Consider and/or act to approve General Manager’s Quarterly Report

Staff Report & Agenda Item Details

Consider and/or act to approve General Manager’s Quarterly Report Vanessa Cardwell made a motion to approve the General Manager's Quarterly report as presented. John Dorris seconded the motion. Motion carried unanimously. The regular meeting was recessed at 10:15 a.m. CONSOLIDATED-DRILLING AND PRODUCTION PERMIT with AUTHORIZATION to EXPORT HEARING for STW Water Process & Technologies Call to order at 10:15 a.m. by President Jerry McGuairt. Party representing application: Alan Murphy, Chanceton Murphy, Bill Stein Protestant to application: Kenneth Heritage, Tommy Ervin, and La Escalera Ranch (Gerald D. Lyda) Middle Pecos GCD Minutes for December 15, 2015 Page 3 Public Comment: Bart Reid: VIA email — he made public comment. He expressed concems about the permit to pump from the San Andreas wells. While not opposed to the utilization of this resource, he asks that you proceed with caution and be very conservative to start out. We know almost nothing about the San Andreas and how it effects and interacts with the Pecos Alluvial and other aquifers in the area. | believe using the water that is currently flowing by artesian flow is safe enough with the little info we have, but heavy pumping resulting in lowering the pressure will have unknown effects. Mark Harral, appearing for the City of Fort Stockton, expressed concerns about data sets and whether or not there is enough data about the communication between the San Andres and the Capitan Reef Complex Aquifer. Mike Cain: VIA email — he made public comment. As a land owner here in Pecos, Texas, | here by object to the drilling by STW until | am provided guarantees that my land will not be affected by any adverse negative affects drilling can have on the natural land eco system ground water aquifer etc. Kenneth Heritage: (Note — to begin with he only wanted to provide comment, but then decided to request party status.) He has property in the general local area. The amount of water is over whelming for the acreage. Tommy Ervin: (Note — to begin with he only provided comment, but then decided to request party status.) He expressed concerns about the hydraulic communications between the Capitan Reef Complex aquifer and the San Andreas, and communications with the Diamond Y Springs. Mr. Ervin has wells for a shrimp farm in the Pecos Alluvium Aquifer and is concerned about the effect this permit for San Andreas wells would have on his quality and quantity. Protestants to the application seeking party status for a contested case hearing: Gerald D. Lyda, La Escalera Ranch_ Requests party status to the contested hearing. Mr. Lyda was sworn in by President McGuairt. Mr. Lyda reported that the Capitan Reef Complex aquifer lies beneath the La Escalera Ranch, and that Steve Finch was hired to conduct a comprehensive study, and that the study shows that the San Andreas is hydraulically connected to the Capitan Reef Complex aquifer. Mr. Finch has reviewed the STW application and no hydraulic information was submitted in the STW hydraulic study on large pumping and drawdown that would occur with 9 new wells drilled into the San Andreas. Mr. Lyda requested that the Board reject the permit. Allan Standen, MPGCD hydrogeologist, was sworn in. He confirmed that there is a hydraulic connection between the San Andreas and the Capitan Reef Complex aquifer. La Escalera is up dip from STW’s location about 25 miles away. It would take considerable time to impact La Escalera wells. Middle Pecos GCD Minutes for December 15, 2015 Page 4 Mr. Lyda disagreed that there would be little impact to La Escalera Ranch. Paul Weatherby, General Manager of MPGCD, asked if he would be opposed if a lesser permit were granted. Mr. Lyda said no, but they are opposed to the application as presented today. John Dorris made a motion to grant Gerald D. Lyda/La Escalera Ranch party status. Motion seconded by Janet Groth. Motion carried unanimously. Kenneth Heritage: Mr. Heritage applied for party status. He

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.6/10). 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.