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SOAHPOST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT’SNOTICE OF TWO PRELIMINARY HEARINGS

POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT’SNOTICE OF TWO PRELIMINARY HEARINGS

SOAH DOCKET NOS. 965-23-21218 AND 965-23-21219

POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT

__________________________________________________________________________

APPLICATION OF SLR PROPERTY I, LP         §          BEFORE THE STATE OFFICE

FOR A NEW 9,000 ACRE-FOOT PER                  §          

YEAR SIMSBORO AND HOOPER DRILLING §

AND OPERATING PERMIT                                 §          OF ADMINISTRATIVE

                                                                                    §          

APPLICATION OF SLR PROPERTY I, LP         §          

FOR A NEW 15,000 ACRE-FOOT PER YEAR    §

SIMSBORO OPERATING PERMIT                     §          HEARINGS

                                    §

_________________________________________________________________________________

POST OAK SAVANNAH GROUNDWATER CONSERVATION DISTRICT’S

NOTICE OF TWO PRELIMINARY HEARINGS

The State of Office of Administrative Hearings (“SOAH”) has issued an Initial Order setting a preliminary hearings onthe two applications made by SLR Property I, LP (“SLR” or “Applicant”) to the Post Oak Savannah Groundwater Conservation District (“POSGCD” or “District”) for:

  • A new 9,000 acre-foot per year (af/yr) Simsboro and Hooper Drilling and Operating Permit to authorize SLR to drill and operate up to a total of 60 new wells, at 30 defined wells sites in Milam County (see tables below for proposed well locations and production capacities) for municipal, industrial, manufacturing, and commercial purposes anywhere within Milam and Burleson Counties; and
  • A new 15,000 (af/yr) Simsboro Operating Permit to change the authorized use of wells currently authorized by SLR’s existing Historic Use Permit 0330 for industrial use on the 25,000 acres of SLR’s Sandow Lakes Ranch property that are located in Milam County to use for municipal, industrial, manufacturing, and commercial purposes anywhere within Milam and Burleson Counties  

The legal authorities under which the preliminary hearing and hearing on the merits are to be held are:

• Texas Government Code, Chapter 2001

• Texas Water Code, Chapter 36, Subchapters A, D & M

• 1 Texas Administrative Code, Chapter 155

• Rules of the POSGCD (May 10, 2022, and, as applicable, April 11, 2023)

The laws and rules involved are:

• Texas Water Code, Chapter 36, Subchapter D

• Texas Government Code, Chapter 2001, Subchapters C, D and F

• 1 Texas Administrative Code, Chapter 155

• Rules of the POSGCD (May 10, 2022, and, as applicable, April 11, 2023) Sections 4 through 7 and 9 through 14.

APPLICATIONS.

SLR, whose address is 2825 Oak Lawn Avenue #191577, Dallas, TX, 75219 resubmitted the two above-referenced applications on October 14, 2022 to the District (“the Application(s)” or “Applications”) after prior lapse and expiration of the July 2022 versions. The General Manager determined that each Application included all the information required under the District’s rules and thus each was administratively and technically complete.  A summary description of each Application follows:

New 9,000 af/yr Simsboro & Hooper Drilling and Operating Permit 

SOAH Docket No. 965-23-21218

SLR  requests a new Drilling and Operating Permit to produce up to 9,000 af/yr from the Simsboro formation, and up to 4,500 af/yr from the Hooper formation, provided that the total production in any one year may not exceed 9,000 acre-feet.  SLR requests authorization to drill and operate up to a total of 60 new wells (up to 30 new Simsboro wells and up to 30 new Hooper wells), at 30 defined well sites.  The locations of the 30 proposed new Simsboro wells (identified as OP9-1 through OP9-30) and the 30 proposed new Hooper wells (identified as OPH9-1 through OPH9-30)are shown in Tables 1 and 2 of this notice.  SLR requests authorization to drill more than one Simsboro well at a given well site, and/or more than one Hooper well at a given well site, depending upon conditions found at each well site.  The total combined production capacity of all wells constructed at a given well site that are screened into the same formation will be less than or equal to the maximum instantaneous pumping rate defined for production from that formation at that well site.  

SLR requests that the water produced under the new 9,000 af/yr Simsboro and Hooper Drilling and Operating Permit be used for municipal, industrial, manufacturing and commercial purposes anywhere within Milam and Burleson Counties.  

New 15,000 af/yr Simsboro Operating Permit (to be used conjunction with SLR’s 15,000 af/yr Historic Use Permit 0330)

SOAH Docket No. 965-23-21219

SLR seeks a new 15,000 af/yr Simsboro Operating Permit to be used in conjunction with SLR’s 15,000 af/yr Simsboro Historic Use Permit No. 0330 (“Permit 0330”). for the next fifteen (15) years until Permit No. 0330 ends in 2038, and the remaining 25 years will be solely under the new Operating Permit. As noted in the application, SLR requests that upon issuance of the new 15,000 af/yr operating permit, the entire 15,000 af/yr will be assigned to the Permit 0330 and 0 af/yr per year will be assigned to the new Operating Permit.  From time to time thereafter SLR will notify the District of the portion of the 15,000 af/yr assigned to the new Operating Permit and noting the remaining portion of the 15,000 af/yr that will remain assigned to the Permit 0330. The amount assigned to the Permit 0330 may never be increased above the last amount assigned.    

Water produced under the new Operating Permit will be pumped from the Simsboro formation using the same 61 wells authorized under the Permit 0330.  Table 3, included as part of this notice shows the locations of the 61 wells authorized under the Permit 0330.  If an authorized well operating at the approved production capacity for water produced under the Permit 0330 does not meet current District property line setback or well spacing regulations for new wells, the District may approve a lower production capacity for water produced from that well under the new 15,000 af/yr Simsboro Operating Permit.  Upon assignment of acre feet per year to the new 15,000 af/yr Simsboro Operating Permit and reduced from Permit 0330, SLR requests that the water produced under the new 15,000 af/yr Simsboro Operating Permit be authorized to be used for municipal, industrial, manufacturing, and commercial purposes anywhere within Milam and Burleson Counties.

PRELIMINARY HEARINGS; OPPORTUNITY FOR A CONTESTED CASE HEARING.

SOAH will conduct two preliminary hearings at the time and place below:

9:00 a.m. – September 6, 2023

State Office of Administrative Hearings

300 West 15th Street, Fifth Floor

Austin, Texas 

At the preliminary hearings, the SOAH administrative law judge (“ALJ”) will address and discuss with the parties the following issues:

  • Party status;
  • procedural and discovery schedules; 
  • pending motions;
  • hearings on the merits;
  • issues to be addressed in these proceedings;
  • referrals to mediation;
  • adequacy of notice of these proceedings; 
  • any other issues that will assist in the fair disposition of these cases; and
  • and any other matters as determined by the ALJ.

A mediator will be present at the preliminary hearings to discuss mediation, and will be available to conduct a mediation immediately after the preliminary hearings if the named parties are all amenable.

The two preliminary hearings will be conducted in accordance with the Chapter 2001, Texas Government Code; Chapter 36, Texas Water Code; the POSGCD Rules (May 10, 2022, and, as applicable, April 11, 2023); and the procedural rules of SOAH, including 1 TAC Chapter 155. 

The evidentiary hearing phase (“hearing on the merits”) of the proceedings, which will occur at a date to be determined by SOAH at or after the preliminary hearings, will be a legal proceeding similar to a civil trial in state district court. The hearing on the merits will be held unless all timely hearing requests have been withdrawn or denied.

POTENTIAL PARTIES.

If any party or potential party has a pending motion or other issue that will need to be addressed by the ALJ at the preliminary hearings, that motion or pleading shall be filed no later than August 30, 2023. 

To be named a party, you also must attend the SOAH preliminary hearing prepared to provide evidence to show you would be affected by the activity contemplated in the Application(s)in a way not common to members of the general public in compliance with the District’s rules and within the District’s boundaries. Only persons named as parties may participate at the hearing.

In accordance with 1 Tex. Admin. Code § 155.401(a), Notice of Hearing, Parties that are not represented by an attorney may obtain information regarding contested case hearings on the public website of the State Office of Administrative Hearings at www.soah.texas.gov, or in printed format upon request to SOAH.

MAILING LIST.

You may ask to be placed on a mailing list to obtain additional information on the Application(s) by sending a request to the Post Oak Savannah Groundwater Conservation District at the address below.

Public comments and requests must be submitted either electronically, or in writing to:

Mailing Address:
PO Box 92
Milano, Texas 76556

Physical Address:
310 East Avenue C
Milano, Texas 76556

Office Hours:
Monday – Friday
8:00 a.m. – 4:00 p.m.

Office: 512-455-9900
Fax: 512-455-9909

admin@POSGCD.org

Persons with disabilities who need special accommodations at the preliminary hearings should call the SOAH Docketing Department at 512-475-3445 at least one week prior to the preliminary hearing.

APPLICANT CONTACT INFORMATION 

Further information may also be obtained from Applicant SLR at:

Mr. Alan Gardenhire    

SLR Property I, LP

2825 Oak Lawn Ave #191577

Dallas, TX   75219

(512) 810-3584

alang@sandowlakesranch.com

https://posgcd.org/wp-content/uploads/2023/08/30Simsboro.30Hooper.9K.pdf
https://posgcd.org/wp-content/uploads/2023/08/61Historic.15K.pdf

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