The background
The legal disputes began when Conroe in 2016 disputed increases in wholesale water rates related to the SJRA's 2019 Groundwater Reduction Plan, according to the release.
As previously reported by Community Impact, Groundwater Reduction Plan contracts took effect in 2015 after Montgomery County’s Lone Star Groundwater Conservation District enacted limits on groundwater pumping in 2008, before the groundwater district’s board was changed to an elected membership. The contracts allowed the SJRA to draw surface water from Lake Conroe, treat it and sell it to cities and utilities in Montgomery County, according to the SJRA’s website.
What it means
According to the SJRA news release, the settlement involves the city of Conroe paying the full amount that it was short in paying to SJRA since 2017, which has been held in escrow. Conroe also will begin paying the current rate for treated surface water from Lake Conroe as well as the groundwater pumpage fee going forward, according to the settlement.
On the SJRA side, it will provide Conroe with additional surface water, reduce the term of Conroe's contract from 80 to 40 years, forgive penalties on past due amounts and clarify in the contract that the city of Conroe is not obligated to participate in future GRP phases or expansion of the GRP water treatment plant, according to the news release.
As of Aug. 15, the agreement documents were in the process of being executed, according to the news release.
What they're saying
"We appreciate the city of Conroe's efforts in working with SJRA in reaching this settlement agreement," SJRA General Manager Aubrey Spear said in a news release. "Putting this litigation behind us is best for all GRP participants and their rate payers. With Conroe's payment and savings on legal fees, the wholesale water rates will go down. Ending the litigation also strengthens our partnership with Conroe to continue supplying water to its growing population."
"After months of negotiations, I am pleased with an outcome that is beneficial to both parties," Conroe City Administrator Gary Scott said. "Securing additional water is critical to Conroe's economic growth and long-term vitality. We recognize and appreciate the efforts of the San Jacinto River Authority in working with us. This agreement represents a shared commitment to the betterment of us all. This is a historic decision that sets Conroe on the path to the future."
"This week marks the close of one of the most protracted and costly chapters in that history, as the city of Conroe and the San Jacinto River Authority have reached a long-awaited off-ramp through a settlement agreement regarding the Groundwater Reduction Plan," said Texas House Rep. Will Metcalf, R-Conroe in a social media statement. "While not everyone will agree with every provision, I believe this agreement represents a major step forward for our community as a whole."
