R. Gonzalez Secretary/Treasurer, Precinct 2

Staff Report & Agenda Item Details

M. R. Gonzalez Secretary/Treasurer, Precinct 2 Alvaro Mandujano, Jr. Precinct 4 Ronald Cooper Precinct 4 - Left @ 12:02 p.m. Vanessa Cardwell City of Fort Stockton Jeff Sims City of Iraan Allan Childs, Jr. At Large Quorum Present. Board members absent: Janet Groth, Puja Boinpally, and Weldon Blackwelder Others present: Ty Edwards, Mike Gershon, Gail Reeves, Melissa Mills, Paula McGuairt, Jeff Williams, Mike Thornhill, Ed McCarthy, Brock Thompson, Gary Bryant, Glenn Honaker, Geoff Pike, Sam Cruse, Tommy Soriero, Jr., Tommy Ervin, Schuyler Wight, Mark Harral, Robbie Dominquez, Frank Rodriguez, Bob Hayter, John Conquest, Doug May, Armando Mandujano, Rocky Rives and Jeremy Gonzalez/Fort Stockton Pioneer. REGULAR BOARD MEETING l Call to order regular Board meeting at 10:00 a.m. by President Jerry McGuairt. ll Comments from public and media: No public comment. Middle Pecos GCD Minutes for January 16, 2018 Page 2 Presentation of District auditor’s report on financials for Fiscal Year 10-01- 2016 through 09-30-2017 and act to approve auditor's report. Rocky Rives with Smith and Rives, PC Certified Public Accountants presented the audit to the Board and answered all questions. The opinion rendered is an unmodified opinion which is the best that can be rendered. The financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information of the MPGCD, as of September 30, 2017, and the respective changes in financial position thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. There are no findings that require disclosure or corrective action in the audit report. Ronnie Cooper made a motion to approve the Audit for Fiscal Year ending 09-30-2017 as presented. Seconded by M. R. Gonzalez. Motion Carried unanimously. The Regular Meeting was recessed at 10:11 a.m. PRODUCTION PERMIT HEARING for BOB HAYTER Call to order at 10:12 a.m. the Public Hearing on Application for a Production Permit for Bob Hayter. Party representing application: Bob Hayter Protestant to application: None Public Comment: None. President McGuairt declared the application uncontested. Manager Ty Edwards presented the application to the Board. The application requests production for 1 well located West of Hovey Road and 5 miles South of Interstate 10 on Survey T&P RR CO Block 51-10 Section 36, in Pecos County, Texas. The purpose of this well is for Industrial Use of 150 acre feet/year from the Rustler Aquifer. The water production will be metered, and Mr. Hayter will report the production monthly. John Conquest reported that Throne Petroleum will use the water for about 1 year to frac the first job. The application is declared administratively complete. Middle Pecos GCD Minutes for January 16, 2018 Page 3 Adjourn hearing and consider and/or act on Application for a Production Permit for Bob Hayter. Jerry McGuairt adjourned the hearing at 10:17 a.m. Vanessa Cardwell made a motion to approve the application as presented. Motion seconded by Ronnie Cooper. Motion Carried Unanimously. 7 For. -0- Oppose. 4 Absent. (Note: John Dorris arrived at 10:21 a.m.) PRODUCTION PERMIT HEARING for MANDUJANO BROTHERS Call to order at 10:18 a.m. the Public Hearing on Application for a Production Permit for Mandujano Brothers: Block 48-8 Section 23. Alvaro Mandujano, Jr. recused himself via a Disclosure Affidavit. Note: John Dorris arrived at 10:21 a.m. Party representing application: Armando Mandujano Protestant to application: None Public Comment: None. Jerry McGuairt declared the application is uncontested. Manager Ty Edwards presented the application to the Board. The application requests production for a 3 well system located on Survey T&P RR CO Block 48-8 Section 23 (Negra Farm) approximately 6 miles South of Coyanosa and 2 miles West of FM 1776, in Pecos County, Texas.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.8/10). 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.