Consider and/or act uponSTW Water Process & Technologies insurance bond for San Andreas Drilling/Production Permit. Paul Weatherby presented the stipulations for the drill permit granted: On December 15, 2015, Ronald Cooper made a motion to approve the application for 5,000 acre feet per year from the San Andres Formation for industrial use. Authorization is approved to drill one exempt monitor well, drill 3 new wells, and either plug or replace the two existing flowing wells. A performance bond must be secured, and the bond must be approved by Middle Pecos GCD before proceeding with drilling. Once the monitor well is complete, the hydrogeological report shall be updated and provided to Middle Pecos GCD. Authorization is approved to export up to 5,000 acre feet annually for industrial use with an export fee of $0.0249 per 1,000 metered gallons produced. Motion seconded by M. R. Gonzalez. The motion passed unanimously. Chance Murphy, representing STW Water Process & Technology, reported that he is in the process of moving and the box with his papers is misplaced at this time. The drilling companies had insurance and the rig will have a performance bond. Chance requested to table this item until the next meeting. The Board requested to have the all insurance documents and performance bonds brought before them. Xl Xll xill Middle Pecos GCD Minutes for April 19, 2016 Page 9 Ronnie Cooper made a motion to table this item until the next meeting. Weldon Blackwelder seconded the motion. Motion carried unanimously.

Bastiat Liberty & Property Rights Analysis

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