Company Says No Exporting Water…”At This Time”
Houston County Lake photo courtesy Beverly Filer
Greg Ritchie
Messenger Reporter
HOUSTON COUNTY – The Messenger was able to make contact with the company pushing to gain water rights in Anderson and Houston counties to try and see what their version of the story was and find out more about the people and the structure behind the name.
The filer of the petition to Neches and Trinity Valleys Ground Water District (NTVGCD) is officially listed as Redtown Ranch Holdings, LLC, is based out of Nacogdoches, but is a small part of Conservation Equity Partners (CEP), a conglomerate made up of many projects, each under the umbrella of a smaller company.
The company was formed by its current leader Terry Anderson and Dallas-based hedge fund manager Kyle Bass. The company has a sister unit called Conservation Equity Managers, run by both Bass and Anderson. The company claims to, “create value by developing sustainable water resources, mitigating environmental impacts, and raising the value of important ecosystems.”
The Messenger contacted Steele Schottenheimer, Managing Director of Investor Relations. Citing privacy concerns, she declined to provide the prospectus potential investors would receive about the local water project. It is unknown what guarantees or promises investors may have received.
She did provide a statement, where the company denies claims this is anything nefarious. In the letter, the company says Texas has plenty of water, just not enough water supply resources, given historic droughts, explosive population growth and increased demand for power and water.
“In short, Texas has the water—it just doesn’t have the infrastructure to get that water
where it’s needed, fast enough,” the company said in their statement.
The statement addresses the issue in Anderson and Houston counties directly.
“Conservation Equity Management is advancing a privately funded, phased groundwater
development project focused on the Carrizo and Wilcox aquifers in East Texas. This
project is grounded in careful planning, scientific rigor, and a commitment to
sustainability,” the letter read. “Our recent applications to the NTVGCD are for drilling permits only. These permits, which represent Phase II of our project, will allow us to collect on-the-ground data to validate the hydrologic models we developed during Phase I—an effort that has been underway for the past 18 months.”
The company officially explains the Redtown Ranch Holdings project as follows: “With 9.5 miles of Trinity River frontage, the 7,250-acre Redtown Ranch represents a classic example of a multi-use diversified ranch. CEP is currently working with Conservation Equity Management to enhance and develop the natural resource values of this unique rural property. With a 700+ acre greentree reservoir, more than 500 acres of moist soils units, and thousands of acres of natural river bottom habitat, intensive waterfowl management is a key component to the development strategy of this asset. The project also involves management of a sustainable grazing program, oversight on 1,600+ acres of commercial farmland and ongoing development of compatible ecosystem services.”
The statement from the company claims any actual drilling on the “asset” would need additional permits and safeguards are in place to make sure the company abides by all relevant laws.
“Let’s be clear: we are not seeking to produce or export water at this time. Texas law
requires a permit to drill any well—we cannot ‘wildcat’ and then apply after the fact.
Once wells are drilled, they will be tested according to the standards of both the Texas Department of Licensing and Regulation and NTVGCD. We will then submit those
results to the district. Only if the data supports our modeling—and confirms that the aquifer can sustainably support production—will we advance to Phase III: submitting production permit applications. Those applications will include detailed projections of any annual production and any proposed exports, if applicable,” the statement continued.
The company argues no sane investor would risk their investment by draining an aquifer. Sources, however, warn The Messenger once the permit to take almost 99% of the water is officially approved, the only permits needed would be where drills are placed and other factors, which would not stop the overall course of the project.
Some county officials were left wondering why the company claims more tests would be needed to see if the aquifer can handle their requirements, if they already applied to be able to use almost all of it?
The letter concludes by hailing the team and their experience.
“The CEM team is made up of passionate naturalists, foresters, biologists, and ranchers
who are deeply committed to conserving and restoring healthy ecosystems across Texas.
With a shared love for our state and a combined 245 years of residency, our team of eight
brings unmatched local knowledge and dedication to every project,” according to the statement.
See related stories in today’s edition.
Greg Ritchie can be reached at [email protected]
