Minutes from the January 17th, 2012 PCCD regular scheduled meeting
to be presented on February 21st, 2012 for Board approval andsubject to corrections, additions, deletions and approval.

January 17th, 2012

Notices of this regular meeting were posted in the Hays and Caldwell County
Courthouses at least 72 hours prior to the meeting. Receipts of the notices
are on file in the office of Plum Creek Conservation District.
Checks were reviewed and signed, just prior to the call to order, by Vice
President, James O Lipscomb.
1:00 PM The meeting was called to order by President of the Board, James Holt, withthe following Board members present: James O. Lipscomb (Vice President ),Peter Reinecke (Secretary/Treasurer), Lucy Knight (Director), Ben Twidwell(Director) and Fred Rothert (Director). Also present were Johnie Halliburton(Executive Manager), Bob Wilson (Attorney) Feathergail Wilson (PCCD Geologist) and PCCD staff Karen Bassett, Korey Schuelke and Dan Meyer.
Minutes were taken by Karen Bassett and transcribed by Korey Schuelke.
1:00PMPresident Holt requested motions or comments regarding the minutes of theregular meeting held on December 14th, 2011. Mrs. Knight made a motion toapprove the minutes of the regular meeting held on December 14th, 2011 assent out. Mr. Lipscomb provided the second and the motion was approved
unanimously.

1:02PM President Holt requested any unfinished business. Mr. Halliburton informed

the Board of Directors that there was no unfinished business.
1:03PMPresident Holt requested discussion of Item IV on the agenda. Mr. Halliburton informed the Board of Directors of a request from Mr. A. W. McCrary, Jr.
for a production permit. Mr. Daniel Meyer then informed the Board of Directors that Mr. A. W. McCrary, Jr. was requesting a production permit in theamount of 44 acre feet per year on his property, which is approximately 88
acres, for the purpose of irrigation and livestock. Mr. Meyer informed theBoard of Directors that the production permit application was administratively
complete and met all of the Plum Creek Conservation District’s spacing requirements. Mr. Meyer then discussed five items that needed to be evaluated in the consideration of production permits due to recent legislation. Mr.
Meyer then discussed those five items in depth for the Board of Director’s examination. The Board of Directors then questioned Mr. Meyer, regarding Mr.
A. W. McCrary, Jr.’s production permit request. Mr. Twidwell made a motionthat Mr. A. W. McCrary, Jr.’s production permit request be granted for theamount of 44 acre feet per year for irrigation and livestock purposes. Mrs.
Knight provided the second. Mr. Reinecke then questioned the type of metering that would be required. Mr. Meyer informed the Board of Directors thatMr. A. W. McCrary, Jr. would be required to either place a meter on his wellor turn in his electricity usage to estimate his water usage. President Holt
then requested a vote on the aforementioned motion and the motion was approved unanimously.

1:11PM President Holt requested discussion of Item V on the agenda. Mr. Bob Wil-son then discussed SB 1225 and the need for the residents in the dually annexed portion of southeastern Caldwell County to choose the District of which
they wished to be a member. Mr. Bob Wilson then discussed the five resolutions that he had drafted that would de-annex the residents that wished to bemembers of the Gonzales County Underground Water Conservation District,as opposed to the Plum Creek Conservation District. Mr. Bob Wilson thendiscussed the individual properties and the resolution which corresponded tothese properties and their de-annexations. Mr. Bob Wilson listed the properties of Mr. A. E. and Beverly J. Nicholson, Nicholson Farms, Inc., Zane and2Ruth Briscoe Family Partners’, Rick and Marla Jean Dudman, and Bryan andKaren Dudman as the landowners that wished to be de-annexed from thePlum Creek Conservation District. Each resolution was discussed individually, with Mrs. Knight making the motion to approve the resolution to deannex each of the five properties from the Plum Creek Conservation District
individually, and Mr. Twidwell providing the second on each of the five properties individually, and all motions by resolutions were approved unanimously. Mr. Bob Wilson then discussed the steps necessary to complete thede-annexation process.
1:23PM President Holt then requested discussion of Item VI on the agenda. Mr. Jim

Jansen of Jansen and Gregorczyk then discussed the Plum Creek Conservation District’s Board of Directors’ Policies with the Board of Directors and discussed the necessary adjustments that may need to be made in order tocomplete the policies. It was the opinion of the Board of Directors that theSecretary/Treasurer be the person who endorses the quarterly financial report and be trained in scrutinizing this report. Mr. Jansen then discussed
small adjustments necessary to the policy regarding the number of Board ofDirectors’ members on the audit committee. Mrs. Knight made a motion thatthe number of Board of Directors’ members on the audit committee be three.
Mr. Rothert provided the second and the motion passed unanimously. President Holt selected the audit committee to also serve as the professional services’ committee. Mr. Jansen then discussed affidavits that would need to beendorsed by every Board of Directors’ member and employee stating thatthey had read the Plum Creek Conservation District’s Policies. Mr. Jansen
then began to discuss the draft of the Plum Creek Conservation District’s personnel policy and procedures manual. After much discussion, President Holt
instructed the rules committee (comprised of Mr. Reinecke and Mr. Twidwell)
to work on the fine details of the Plum Creek Conservation District’s personnel policy and return to the Board of Directors with a report.
1:58PM President Holt requested discussion of Item VII on the agenda. The Board ofDirectors then reviewed the Plum Creek Conservation District’s quarterly investment report. Mrs. Knight made a motion to approve the Plum Creek Conservation District’s quarterly investment report, subject to the document format being adjusted and the document being endorsed by the Plum Creek
Conservation District’s Executive Manager, Mr. Johnie Halliburton, and theSecretary/Treasurer, Mr. Peter Reinecke. Mr. Lipscomb provided the second
and the motion was approved unanimously.
2:00PM President Holt requested discussion of Item VIII on the agenda. Mr. Jansen

then requested approval of the engagement letter from Jansen andGregorczyk to perform the Plum Creek Conservation District’s annual audit,
as well as, quarterly basis audit compliance. Mrs. Knight made a motion toapprove the engagement letter from Jansen and Gregorczyk to perform thePlum Creek Conservation District’s annual audit, as well as, quarterly basisaudit compliance. Mr. Lipscomb provided the second and the motion was approved unanimously.
2:04PM President Holt requested a report from the Plum Creek Conservation Dis-trict’s Geologist, Mr. William Feathergail Wilson. Mr. Feather Wilson then discussed recent developments at the latest rules meeting. Mr. Feather Wilson
discussed a recent meeting with the Texas Water Development Board discussing recent laws that had been enacted. Then Mr. Feather Wilson thendiscussed hydraulic conductivity and transmissivity with the Board of Directors. Mr. Feather Wilson then discussed multiple production permits thatwould expire in 2012. Mr. Feather Wilson also discussed the amount of wells
within the Plum Creek Conservation District that are registered with the Texas
Water Development Board. The Board of Directors, Mr. Feather Wilson, andMr. Meyer discussed different ways to get more people within the Plum Creek
Conservation District to register their water wells. Mr. Feather Wilson thendiscussed a well that was going to be drilled soon within the Plum Creek Conservation District that would have lots of important geologic information. Mr.

3Feather Wilson discussed an article regarding the City of Kyle drilling a Lower
Trinity aquifer well in the near future.
2:21PMPresident Holt requested a report from the Natural Resources Conservation
Service’s District Conservationist, Mr. Isidro Morales. Mr. Morales was not inattendance.

2:21PM President Holt requested a report from the Plum Creek Conservation Dis-trict’s Assistant Manager, Mr. Daniel Meyer. Mr. Meyer first discussed thereceipt of water use data from local production permit holders. Mr. Meyerthen discussed drought contingency plans and the different permutations they
could take. Mr. Meyer informed the Board of Directors that he had contacted
local water well drillers with information regarding the Plum Creek Conservation District’s upcoming rule changes. Mr. Meyer also discussed contacting
oil and gas producers to inform them of their requirement to register their water wells used for oil and gas production. Mr. Meyer also informed the Boardof Directors that he is keeping contact with the Lockhart Independent SchoolDistrict regarding presentations that could be given to their students by thePlum Creek Conservation District regarding water.
2:25PM President Holt requested a report from the Plum Creek Conservation Dis-trict’s Executive Manager, Mr. Johnie Halliburton. Mr. Halliburton first discussed the upcoming position that the Plum Creek Watershed Partnership iscurrently reviewing applications for, in order to select the best candidate forthat position. Mr. Halliburton then gave the Board of Directors an update on
the status of the Site 5 Rehabilitation. Mr. Halliburton discussed possible future development around the Plum Creek Conservation District’s Site 4. Mr.
Halliburton then discussed the status of the City of Kyle Parks’ Office being
built near the Plum Creek Conservation District’s Site 2. Mr. Halliburton thendiscussed recent developments regarding Mr. Danny Green’s property near
the Plum Creek Conservation District’s Site 5, as it pertains to the Plum
Creek Conservation District’s inundation easements. Mr. Halliburton informed the Board of Directors that Halff and Associates was about to begin
the earlier approved Guadalupe River Basin Study. Mr. Halliburton informed
the Board of Directors of a recent vehicle accident at the Plum Creek Conservation District’s Site 24 which damaged some of the Plum Creek Conservation District’s fence. Mr. Halliburton also discussed the status of the inundation area maps necessary for the Plum Creek Conservation District to complete the Emergency Action Plans required by the Texas Commission on Environmental Quality. Mr. Halliburton and Mr. Bob Wilson then discussed theprocesses involved in selecting engineers to perform inundation area maps
and any other data that the Plum Creek Conservation District deems necessary. Then Mr. Halliburton showed the Board of Directors pictures depicting
the progress of the Site 5 Rehabilitation and the City of Kyle Parks’ Offices
and explained the photographs in depth.

2:48PM President Holt requested a report from the Plum Creek Conservation Dis-trict’s Attorney, Mr. Bob Wilson. Mr. Bob Wilson discussed a recent Texas
Water Development Board meeting regarding rules. Mr. Bob Wilson discussed a recent upswing in water wells being drilled in the Rosanky, Texas
area. Mr. Bob Wilson then discussed a recent change in his current position
with the law firm for whom he works. Mr. Bob Wilson also stated that hewould be presenting the Board of Directors with an engagement letter in thenear future for their possible approval of his continued services.
President Holt requested a report from the Plum Creek Conservation District’s proposed new office building. Mrs. Knight requested permission fromthe Board of Directors to discuss layout options with Mr. Thom Earnest for thepossible new office building. The Board of Directors then discussed many
items necessary for the possible new office building.
3:05PM President Holt then closed the meeting for a five minute break and moved it

into executive session following the break.

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3:40PM President Holt called the regular meeting back to order following the execu-

tive session. Mr. Twidwell made a motion to retain all current employees andto give each employee a three thousand dollar ($3000.00) a year raise, retroactive to January 1st, 2012. Mrs. Knight provided the second and the motion
passed unanimously.

3:41PM President Holt requested any public comments. There were no public com-ments.
3:41PMMr. Twidwell made a motion to adjourn. Mr. Lipscomb provided the second
and the motion was approved unanimously.

———————————
President

2:25PM

2:48PM

3:05PM—————————————
Vice President