Forestar's LOI with Hays County
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Editor's note: Local retired educator Barbara Hopson has been attending meetings and following developments on some of the water importation projects in Hays County. Texas Water Alliance, End Op and Forestar (FOR-NYSE) are among the biggest private interests seeking to export groundwater to Hays County from the Carrizo-Wilcox and Simsboro Aquifers which lie east of the county. Forestar is a publicly traded investor-owned company. It is not certain that their efforts will be successful. Legal challenges and state agency reviews loom over rights to the groundwater, local groundwater district control, and the aquifers capacity to handle large withdrawals over the long term.
Forestar, with which Hays County has recently signed a letter of intent to receive as much as 45,000 acre-feet annually over 50 years, has interests in real estate, timberland, minerals and water. Under terms of the letter, the county and Forestar have until September of 2013 to reach a final agreement which is to include water reservation fees and related costs. According to an investor report, Forestar has a "45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama and about 17,800 acres of ground water leases in Central Texas."
Send your comments and news tips to roundup.editor@gmail.com, to Ms. Hopson hopsonbarbara@yahoo.com, to Hays County Judge Bert Cobb at bert.cobb@co.hays.tx.us or click on the "comments" at the bottom of the story
By Barbara Hopson
Guest Commentary
Probably the main worry of north Hays County water consumers is that their water/wastewater rates will go up tremendously if the LCRA facilities are sold to an investor-owned utility (IOU). Water rates in Texas will rise anyway because of the increasing scarcity of it and because of the enormous cost to transport it, but IOUs must seek large profits for their investors from water sales.
As reported in the Westlake Picayune (Sept.1), "Food and Water Watch, an independent nonprofit . . . looked at the 10 largest sales of public water and wastewater utilities to private companies in the U.S. and found that, on average, rates tripled over the average ownership of 11 years. Corix [the Canadian company which is vying to buy all the remaining LCRA water facilities] ownership of the Fairbanks, Alaska water and wastewater utilities was included in the study, and it was found that, adjusted for inflation, Corix raised rates 61 percent over the course of 14 years of ownership."
Huge water-rate hikes will likely hit San Marcos, Kyle, and Buda when construction on the Hays Caldwell Public Utility Agency (HCPUA) project gets underway, but at least that agency is in public hands. The project will bring water by pipeline from the Carrizo Wilcox aquifer in Gonzales and Caldwell counties to those three cities.
I think we should beware of the offer of the Temple-Inland subsidiary Forestar to Hays County Commissioners Court to transport and sell water to Hays County. The Court is now considering a plan for Forestar to transport water from the same Carrizo Wilcox aquifer to Hays County. That would put a water supply in IOU hands, and the effort also would duplicate the HCPUA project.
23 comments:
A better solution that imported water is to stop more stupid development until this drought is over.
How much shortage of everything do you self-centered greedy free market fanatics need before you realize you are messing it up for everyone?
I'd send in a comment about how I think county policies are encouraging development and forcing higher water rates on everyone but the Cowboys are playing the Jets, in New York. Boys are ahead 7-0.
Romo really dropped the ball (literally) on that game....
@ anonymous
We could just import more water
Ms. Hopson's disdain for private enterprise (IOUs) comes through loud and clear, like so many who comment here. Even in the face of all the failures, waste and corruption of government, many still fall for the false promise, "I'm from the Government and I'm here to help you". What makes anyone think that government can do anything better or more efficient than free enterprise? Look at the stark difference between the US Postal System and FedEx. As Ronald Reagan said, "Government is not the answer to the problem, Government IS the problem."
Sure, Aqua Texas is raping their customers with very high rates but no one seems to want to blame the real culprit, the TCEQ that allows and facilitates that rape. Aqua is doing what corporations do, providing a service for a price and reaping a profit in the process. That is what most of us would do if we were in their place. The TCEQ is supposed to protect the people with regulations designed to keep the tiger at bay, but instead, they feed the tiger. Government has failed us again and again but they have been successful at one thing, passing the blame on to free enterprise and the profit motive. This blaming has become very popular with the "unwashed" and the "brain washed". This fear and distrust of business is simple class envy that has aided the growth of government and its false promises.
We'd better not still be arguing about where the water comes from, who sells it and what it costs when the day arrives when we run out. The current drought should be a two minute warning of the inevitable crisis which is far more dangerous than the profits of corporations. We should welcome the innovators of business that create technology and jobs. Government at all levels, only creates more government dependency and pain.
“Be thankful we’re not getting all the government we’re paying for.” - Will Rogers
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The problem isn't the Free Market, the problem is when the market is managed by government.
If our county elected officials get the control they want, they'll be able to socialize the costs of development by having 160,000 Hays County taxpayers footing the bill.
Then they become king-makers, with the ability to turn a $5 million tract of waterless land into a $15 million tract ready for new homes and apartments. With that kind of money at stake there will be the favored and unfavored (don't count yourself among the favored).
Right now they're off trying to secure infrastructure and water rights. Ask them for whom, and you'll get "Hays County". San Marcos has already contracted water for 100,000 residents, a number they won't meet for maybe 20 years, but the county isn't talking to San Marcos. In fact, I've heard that San Marcos wants in on more for some reason.
This discussion deserves to be in the public arena, but it won't get there unless we - the people - take it there.
TEA is a typical right wing black and white overly-zealous free markets fan who cannot see that all problems are caused by more than one factor.
First, TECQ is controlled by the private sector. That is what politicians - especially Republicans - specialize in: dumbing down and corrupting the so-called regulatory agencies so they can continue receiving their lobby money "royalties" from firms like Aqua Texas (Aqua America).
And how bizarre is it when TEA says:
"Aqua Texas is raping their customers with very high rates..."
and then in the following sentence says:
"Aqua is doing what corporations do, providing a service for a price and reaping a profit in the process. That is what most of us would do if we were in their place."
How telling is that comment? TEA is saying that corporations have the privilege and even the right to rape all of us if it could.
Just look at that self-abusive thinking.
Then TEA goes on to say:
"This blaming has become very popular with the "unwashed" and the "brain washed". This fear and distrust of business is simple class envy that has aided the growth of government and its false promises."
You, Sir, are the one who is brainwashed by your own free markets lies - on the one hand espousing it is natural for corporations to rape citizens - "and how government is to blame." What pure foolishness.
You and your kind, Sir, are like incest victims whose father (the corporate sector) has been and continues to rape and molest you and your citizen "family."
But instead of confronting your father (corporations) for the abuse, you blame the mother (government) and/or your fellow citizens for telling you you are being molested.
Very sad, TEA.
It is time to admit the truth of who your abuser is - and admit that your trust has been deeply violated.
Are county officials and their crony friends feathering their financial investment nests by investing in Forestar? Clearly, a guaranteed supply contract of 45,000 acre feet of water over 50 years would be a pretty good earnings boost for the company. Please don't tell me this deal in the making is all arms length.
"Forestar Group, Inc. (symbol FOR) engages in the real estate and natural resources businesses. It operates in three segments: real estate, mineral resources, and fiber resources. Its real estate segment secures entitlements and develops infrastructure on its lands for single-family residential and mixed-use communities, and manages its undeveloped land and commercial operating properties; mineral resources segment manages and leases its oil and gas mineral interests in Texas, Louisiana, Alabama, and Georgia and promotes exploitation, exploration, and development of oil and gas; fiber resources segment sells wood fiber from its land, leases land for recreational uses. The company was founded in 1955 and is headquartered in Austin, TX.
Forestar Group, Inc.
Austin Texas
P:(512) 433-5200
Investor Relations:
(512) 433-5210
www.forestargroup.com
James M. DeCosmo President, Chief Executive Officer & Director
FOR stock price is down almost 50% from its April 2011 high of $20.45.
I have it from a good source that the water rights Forestar is selling were sold to them by T.P. Gilmore. I have not confirmed this, but it does help explain the mad dash by Hays County officials.
Yes. Terry Gilmore is the man behind this Forestar deal in Hays County. He is actually their partner. Interesting that one of Judge Cobb's donors and closest confidants is the person behind an out of the blue water agreement.
I'm sorry but I think this is all smoke and mirrors, we don't need anymore water. My well and at least 6 others that friends of mine have throughout Hays county haven't dropped an inch all summer. We have plenty of water, this is just another way the gov't is lieing to us and making us pay more $$$. If you think there is really a water shortage, wake up
The water is not for current homeowners, it is for future development.
You government haters voted the current government in office. And now that they want to make you pay for their development profits, you cry foul.
When will you free market zealots every figure out that the dishonest rignt wing politicians you vote for under the rhetoric of less government are the first ones to then make you pay with your tax dollars for their crony deals?
Voter Awareness Rule # 1:
During the elections, anytime a right wing politician talks about wanting government out of our lives, they will be the first ones to create big government to push their development or social agendas once elected.
At least the Democrats are honest about their government largesse.
To Anonymous, Sept. 13, 10:47 AM:
I THINK (this is not a fact I've confirmed) that San Marcos wants to secure more and more rights to
water because they hope to sell the water to other cities and to subdivisions to defray the cost of their share of the Hays Caldwell Public Utility Agency. Kyle is also a member of HCPUA, and they've said from the outset that they hope to sell water to help them pay their share of the project.
In that regard (selling water for profit), San Marcos and Kyle would be very like an investor-owned utility -- except maybe not so greedy.
If cities outside the HCPUA are not
thinking ahead about their future water needs, though, perhaps they should be glad that HCPUA may sell them water in the future. Cities have two options in deciding how to secure water: have enormous costs upfront to build the infrastructure to bring water to themselves or pay an IOU or another municipality high rates forever to buy water from them.
Bringing water to Hays County and on south from Bastrop is small thinking. When we run out of water how much water can Bastrop have. We need to be bringing water from the Mississippi. It has plenty. Kick
All of these solutions to our drought - like importing water from the Mississippi or wherever - is too expensive and almost nonsensical. Next you will demand water from the Himalayas.
Hey, let's invade Nepal for their snow runoff.
How about simply an intelligent water conservation program and STOP more ridiculous development that most citizens don't need or want.
If you want to vote for Perry it is your ass. But don't add to your demise by ignoring the water catastophe that is coming if you keep your head up your property rights.
"The TCEQ is supposed to protect the people with regulations designed to keep the tiger at bay, but instead, they feed the tiger."
TEA is so on target.
So what are rank and file citizens to do when the so called free market corporations buy public officials to make laws favoring corporations, and not enforce laws that protect citizens and create a level playing field?
Replace the incumbents with good government candidates.
Good government candidates not running?
Then you run for office.
We don't take back our government by destroying it...we elect good government candidates who represent the citizens...not the special interests and themselves.
Tough job?
You bet.
Time to begin is now.
"The problem isn't the Free Market, the problem is when the market is managed by government."
There is no "Free Market."
The market is rigged by corporations who buy our elected officials (or at least enough of them) to give the corporations all kinds of market advantages, including public referees who sit on the sideline and fail to inforce market rules that protect consumers against fraud, avoid market monopolies and "too big to fail" corporations, and protect consumer safety.
There is no such thing as effective "self regulation" or "voluntary regulation" in the market place.
Protecting consumers and ensuring competition in a "free market" requires public (government) oversight to avoid excesses such as the housing bubble and financial system collapse.
If we need law enforcement to protect the public against criminal crime, what makes anyone believe we don't need honest regulation to protect the public against market crime?
Forestar Group, Inc.
Austin Texas
P:(512) 433-5200
Brent Covert, Senior Vice President and former LCRA manager in Joe Beal's defunk $300 million Water/Wastewater division now being divested by LCRA.
Another swinging door between government and the "free market".
I can cite numerous other government to corporation swinging doors...and corporation to government swinging doors.
The door swings both ways to keep control of government and to keep the insider deals coming.
"If you think there is really a water shortage, wake up."
You have to be kidding, right?
Truck deliveries of water to NW Hays County residents are running 24/7. Call the Dripping Springs Water Supply Corp (512-858-7897)and ask how many millions of gallons were sold at their bulk water meter just in the past three months.
DSWSC is just one of several bulk water meters being used by bulk water haulers.
"In that regard (selling water for profit), San Marcos and Kyle would be very like an investor-owned utility -- except maybe not so greedy."
That's really funny!
Mr. O'Dell, most of the water being sold in bulk to citizens in NW Hays County is mainly to the individuals that actually thought they could run their household on rainwater. One noted rainwater fan claimed his rainwater tanks are 2/3 full. Where did all that "rain" water come from? His well or bulk water purchases, I suspect. It ain't 100%.
"most of the water being sold in bulk to citizens in NW Hays County is mainly to the individuals that actually thought they could run their household on rainwater."
I don't know where you obtained your information but our well water level dropped below the pump...a second time.
And I can attest to my neighbors' whose wells also went "dry."
Point is, there is a shortage of water. If those on rainwater were on well water instead, even more wells would be going "dry."
LCRA is considering cutting off lake water supply to rice growers.
How do you define a "water shortage?"
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