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RAILROAD COMMISSION OF TEXAS FORMAL COMMISSION ACTIONS MAY 29

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RAILROAD COMMISSION OF TEXAS FORMAL COMMISSION ACTIONS MAY 29 Powered By Docstoc
					MICHAEL L. WILLIAMS, CHAIRMAN
VICTOR G. CARRILLO, COMMISSIONER
ELIZABETH A. JONES, COMMISSIONER




                                    RAILROAD COMMISSION OF TEXAS
                                     FORMAL COMMISSION ACTIONS
                                            MAY 29, 2008


       After providing notice as required by the Texas Open Meetings Act, the Railroad
       Commission of Texas held an open meeting at the William B. Travis Building, 1701 N.
       Congress Avenue, in Room 1-111, Austin, Texas, on Thursday, May 29, 2008,
       commencing at 9:30 a.m. Chairman Michael L. Williams and Commissioners Victor G.
       Carrillo and Elizabeth A. Jones were present. Chairman Williams presided.

       OFFICE OF GENERAL COUNSEL – HEARINGS SECTION

       GAS SERVICES PROTESTED

       1. GUD No. 9797: Application of Universal Natural Gas, Inc. to increase rates in
       Montgomery, Walker, Madison, and Houston Counties, Texas. The Commission
       unanimously approved suspending the rates.

       2. GUD No. 9799: Statement of Intent filed by SiEnergy, L.P. to increase rates in the
       unincorporated areas in the vicinity of Missouri City, Texas. The Commission
       unanimously approved suspending the rates.

       SURFACE MINING AND RECLAMATION

       3. Docket No. C4-0003-SC-00-A: Application by Luminant Mining Company LLC
       (f/k/a TXU Mining Company LP) for new permit for proposed Leesburg Mine, Camp
       County, Texas, and proposed self-bond with third-party guarantee. The Commission
       voted unanimously to approve the application with modifications to the provisions of
       the permit.

       4. Docket Nos. C8-0021-SC-09-E, C8-0022-SC-37-E, and C8-0023-SC-45-E:
       Application by Farco Mining, Inc. for acceptance of surety bond riders issued by
       Travelers Casualty and Surety Company for Permit Nos. 9D, 37C, and 45B, Rachal,
       Palafox, and Trevino Mines, Webb County, Texas. This item was unanimously
       approved.




            1701 NORTH CONGRESS AVENUE        POST OFFICE BOX 12967 AUSTIN, TEXAS 78711-2967 FAX: 512/463-5548
           TDD 800/735-2989 OR TDY 512/463-7284 AN EQUAL OPPORTUNITY EMPLOYER HTTP://WWW.RRC.STATE.TX.US
MINUTES – MAY 29, 2008


OIL AND GAS PROTESTED

5. O&G 09-0251512: WEC, Inc. Application for a commercial permit to dispose of oil &
gas waste by injection into a porous formation not productive of oil or gas, Guru SWD
Lease, Well No. 1, Newark, East (Barnett Shale) Field, Bosque County, Texas. The
Commission unanimously approved the revised final order denying the application.

6. O&G 09-0249853: Hess, Jerry Operating Co. commercial application for a permit to
dispose of oil & gas waste by injection into a porous formation not productive of oil or
gas, Hwy 51 Disposal Lease, Well No.1, Cooke County Regular (20350001) Field,
Cooke County, Texas. The Commission unanimously approved the application.

7. O&G 08-0254734: Westex Systems Sacroc LP for a commercial oil and gas waste
disposal pit permit, Waste Systems Site, Sacroc Facility, Borden County, Texas. The
Commission unanimously approved the permit. The Commission unanimously
approved the application.

8. O&G 10-0251513: Newfield Expl. Mid-Con. Inc. to dispose of oil and gas waste by
injection into a porous formation not productive of oil or gas, Britt, Thomas Lease,
Well No. 106, Allison-Britt (12350) Field, Wheeler County, Texas. This item was pulled.

9. O&G 10-0251514: Newfield Expl. Mid-Con. Inc. to dispose of oil and gas waste by
injection into a porous formation not productive of oil or gas, Britt Ranch "E" 8 Lease,
Well No. 308, Stiles Ranch (Granite Wash) Field, Wheeler County, Texas. This item
was pulled.

10. O&G 0254223: Lillis, Michael D. to consider an exception to SWR 37 for the Benge
Lease, Well No. 5 Millersview, W. (Camar Sd.) Field Concho County, Texas. The
Commission unanimously denied the application.

11. O&G 03-0255538: Commission called hearing to give applicant Brice Pomykal, as
representative of the estate of Frank G. Pomykal, an opportunity to show cause why
the estate of Frank G. Pomykal Is not legally required to plug Well Nos. 1, 2, 3, 8, 9,
10, 11, 12, 13, 14 and 15, Pomykal, Joe Lease, (10376), Brenham Field, Austin
County, Texas. The Commission unanimously approved the recommended final order.

12. O&G 09-0251945: Sky Resources, Inc. enforcement action regarding Sikes
(209245) Lease, Well No.1, Newark, East (Barnett Shale) (65280200) Field, Parker
County, Texas. Violation of Rules 8(d)(1); 8(d)(4)(G)(i)(I) and (II); 14(b)(2). The
Commission unanimously approved the recommended enforcement order.

13. O&G 09-0252459: Saddle Creek Energy Development enforcement action
regarding (743065) Operator, Fomby Lease, Well No. 2 (0630921) Permit, Newark, East
(Barnett Shale) (65280200) Field, Denton County, Texas. Violation of Rule 8(d)(1). The
Commission unanimously approved the recommended enforcement order.

14. O&G 0249662: Crest Resources, Inc. to consider an exception to SWR 37 and 38
for the Davis Lease, Well No. 361, Stiles Ranch, South (Morrow, Lo) (86127250) Field,
Stiles Ranch (Granite Wash) (86125200) Field, Stiles Ranch (Atoka) (86125100) Field,
Ivester (Atoka) (44858500) Field, Wheeler County, Texas. Chairman Williams and
Commissioner Carrillo approved the application. Commissioner Jones recused herself
and did not vote.
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MINUTES – MAY 29, 2008


15. O&G 09-0253790: McCallum, Donald D. enforcement action regarding Flusche -A-
(18471) Lease, Wichita County Regular (97155001) Field, Wichita County, Texas.
Violation of Rule 8(d)(4)(G)(i)(III). The Commission unanimously denied the motion for
rehearing.

16. O&G 01-0252082: JPW Energy, L.L.C. enforcement action regarding Pruitt, E. J. -
E- (01404) Lease, Well No. 18, Pruitt (73310001) Field, Pruitt, E.J. E5 (13965) Lease,
Well Nos. 28, 29, 30, 32 and 49 Pruitt, SE. (Olmos) (73320500) Field, Atascosa
County, Texas. Violation of Rule 14(b)(2). The Commission unanimously approved the
recommended enforcement order.

AGREED ENFORCEMENT ORDERS

The Commission unanimously approved the following agreed orders:

17. O&G 03-0252871: (Interim Order) Capco Offshore, Inc. enforcement action
regarding State Tract 446l /NW./ (040874) Lease, Well No.4 U, Brazos Block 446 (-e-
Sd.) (11681426) Field, State Tract 446l /NW./ (040885) Lease, Well No.2 U, Brazos
Block 446 (-e-2- Sd.) (11681568) Field, State Tract 446l /NW./ (040909) Lease, Well
No.2 L, Brazos Block 446 (-g- Sd.) (11681852) Field, State Tract 446l N. W. (041036)
Lease, Well No.6 U, Brazos Block 446 (-e- Sd.) (11681426) Field, State Tract 446l
/NW/ (041037) Lease, Well No. 6 L Brazos Block 446 (-f- Sd.) (11681710) Field, State
Tract 485-l, SW/4 (069709) Lease, Well No. 1 El Gordo (Miocene) (27964255) Field,
State Tract 446 L-NW (078398) Lease, Well No. 7 U Brazos Block 446 (-c- Sd.)
(11681142) Field, State Tract 446/MW (078399) Lease, Well No. 7 L Brazos Block 446
(-f- Sd.) (11681710) Field, State Tract 446l-NW (078404) Lease, Well No. 8 U Brazos
Block 446 (-c- Sd.) (11681426) Field State Tract 367 -L (086825) Lease, Well No. 2 U
Middle Bank Reef (Miocene 6000) (61041280) Fld. State Tract 367-l (098874) Lease,
Well No.2 L Middle Bank Reef (Miocene 6800) (61041280) Fld. State Tract 485-l
(103728) Lease, Well No.4 L Matagorda Island Blk. 485-l (Z) (58213695) Fld. State
Tract 367- L (104063) Lease, Well No.3 Middle Bank Reef (Miocene 5880) (61041170)
Fld. S. T. 446l SW, Shell S. T. 77323 (104741) Lse. Well No.3 Brazos Block 446l SW-4
(Mi5c) (11692200) Fld. State Tract 446l-NW (118469) Lease, Well No.8l Brazos Block
446 (-e- Sd.) (11681426) Fld. State Tract 446-l (NW) (118954) Lease, Well No.9 Brazos
Block 446 (-e- Sd.) (11681426) Fld. S. L. 57656 (124273) Lease, Well No.4 L Brazos
Block 446 (D-6692) (11681330) Fld. State Tract 485-l (127640) Lease, Well No.6
Matagorda Island Blk. 485-l (58213666) Fld, State Tract 485-l (133690) Lease, Well
No. 3D Matagorda Island Blk. 485-l (V) (58213683) Fld. State Tract 485-l (133691)
Lease, Well No.3 F Matagorda Island Blk. 485-l (W) (58213684) Fld. State Tract 446l N.
W. (138603) Lease, Well No.5 Brazos Block 446 (D-2 Sd.) (11681300) Fld. State Tract
367 (142136) Lease, Well No.4 Block 367-l (7500) (09580500) Fld. State Tract 446-l
NW (150215) Lease, Well No.5 Brazos Block 446 (-d- Sd.) (11681284) Fld. State Trate
485-l (159764) Lease, Well No.5 Matagorda Island Blk. 485-l (V) (58213683) Fld.
Matagorda Is., Brazos County, Texas. Violation of Rule 14(b)(2).

18. O&G 03-0252888: (Interim Order) Capco Operating Corporation enforcement
action regarding 440 L Unit (NW) (061034) Lease, Well No. 4022 U, Brazos Block 440
(-x- Sd.) (11667825) Field, 440-l Unit (119572) Lease, Well No. B1, Brazos Blk. 440 (C
Sd. Fb B-1) (11667410) Field, 440-l Unit (149955) Lease, Well No. K1, Brazos Block
440 (-c- Sd.) (11667400) Field, Brazos Block 479-l (162016) Lease, Well No.2, Brazos
Block 479-l (X 1 Sand) Field, Brazos County, Texas. Violation of Rule 14(b)(2).

                                          3
MINUTES – MAY 29, 2008


19. O&G 7B-0242213: Ipact enforcement action regarding Cook-Holt Unit (11552)
Lease, Well Nos. 1a, 2a, and 3a, Flo-Mar (Tannehill) (31491666) Field, Jones County,
Texas. Violation of Rules 46(g)(2); 46(i)(4); 3(2); 14(b)(2).

20. O&G 7B-0244861: Martin, Jimmy Inc. enforcement action regarding Newell, Dell, -
B- (09285) Lease, Well Nos. 1, 2, and 3, Shackelford County Regular (82522001) Field,
Shackelford County, Texas. Violation of Rules 8(d)(1); 14(d)(12).

21. O&G 7C-0251597: R & R Well Service, Inc. enforcement action regarding Jacob, L.
E. (13155) Lease, Well No. 02, Winters (Capps) (98182260) Field, Runnels County,
Texas. Violation of Rule 14(d)(12).

22. O&G 04-0255086: Brask-Dumont Ranch, Inc. enforcement action regarding
Blocker, John R. 1837 (113620) Lease, Well No.1, Blocker Ranch (Olmos N-2)
(09600525) Field, Webb County, Texas. Violation of Rule 73(i).

23. O&G 03-0255810: Fort Apache Energy, Inc. enforcement action regarding Baily
Lease, Well No. 1 (0551917) Permit, Wildcat (00006001) Field, Liberty County, Texas.
Violation of Rule 14(b)(1).

24. O&G 8A-0256321: Kimbell Operating Company enforcement action regarding
Hollingsworth (69003) Lease, Flanagan (Clearfork, Cons.) (31222300) Field, Gaines
County, Texas. Violation of Rule 36(c)(14) and (d)(1).

25. O&G 02-0253851: ACT Operating, Inc. enforcement action regarding Turk, Fred A.
Lease, Well No. 1 (0560063) Permit, Wildcat (00004001) Field, Lavaca County, Texas.
Violation of Rules 14(b)(2); 16(b).

26. O&G 02-0256313: Tidewater Minerals Corporation enforcement action regarding
(859552) Operator, New Pettus Unit (02803) Lease, Well No. 3s, Pettus New
(71003001) Field, Goliad County, Texas. Violation of Rule 46(a).

27. O&G 01-0255337: Mandujano, Alfonso & Olga enforcement action regarding
Mandujano, Alfonzo (11275) Lease, Well Nos.1, 2, 3, 4, and 5, Somerset (84560001)
Field, Bexar County, Texas. Violation of Rule 8(d)(1).

28. O&G 04-0255082: Dorado Oil Company enforcement action regarding Teeter, J. A.
(03345) Lease, Well Nos. 1 & 2 White Point, East (96979001) Field, San Patricio
County, Texas. Violation of Rule 8(d)(1).

29. O&G 03-0255817: Northstar Energy, Inc. enforcement action regarding M. Schulz
Lease, Well No. 1 (0522753) Permit, Wildcat (00006001) Field, Waller County, Texas.
Violation of Rule 14(b)(1).

30. O&G 03-0254786: Bomco USA, Inc. enforcement action regarding Settegast, L. J.
(13450) Lease, Well No. 01, Pierce Junction (71444001) Field, Harris County, Texas.
Violation of Rule 14(b)(2) and (3).

31. O&G 01-0255640: Blue Star Operating Company enforcement action regarding
Nunley Lease, Well No. 71-1 (0629401) Permit, Wildcat (00002001) Field, Maverick
County, Texas. Violation of Rules 14(b)(2); 16(b).

                                          4
MINUTES – MAY 29, 2008


32. O&G 01-0254489: Paramount Energy Corp. enforcement action regarding Foote-
Whitehead "574" (210416) Lease, Well No.1, Wildcat (00002001) Field, Val Verde
County, Texas. Violation of Rules 14(b)(2); 3(1) and (2); 2(a).

33. O&G 09-0255154: Mesquite SWD Inc. enforcement action regarding Calhoun SWD
(30156) Lease, Well No. 01, Newark, East (Barnett Shale) (65280200) Field, Montague
County, Texas. Violation of Rule 9(11)(D).

34. O&G 03-0254778: Atasca Resources, Inc. enforcement action regarding McLean,
Marrs "A" R/A "D" (12719) Lease, Well Nos. 11 and 12, High Island (41139001) Field,
Galveston County, Texas. Violation of Rules 14(b)(2) and (3); 3(2).

35. O&G 03-0255808: Lone Wolf Operating Company, LP enforcement action
regarding (507470) Operator, Budco-Lewis Lease, Well No. 1 (0613403) Permit,
Brookshire (12306001) Field, Waller County, Texas. Violation of Rule 14(b)(1).

36. O&G 03-0253810: Brave Heart Resources, Inc. enforcement action regarding
Mason 17-a (02390) Lease, Well No. 14, Humble (43464001) Field, Harris County,
Texas. Violation of Rule 14(b)(2) and (3).

37. O&G 06-0244505: Richman Petroleum Corp. enforcement action regarding Massey
Lease, Well No. 1-H (0539617) Permit, Bridges (11919001) Field, Shelby County,
Texas. Violation of Rules 14(b)(2); 16(a).

38. O&G 6E-0255067: Long Trusts, enforcement action regarding Hughes, A. L.
(06959) Lease, Well No. 09, East Texas (27302001) Field, Gregg County, Texas.
Violation of Rule 73(i).

39. O&G 7C-0249792: McFarland & Scobey, Inc. enforcement action regarding
University "46-15" (14777) Lease, Well No. 01, Farmer (San Andres) (30243500) Field,
Crockett County, Texas. Violation of Rules 14(b)(1) and (d)(12); 8(d)(4)(G)(i)(III).

40. O&G 04-0244507: Alberta Energy Recovery, Ltd. enforcement action regarding
(011115) Operator, Welder, J. F., Hrs. -320- (02857) Lease, Well Nos. 3, 6, 17, 21, 26,
30 and 31, Seven Sisters (82380001) Field, Welder -A- (11121) Lease, Well Nos. 2 and
4, Squire (85443001) Field, Duval County, Texas. Violation of Rules 14(b)(2); 8(d)(1);
3(a).

41. O&G 03-0255812: Enertech Resources, Inc. enforcement action regarding Bessie
Creek Unit Lease, Well No. 2 (0539054) Permit, Brookshire Dome (Miocene 5-1c)
(12314510) Field, Waller County, Texas. Violation of Rule 14(b)(1).

42. GUD Docket No. 9746: Fairway Mobile Home Park/Houston enforcement action
for violation of Commission Pipeline Safety Regulations, 16 Tex. Admin. Code
§8.130(c)(2), at its System 570 unit, Company ID 4244, City of Houston, Harris
County, Texas.

43. LP-Gas Docket No. 1942: Potts Gas Company, Inc. enforcement action for violation
of LP-Gas Safety Rules, Tex. Admin. Code §9.17(d)(2), at Max-A-Mart #5, 110 Highway
69, Point, Rains County, Texas.

44. Damage Prevention Docket No. 000023: City of Garland enforcement action for
                                           5
MINUTES – MAY 29, 2008


violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(a) and 18.11(b), at 1110 W. Centerville, Garland, Dallas County,
Texas.

45. Damage Prevention Docket No. 000026: Jaho Inc. enforcement action for violation
of Commission Underground Pipeline Damage Prevention Rules, 16 Tex. Admin. Code
§§18.3(a) and 18.11(b), at 9206 Running Eagle Falls, Houston, Harris County, Texas

46. Damage Prevention Docket No. 000027: Grey Forest Utilities enforcement action
for violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.10(b), at 5639 Worth Parkway, San Antonio, Bexar County, Texas.

47. Damage Prevention Docket No. 000031: Centerpoint Energy Entex enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §18.8(b), at Cider Lane and Forrest Trails, Hallsville, Harrison
County, Texas.

48. Damage Prevention Docket No. 000035: City of Centerville enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(a) and 18.11(b), at 300 block church, Centerville, Leon County,
Texas.

49. Damage Prevention Docket No. 000045: McCurdy Plumbing enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(a) and 18.11(b), at 3101 High Point, Flower Mound, Denton
County, Texas.

50. Damage Prevention Docket No. 000055: Choate USA enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.4(b) and 18.11(b), at 24215 Alpine Lodge, San Antonio, Bexar
County, Texas.

51. Damage Prevention Docket No. 000056: Laughlin-Thyssen, Inc. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §§18.4(g) and 18.11(b). at 1507 Juliet, Austin, Travis County, Texas.

52. Damage Prevention Docket No. 000068: City of Coppell enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 116 Deann, Coppell, Dallas County, Texas.

53. Damage Prevention Docket No. 000069: G&Y Construction enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.10(b) and 18.11(b), at 7340 Martha, Fort Worth, Tarrant County,
Texas.

54. Damage Prevention Docket No. 000080: City of Pampa enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 703 E. Malone, Pampa, Gray County, Texas.



55. Damage Prevention Docket No. 000085: American Remediation Options, Inc.
                                          6
MINUTES – MAY 29, 2008


enforcement action for violation of Commission Underground Pipeline Damage
Prevention Rules, 16 Tex. Admin. Code §§18.3(a) and 18.11(b), at 10131 Horsheshoe
Bend, Houston, Harris County, Texas.

56. Damage Prevention Docket No. 000087: Highland Homes enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(a) and 18.11(b), at 26011 Avelino Bluff, San Antonio, Bexar
County, Texas.

57. Damage Prevention Docket No. 000099: Thedford Construction Company
enforcement action for violation of Commission Underground Pipeline Damage
Prevention Rules, 16 Tex. Admin. Code §§18.3(e) and 18.11(b), at Brad Circle, Lindale,
Smith County, Texas.

58. Damage Prevention Docket No. 000100: PM Construction enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(e) and 18.11(b), at 505 Post Oak, Baytown, Harris County, Texas.

59. Damage Prevention Docket No. 000103: Customer One Communication
enforcement action for violation of Commission Underground Pipeline Damage
Prevention Rules, 16 Tex. Admin. Code §18.3(a) and 18.11(b), at 305 E. Hope,
Longview, Gregg County, Texas.

60. Damage Prevention Docket No. 000104: Tele-Cable Services, Inc. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §18.11(b), at 3006 Asbury, Brownwood, Brown County, Texas.

61. Damage Prevention Docket No. 000106: L. Payne Constructors, L.L.C. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §§18.3(e) and 18.11(b), at 3300 Block of Clark Ave., San Antonio,
Bexar County, Texas.

62. Damage Prevention Docket No. 000107: City of Kyle enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(a) and 18.11(b), at corner of Blanco and Nance, Kyle, Hays
County, Texas.

63. Damage Prevention Docket No. 000110: Lighthouse Electric Cooperative, Inc.
enforcement action for violation of Commission Underground Pipeline Damage
Prevention Rules, 16 Tex. Admin. Code §18.11(b), at intersection of FM2337 and CR
145, Plainview, Hale County, Texas.

64. Damage Prevention Docket No. 000112: Costlow Company, Inc. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §§18.3(a) and 18.11(b), at 2135 Gulf Freeway, League City,
Galveston County, Texas.

65. Damage Prevention Docket No. 000115: Roger’s Contracting, Inc. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §§18.3(a) and 18.11(b), at 5554 Painter Green, San Antonio, Bexar
County, Texas.

                                          7
MINUTES – MAY 29, 2008


66. Damage Prevention Docket No. 000116: City of Denison enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at Walker and Chandler, Denison, Grayson County, Texas.

67. Damage Prevention Docket No. 000119: Quanta Utility Services, LLC enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §18.10(b) and 18.11(b), at 4400 Hardy Street, Fort Worth, Tarrant
County, Texas.

68. Damage Prevention Docket No. 000121: Craig’s Dirt Service enforcement action for
violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §18.3(e) and 18.11(b), at McCoy Road, Tyler, Smith County, Texas.

69. Damage Prevention Docket No. 000129: Sammons Construction Company
enforcement action for violation of Commission Underground Pipeline Damage
Prevention Rules, 16 Tex. Admin. Code §§18.3(e) and 18.11(b), at 24620 Hosford
Meadows, Porter, Montgomery County, Texas.

70. Damage Prevention Docket No. 000137: Champion Site Prep enforcement action
for violation of Commission Underground Pipeline Damage Prevention Rules, 16 Tex.
Admin. Code §§18.3(e) and 18.11(b), at 1300 Girard, San Marcos, Hays County, Texas.

71. Damage Prevention Docket No. 000141: Mid-America of Texas, Inc. enforcement
action for violation of Commission Underground Pipeline Damage Prevention Rules, 16
Tex. Admin. Code §18.11(b), at 6504 Smithfield Road, North Richland Hills, Tarrant
County, Texas.

72. Damage Prevention Docket No. 000142: The 5125 Company enforcement action
for violation of Commission Underground Pipeline Prevention Rule, 16 Tex. Admin.
Code §18.11(b), at expressway 83 and La Homa Road, Palmview, Hidalgo County,
Texas.

73. Damage Prevention Docket No. 000147: PJC Contracting enforcement action of
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§18.11(b), at 105 N. Alamo, Rockwall, Rockwall County, Texas.

74. Damage Prevention Docket No. 000151: Severn Trent Environmental enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 222 Gentilly, Katy, Harris County, Texas.

75. Damage Prevention Docket No. 000152: Jimmy Evans enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§18.11(b), at 606 Labor, San Antonio, Bexar County, Texas.

76. Damage Prevention Docket No. 000244: Fire Line Services, Inc. enforcement action
for violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin.
Code §18.11(b), at 633 NE Loop 820, Hurst, Tarrant County, Texas.

77. Damage Prevention Docket No. 000262: City of Runge enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§18.11(b), at 109 North Helena Street, Runge, Karnes County, Texas.

                                         8
MINUTES – MAY 29, 2008


78. Damage Prevention Docket No. 000266: City of Beckville enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§§18.3(a) and 18.11(b), at 236 CR 251, Beckville, Panola County, Texas.

79. Damage Prevention Docket No. 000267: Excavators and Constructors, LTD
enforcement action for violation of Commission Underground Pipeline Prevention
Rules, 16 Tex. Admin. Code §§18.3(a) and 18.11(b), at Filmore and Pierce, Beaumont,
Jefferson County, Texas.

80. Damage Prevention Docket No. 000268: Mid-America of Texas, Inc. enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 1100 Lakewood, McKinney, Collin County, Texas.

81. Damage Prevention Docket No. 000270: Muniz Construction, Inc. enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 1011 Hermosa, Dallas, Dallas County, Texas.

82. Damage Prevention Docket No. 000274: PJC Utility Contracting enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at N. Alamo and W. Kaufman, Rockwall, Rockwall County,
Texas.

83. Damage Prevention Docket No. 000278: Roberts Construction enforcement action
for violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin.
Code §18.11(b), at 12th Street and Humble, Cisco, Eastland County, Texas.

84. Damage Prevention Docket No. 000288: K & S Backhoe Services, Inc. enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at 511 W. College, Hico, Hamilton County, Texas.

85. Damage Prevention Docket No. 000297: Calco Contracting, LTD enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §§18.10(b) and 18.11(b), at 11672 Memorial Drive, Houston, Harris
County, Texas.

86. Damage Prevention Docket No. 000298: GM Enterprises enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§18.11(b), at #16 Hickory Hills, Hickory Creek, Denton County, Texas.

87. Damage Prevention Docket No. 000300: Landmark Electric enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§§18.3(a) and 18.11(b), at 11100 Pembroke Ridge, Houston, Harris County, Texas.

88. Damage Prevention Docket No. 000305: TTG Utilities L P enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§§18.3(e) and 18.11(b), at 201 Cedar Street, Cameron, Milam County, Texas.

89. Damage Prevention Docket No. 000310: Larman Construction enforcement action
for violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin.
Code §§18.3(a) and 18.11(b), at 10595 Strait Lane, Dallas, Dallas County, Texas.


                                         9
MINUTES – MAY 29, 2008


90. Damage Prevention Docket No. 000312: PJC Utility Contracting enforcement
action for violation of Commission Underground Pipeline Prevention Rules, 16 Tex.
Admin. Code §18.11(b), at N. Alamo and W. Kaufman, Rockwall, Rockwall County,
Texas.

91. Damage Prevention Docket No. 000315: PM Construction enforcement action for
violation of Commission Underground Pipeline Prevention Rules, 16 Tex. Admin. Code
§18.11(b), at 6710 Inwood, Houston, Harris County, Texas.

OIL AND GAS UNPROTESTED

CONSENT AGENDA

The Commission unanimously approved the following applications, excluding Item No.
113, which was pulled:

92. O&G 01-0255374: Century Resources, Inc. to consider permanent field rules for
the Hodde (Wales Sand) Field, McMullen County, Texas.

93. O&G 01-0255990: Blackbrush O & G, Inc. to consider a net gas-oil ratio for
Morales, Pedro (14665) Lease, Well No.4, Pearsall (Buda Lime) (69981250) Field, Frio
County, Texas.

94. O&G 03-0256301: Century Exploration Houston, Inc. to consider a new field
designation for the Pat Riley, et al. Lease, Well No. 1, to be known as the Van Meter
(Yegua Ey-9) Field, and for temporary field rules in the proposed field, Hardin County,
Texas.

95. O&G 04-0256252: Kerr-McGee Oil & Gas Onshore LP to consider consolidation of
the Cerrito Creek (Lobo), Dolores Creek (Lobo 8500), Dolores Creek, South (Lobo 1)
and Moritas Creek (9700) fields into a single field to be known as the Cerrito Creek
(Lobo Cons.) Field, and for adoption of field rules for the proposed consolidated field,
Webb County, Texas.

96. O&G 05-0256016: Valence Operating Company to consolidate the Box Church
(Cotton Valley Lime) Field into the Box Church (Cotton Valley) Field, and to adopt
permanent field rules for the consolidated field, Limestone County, Texas.

97. O&G 05-0256254: Samson Lone Star, LLC to consider suspending the allocation
formula including rule 49(b) allocation for the Roundhouse (Haynesville) Field, Navarro
County, Texas.

98. O&G 05-0256591: XTO Energy Inc. to consider a new field designation for the
Moody Gas Unit 2 Lease, Well No. 1, to be known as the Hearne (Cotton Valley); and to
consider temporary field rules for the new field, Robertson County, Texas.

99. O&G 06-0256255: Samson Lone Star, LLC to consider suspending the allocation
formula including rule 49(b) allocation, for the Nacogdoches, E. (Pettit) Field,
Nacogdoches County, Texas.



                                           10
MINUTES – MAY 29, 2008


100. O&G 08-0252138: Imperial Gas Resources LLC to consider an exception to
Statewide Rule 11 requirement of inclination and directional surveys on its Doran
Lease, Well No. 4, T.C.I., West (Seven Rivers) Field, Pecos County, Texas.

101. O&G 08-0255293: Citation Oil & Gas Corp. to amend the permanent field rules
for the Breedlove "B" (Clearfork) Field, Martin County, Texas.

102. O&G 08-0255553: Anadarko Petroleum Corporation to consider a new field
designation for the Wahoo 56-3-3 Lease, Well No. 1, to be known as Wahoo
(Wolfcamp-Penn) Field; and to adopt field rules for the proposed field, Reeves County,
Texas.

103. O&G 08-0256402: Encore Operating, L.P. to consider an MER for the P.J. Lea "B"
Lease, Well No.70, Lea (Penn. Detrital) Field, Crane County, Texas.

104. O&G 08-0256488: Henry Petroleum LP to expand the correlative interval for the
Sallie Ann (Spraberry-Wolfcamp) Field, Ector and Midland Counties, Texas.

105. O&G 09-0255892: CDX Gas, LLC to expand an existing tight gas area for the
Newark, East (Barnett Shale) Field, to include Eastland County, Texas.

106. O&G 09-0256073: Heape Exploration, Inc. to consider an MER for the Hazlewood
(30027) Lease, Well No. 2, Gordonville, S. (Penn.) Field, Grayson County, Texas.

107. O&G 09-0256404: Encana Oil & Gas(USA) Inc. for an exception to SWR 86(d)(4)
requirement that all points on a horizontal drainhole be within the drilling and
proration unit, Pearl Ranch Unit A, Well No. 401-H, Newark, East (Barnett Shale)
Field, Tarrant County, Texas.

108. O&G 10-0256256: ConocoPhillips Company for authority pursuant to SWR 23 to
produce on vacuum its Wickline a Lease, Well No. 1r, Texas Hugoton Field, Sherman
County, Texas.

109. O&G 7C-0256403: Willowbend Investments, Inc. to amend the field rules for the
Branch, South (Tannehill) Field, Menard and Concho Counties, Texas.

110. O&G 8A-0255894: Gunn Oil Company to consider a new field designation for the
Martin 3 Lease, Well No. 1; and to consider consolidation of vertical interval and
temporary field rules, (Proposed) Vcg (Conglomerate) Field, Cottle County, Texas.

111. O&G 03-0256946: Ballard Exploration Company, Inc. administrative rescission
of field rules, Alco-Mag (Cook Mt. 2 8900) (01279083) Field, Harris County, Texas.

112. O&G 06-0256945: Ventum Oil and Gas, LP administrative rescission of field
rules, Chitsey (Smackover) (17862500) Field, Franklin and Hopkins Counties, Texas.

113. O&G 10-0253873: Barbour Energy Corporation to consider the application of
Barbour Energy Corporation to supercede the provisions of Docket No. 10-0243533 for
the Dortch, M (01965) Lease, Well No. 2 and Dortch, M (129813), Well No. 9 Judd
(Kansas City) (47468200) Field, and Judd (Virgil)(47468666) Field Sherman County,
Texas, enabling the applicant to become the operator of record.

                                          11
MINUTES – MAY 29, 2008


114. O&G 09-0253792: General Energy Corporation enforcement action regarding
White, Meldon L. (00697) Lease, Well Nos. 14a, 16a, 17a, 19a, 21a, 22a, 24a, 25a,
26a, 28, 32a, 35a, 36a, 39a, 40a, 42a, 47a, 50, and 84a, Archer County Regular
(03446001) Field, Archer County, Texas. Violation of Rules 3(2); 13(b)(1)(B).

115. O&G 8A-0256800: Cholla Petroleum, Inc. for the recommendation of a tight gas
formation for the Atoka Conglomerate Formation, Boyles (Atoka Congl.) (11105050)
Field, Cottle County, Texas.

116. O&G 7B-0256799: Cholla Petroleum, Inc. for the recommendation of a tight gas
formation for the Conglomerate Formation, Strong (Congl.) (86718500) Field, Palo
Pinto County, Texas.

117. O&G 09-0256802: Cholla Petroleum, Inc. for the recommendation of a tight gas
formation for the Bend Conglomerate Gas Formation, Boonsville (Bend Congl., Gas)
(10574520) Field, Jack County, Texas.

118. O&G 06-0256798: Samson Lone Star, LLC for the recommendation of a tight gas
formation for the Travis Peak Formation, Trawick (Travis Peak) (90998830) Field, Rusk
County, Texas.

119. O&G 06-0256801: C. W. Resources, Inc. for the recommendation of a tight gas
formation for the Travis Peak Formation, Redland, NE (Travis Peak) (75329500) Field,
Angelina County, Texas.

120. O&G 02-0256885: Bluestone Natural Resources, LLC for the recommendation of
a tight gas formation for the Wilcox Formation, Mescalero (Wilcox J Sand) (60750800)
Field, Goliad County, Texas.

121. O&G 06-0256886: Black Stone Energy Company, LLC for the recommendation of
a tight gas formation for the Austin Chalk Formation, Brookeland (Austin Chalk,
8800) (12193500) Field, Double A Wells, N (Austin Chalk) (25646100) Field, Tyler and
Polk Counties, Texas.

122. O&G 06-0256993: Southwestern Energy Prod. Co. for the recommendation of a
tight gas formation for the Travis Peak Formation, Martinsville (Travis Peak)
(57814700) Field, San Augustine and Shelby Counties, Texas.

123. O&G 02-0256994: El Paso E & P Company, L. P. for the recommendation of a
tight gas formation for the Wilcox Formation, Neighborhood (Lower Wilcox) (64860500)
Field, Lavaca County, Texas.

124. O&G 06-0256995: Samson Lone Star, LLC for the recommendation of a tight gas
formation for the Travis Peak Formation, Red Land, North (Travis Peak) (75325500)
Field, Angelina County, Texas.

125. O&G 08-0256637: Chesapeake Operating, Inc. for the recommendation of a tight
gas formation for the Lower Wolfcamp-Penn Formation, Haley (Lwr. Wolfcamp-Penn
Cons.) (38118300) Field, Ward County, Texas.



                                         12
MINUTES – MAY 29, 2008



126. O&G 7B-0256640 Cholla Petroleum, Inc. for the recommendation of a tight gas
formation for the Conglomerate Formation, P. K. Park (Congl.) 3950 Field, Palo Pinto
County, Texas.

127. O&G 10-0256639: Jones Energy, Ltd. for the recommendation of a tight gas
formation for the Atoka Formation, Lipscomb (Atoka 9200) (53869120) Field, Lipscomb
(Atoka) (53869090) Field, Lipscomb County, Texas.

128. O&G 03-0256641: Cypress E & P Corporation for the recommendation of a tight
gas formation for the Wilcox Formation, Cypress Eagle (Wilcox) (22470500) Field,
Wharton County, Texas.

129. O&G 06-0256638: XTO Energy Inc. for the recommendation of a tight gas
formation for the Pettit and Travis Peak Formations, Doyle Creek (Pettit) (25998400)
Field, Doyle Creek (Travis Peak) (25998500) Field, Angelina, Cherokee, and
Nacogdoches Counties, Texas.

130. O&G 08-0256634: Texland Petroleum, L.P. for the recommendation of entity for
density for the Lineberry (San Andres) Lease in the Fullerton (San Andres) Field,
Andrews County, Texas.

131. O&G 8A-0256633: Chevron USA, Inc for the recommendation of entity for density
for the Coble, W. T. "A" NCT-1 Lease, Coble, W.T. "B" NCT-1 Lease, Post-Montgomery
Lease, Medarby Unit Lease, Coble, W.T. "B" NCT-2 Lease, and North Levelland Unit
Lease in the Levelland Field, Hockley County, Texas.

132. O&G 08-0256734: Occidental Permian Ltd. for authority pursuant to Statewide
Rule 50 to approve or certify an EOR project for the North Cross /Dev./ Unit (18696)
Lease, Crossett (Devonian) (21907111) Field, Crane and Upton Counties, Texas.

133. O&G 8A-0256732: Rogers, S. K. Oil, Inc. for authority pursuant to Statewide
Rule 50 to approve or certify an EOR project for the Rodgers (62409) Lease, Whitharral
(Clear Fork, Lo.) (97057500) Field, Hockley County, Texas.

134. O&G 8A-0256896: Devon Energy Production Co, L.P. for authority pursuant to
Statewide Rule 50 to approve or certify an EOR project for the Reeves Unit (19574)
Lease, Reeves (San Andres) (75552500) Field, Yoakum County, Texas.

135. Approval of the claim by Gil-John Oil Co. against the proceeds from the sale of
salvage recovered during State-funded plugging operations on the following well: Gil-
John Oil Co. (304329), Ingram "B" Lease (26016), Well No. 2, Eastland County Regular
Field, Eastland County, Texas; State-funded Plug Code 7B-14922.

136. Approval of the claim by Gil-John Oil Co. against the proceeds from the sale of
salvage recovered during State-funded plugging operations on the following well: Gil-
John Oil Co. (304329), Gill, Jim Lease (124174), Well No. 2, Gil-John (Upper Fry)
Field, Coleman County, Texas; State-funded Plug Code 7B-15776.

137. Approval of the claim by Gil-John Oil Co. against the proceeds from the sale of
salvage recovered during State-funded plugging operations on the following well: Gil-
John Oil Co. (304329), Miller, J. P. Lease (01013), Well No. 6, Ballard (Morris Sand)
                                          13
MINUTES – MAY 29, 2008


Field, Coleman County, Texas; State-funded Plug Code 7B-15777.

138. Approval of the claim by Michael Murray, owner of JEM Energy, against the
proceeds from the sale of salvage recovered during State-funded plugging operations
on the following well: JEM Energy (431039), Brauchle Lease (13088), Well No. 1,
Pearsall (Austin Chalk) Field, Atascosa County, Texas; State-funded Plug Code 01-
14908.

139. Approval of the claim by Mario Lanza, Secretary for SHWJ Oil & Gas Co., Inc.
against the proceeds from the sale of salvage recovered during State-funded plugging
operations on the following well: SHWJ Oil & Gas Co., Inc. (779245), Pollock Gas Unit
Lease (000227), Well No. 1, Fashing (Edwards Lime -A-) Field, Atascosa County, Texas;
State-funded Plug Code 01-16247.

MASTER DEFAULT ORDERS

The Commission unanimously approved the following default orders:

140. O&G 01-0252524: SJTC Holdings, Inc. enforcement action regarding
Legacy/Reynaud-West (13651) Lease, Well No. 01, Pearsall (Austin Chalk) (69981125)
Field, Zavala County, Texas. Violation of Rules 14(b)(2); 8(d)(1); 3(1), (2), and (3).

141. O&G 02-0254488: Greater Sooner Holdings, Inc. enforcement action regarding
(329575) Operator, Plyler, H. P. et al. (090945) Lease, Well No.1, Clayton, NE. (1100)
(18771600) Field, Live Oak County, Texas. Violation of Rules 14(b)(2); 3(1) and (2).

142. O&G 03-0252896: Premium Exploration Company enforcement action regarding
Arco Hooks Unit (214183) Lease, Well No.1, Spurger (5440) (85415844) Field, Tyler
County, Texas. Violation of Rules 14(b)(2); 8(d)(1); 3(2).

143. O&G 01-0252525: Rimfire Land & Cattle Co. enforcement action regarding West
Ranch 3 S Lease, Well No. 3s (0557261) Permit, Wildcat (00002001) Field, Val Verde
County, Texas. Violation of Rules 14(b)(2); 16(b); 5(a).

144. O&G 01-0253716: Thalmann, David Vac Service Inc. enforcement action
regarding (851060) Operator, R-9 Permit No. 01-0688, Reclamation Facility Field,
Dimmit County, Texas. Violation of Rule 8(d)(1).

145. O&G 02-0249501: Keystone Operating Co. enforcement action regarding Wallace
Est. (01917) Lease, Well Nos. 1 and 2, Dunwolters (Seg. C Pettus Sd.) (26692500)
Field, Karnes County, Texas. Violation of Rule 14(b)(2) and (3).

146. O&G 04-0250489: Keystone Operating Co. enforcement action regarding Mew,
Ben G. -B- (00790) Lease, Well No. 4, Fitzsimmons (31132001) Field; Mew, Ben G.
(04381) Lease, Well No. 1, Johns (Hockley) (46993581) Field; Mew, John Est. (07231)
Lease, Well No. 1, Johns (Hockley, Upper) (46993664) Field; Duval County, Texas.
Violation of Rules 14(b)(2) and (3); 3(1), (2), and (3).




                                          14
MINUTES – MAY 29, 2008


OFFICE OF GENERAL COUNSEL-RULES

ADOPTION

147. New rules in 16 Tex. Admin. Code Chapter 8, relating to increasing the frequency
of leak inspections; standardizing leak grading and repair deadlines; and mandating
removal and replacement of certain compression couplings on natural gas distribution
systems; GUD No. 9766.        The Commission unanimously adopted the rules as
modified.

ADMINISTRATIVE MATTERS

EXECUTIVE OFFICE

148. Fiscal Year 2008 Budget: Statewide Cost Allocation Plan costs for Oil Field
Cleanup Fund and Alternative Fuels Research and Education Fund. The Commission
took no action on this item.

149. Fiscal Year 2008 budget: requesting additional Earned Federal Fund (EFF)
appropriation authority as outlined in Article IX, §6.26(c). The Commission
unanimously approved this item.

INTERGOVERNMENTAL AND PUBLIC RELATIONS

150. Fiscal Year 2008 Report on Customer Service. The Commission unanimously
approved the report to be submitted to the Governor’s office.

SURFACE MINING AND RECLAMATION DIVISION

151. Authority to issue a notice of contingent contract award to Russell and Sons
Construction Co. for the Brysch AML Regrade Project and to award and execute the
contract after receipt and legal review of bonds and insurance documents. The
Commission unanimously approved this item.

OIL AND GAS DIVISION

152. Daisetta sinkhole update. The Commission was briefed with updated information
regarding this item.

153. Suspension of offshore plugging operations of American Coastal Energy wells.
This item was pulled.

COMMISSIONERS

Commissioner Carrillo

154. Recognition of employee's outstanding service and action. The Commission
recognized Luther “Nick” Nichols of the Wichita Falls district office.




                                         15
MINUTES – MAY 29, 2008


155. Railroad Commission Amicus Curiae Letter/Brief in Texas Supreme Court, Cause
No. 05-0466, Coastal Oil & Gas Corp. v. Garza Energy Trust. Chairman Williams and
Commissioner Carrillo approved this item. Commissioner Jones voted no.

Commissioner Jones

156. Fiscal Year 2008 budget: Statewide Cost Allocation Plan costs and fuel costs.
The Commission took no action on this item.

PUBLIC INPUT

157. The Commission will provide an opportunity for general public input on any
matter under the jurisdiction of the Commission, in accordance with the policy
adopted on September 7, 2005. No member of the public provided input at this time.

The conference was adjourned at 12:15 pm.




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