7. Discuss and possible action Lagom Ranch Permit P-20250112. General Manager Kubinski introduced Special Counsel Natasha Martin, who participated remotely, to summarize the contested case hearing process and the hearing examiner's Proposal for Decision (PFD). Attorney Martin explained that the Board had previously delegated authority to a hearing examiner to conduct a preliminary hearing to determine which protestants had legal standing to proceed to a full evidentiary hearing on the merits. On July 20, 2026, two parties—Mr. Mcintyre and Ms. Lee—appeared and presented evidence. The hearing examiner found that neither party demonstrated a personal, justiciable interest distinct from the general public's interest, which is the legal standard required for standing under Texas law. The examiner issued the PFD on July 24, 2026, recommending that the Board deny both requests for a contested case hearing. All other protestants had either not appeared or had withdrawn. Attorney Martin advised the Board that she found no factual errors or legal misapplication in the PFD and therefore did not recommend modifying it. She further clarified that the PFD addresses only the standing question; the Board retains full authority to issue the permit with conditions different from those in the original application, or to deny it. General Manager Kubinski summarized the key conditions contained in the proposed Board Order (No. 2026-0820-1): e@ The permitted well shall be used solely as a public water supply for a commercial lodging operation consisting of 20 cabins. e Authorized withdrawal is up to 977,553 gallons per year (3.0 acre-feet per year). @ The permittee shall maintain the existing monitoring well located 554 feet southwest of the production well; that well may not be used for any other purpose. @ The District may install telemetry or other monitoring equipment on the monitoring well. e The permittee must complete all TCEQ notifications and certifications before commencing commercial withdrawals. BPGCD 3 Meeting Minutes: Aug. 20, 2026 © The permit expires December 31, 2028, if a final TCEQ approval is not received by September 26, 2028. e The permittee shall comply with all District rules and Chapter 36 of the Texas Water Code, including metering, reporting, conservation, and well construction standards. Director Tom Murrah moved to grant the commercial water production permit to Lagom Ranch under Board Order No. 20260820-1. Director Gregory Stevens seconded the motion. The motion carried unanimously.

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.8/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.