Post Oak Savannah Groundwater Conservation District

Board of Directors Meeting

POSGCD District Office

310 East Avenue C

Milano, Texas 76556

August 14, 2012– 5:30 p.m.

MINUTES

Members Present / Entity
Tommy Tietjen / POSGCD
Carroll Glaser / POSGCD
Lee Alford / POSGCD
Nathan Ausley
Robert Ware
Dwayne Jekel
Kerry Starnes / POSGCD
POSGCD
POSGCD
POSGCD
Board Members Absent
Jay Tumlinson
Jay Wilder
Jim Hodson
POSGCD Staff / POSGCD
POSGCD
POSGCD
Gary Westbrook
Drew Gholson / POSGCD
POSGCD
Others Present / Entity
Jackie Scott
Dave Barkemeyer
Scott Carlson / BRA
Milam County
Metropolitan Water

Board Meeting & Public hearings

1.)Call to Order and establish quorum

Nathan Ausley, Board President called theBoard Meetingto order and established a quorum at 5:31 p.m.

2Public Hearing on application for Amendments to Current Operation Permits for Kay Vollentine and C. John Loehr, to allow three existing permitted wells (wells #1, #2, and #3) to be operated in aggregate, to increase the total permitted production amount that the wells may produce from 5 acre-feet per year to an amount not to exceed 105 acre-feet of groundwater per year for Oilfield Use, as previously noticed.

Nathan Ausley, Board President, opened the public Hearingon theapplication for Amendments to Current Operation Permits for Kay Vollentine and C. John Loehr, to allow three existing permitted wells (wells #1, #2, and #3) to be operated in aggregate, to increase the total permitted production amount that the wells may produce from 5 acre-feet per year to an amount not to exceed 105 acre-feet of groundwater per year for Oilfield Use, as previously noticed at 5:31 p.m.and asked for comments or discussion from the public or Board. General Manager, Gary Westbrook stated that a waiver had been obtained by the applicant from a property owner to allow flr the applicant to obtain a production rate of 400 gpm on the wells in the application, however, a new property owner had been identified which would also need to issue a waiver to the applicant for the required spacing to be met. Without this newer waiver, spacing of only 140 feet is available, and therefore, production of only 140 gpm could be permitted. Mr. Westbrook stated that after the applicant reviewed the options ofeither agreeing to the limit of 140 gpm instead of 400 gpm for the permit, or attempting to obtain the needed waiver, the applicant requested that the hearing be recessed and continued to the next Board meeting to be given an opportunity to obtain the waiver. Mr. Ausley asked again for public comment or discussion from the Board on this item. None was given. A motion was made by Nathan Ausley to recess this hearing until the September 11, 2012 Board meeting. The motion was 2nd by Carroll Glaser. The motion to recess carried unanimously.

3Public Hearing on application for Transport Permit for Anadarko E&P, LP, to allow groundwater to be transported out of the District to locations in Robertson and Brazos Counties for Oilfield Use in an amount not to exceed 2 acre-feet of groundwater per year, as previously noticed.

Nathan Ausley, Board President, opened the public Hearing on application for Transport Permit for Anadarko E&P, LP, to allow groundwater to be transported out of the District to locations in Robertson and Brazos Counties for Oilfield Use in an amount not to exceed 2 acre-feet of groundwater per year, as previously noticedandasked for comments or discussion from the public or Board. General Manager, Gary Westbrook stated that Anadarko had transported groundwater from the District during 2011 without a permit, and that they had received a citation from the District and indicated that they would pay the fine. He then also indicated that this application was necessary for them to become compliant with the District.Mr. Ausley asked again for public comment or discussion from the Board on this item. Board President Ausley closed the public Hearing at 5:37 p.m.application for Transport Permit for Anadarko E&P, LP, to allow groundwater to be transported out of the District to locations in Robertson and Brazos Counties for Oilfield Use in an amount not to exceed 2 acre-feet of groundwater per year, as previously noticed.

4Public Comment

President Ausley asked for public comment. Nopublic comment was offered.

5Application for Amendments to Current Operation Permits for Kay Vollentine and C. John Loehr, to allow three existing permitted wells (wells #1, #2, and #3) to be operated in aggregate, to increase the total permitted production amount that the wells may produce from 5 acre-feet per year to an amount not to exceed 105 acre-feet of groundwater per year for Oilfield Use, as previously noticed.

A motion was made by President Nathan Ausley to table this item pending completion of the hearing. The motion was 2nd by Director Carroll Glaser. The motion carried unanimously.

6Application for Transport Permit for Anadarko E&P, LP, to allow groundwater to be transported out of the District to locations in Robertson and Brazos Counties for Oilfield Use in an amount not to exceed 2 acre-feet of groundwater per year, as previously noticed.

Comment was heard from General Manager Gary West Brook with a recommendation that approval of this application be contingent upon the applicant becoming compliant and current with the District with fees and penalties. A motion was made by Director Dwayne Jekel that the permit be granted upon the applicant becoming compliant and current with fees and penalties. The motion was 2nd by Director Lee Alford. The motion carried unanimously.

7Minutes of June 12, 2012Board Meeting

A motion was made by Director Robert Wareto approve the minutes of the June 12, 2012 Board Meeting . The motion was 2nd by Director Kerry Starnes. The motion carried unanimously.

8Board Policies

General Manager, Gary Westbrook addressed Board Policy concerning checks that have not cleared the bank and procedure for clearing these off of the books by presenting language to be included in the Board’s Policies as written by the District’s general counsel. A motion was made by President, Nathan Ausley to accept the change to Board Policy as presented. The motion was 2nd by Director Tommy Tietjen. The motion carried unanimously.

9Groundwater Conservation and Enhancements Grants

General Manager, Gary Westbrook presented recommended changes to the Grant Scoring Sheet. Discussion was held between the Board addressing the changes in scoring and affects this might have on applicants. After noting that there was appropriate balance contained in the scoring of this recommended instrument, a motion was made by Robert Ware to approve the recommend changes to the Grant Scoring Sheet. The motion was 2nd by Director Carroll Glaser. The motion carried unanimously.

10Texas Water Development Board Rules 31 Texas Administrative Code Chapter 356

General Manager, Gary Westbrook statedthat there would be a stakeholder meeting for the Texas Water Development Board Rules 31 Texas Administrative Code Chapter 356 on August 22, 2012 to receive comments on recent draft recommended changes to these rules. Mr. Westbrook then presented a handout highlighting some of the concerns expressed by the District’s General Counsel, Barney Knight and the District’s hydrologist, Steve Young of Intera, on these draft proposed changes. After discussion on several of the rules, a motion was made by Carroll Glaser charge General Manager Westbrook to discuss these issues with Mr. Knight and Mr. Young and to file comments on these proposed Draft Rules on behalf of the District. The motion was 2nd by Director Kerry Starnes. The motion carried unanimously.

11Receive report from District Manager on recent District activities and take appropriate

actions

  1. Permit applications filed with the District and Hearing Dates; Emergency Permits Granted

General Manger Gary Westbrook reported that a hearing is set for ALCOA, Inc. on September 11, 2012, for production of groundwater to be used on site for industrial purposes.

  1. Well recordings and registrations, New well applications and completions, Wells plugged

General Manger Gary Westbrook reported that there were 20 wells registered, 16 new well applications, 10 new wells completed, and 0 well plugged

C. Recent and future District presentations and activities

1. Production Reports of Local Water Utilities

General Manger, Gary Westbrook addressed item C. 1 and C. 2 together concerning local

water utilityprovidersin the District that exceeded their permitted amounts in 2011 and

had submitted application under Rule 5.5 to become compliant and increase their

permitted production amounts.

Listed below are the producers that have exceeded their permitted amounts, including the

amounts permitted, amounts produced, and amounts applied for under Rule 5.5.

Burleson County MUD Permitted 88 AF Used 101.75 AF Amended to 125 AF

Snook Permitted 154 AF Used 168 AF Amended to 180 AF

Deanvile WSC Permitted 358 AF Used 399 AF Amended to 405 AF

General Manager, Gary Westbrook stated that each had received a letter of citation

outlining the District’s minimum fines, and that while he had the authority to approve the

requested amendments, the applications would not be approved until they were compliant

with the District, includingthe fines that were imposed and additional production fees

due.

2. Permits Issued pursuant to Rule 5.5

Item # 2 was opened with Item # 1

3. Petitions filed against DFC’s of GMA 12

General Manager, Gary Westbrook reported that the Texas Water Development Board

(TWDB)Staff presented recommendations to their board to uphold the DFCs as adopted by

GMA 12 and that the Texas Water Development Board, at their Board meeting of June 21,

2012 did indeed uphold GMA 12 adopted DFCs.

4. Texas Alliance of Groundwater Districts (TAGD) quarterly meeting of June 26-27, 2012

General Manager, Gary Westbrook stated the he and Drew Gholson attended the meeting.

Presentations were given by the TWDB on drought indicator maps. A presentation was

given on public partition and involvement in contentious issues and a presentation was

given on Energy-Water relationships

5. Region G Regional Water Planning Group meeting of August 17, 2012

General Manager, Gary Westbrook reported that the Region G meeting will be this

Friday and the there is a special meeting scheduled for GMA representatives will meet to

set term limits, but that he is conferring with TWDB attorneys on this issue.

6. Texas Alliance of Groundwater Districts (TAGD) 2012 Texas Groundwater Summit

of August 28-30, 2012

General Manager, Gary Westbrook reviewed the agenda for the TAGDGroundwater

Summit of August 28-30,2012, and stated the he and Drew Gholson would be attending.

He added that this might be a beneficial conference for any Board members to attend.

The summit will be for three days and GM Gary Westbrook will be a presenter and

moderator, and he willgive the introduction for Keynote speaker Senator Glenn Hegar.

12Bills received and current financial status.

After discussion of the list of bills, a motion was made by Director Lee Alford to approve payment of the bills. The motion was 2nd byDirector Kerry Starnes. The motion carried unanimously.

13Dates, locations, and times of future meetings.

President Nathan Ausley announced that the next regularly scheduled meetingand Hearings would be, September 11,2012 at the Milano Civic Center at 5:30 p.m.

15.)Adjourn Board Meeting

President Nathan Ausley adjourned the meeting at 6:13p.m.

The above minutes of the meeting of the Board of Directors of the Post Oak Savannah Groundwater Conservation District held on august 14, 2012were approved and adopted by that board on September 11, 2012.

______

Nathan Ausley, President

Attest:

______

Kerry Starnes, Secretary/Treasurer Date______

A meeting recording of this meeting is available on CD.

Post Oak Savannah Groundwater Conservation District Board ofPublic Hearings and Board of Director’s Meeting August 14, 2012 Page 1 of 5