Consider and/or act to approve Upton County Water District Transport

Staff Report & Agenda Item Details

Consider and/or act to approve Upton County Water District Transport Agreement. Dr. Craig Pearson and Mr. John Evridge appeared before the before the Board on behalf of Upton County Water District. John Dorris made a motion to approve the contract agreement for a term of 5 years, and 90 days prior to expiration the Board will review the agreement. The transport fee will be set at $0.0249 per each thousand gallons actually transported. Janet Groth seconded the motion. The vote: 7 FOR, 1 OPPOSE, 3 ABSENT. Motion carried. Agreement highlights: > set the transport fee at $0.0249 per each thousand gallons actually transported; > the annual payment for the groundwater transported during each calendar year is due to the MPGCD office by March 31* of the following year; > June static aquifer levels of each well are due to the MPGCD office by July 30", and December levels by January 30"; > written meter reports of the groundwater transported for January 1 — June 30" shall be submitted to MPGCD office by July 30", and July 1 — December 31° submitted by January 30", > Chemical analysis by certified laboratory of each well in June is due to the MPGCD office by August 1S", and December analysis is due by February 18! > the term of the fee agreement is 5 years (January 1, 2016 — December 31, 2020), and shall be reviewed for renewal by the MPGCD Board 90 days prior to expiration date of December 31, 2020. The regular meeting was recessed at 1:27 p.m. The consolidated drilling and production permit with authorization to export hearing for STW Water Process & Technologies reconvened at 1:27 p.m. The following people were sworn in: Chance Murphy, Bill Stein, Alan Murphy. Alan Murphy introduced Bill Stein, and Stein presented a power point presentation: > Bill Stein, hydrogeologist with LBG-Guyton Associates > John Jansing, Jr., TRE & Associates, LLC — Civil Engineer designing and constructing the plant Middle Pecos GCD Minutes for December 15, 2015 Page 8 > Two historic flowing wells are reported open to the San Andres Limestone at a depth of 2,600 to 2,800 feet. > The San Andres Limestone is not designated by the State as a major or minor aquifer. > There does not appear to be anyone in the area that is utilizing the water from the San Andres Limestone. > Near the project site, the San Andres is slightly less than 2,500 feet below land surface and has a total thickness of less than 700 feet. > Water quality from the two wells indicate a sodium chloride and sulfate water with total dissolved solids over 7,000 mg/l. > Flow from the two wells currently is in excess of 1,400 gpm and likely was much greater in the past. This correlates to about 2 million gallons per day or about 2,280 acre-feet per year. > The wells have conservatively produce over 137,00 acre feet of water over the more than 65 years that the wells have been flowing. > This report is a current compilation of available hydrogeologic information and is preliminary and subject to updating. As this project continues with new wells being constructed and tested onsite, a better understanding of this brackish water resource is anticipated and will be submitted to the District at a later date. Mr. Murphy we have a plan to create a surface water treatment plant that has preliminary TCEQ approval. This will be an ultra filtration reverse osmosis (R.O.) plant. We anticipate 8,000 total dissolved solids will be ran through the R.O. process and then through a zero discharge system with a 99% recovery. A salt product will remain which will be sold to oil companies to make brine water. There will not be any type of injection wells, nor any type of evaporation ponds. A company will build a Co-Gen gas plant so we can create our own electricity. A preliminary compilation of hydrogeologic information collected on the MRK wells in Pecos County has been completed by LBG-Guyton Associations and made available to the Board. With respect to the comments made regarding the Hydroge

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.5/10). 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.