CALL THE HEARING; EXPLAIN PROCEDURE

Staff Report & Agenda Item Details

I. CALL THE HEARING; EXPLAIN PROCEDURE This consolidated hearing was called to order on Tuesday, October 15, 2024, at 10:05 A.M., on two petitions for rulemaking submitted by Cockrell Investment Partners, L.P. and its affiliate Belding Farms. Mr. McGuairt announced he will be officiating over today’s hearing, along with a quorum of the Board of Directors who will also officiate and participate in any ruling on the Petitions. The purpose of today’s hearing is solely to take public comment and to allow argument in support of or in opposition to the Petitions. The Petitions request that the District initiate rulemaking and hold a hearing on proposed rules, as provided by the Texas Water Code, Sections 36.101 and 36.1025. Today's hearing is not a hearing on proposed rules. After today’s hearing adjourns, our Board of Directors will determine whether to grant either or both of these Petitions and, if so, then move on with a formal rulemaking hearing at a later date. What the District is doing today is a new process, and the second time that our District has received a petition to change our rules - and among the few only petitions that have ever been filed around the state. It's a new process set up by the Texas Legislature, under House Bill 2443, that enacted Section 36.1025 of the Texas Water Code...It took effect on September 1, 2023, and required that we enact rules and a form that implements the process by December 1°! of last year. Our Board did just that by enacting a new Rule 6.5 and a petition form that went into effect on December 1%. Cockrell filed the two Petitions before us today on Tuesday, August 19", at 7:35 a.m., the day of our August Board meeting. This hearing will be governed by applicable statutory law, including the District's enabling act, Chapter 36 of the Water Code, Chapter 551 of the Texas Government Code, the District's Rules, and all other applicable Texas law. A digital recording of this hearing serves as the official record. Our legal counsel Mike Gershon is here to assist with procedural and legal issues that may need to be addressed. Notice has been properly and timely posted at least 20 calendar days prior to the date of this hearing, as well as 72 hours beforehand under the Texas Open Meetings Act. tl. INTRODUCTION TO PUBLIC COMMENT Mr. McGuairt announced that the next order of business is to take public comments on the Petitions. Any person with a real property interest in groundwater located within the District was permitted to provide written comment in advance of today’s hearing. We received written comments from Fort Stockton Holdings, and from Cities of Midland, Abilene and San Angelo. Third parties were allowed to provide public comment on this Page 2 of 8 ees Minutes of 10-15-2024 Petition during this hearing. Cockrell’s lawyer Mr. Reed requested 45 minutes to make a presentation in support of their Petition. In addition to submitting written comments, Fort Stockton Holdings also requested up to 30 minutes during today’s hearing to provide comments on the Petition. Order of comments was announced to be Cockrell’s representatives, then Fort Stockton Holdings’ representatives, then the cities and any other members of the public that filled out a registration form, then the General Manager and our scientists, and then, if Cockrell had time remaining, Cockrell could close since it's their Petitions. All comments were required to be focused on the Petitions before us. We allowed public comment on our regular agenda already. Il, = PUBLIC COMMENT Mr. McGuairt called Cockrell to begin public comment, and the following representatives from Cockrell presented: Ryan Reed Carlos Rubinstein Zach Swick Cockrell’s petitions for rulemaking are attached to the minutes: Attachment A — “Mitigation Fund” Attachment B — “Unreasonable Impacts” Mr. McGuairt next called Fort Stockton Holdings, and Ed McCarthy presented written comments attached to the minutes as Attachment C and Attachment D. Mr.