Consider and/or act upon Interlocal agreement for Hydrogeological Service with

Staff Report & Agenda Item Details

Consider and/or act upon Interlocal agreement for Hydrogeological Service with Groundwater Conservation District in Groundwater Management Area 7 and Sutton County Underground Water District. This interlocal agreement is entered into by and between each of the undersigned participating groundwater districts in Groundwater Management Area 7 and the Sutton County Underground Water District. The purpose of the Interlocal Agreement is to collect and efficiently administer the funds that are due and payable. Janet Groth made a motion to approve the Interlocal agreement as presented. Motion seconded by Vanessa Cardwell. Motion passed. Vote: 9FOR -0-Oppose 2Absent 0 Abstain Update on San Andres well plugging initiative and possible action on legal remedies in District Court in Pecos and/or Travis Counties. General Manager Ty Edwards and Pecos County Judge Joe Shuster met with Rep. Andrew Murr last week about the Flowing Well issues in Pecos County. After the meeting Edwards and Murr visited the sites in person and discussed legal remedies including a declaratory judgment action. The District made public comment at the Railroad Commission meeting in Austin on February 8". The District limited the comments to Boehmer Lake also referred to as Sloan Blair #1 because this well has RRC documentation. The District has hired Raymond Straub, Licensed Professional Geoscientist, to sample Boehmer Lake. Samples were pulled Monday, February 14". Mr. Straub Minutes of 02-15-2022 Page 4 of 6 reported when he approached the flowing well his H2S monitor went off at the high- level over 15 ppm H2S and was required to wear a breathing apparatus. Mr. Straub observed 200 ppm H2S levels at the site. The headspace reading was over 800 ppm H2S levels and over ranged the instrument. The levels of H2S seen around the well are immediately dangerous to life and health. Mr. Straub sampled for hydrocarbons as well as his normal sampling protocols for this type of work. Once we received the results, we will share that information to the Board and Railroad Commission. Xl Update on Fort Stockton Holdings, L.P. (FSH)-MPGCD Joint Study, Implementation and Threshold Water Levels. The Board discussed the ongoing groundwater monitoring of the FSH Threshold water levels. All wells are working and operating accordingly. A link to the FSH threshold water levels is available at httos://mpgcd.halff.com/Dashboard The District consultants have begun to look at potential Rustler Aquifer Monitoring Well locations within Management Zone 1. This new monitor well will be drilled with FSH Funds associated with the Export Permit and Settlement Agreement. Xxil Briefing and take action as necessary on Cockrell Investment Partners, L.P. v. MPGCD and its Board President in his official capacity, FSH 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 FSH, Case No. 08-21-00200-CV (El Paso Court of Appeals). Cockrell 1 is at the El Paso Court of Appeals. The Court has set the case for submission with oral argument for February 24, 2022, at 9 AM MST through the Eighth Court of Appeals’ Zoom Account. Board and public can watch on the Court's YouTube channel. Cockrell 2 has no update. It is pending at El Paso Court of Appeals awaiting the Court Reporter's record. XIll_ Progress Reports: Well Registrations, Production Permits, Drilling Permits, Data Loggers, Drought Monitor Map, Water Quality Analysis, and General Manager’s Correspondence. e Cybersecurity training is required to be taken each year. A few Directors still need to take the training. e Mr. Noekle visited the office and discussed well registrations. MPGCD staff made a map for Mr. Noekle and he is reviewing the area to see if any new wells need registering. e Rig Data report shows 8 rigs in Pecos County. Oil prices are over $90 a barrel. i eet Minutes of 02-15-2022 Page

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.2/10). 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.