Lawsuit Filed as Accusations of Conflicts Grow on Groundwater Board
Amber Stelly from Consolidated Waters reveals the “terrifying” volumes of water which could be sold to other areas of the state if the commercial well proposal is approved.
Greg Ritchie
Messenger Reporter
HOUSTON COUNTY – Consolidated Water of Houston County, along with several others, including Sanderson Farms have filed a lawsuit against Neches and Trinity Valleys Groundwater Conservation District (NTVGCD), alleging the district was compromised by billionaire Kyle Bass, “who has manipulated the District’s process to his advantage (and to the detriment of the local communities) through improper board member participation.”
The lawsuit mentions, without naming him, Don Foster, whose Athens-based drilling company was revealed by The Messenger to have been chosen to do the multi-million-dollar drilling project. Foster only recently resigned from the NTVGCD board, something the lawsuit references prominently.
“Early in the process, Mr. Bass’s companies hired one board member to drill the more than 40 high-capacity wells, creating a conflict of interest and evidently forcing the director to eventually resign. A second director was never legally eligible for appointment to the board because he also serves as a council member for the City of Palestine. Nevertheless, both directors were intimately involved with respect to Mr. Bass’s drilling applications since the original filing of the applications,” reads the lawsuit.
The lawsuit demands the groundwater district’s decisions on these commercial wells be declared null and void, given these serious irregularities.
During the recent committee hearings in Austin, NTVGCD Board President Terry Morrow and their attorney John Stover testified about the applications and Foster’s participation during the process of considering the applications from Bass’ companies.
The two claimed Foster never cast a vote or participated in discussions regarding the various projects after he signed a conflict of interest last year. Foster signed the conflict of interest statement only after the attorney confronted him, saying Foster signed the form, “because I told him to.”
The Messenger has uncovered a major twist in the plot, possibly strengthening the lawsuit against NTVGCD during the testimony in Austin. It was hidden in plain sight, but perhaps missed during the 11-hour session by lawmakers.
It came when Houston County Co-Op General Manager Kathi Calvert gave a brief rundown of the electrical needs of such a major drilling operation in Houston County.
“We can serve up to one megawatt of electricity capacity to the Redtown Ranch site. That is equivalent to about 200 homes. That’s about 10, 12.5 horsepower water well pumps, with three-phase service, without upgrades. The numbers that have been discussed are much greater than that, and we would have to upgrade our system, which could include anything from voltage conversion, conductor upgrades, more regulation, or even a substation upgrade,” Calvert said. “The substation upgrade would be an expansive project, would run around four to five million dollars in upgrades, minimum, and would take four to five years to complete.
Calvert’s opening remarks, however, were what pricked our ears and got our attention.
“I am a square peg in a round hole today because I am electricity and not water, but even as a power person, I would say, I would take water every day of the week over electricity,” Calvert testified. “Redtown Ranch, LLC, approached us with their agent, Don Foster, in February 2023, looking to reconnect an existing 75 horsepower well that was on the ranch already, and to exploratory test wells. Since that time, we have had no additional applications for service.”
Read that again. Don Foster, from the NTVGCD board of directors, a year before signing any conflict of interest papers, was representing himself as an agent for one of Bass’ companies to work on exploratory wells. We contacted Calvert to make sure we heard her testimony correctly, and she confirmed this was, indeed, the same Don Foster.
This fact may have largely gone unnoticed during the busy hearing, but if proven true, this testimony could put a major spotlight on Foster and his connection to Bass. As some lawmakers already pointed out, why choose Foster among the many options to dig the company’s massive wells?
The Messenger reached out to Foster’s company to ask just how long Foster had been an agent for the project. Told he was not available and to submit questions in writing, we sent the following questions, hoping for some response. As of press time, there has been no response.
- The attorney for NTVGCD testified in Austin that Mr. Foster signed this conflict of interest statement in 2024, at the attorney’s insistence. Did Mr. Foster do any work for any of the named companies before this and why did Mr. Foster not offer to sign the conflict of interest statement on his own initiative?
2. Did Mr. Foster take any votes, or make any recommendations, or participate in any discussions regarding these projects before or after signing this conflict of interest statement?
3. In her testimony, Kathi Calvert from Houston County Electric Co-Op testified Mr. Foster met with her claiming to be the agent for the company run by Mr. Bass in February 2023. In what capacity did Mr. Foster serve as the company’s agent and how long has he served in this capacity?
4. During their testimony, NTVGCD officials denied your resignation from the board had anything to do with these projects. Could you explain the exact reason for your departure from the board?
5. The stated mission of NTVGCD is to “strive for the conservation, preservation, and the prevention of the waste of groundwater reservoirs over which the District has jurisdiction.” Do you feel your participation in the preparation for these drilling projects conforms with that mission?
While not a “water person,” Calvert may have unwillingly poured cold water on NTVGCD operations without even knowing it.
Greg Ritchie can be reached at [email protected]
