 Written comments were received by Ed McCarthy on behalf of Fort Stockton Holdings, L.P.: Overall, the proposed rules are confusing, apparently contradictory in some respects, and poorly written. They need substantial clarification and revision. As creatures of statute, all groundwater and special districts are limited to exercising those powers that have been expressly granted by the Legislature or powers necessarily applied pursuant to the express powers granted by the Legislature. Accordingly, the Middle Pecos Groundwater Conservation District must look to its enabling legislation and the applicable general laws as the source of and limitation upon its authority and power to operate, including the adoption of rules and rule amendments. Mr. Mike Tisdale, General Counsel for Clayton Williams Energy, Inc. and Fort Stockton Holdings, was sworn in by Jerry McGuairt. Fort Stockton Holdings objective is to assure the adoption of equitable and defensible amendments to the District's Rules that provide for the sound and fair management of the groundwater resources beneath Pecos County in a uniform and nondiscriminatory manner that protects the sustainability of the resource while facilitating its maximum beneficial production and use. Fort Stockton Holdings believes some of the rules and amendments do not achieve these goals. The rules should be clear and easy to understand and without discrimination. The changes proposed for rule 11.9.2(f) will subject district to more criticism and does not reflect good science. We feel you should not take action today on the amendments and conduct public workshops. Weldon Blackwelder made a motion to postpone the rule hearing. Motion seconded by John Dorris. The motion was not valid during the hearing and died on the floor. Tommy Ervin of Odessa was sworn in by Jerry McGuairt. Mr. Ervin would like to harvest water that is not from a designated aquifer, and would like to propose that we add "waters from a free flowing aquifer" to our rules. Mike Gershon, MPGCD legal counsel, told Mr. Ervin that MPGCD has jurisdiction over all groundwater in Pecos County. Schuyler Wight was sworn in by Jerry McGuairt. The Santa Rosa springs have quit flowing earlier this Spring, there has been increased fracing and farming in Pecos County. He feels that changing the production permit requirement for a hydrogeological report from 1,000 acre feet to 10,000 acre feet would not be good. Middle Pecos GCD Minutes for December 17, 2013 Page 6 III Adjourn hearing and consider and/or act on proposed rules The Board recessed the hearing at 11:20 AM. The following is taken out of agenda order: HEARING ON APRIL-BIRD TRAINER TRUST PRODUCTION PERMIT APPLICATION I Call to order at 11:35 AM by President

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.9/10). 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.